1916 - 1945 Mercury Dime: 90% Silver

The 1916-D is the key to the series and is eagerly sought after in all grades. While, in 1942 the last year in which proofs of this type were made, due in large part to the advent of World War II.

Look for the rare 1942/1 over-date on circulation strikes. And, 1945 un-circulated examples with Full Split Bands are very rare. Yet, the 1945-S comes with a normally sized mint-mark and a very tiny "Micro S".

The 1916 - 1945 Mercury Dime contains 90% silver which is 0.0723 troy ounces of silver, thus classified as junk silver. You can use the Silver Melt Value calculator to see the value of silver in this coin.

Listed below are the mintage numbers for each year. The year column lists the year and mint mark on the coin where, D is for Denver, S is for San Francisco, and P is for Philadelphia. Also, a coin without a mint mark means the coin was minted in Philadelphia.

The Mintage column is the number of coins struck and released by the U.S. Mint.

The Numismatic Value Range column represents what people typically pay for that type of coin (usually a very wide price range depending on the condition and demand of the coin).

Junk Silver — U.S. Coins With 90% Silver

Junk silver is an informal term used in the United States and Canada for any silver coin which is in rough to fair condition. Junk silver usually, has no collectible value above the bullion value of the silver the coins contain.

Such coins are popular among investors seeking to invest in silver — particularly in small amounts. The word “junk” refers only to the value of the coins as a bullion investment and not to the actual condition of the coins; meaning, junk silver is not necessarily scrap silver.

The most commonly collected U.S. junk silver coins are the Mercury dimes and Roosevelt dimes, Washington quarters, and Franklin half dollars, and Kennedy half dollars, which are minted in or before 1964. These coins have a 90% silver composition (”coin silver”).

When minted some coins containe 0.7234 troy ounces of silver per dollar of face value. In practice, the silver content is usually assumed to be 0.715 ounces because circulation erodes the coins.

Less common junk silver is the Kennedy half dollars from 1965 to 1970, which contained 40% silver. The value of silver content is one reason investors buy junk silver coins. The percent of silver is less likely to come into question, than silver bullion bars, which require certification and authenticity tests.

A “bag” of junk silver, ($1000 face) contains approximately 715 ounces of silver. And, it will generally track the spot price of silver. If silver goes up ten cents, a bag of 90% silver coins will rise $70 or so; however, prices sometimes lag sharp spot price movements because of the liquidity of junk silver coins.

To gain the benefit of junk silver as an investment, investors must sell his or her coins through a coin dealer, on an on-line auction site, or classified advertising. Selling through any of those means usually takes a few weeks, therefore the liquidity of an investment is gradual.

When bags of circulated 90% silver coins can be bought — at about the same premium as 100-oz bars, or even at small premiums over 1-oz silver rounds — bags should be the first choice for many investors because of the reduction in price when an investor buys in bulk.

Buyers can expect to pay a little more for half-dollars than for dimes or quarters because of the higher silver content as well as half-dollars are much more popular. Yet another reason for the demand of half-dollars is fewer half-dollars were minted than dimes or quarters.

Although many investors buy junk silver coins as bullion investments, other investors buy junk 90% silver coins for “survival purposes.” These buyers fear the worst for the dollar. They fear the dollar will be printed until it becomes worthless. If this “worst-case scenario” were to become reality, then U.S. 90% silver coins would be used the purpose they were originally minted: as money.

The history of paper currencies have been to print until those currencies became worthless. Actually, today most dollars in circulation are not printed but are “electronic” or digital dollars, created by the Federal Reserve to increase the supply of money, which many argue increases inflation.

Choosing between junk silver coins or bullion bars is largely a matter of an investor’s goals and resources. Although before 1965, silver coins would be ideal for survival purposes. Junk silver coins sell at premium, or below premiums on 100-oz bars and, 1-oz silver rounds, junk silver coins hold greater upside price potential than .999 fine silver bullion products. At times, and especially during rising precious metals markets, circulated U.S. silver coins pick up premiums.

