Jim Bisognani: The Shining White Hope – Silver

It finally happened — for the first time in more than 13 years, I missed a deadline courtesy of Mother Nature. Just as I was frantically attempting to transmit my article on April 4, all power and internet suddenly went out. There was no imminent warning, no flickering lights — just a sudden slam and darkness...

I know it's a few days late, but I felt like an April Fool. We were dumped on big time; as this article was to post, we — those in my geographical location — were the recipients of nearly two feet of heavy, wet snow and ice, just as the grass was beginning to show some life and the grounds were clear. Such is life in New England!

In between shoveling and mild cursing (to myself, of course), I couldn't wait to get into the warm house and sit down at my computer to thaw out. But guess what, Jim? The power was still out. In the end, all services were out for two full days in my area. The temperature in the house got to a rather brisk 49 degrees.

It truly felt like a godsend when utilities were finally restored on Friday night. Yet, the two days without a true connection to the outside world left me with so many numismatic questions — what were the metals doing, what prices were online auctions bringing — egad!

Luckily, I've got the information I need now.

As I've touched on during the last two reports, gold has remained an absolute juggernaut. As of this Wednesday afternoon, the yellow metal has designs on breaching $2,400 per ounce. Despite the excitement and attention during the escalation, there are many collectors who can't afford to buy even one ounce of gold at the current prices. I mean, for the average worker in the US, the price amounts to something like three and a half weeks' pay per ounce of gold.

For me, the alternative is the shining white hope: silver. To many — myself included — silver's spot price has been somewhat (surprisingly) suppressed, given the major run-up in gold, as the two metals have often escalated in tandem. Well, silver has finally made a move, recently closing over $27 per ounce for the first time since June 2021, and then soaring over $28 per ounce for the first time since September 2020 soon after.

So, my fellow coindexters, silver has quietly driven higher, by 22.5%, since the first of the year, which is now significantly higher than the 16% move by gold in the same time period. Yet on paper, the $5 per ounce bump in silver is dwarfed by the $325 increase in gold per ounce.

So, gold has gotten all (or nearly all) of the attention. However, even with the recent breakout by silver, we're still looking at an 84:1 ratio between gold and silver. This, my friends, appears to be quite the discrepancy, and one that beckons to be taken advantage of by acquisition. The last time silver spot was over $28, the ratios between the two were 68:1. Using the same fundamental ratios in 2024, we should see silver spot trading close to $35 per ounce (but what do I know?). I'm sure in the coming months, or even days, it will balance out.

My thoughts on silver

Even so, the collectors I've recently spoken to have asked me about my thoughts on silver. Personally, I've always enjoyed the flashing white brilliance of silver in coinage, and that it is an underdog and undervalued precious metal. In the present market, you could buy nearly 90 ounces of silver for the price of one ounce of gold. Silver Eagles, Morgan Silver Dollars and 90% junk US silver are all inexpensive options, but let's not forget foreign silver coins.

I've collected and very much enjoyed silver coins since my youth. It was the affordable precious metal (and still is). I have acquired US and foreign coins with silver content virtually all of my life. The flashy white frost billowing on a freshly minted coin is fantastic, and the unforgettable ring when a silver coin rolls and falls on the tabletop can't be replicated.

When I was a youngster, my first purchase at a coin show was a 1963 South African 50 Cent silver coin. Here she is: I paid the princely sum of $5 for her back in 1970.

After scanning a few tables at my local monthly coin show, I came across this dealer who had nothing but world coins in a showcase. I was quite taken with a majestic springbok in bold "pronking" mode, which adorned the reverse of the coin. When the dealer saw my attraction to that design, he pointed out that the springbok was also on the 5 Shilling pieces of pre-decimal South African coinage, and was also adorning the reverse of the South African Gold Half Pound and Gold Pound.

Although gold spot was just north of $35 per ounce at the time, it was still out of a 13-year-old's budget at the time. This was a moot point anyway, because I was informed by a dealer (in 1970) that it was still illegal to import gold world coins to the US. That law would change on January 1, 1975.

After that information, the dealer winked and proudly showed me the pair of cufflinks he was wearing. They were made with a pair of George VI 1952 Half Pound gold coins! "They were a gift and made special for me when I had some business in South Africa years ago," he explained. At the time, it was quite a thrill to see the diminutive gold springboks perched on top of the posts keeping the dealer's cuffs in order.

Then, the dealer pulled out a great piece of contraband to share — a gold Krugerrand with the wonderful springbok design.

In my teen years and beyond, I squirreled away every nice South African 5 Shilling piece I could find. I was truly enamored with that reverse design by Coert L. Steynberg! Back then, it was still possible to get nice Mint State and Prooflike coins for just a few dollars. Yes, my fellow coindexters, I know — it would be great to travel back in time.

In the present market, those wonderful 5 Shilling silver pieces of George VI from 1947 to 1950 have a melt value of over $20. These coins were struck in .800 fine silver and the ASW (actual silver weight) was .7274 ounces each. The 1951-1952 George VI 5 Shillings, and all Elizabeth II (1953-1960) 5 Shillings had the silver content reduced to .500 fine silver with an ASW of .4546 ounces each, and presently carry a $13 melt value.

