Dealer fair melt price?

**zekeguzz** · 10-03-2009, 02:50 AM

I know all dealers have different prices for coins. But what about the silver content melt value? Is there a $2 to $4 lower for melt value so a profit can be made? Example: Silver= $16.40/oz

A 1939 walking liberty would have a melt value of $5.93. What would be a fair dealer price be for melting that coin? My wording is awful but I hope you get the gist of what I'm trying to ask. zeke

**GDJMSP** · 10-03-2009, 09:01 AM

Depends on the dealer, they all use different percentages. Many use 10%, meaning 10% less than whatever the spot price is at the time.

jello · 10-03-2009, 09:17 AM

I know my buddy coin shop is overloaded with cull & sterling silver ,that he is turn folks away.unless there nice coins,or gold

majorbigtime · 10-03-2009, 09:20 AM

I believe it depends both on the dealer and the venue. At a coin show, you will probably receive a a higher price than walking into a B+M because of the competition. Many dealers price by reference to a multiple of face value. At a recent local show, a dealer had a big sign "Buy silver 10X; sell at 11X".

**zekeguzz** · 10-03-2009, 09:20 AM

TO GDJMSP-----That sounds right, thanks. Explaination: a dealer gave me a price of $4 so that was close but still on ther low side. Let's make sure, please:
10%of $16/oz=$1.60, $16-$1.60=$14.4/oz, for a walikng liberty 1939=0.36169oz so $14.40X.36169=$5.21.
Whoa, that price I was given was way low. Glad I didn't accept.

zeke

majorbigtime · 10-03-2009, 09:38 AM

Quote:

Originally Posted by jello

I know my buddy coin shop is overloaded with cull & sterling silver ,that he is turn folks away.unless there nice coins,or gold

That's odd. Most B++Ms will buy all day long and just flip it. I know some folks that made a killing during the great silver run of the 1980s.

jello · 10-03-2009, 10:07 AM

There only 2 coin shop Huntsville & then 100 miles the north Nashville and then about 110 the south in Birmingham.last week he had about 275-300 pounds & about the same this week cash in.but I sure he not turn to many away.he trying to be picky and just take in nice resell able silver coin's

Cloudsweeper99 · 10-03-2009, 01:00 PM

No silver coin is "worth" less than melt value. The dealer is trying to maximize his profits, and so are you. He isn't "entitled" to make money on the transaction just because he is in business, and neither are you. It is a pure negotiation, and the dealer needs the customer as much as the customer needs the dealer. Somehow, the customer frequently forgets that. If the dealer offers less than melt value, you could probably sell to a neighbor, relative or co-worker for melt value if you bothered to ask around.

**GDJMSP** · 10-03-2009, 01:27 PM

Quote:

Originally Posted by Cloudsweeper99

No silver coin is "worth" less than melt value. The dealer is trying to maximize his profits, and so are you. He isn't "entitled" to make money on the transaction just because he is in business, and neither are you. It is a pure negotiation, and the dealer needs the customer as much as the customer needs the dealer. Somehow, the customer frequently forgets that. If the dealer offers less than melt value, you could probably sell to a neighbor, relative or co-worker for melt value if you bothered to ask around.

Lemme ask ya Cloud, just how many times have you been able to sell silver and get full spot or more ?

**The_Cave_Troll** · 10-03-2009, 01:27 PM

Quote:

Originally Posted by Cloudsweeper99

If the dealer offers less than melt value, you could probably sell to a neighbor, relative or co-worker for melt value if you bothered to ask around.

Yeah, but if you have a coin with $5.93 of silver in it and a dealer will pay $5 for it, how much effort are you willing to expend to make 93¢??

To answer the OP, the last time I checked (more than a week ago) we were paying about 10X FV for junk silver, and a little more if it was in full $1000 FV bags.

coleguy · 10-03-2009, 03:14 PM

No dealer I've ever seen pays full spot price. They wouldn't be in business long if they did, seeing as most silver people bring in is junk and doesn't sell again. So that dealer has to assume all silver and gold is going to the refiner, and no refiner pays spot either.
Guy~

Onehawk33 · 10-04-2009, 03:51 AM

A simple formula for calculating what dealers in my area pay for common circulated silver is to multiply spot times .65 then round to the nearest quarter dollar. If spot is 16.40 then $10.50-10.75 times face would be what you can expect. Other factors have influence, but that works for me as a benchmark.

**zekeguzz** · 10-04-2009, 09:44 AM

That seems mighty low. Using your .65 multiplier a walking liberty with a $5.93 silver content would have a $3.85 melt price. HMMmmmm let me think about that. Naw too low for me.

**GDJMSP** · 10-04-2009, 10:18 AM

So what percentage below spot do you think it should be ?

**raider34** · 10-04-2009, 10:34 AM

Quote:

Originally Posted by zekeguzz

That seems mighty low. Using your .65 multiplier a walking liberty with a $5.93 silver content would have a $3.85 melt price. HMMmmmm let me think about that. Naw too low for me.

He's using the .65 multiplier on the value of silver, at the time, to determine how much times face value he should get.

Quote:

Originally Posted by Onehawk33

A simple formula for calculating what dealers in my area pay for common circulated silver is to multiply spot times .65 then round to the nearest quarter dollar. If spot is 16.40 then $10.50-10.75 times face would be what you can expect. Other factors have influence, but that works for me as a benchmark.

So if silver's 16.40 an ounce (16.40 x .65) = 10.66, so $10.66 x face value of the silver coins.

Imo that's a pretty accurate formula.

Just a few days ago I sold a bunch of common circulated WL halves. The highest price I got was $5.25 a piece, and the lowest was $5.00 a piece.

Welcome to Coin Talk! Register Now, it's easy and FREE!