However, .999 fine bullion items (1,000-, 100-, and 10-oz bars and 1-oz rounds) can be produced at any time; as a result, there are limits to how high premiums on .999 fine silver bullion items can go.

To support this assertion — bags of 90% silver coins hold greater upside potential than .999 fine bullion items — a little background on junk silver coin prices and silver prices must be shown.

Over the last three decades, when precious metals enjoyed bull markets, 90% silver coins often achieved premiums of $1.20/oz to $1.50/oz over spot, sometimes as high at $2.50/oz. This is because many investors want silver in a form they know is silver, and pre-1965 U.S. 90% silver coins certainly fit the investors objective.

Following silver’s spike to $50/oz in the 1980’s, industrial silver users implemented efficiency moves which reduced industrial demand for silver. Furthermore, the rising prices of the 1970’s had spurred efforts to mine more silver and to increase the recovery of silver in the secondary market.

Today, reclaimed silver or recycled silver, is a major source of silver — the essential metal for many industrial consumptions.

Because of these efforts, silver went into “surplus” in the 1980’s. Meaning, newly refined silver exceeded industrial demand. This caused investors to avoid silver in the 1980’s, except for a shortly-lived strong market in 1987.

But, for most of the 1980’s, investors were net sellers of silver. Selling resulted in huge quantities of junk silver coins to be refined and converted into .999 fine silver.

Meanwhile, the Y2K scare in 2000, caused yet another huge melting of circulated 90% silver coins. Buying spurs junk 90% silver began when fears of the world’s computers would stop working on January 1, 2000.

Many people began preparing for the worst. And, fears were accelerated, as highly respected economists issued warnings and wrote books on the coming collapse.

Entire newsletters were dedicated to educating people: how to prepare. One recommendation was circulated instructed people, 90% silver coins should be stashed away so the coins could be used as money when banks closed and ATMs no longer dispensed $20 bills.

Consequently, people bought junk 90% silver coins at whatever prices, and bags picked up 50% premiums. The Y2K scare showed just how quickly 90% silver coins can pick up big premiums and that premiums on 90% silver coins can rise while the price of silver remains stagnant — during 1999, the price of silver was essentially unchanged.

And then, on January 3, 2000, as soon it became evident the world’s computers were not going to fail, investors began selling. And, sellers continued throughout the year, even into 2001. As the sell off continued — forcing down prices on 90% silver coins until they sold at discounts — some junk silver sold below the value of its silver content.

In addition to the sell off, untold quantities of bags were refined into .999 fine silver bullion. Therefore, bags of pre-1965 U.S. silver coins are in short supply.

After the Y2K crash became a nonevent, premiums on bags of 90% silver coins fell to record lows. Junk silver coins became less expensive than 100-oz silver bullion bars.

Indeed, the potential for 90% silver bags to pick up big premiums justifies the buying of bags circulated silver coins by investors who can manage the bags’ weight and bulk.

Silver Prices Plug-in

A WordPress plugin to display the silver, gold, and platinum spot prices from Yahoo! Finance is now released. The plug-in is built using Andrew Hill’s Stock Quote Sidebar. Give Andrew a huge thanks for contributing to the WordPress community. Go to our download page to use this plugin.

Installation and Usage

1. Download and unzip into your WordPress plugin directory
2. Enable the Silver Spot Price plugin in the Admin page
3. Then where you want to display the current spot prices, put the code as following, <?php get_silver_price(); ?>

1942 - 1945 Jefferson (War) Nickel

In World War Two, congress was rationing many commodities. Nickel was rationed because of the use in armor plating. On October 8th, 1942, Congress ordered the United States Mint to remove nickel from the five-cent pieces. From 1942 to the end of 1945, the five-cent pieces were then minted using an alloy of copper, silver and manganese.

The 1942 - 1945 Silver Jefferson Nickel, a junk silver coin, contains 35% silver which is 0.0563 troy ounces. Use the Silver Coin Value calculator to see the value of silver in this coin.