Collecting silver today

For collectors young and old looking to get on board the silver trolley with an animal theme, this series is relatively easy to build and very affordable. For me, eBay is a great source for procurement, and with due diligence you should be able to find coins at spot or below, with free shipping to boot!

A great raw Mint State 1949 5 Shillings just sold on eBay for $20.47 with shipping; based on current market, that is virtually at spot price. Another nearly like coin sold for $19, which is about 8.25% below melt value. Additionally, there was another pair of lightly circulated 1952 and 1957 5 Shilling coins; the pair sold for $21.50, which is 17% below melt value.

So, my fellow coindexters, you get the idea here. You can have fun with your collection and not spend a lot of cash. While there are no true rarities within the series, several Queen Elizabeth II coins harbor very small mintages that make them desirable. The 1954 and 1955 regular business strikes total 10,000 for the former and 40,000 for the latter. The key date of the series is the 1959, for which business strikes total a scant 2,989.

You can set your sights on these coins and other world coins, too. Perhaps try building a new series, or just accumulate some nifty world silver coins with considerable numismatic history. A truly remarkable resource is the NGC World Coin Price Guide, where you can pull up a particular coin, then glance at the top of the page and, under "Specifications," find out what the ASW is and melt value.

Another great collecting option is from our neighbor to the north. Canadian Prooflike sets through the 1967 Centennial issue contained 1.11 ounces of pure silver. Each dime, quarter, half dollar and dollar were struck in .800 fine silver and, as of writing this, have a melt value of $31.50. I love these sets and have fun scoping out and picking up several every other week on eBay. Just this past week, I picked up four sets, each still sealed with card and brown envelope, at an average of $28 per set. Such fun and at such a bargain, too!

While some may be drawn to 90% "junk" US silver, I like to hunt for world coins which, on average, have dramatically lower mintages than a 1964 Dime or Quarter, and a higher collector component.

There is a plethora of modern silver coins that were produced by the Franklin Mint in the 1970s to the 1980s. While the majority of the issues may only bring a tad above their respective melt value, there are numerous issues that do command a huge premium. The demand for a new series or issuing country often plummeted after the initial publicity following an inaugural release. This lack of demand can be seen in the miniscule mintages of future years. Several sets and individual coins were produced with mintages of well under 1,000, so keep an eye open when searching.

Additionally, many of the Franklin Mint coins are really well designed. One of my favorite designs of the modern era is the Barbados $10. The boldly sculpted obverse features Neptune with his trident in hand, appearing to guard a whale. Meanwhile, the stylish Coat of Arms adorns the reverse. This ASW 1.1271 sterling silver is truly a marvel in Ultra Cameo! The Island Nation series ran from 1973-1981. While the swell of initial demand propelled the 1973 Proof set mintage total to the higher watermark of 97,454, the 1977-1981 issues saw production limited dramatically, as seen below.

Barbados Proof Set Mintages (Franklin Mint Issues)

Year	1977	1978	1979	1980	1981
Mintage	7,212	7,079	6,534	3,618	835

Other issuing countries got on board, too. While I like and have collected pre-decimal Fiji coinage for decades, I also keep a lookout for larger silver issues, such as the 1974 Fiji $25. This large silver coin weighing in at an ASW of 1.4453 ounces of .925 sterling silver has a melt value of $41 at the time of writing this article. Commemorating the 100th anniversary of cession to Great Britain, this coin has a modest Proof mintage of 8,299, but the "business strikes" were limited to a mintage of just 2,400. This was not a Franklin Mint issue; it was struck by the Birmingham Mint. Coins can often be found at around melt value!

Certainly, right now there are many "limited editions" out there in numismatic-land. The key is having a low mintage from a popular series or country. That is why I like the Fijian $25 featuring the noble bust of King Cakobau on the reverse and the youthful and lovely Elizabeth II adorning the obverse. 

So, as the metal rally continues, perhaps branch out your collecting avenues to include some neat and highly affordable world silver coins at great prices.

30 years ago today...

What a difference a few weeks make. All the snow is now gone from the early April storm. Grass is visible, and the robins and other songbirds have made a return. Meanwhile, the true rite of spring — the Boston Marathon — has just concluded. After watching that remarkable event on Patriots Day (April 15), I waxed nostalgic.

On a personal note, as this article goes to press, it is exactly 30 years ago on this date that yours truly ran his first (of eight consecutive) Boston Marathons. The 98th Boston was going to be my third marathon overall as of 1994. I was running for the Leukemia Society and a local boy from Portsmouth, New Hampshire.

As I left work that Friday evening, I hopped on the bus to Boston to meet and lodge with a pair of my running buddies for marathon weekend, while also attending the expo in Boston. The run was fantastic and the memories of that adoring and vocal army of supporters along the 26.2-mile trek was magical. There is truly nothing like it.

I had known there was going to be a little story, and maybe a photo about my run and the leukemia patient, in the local newspaper. I didn't see the Monday edition of the paper until I got home from the marathon early the following Tuesday. What a shock — there I was on the front page of the Portsmouth Herald! I'll never forget my Aunt Vunda asking me to autograph a copy for her... She laughed, "It's the first time a relation made the front page who wasn't arrested."

Until next time, be safe and happy collecting!

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