Why Purchase Silver By The oz...?

[reduen]

Ok, so I purchase a 1oz silver coin, now what do I do with it?

Even if I were in a state like Nevada where it is now legal to use it, do I now have to purchase 20 loafs of bread to use up the entire 1oz coins value?

If not and I buy only one loaf of bread what will I get back for change? Sorry, I am just not getting it right now... Are there other coins made from silver that weigh less than 1oz?

 

[Seraphim]

Junk silver. I.e, American coined money 1965 and prior. 90% silver content. Dimes, quarters, half dollars and dollars (nickels too maybe?).

 

[libertybrewcity]

because you could wake up tomorrow and it could be worth 100 dollars an ounce. It is a store a value, but it also is a hedge against inflation.

As for using it, usually it is not accepted as a form of payment. If you want to use it as a form of payment you could buy smaller denominations of silver like silver dimes or half oz, etc.

 

[AmericasLastHope]

You can use pre-1965 quarters and dimes (90% silver) for smaller transactions.

 

[enjerth]

Ok, so I purchase a 1oz silver coin, now what do I do with it?

Even if I were in a state like Nevada where it is now legal to use it, do I now have to purchase 20 loafs of bread to use up the entire 1oz coins value?

If not and I buy only one loaf of bread what will I get back for change? Sorry, I am just not getting it right now... Are there other coins made from silver that weigh less than 1oz?

Don't worry. When it really matters (when the dollar is mostly just useful for tinder) your 1oz silver might not even buy 1 loaf. While the dollar will still buy a loaf of bread, use it and save the silver.

If you want small units of silver, get <=1964 "junk silver" quarters and dimes. They're 90% silver and their "junk" value is about spot price x 75% per $1 face value. Right now I figure that'd be around 36 or 37 times face value you'd pay at a coin shop.

 

[LibertyRevolution]

If you have a 1oz silver eagle, its face value is $1. It wouldn't even buy you 1 loaf of bread.

To get the metal price out of it, you would have to visit a coin store and sell it there.

 

[Cleaner44]

I like to think of precious metals as insurance against government run amok. It is a way you can save money without worrying about the govt printing it's value away. Hold on to it until the time comes that you really need to use it's value. At that time trade or sell it. Sell it to me or a coin shop or a neighbor or someone on Craigslist or trade it for something you need or want. It is money, use it as such with others that see the value it holds.

 

[Acala]

During the early years of this nation, the spanish milled dollar was the most widely circulated silver coin. It was commonly broken into 8 pieces, or bits, and the pieces used as coins. Thus, the milled dollars were also known as pieces of eight. This is also why a quarter-dollar is, to this day, still sometimes referred to as two bits, because two bits of the milled dollar equalled a quarter of a dollar, although very few people who call it that know why.

The point being that because the value of a silver ounce is in the content of the coin and not the symbols printed on it, you can break an ounce in half and each half will retain half the value of the whole. Etc. No reason why the bits of a silver ounce today would be less negotiable than the bits of the milled dollar were in the American colonies.

However, junk silver coins are likely to be more widely accepted sooner than wedges cut from silver ounces.

 

[Dr.3D]

Just sell the silver to get some FRN's and then spend them quickly. LOL

 

[reduen]

Just sell the silver to get some FRN's and then spend them quickly. LOL

Gee thanks for your great advice here... Why even bother posting something like this...?

 

[Acala]

Gee thanks for your great advice here... Why even bother posting something like this...?

What did you intend when you bought the ounce of silver? If you want to use it directly as money, your opportunity will come when the dollar collapses. At that point the market will generate a currency that will make change for your ounce. Probably pre-65 dimes and quarters. Maybe copper will make a comeback. Who knows? But silver has been money for a VERY long time for a very good reason. It makes good money! If you want to convert dollars into something that is likely to hold its value and also might serve directly as money, silver coins, regardless of size, would be hard to beat.

But if you thought you could buy an ounce of silver today and buy groceries with it tomorrow, well, that was probably not a very good plan. It can be done, but not efficiently.

 

[Dr.3D]

Gee thanks for your great advice here... Why even bother posting something like this...?

Because that's exactly what people in Zimbabwe did when they had gold and wanted food. They sold the gold to get Zimbabwe currency and then bought groceries. Gold and silver are great if they are accepted directly by those you are buying food from, but need to be converted to something people are willing to accept if not.

If you had a flock of chickens and decided you wanted bread, would you take the chicken to the store to trade for bread? No, you would sell the chicken and then buy bread.

 

[fatjohn]

Because that's exactly what people in Zimbabwe did when they had gold and wanted food. They sold the gold to get Zimbabwe currency and then bought groceries. Gold and silver are great if they are accepted directly by those you are buying food from, but need to be converted to something people are willing to accept if not.

The thing is that even when everyone accepts silver you'll not be able to buy a bread or a liter water with 0.05 grams of silver. Because thats how high silver is going to go when it will have ruined the competition it is currently having: fiat. So indeed that will be the only use in the end for fiat, the very small transactions.

Nevermind acala's post is better.

 

[Dr.3D]

The thing is that even when everyone accepts silver you'll not be able to buy a bread or a liter water with 0.05 grams of silver. Because thats how high silver is going to go when it will have ruined the competition it is currently having: fiat. So indeed that will be the only use in the end for fiat, the very small transactions.

When there isn't any other currency, the silver will be cut into smaller units and a scale will weigh it to see how much it's worth. It's been done in the past that way and I don't see why it wouldn't work in the future that way.

 

[TXcarlosTX]

I think im going to buy some.

What is the best place to buy some online?

 

[Dr.3D]

I think im going to buy some.

What is the best place to buy some online?

I guess that would depend on how much you want to buy. This link seems like a pretty good deal of you buy enough of it. $25 for shipping no matter how much you buy. http://www.silverprice.com/

Of course there are many others too, like http://www.apmex.com/
They often have large quantity discounts.

Edit: On that first link, be aware and don't let them sell you numismatics, just 999 or better silver.

 

[AZKing]

I think im going to buy some.

What is the best place to buy some online?

Check out some coin shops in your area too.

 

[Seraphim]

I suggest finding a local dealer, paying cash and save on the shipping.

I think im going to buy some.

What is the best place to buy some online?

 

[CavortingChicken]

Ok, so I purchase a 1oz silver coin, now what do I do with it?

Even if I were in a state like Nevada where it is now legal to use it, do I now have to purchase 20 loafs of bread to use up the entire 1oz coins value?

If not and I buy only one loaf of bread what will I get back for change? Sorry, I am just not getting it right now... Are there other coins made from silver that weigh less than 1oz?

I'm guessing when things get that bad(dollar collapse) it will probably be more practical to use copper for making small purchases(loaf of bread, newspaper). Some say that will be the new "poor mans gold." But yea, who says you have to use 1oz pieces of silver, you can always buy 40% or 90% silver US coins, they are fractions the size of an ounce and will probably be useful for most exchanges. Check out coinflation.com for current values of the above coins. You can usually get them at any pawn or bullion dealer.

 

[Icymudpuppy]

Maybe not bread without smaller denominations, but I could definitely see it used to pay for your rent, or clothing, or using silver to buy a load of firewood.