Listed below are the mintage numbers for each year. The year column lists the year and mint mark on the coin where, D is for Denver, S is for San Francisco, and P is for Philadelphia. Also, a coin without a mint mark means the coin was minted in Philadelphia.

The Mintage column is the number of coins struck and released by the U.S. Mint.

The Numismatic Value Range column represents what people typically pay for that type of coin (usually a very wide price range depending on the condition and demand of the coin).

A History of Money and Banking in the United States: Book Review

A History of Money and Banking in the United States: The Colonial Era to World War II
by: Murray N. Rothbard

In what is sure to become the standard account, Rothbard traces inflations, banking panics, and money meltdowns from the Colonial Period through the mid-20th century to show how government’s systematic war on sound money is the hidden force behind nearly all major economic calamities in American history.

Rothbard employs the Ludwig von Mises’ approach to economic history consistently and impressively throughout the volume to unravel the causes and consequences of events and institutions.

Rothbard reviews the U.S. monetary history, from the colonial times through the New Deal era in a historic and economic view.

One of the important benefits of Rothbard’s unique approach is that it naturally leads to an account of the development of the U.S. monetary system in terms of a compelling narrative linking human motives and plans that often-times are hidden, and devious, leading to outcomes that sometimes are tragic.

“And one will learn much more about monetary history from reading this exciting story than from poring over reams of statistical analysis. Although its five parts were written separately, this volume presents a relative integrated narrative, with very little overlap, that sweeps across three hundreds years of U.S. monetary history.” - From the introduction by Joseph Salerno.

Rothbard could be viewed as an attack dog, with his attitude towards his intellectual opponents. And, some may find a few of the attacks amusing, however childish.

Thoughout the book, Rothbard holds an abrasive attitude towards his intellectual opponents, which adds no value to the theme of his book, nor do his attacks strengthen his arguments. While Rothbard never descended to the level of Lenin’s venomous attacks on his opponents, he still holds a strong opinion against many different ideas.

In addition, Rothbard’s line of books reminds me of the rock band The Who’s line of albums – there is a lot of overlap. (Joseph Salerno, who wrote the introduction to my copy, speaks to this fact.) You can own many of Rothbards ideas by only purchasing a few select books. Rothbard’s works, reprinted and reshuffled over the years. For example, if you’ve read “The Case Against the Fed” you’ve already read part of this book. This is not Rothbard’s fault, but it’s a problem.

With this being said, this book is a terrific read for its look at monetary and financial history of these United States with a jaundiced eye.

Rothbard, who comes across as unbelievably well read, links many of history’s participants around their shared desire to centralize and cartelize banking to the detriment of the working masses.

One example is historians writing about the banking industry’s resistance to centralization, Rothbard explodes that myth for what it is – a myth.

A deep knowledge of economics makes Rothbard almost unique among historians, which is a rare combination, and it’s produced a book that is a fascinating, fun read. Even if I’ve read parts of the book elsewhere.

Silver Bearish Investor Vs. Silver Bullish Investors

Recently, Robert McEwen, chairman and chief executive of a Canada-based gold mining company is very bullish on the future outlook for gold. “I expect it to test $850 by the end of 2008, and by the end of 2010, north of $2,000, possibly $5,000,” McEwen stated in a recent interview with Chris Ralph.

And many investors bullish on gold believe, in spite of the price increases in the past several years, actual production of newly mined gold from most nations continues to decline, as costs rise at existing mines — leading the price of gold and silver much higher.

Silver prices have also remained relatively strong. Many experts believe that although demand from jewelry makers will likely drop off as gold prices rise, jewelry demand is likely to be offset by increased purchases from investors who are seeking a liquid investment alternative to the dollar.

And, investment in gold and silver for both large and small investors has been made considerably easier in recent years with the creation of Exchange Traded Funds - funds whose assets are gold or silver held in storage.

