Dealer "buy price" for junk silver coins?

Discussion in 'Bullion Investing' started by Exchequer, Dec 30, 2009.

  1. Exchequer

    Exchequer Buffalo Hunter

    I've been reading lots of advice here on the various ways to invest in silver.

    To help me decide which form of bulk silver would be best for me, can anyone tell me what a dealer will pay me if I walk in to sell my 90% silver coins to him. What will his offer price be, in today's market? I understand that different dealers will offer different prices, so I'm just looking for what I might get if I called four dealers and went with the strongest offer.

    I like the idea of junk silver coins, but don't want to take a large loss if/when I decide to sell. Are dealers always going to pay less than spot?
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  3. CappedBustDimes

    CappedBustDimes Senior Member

    Probably, otherwise they wouldn't be dealers for very long.
    Open the phone book or "contact us" page and give a few dealers a call to find out what their buying at?

    Kitco is offering $10.7/$1 face value.
    https://online.kitco.com/refining/

    Most B&Ms offer 9-11x face.
  4. silvrluvr

    silvrluvr Senior Member

    Remember, spot price is for 1000 oz. bars in US Dollars. It costs money to refine coins and it costs money to make the bars into bullion coins, bars, rounds, etc.
  5. Exchequer

    Exchequer Buffalo Hunter

    Thanks, Capped. I will bookmark that link.

    I've read that sometimes a dealer will pay over spot for ASE's, so wondering if they'd ever do the same for 90% coins.

    "Most B&Ms offer 9-11x face." What's a B&M?
  6. silvrluvr

    silvrluvr Senior Member

    Kitco's buy price at the moment for a 100 oz. bar is spot, which is $16.75/oz. as I type this. Their buy price for a 1000 oz. bar is $16,600...hmmmmmmm.
  7. silvrluvr

    silvrluvr Senior Member

    B&M is short for 'brick and mortar', or a shop. Most bullion items will trade at a premium to spot. The trick is: Buy at a premium, sell at a premium. It will always cost more than spot price to make 1000 oz. bars into smaller units like ASEs.
  8. silvrluvr

    silvrluvr Senior Member

    90% silver coins are a pretty good buy as they can be had closest to spot, usually, and are already made into various smaller units. Not sure if the refining costs are higher than .999 silver when you sell to a refinery like Kitco.
  9. CappedBustDimes

    CappedBustDimes Senior Member

    Apples and Oranges...ASE are .999 fine.... junk, jewlery and 90% coins are not .

    The refining process for the two are different. More "labor" intensive and expensive to refine 90% silver.

    ASE are a much more liquid asset when trading than 90% "junk" coins.


    Check apmex.com too.
  10. CappedBustDimes

    CappedBustDimes Senior Member

    The spreads on bid/ask always decrease as quantity increases. The prices are dynamic ...most only have POR for 100oz-1000oz. bars...I am certain the $16,000 price quote is a bit "dated" and would be adjusted accordingly.
  11. Cloudsweeper99

    Cloudsweeper99 Treasure Hunter

    I don't know if this is necessarily true. If the refiner is turning it into sterling, it is less costly to add a small amount of copper than a large amount. Beyond that, I think the mindset that the best use for coins is to melt them is fundamentally flawed.
  12. CappedBustDimes

    CappedBustDimes Senior Member

    You are some what correct...but, most refiners that DO NOT turn it into sterling.
  13. Cloudsweeper99

    Cloudsweeper99 Treasure Hunter

    Either way, the refiner ends up with more metal.
  14. illini420

    illini420 1909 Collector

    Yes, if it's junk 90% dealers will almost always pay less than spot. So if you don't want to take that hit upon selling, just sell to other investors/collectors. It's not that hard to do and as long as you get paid up front, there is little risk in doing so.

    If dealers are currently paying 9-11x face for 90%, you could most likely sell the same stuff on the Open forum for 11.5-12.5x face with very little effort except having to box it up and having to go to the post office.

    Same story when buying, you can often get better prices buying from other collectors directly than you can from a dealer, but make sure you have a relationship with the seller (or have otherwise done some due diligence on then) before buying since there are scammers out there!
  15. Exchequer

    Exchequer Buffalo Hunter

    Good advice, thanks.
  16. RGJohn777

    RGJohn777 Junior Member

    Do they actually do this?

    I thought they simply bought and sold the coins as-is. They count and determine the face value but do they 'refine' them into pure silver? Kitco certainly doesn't refine silver, they state that they never do so. Why would you, given the costs? And then you have a product which is open to question. As coins, anybody can readily ascertain their worth by inspection. As a shiny bar of "I-dunno-what", now you're looking at assay costs.
  17. BNB Analytics

    BNB Analytics New Member

    Just sell on ebay or at a show. Forget selling junk silver to a dealer. There prices won't make you smile.

    bnb
  18. cerdsalicious

    cerdsalicious BigShot

    I am prety sure kitco doesnt refine the US coins. I could be wrong but if they were its strongly against the law.
    They probably have a sister ocmpany that sells 90% coins in bulk to customers.
  19. SilverSurfer

    SilverSurfer Whack Job

    Dealers will stop paying less than spot when people stop selling for less than spot. Here is a secret no dealer wants you to know.......Dealers make their money buying, not selling. If everyone demanded spot, and the dealers all said no, how would they make any money? Don't sell your silver/coins for anything less than what you want for them. If you don't get what you want, pick your coins/silver up and leave. We should all stick together on this.
  20. rugrats2001

    rugrats2001 Seeker of Truth

    I have a hard time believing that ANY profit is made from buying alone - if you don't sell, you don't eat!
  21. Owle

    Owle Junior Member

    90% Silver buy price

    Was at a dealer's place on Wednesday and he was quoting/paying 12X face for 90%. There has been some decline since then...

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