I get a little confused with the x face value of silver. I have been buying 90% silver using coinflation for reference. I basically have been buying the 90% for spot of silver -$5.00. So if silver is $40 an oz I have been paying $35 an oz. Is this a good price because I'm ready to make a big purchase? I have already bought 71.50ozs of 90% and I am ready to buy another 71.50ozs
I'd say thats alright, I think the better way to do it would be to pay. 90% of the spot price, which at 40 is 36. So you'r close there not a big deal but if it gets higher $5 could be less than that 10%. Just my thoughts.
The first 71.50ozs I bought was not all at once. I know when silver was $34 an oz I bought some at $29. So the higher it go's means that I will be paying more than -$5. I thought no mater what the price of siver an oz is at the time -$5 of spot is still $5 less an oz
$35 on a $40 spot would be *terrible*. Just *horrible*. The rate at $40 should be around $28. There is only ~.71oz of silver in most combinations of $1 of face 90% coinage. It varies when you include slightly higher concentrated coins like the $1 coins or lower concentrations like the last few years of the Kennedy halves. Still, most coin shops sell you mixed pre-65 quarters/dimes and maybe halves at the 'standard' face rate so these concentration variables don't usually matter. Do the simple thing...drive down to your busiest local coin shop and see if they can satisfy your purchase quantity at a reasonable rate (they will inflate the direct factor by 1-2x ... so expect $30 or so @ $40 spot). Happy hunting!
When people come in my business, I have a sigh up that I buy silver coins. I look over them to check for any more valuabe dates, keep them in a seperate pile fo price calculation. I then explain to then about the coins conditions. G4 circulated up to a few MS coins. For the common dates I offer 85% of Coinflations melt price for that day. They seem to be happy with my offers, as most of them have collected their coins at face value.
I have an account with bullion direct and if I would buy from the Nucleo Exchange they are selling the $100 (71.500oz) face for $2835. If I am able to buy the same amount for $2485 and no extra cost for shipping ect.. isn't that a better deal. or is that a horrible price also. Now I more confused.
Coinflation has the current melt value of many circulating US coins including Morgan and Peace 90% silver dollars. The melt value includes the value of the silver and other metals in the coin. Currently, the melt value of the Morgan and Peace dollars is $30.9921. I estimated the market value of a common and circulated Morgan and Peace dollar at 90% of the melt value. Thus, I have a current market value at $27.89.
And where would you sell it and what would be the cost to you of the transaction? I can think of very few transactions that are free to the seller.
If the OP is getting confused about "x face value" for silver, I'd say you're not helping. You seem to be confusing "dollars per once" with "dollars per dollar of face value". If silver is $40/ounce, one dollar face value of 90% coins -- let's say, four 1964 US quarters -- contains just under $29 worth of silver. The OP says he's buying 90% at $35/oz. That means that he's paying $35/0.9 = $38.90/oz in terms of actual silver weight; not great, but not terrible. (If he actually meant he was paying $35/ounce in terms of actual silver weight, he's doing great.) I assume he's talking troy ounces, too. eBay sellers frequently list "one ounce of silver coins", meaning one avoirdupois ounce, which is almost 10% less than a troy ounce. If the OP were paying $35/av. ounce of coins, he actually wouldn't be doing that well at all. Other notes: 1) Well-worn coins like slick Barbers or Mercury dimes will have lost significant weight. If you can buy by weight, and then sell by face value, you can come out ahead; if you buy by face value and then try to sell by weight, you'll come out behind. 2) Dollar coins contain more silver per $FV than dimes, quarters and halves (which are all proportional). 3) War nickels contain even more silver per $FV than dollars, but since they're more expensive to refine, they trade at a heavy discount. The strongest prices I've seen for them are on eBay (or, of course, retail stores); buy prices at coin shows are about 2/3 the going rate on eBay.
Stack Attack, you're paying a fair price for silver. You are right in line with what a reputable coin shop would pay. Jewelry stores and fly by night "cash for gold" buyers that set up in hotels for three days pay considerably less, because they have higher operating costs, and pass the expenses back on to the people they buy gold and silver from.
I'm not talking about me selling at this time. I have a friend who is selling so there is no cost for transactions for the seller or buyer at this time.
Yes That would be a troy oz. Thats where I would use Coinflation, what ever the price of silver is lets say its $40 troy oz and I am buying 200 Mercury dimes. I would enter 200 into the amount box and then I would enter $35 into the price of silver a troy oz box. [TD="colspan: 3"][FONT=Verdana, Helvetica]Values Entered: [/FONT][/TD] [FONT=Verdana, Helvetica]Quantity:[/FONT] [FONT=Verdana, He lvetica]200[/FONT] [FONT=Verdana, Helvetica]Coin Type:[/FONT] [FONT=Verdana, Helvetica]1916-1945 Mercury Dime[/FONT] [FONT=Verdana, Helvetica]Silver Price: [/FONT] [FONT=Verdana, Helvetica]$35.00 / troy ounce[/FONT] [TD="colspan: 3"][/TD] [FONT=Verdana, Helvetica]Answer: [FONT=Verdana, Helvetica]Total silver value is $506.37. [FONT=Verdana, Helvetica]Statistics: » There are 14.4678 troy ounces of silver in 200 silver Mercury dime(s). » Each Mercury dime contains 0.0723 troy ounces of silver and is valued at $2.53 when silver is at $35.00 / ounce. » A roll of Mercury dimes has 50 coins and is valued at $126.59 when silver is at $35.00 / ounce. [FONT=Verdana, Helvetica]Bid/Ask Spread: In the past, most "junk silver" coins on eBay often sell between a +/- 5% spread of the melt value. For example, if you have a silver coin that has a $1.00 melt value, you should be able to find someone who's willing to buy/sell it between $0.95 - $1.05. However, the recent spike in the silver price has caused premiums to fluctuate wildly. If you're planning to buy/sell 200 Mercury dime(s) when silver is priced at $35.00 / ounce, the final total may fall between $481.06 - $531.69 on eBay. [/FONT][/FONT][/FONT][/FONT]
I thougth I was getting a fair deal if not a better deal of whats for sale out there. I mean I haven't seen a cheaper deal out there yet. I have to pay at least what the coin shop is offering or a little more to persuade him to sell to me. Any less my friend would sell to the coin shop.
As a benchmark, at the last coin show I went to, silver was at $39.26/oz, and the strongest buyer there was offering 26.5x face, which works out to $36.63/oz, or $2.63 below spot. Going to a dealer's store (as opposed to a coin show), I'd expect a much lower offer. I think you're getting an excellent price; I'd be reluctant to sell at the price your friend is offering, unless there were extenuating circumstances (say, I was trying to get someone else hooked, er, started on the hobby).
Well thats the best price he can get right now. Like i said I'm paying more than the coin dealer is. My buddy is tring to get the most he can but in the end its all profit to him because he got all his silver from his father at no cost.