However, others argue there’s the very real fact that gold itself doesn’t do anything. Gold has some industrial and jewelry uses, and it’s been used as a currency for much of human history. But as a wealth creation mechanism, gold is pretty useless.

Gold does nothing more than remain relatively scarce, which bullish investors argue gold protects wealth from governmental irrational exuberance.

Investors bearish on gold believe, gold is expensive to keep as an asset with the storage fees, and insurance. While, many other companies will hold value as well as pay dividends while the investor holds the asset – unlike gold, which pays no dividend.

“Even if inflation runs rampant, any cost increases felt uniformly throughout the economy will be at least partially passed on to consumers by businesses. That alone will likely help protect some corporate value, at least among companies in crucial industries,” agues Chuck Saletta a Motley Fool Contributor.

Along with bearish beliefs, gold mining companies will find new mining methods to extract gold from the earth; with supply flooding the gold market prices would not reach $2,000.

The bearish debate says gold does nothing more than temporally hold wealth, and many agree mining companies will find new methods to extract gold and by doing so will supply enough gold to keep prices at current levels.

Regardless of either side you chose, bulls or bears, there are many investment options available to invest in gold. After educating yourself, chose the best option for your situation.

Eight Rules for Exchange Traded Funds (ETF) Success

Carl Delfeld is head of the global advisory firm Chartwell Partners, and he has a list of eight rules to maximize success when investing through an Exchange Traded Fund (ETF).

Managing a global portfolio of exchange-traded funds (ETFs) is a great way to build a diversified portfolio with exposure to equities around the globe.

Fortunately, you need not be a rocket scientist to do this, but many investors fail to observe some basic guidelines. Investing in ETFs can get them into real trouble, so follow these eight steps and sleep easier.

1. Liquidity Comes First: Before you even think of building an investment portfolio, you should set aside about six months of income in a “rainy day” account.

This account could be put into a money market fund or U.S. Treasury securities. Having money set aside will ease your mind and allow you to be more open and creative with your global portfolios.

2. Separate Portfolios: You should separate your core conservative portfolio from your growth portfolios. With the core conservative portfolio, your top priority is capital preservation, and growth is a secondary consideration. While, your growth portfolios are more speculative, with capital growth as the primary goal.

3. Really Diversify Your Portfolios: You need positions in your portfolios that are likely to offset each other as unexpected events and market movements become a reality. This is not accomplished with different sectors of ETFs or a mix of small-cap, mid-cap and large-cap ETFs. Rather the goal is to have some investments that are on both sides of risks.

For example, if the U.S. dollar declines, have some investments in precious metals or denominated in other currencies, such as Switzerland or Australia or Singapore ETFs.

If inflation heats up, have some investments that hedge this risk such as timber, gold or Treasury inflation-protected bonds (TIPs).

If political events or policies in one country take a turn for the worst, it is helpful to have investments in other well-developed countries to offset any loss of value. You get the idea, spread your risk and avoid having one ETF account for more than 5%-10% of your core portfolio.

4. Be Careful Which Countries You Pick: You need some guidelines to help keep you from getting carried away and having too concentrated a position in a particular country or region. In particular, take a good look at the following: 1) the stability and overall political and corporate governance; 2) the legal environment, respect for contracts, low levels of corruption, due process and rule of law; 3) the macroeconomic environment including fiscal discipline and currency strength; and 4) political risks that could affect financial markets.

Keep in mind that the quality of the countries you choose to invest in is the primary but not the only factor. The price or valuation of a country’s stock market is also extremely important.

Often, the best time to buy into a country’s stock market is when it is beaten down, but when there are signs that its economic and political problems will sharply improve. If you have a long-term perspective, you might consider annuities specially structured for ETF portfolios.

5. Minimize Company Risk by using our “buy countries, not stocks” strategy. Instead of trying to pick the best three stocks on the Tokyo Stock Exchange, why not just minimize company risk by buying the iShares MSCI Japan Index, which tracks the Nikkei 225 and spreads this risk across 225 Japanese companies.

