Now that silver passed $40 and is flirting with $50........

[coinsarefun]

How will this impact the coin collectors wallet?
Will we see MS64-65 Morgan prices go through the roof?

Is it headed for a correction?

My major question is with all the obvious melting going on, what is this going to do to the current populations of
silver coins? All should be affected, modern commem's, older xf commem's, Morgans and even modern coins.
Its possible that a modern common coin can become a semi rarity soon

[FilthyBroke]

I'm certainly NOT any sort of expert on this, so take my input for what it is, just a collector's view and opinion.

I don't see higher grade coins being affected, as their higher numismatic value seems to cushion the effect of the higher silver prices.

And I have a question - Is there really a lot more actual melting going on, or is it just heavier trading and hoarding?  The latter would be my assumption. 

Strange thing is, when I was collecting U.S. coins exclusively, I'd go to shows and see literally thousands of each silver type and denomination.  Mind you, these are smallish local shows, with TONS of the same stuff.  There must be a huge amount of each type of these old silver coins still around, even after all these years of trading/melting.  A few trips to these shows helped me to decide to go a different route and collect less common coinage, exonumia, medals and tokens.  Heck, even the "rare" stuff seemed easy to come by.  But I guess I'm getting away from the original post (sorry 'bout that). 

I'd bet that silver is just trading heavily but not necessarily being melted. But that's just my feeling, based on no solid or credible evidence.

[coinsarefun]

Actually, there is unbelievable amount of melting going on. A coin dealer that I know personally just bought a place and opened a refinery just for the purpose of melting silver and gold coins.
Imagine.....so busy with melting he opened his own refinery

[FilthyBroke]

Interesting.... I wonder what they do then with the silver after melting it?  Any ideas? 

[coinsarefun]

Interesting.... I wonder what they do then with the silver after melting it?  Any ideas?

Turn it into large bars, 100 ounces and up and sell it local as well as to larger dealers.
Today I watched another local dealer who bought sheets of ten ounce bars( I didn't even know they had those)
Anyways, he tore the ten ounce sheet bars and was selling them like candy bars.
People were standing in line. He couldn't tear them apart fast enough.

I do think that it may flirt around $50 but people are going to get an abrupt correction in price
and many will get burned.

[FilthyBroke]

Sorry to get this thread sidetracked, but I find this fascinating.

So the dealer melts the silver, then sells it back to the general public?  Why not just hold the original coinage?  It would at least have historical/numismatic value if left as coins. I wonder if they are using the silver or just holding it as an investment.   

I wouldn't think there would be so many buyers at these high prices, but someone's gotta be buying it, I guess. (not me, not now.)

[coinsarefun]

Looks like silver is tanking....down to $35
I guess the bubble bursted, time for a correction