Volatility Shock-Absorber Coins
When the silver price crashes, some coins fall harder than others. Here is how to build a portfolio that resists the drop.
If Silver Spot Price drops from $30 to $20 (-33%), does every coin lose 33% of its value? No. Some coins are "Shock Absorbers." They resist the drop.
How It Works
Coins have two value components: Spot Value + Numismatic (Collector) Value.
- Pure Bullion (100% Spot): Falls exactly with the market.
- Example: 100 oz bar.
- Semi-Numismatic (Spot + History): Falls slower.
- Example: Morgan Dollars.
- Even if silver goes to $0, a Morgan Dollar will simply never sell for $0. It has a "historical floor."
The "Floor" Effect
Collector demand acts as a floor. There is a price at which collectors will step in and buy every Morgan Dollar in existence, regardless of the melt value. This means that in a Bear Market (falling prices), semi-numismatics (Morgans, Peace Dollars, Pre-33 Gold) tend to outperform pure bullion.
Strategy:
- Bull Market (Rising): Buy pure bullion (Generic rounds). They rise fastest.
- Bear Market (Falling/Flat): Buy semi-numismatics (Vintage coins). They hold value best.
Market Cycle Alerts
We track the 'Premium Ratio' to tell you when it's time to switch from Bullion to Numismatics (and back).