The Silver Price and the 1918 Half Crown.

in #silver8 years ago

In this report I talk about the silver price and how undervalued it is relative to the gold price. I look also at the pre decimalised British coinage system.

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It's very interesting video!
Gtreat job , I follow you now :D

US coinage (> dime denomination) was 90% silver until 1964. Given the "war on cash" I don't believe anyone would regret owing these coins by the bag, which are still available from dealers at a small premium to spot price. You can store a large quantity in a small safe. The US and Canadian mints also sell 500 oz. "Monster Boxes" of Eagles and Maple Leafs, for large purchasers. Great for peace of mind...

Enjoy your posts. I am a Silver bull more so than Gold; however, you suggest that Silver is undervalued - I assume in the context of Gold. Value, apart from being in the eye of the beholder, in a truly free market is a demand / supply equation. Thus if Gold demand / supply stays the same but a new use (Refer Jan 17 ALTA Report on new electrics) is found for Silver (with possibly little change in Supply) then Silver should increase in value against Gold.
Sovereign / Half Crown comparisons are interesting but there is much more to the equation. One Pound Sterling was equal to one pound (physical weight) of Sterling Silver (92.5% pure (as you mentioned); however, the half crown should have been 2 ounces in weight (being 1/8th of a pound) yet it is only 0.45 oz. So the Crown (meaning King George) effectively stole money from commoners in 1918 by only minting a coin that was closer in value (compared to the Pound) to a Shilling.
Notwithstanding, after having regard to the Silver price GBP 13.44 / oz your purchase melt value was only about one GBP 1 over the Silver spot per ounce, which is pretty good for a coin (as compared to bullion).
Look forward to your next post.