6. Monitor ETF Country And Company Exposure: Be careful to look under the hood of ETFs to see where your money is going. For example, let’s look at the iShares MSCI Emerging Markets ETF. It invests in 26 different countries, so it is natural to think that you will get broad exposure to all 26 countries.

However, 50% of an investment in this fund is going to four countries: South Korea, South Africa, Taiwan and China. In addition, incredibly, 7.5% is going to one company, Samsung Electronics of South Korea.

The same is true for the MSCI Europe, Asia and Far East index. It contains 21 developed countries, but 48% of the money you invest would go to just two: Japan and the United Kingdom. Meanwhile, less than 1% would go to Singapore and Ireland!

Country specific ETFs such as the new iShares FTSE/Xinhua China 25 Index can also have a fair amount of concentrated risk. Although the China ETF tracks a basket of 25 companies, the largest five companies account for nearly 50% of your exposure.

7. Cut Losses With A Trailing Stop-Loss Policy And ETF Put Options: We have all been there. You buy a stock or fund, and it appreciates in value rapidly. Then it stumbles and begins to decline. What do you do? Should you buy more, let it ride, or sell? Save yourself a lot of pain and agony by following a simple rule.

If a position ever falls more than 20% from its high, sell it immediately and reassess the situation.

If you invest in an ETF with a sizable downside risk, why not spend a few hundred dollars to purchase a put-option as an insurance policy?

8. Re-balance Your Portfolio: At least annually, you need to make some changes so that you are not overly exposed to countries that have higher risk factors and volatility. One way is by selling some shares of your winners and increasing exposure to under performers.

A re-balance accomplishes another goal, locking in gains and taking some money off the table. Remember, only a fool holds out for top dollar, especially in the more volatile emerging market countries.

Building your portfolios with low-cost, tax-efficient ETFs is a smart strategy, but don’t set it on auto pilot.

For more information call 877-221-1496

About the Author: Carl Delfeld is head of the global advisory firm Chartwell Partners and editor of the the “Asia-Pacific Growth” newsletter and is the author of “The New Global Investor.” For more information please visit http://www.chartwellasia.com

MAG Silver Corp. to List on the American Stock Exchange

VANCOUVER, BRITISH COLUMBIA–(Marketwire - July 2, 2007) - MAG Silver Corp. (TSX VENTURE:MAG)(AMEX:MVG) announces that the Company has received formal approval to list its common shares on the American Stock Exchange (”AMEX”).

The AMEX has advised that the approval is contingent upon the Company being in compliance with all applicable listing standards on the date it begins trading on the Exchange, and may be rescinded if the Company is not in compliance with such standards.

Effective July 9, 2007 the Company expects its shares will be listed for trading on the AMEX under the symbol MVG. The Company will continue to trade on the TSX Venture Exchange under the symbol MAG.

Chicago futures Markets Post Record Volume in June

Reuters - The RPC, a key measure of margins, is reported on a one-month lag. Slower growth in interest rate options, which have the lowest RPC of CME’s product lines, could boost the RPC for the quarter ended in June.

At CBOT, the number two U.S. futures mart, interest rate trading jumped 57 percent on the year to a record 3.8 million contracts per day in June. Financial contracts accounted for 78 percent of CBOT’S total volume for the month.

Strong growth was also seen in CBOT’s agricultural and equity index segments, while turnover in the metals complex was down 25 percent on the year.

Gold, Silver Futures Advance as Dollar Weakens Against Euro

July 2 (Bloomberg) — Gold and silver rose in New York as a decline in the value of the dollar against the euro boosted the appeal of precious metals as alternative investments.

Gold generally moves in the opposite direction of the dollar, which today dropped to a six-week low against the euro on speculation the European Central Bank may raise interest rates faster than the U.S. Federal Reserve. Before today, gold had gained 2 percent this year and the euro was up 2.6 percent.