My local coin shop is offering 90% silver at 23X and bullion rounds at spot + $2.00. Which would be the better purchase over the long run? Also, he buys back at 21X for 90% right now and spot - $2.00. In the long run, does it make sense to buy 90% over bullion or the other way around, or is there no benefit to one over the other? I am just getting started in trying to get some silver and appreciate your input.... Thanks---Steve
You do realize...You just asked if you should buy silver at $2 over spot, or about $2 under spot. :too-funny: Tough call there. (Spot for Junk silver is 24.36 * face right now, and $1.40 face is just a tad over an ounce. So, spot for an ounce of junk is just above $34. At 23x, you'd pay $32.20 for $1.40 face...or, about $2 per oz under spot.)
I guess an need a math lesson on the 90% conversion rate to determine whether buying at a particular price is a good deal or not. I am good at calculating spot+2 for bullion though... How do you calculate spot for junk silver? (Man, I feel so much like a noob asking this, but I appreciate your quick response...)
No worries, man! Personally, I don't calculate it. I let http://www.silvercoinstoday.com/silver-calculators/us-silver-coin-calculator/ calculate it for me. :too-funny:
You can think of 90% junk this way. $1000 face value contains 715 troy ounces $100 contains 71.5 $10 contains 7.15 $1 contains .715
Seems to me that the calculation works like this: Spot X .732 (ish) calculates the price for 90% silver. Is this right? This means that spot at $33.60 x .732 would make 90% $24.59. That means if I am buying it at 23X I am buying below spot, right?
I just sold a load of 90% on CL at 24X face. if i was buying that silver at a dealer around here i would be paying over spot.
The "wear" factor can be greatly reduced if you pick less worn coins. If this dealer will let you pick through to pick the better ones i would do that, but if this guy is selling extremely worn coins then i would not pay the 23x face and ask if he would be willing to sell buy weight.
You should also clarify that this applies to everything EXCEPT silver dollars. They contain .77344 oz of silver. So at today's silver price, they would sell for about $25.92 at spot.
The good thing about 90% is you can buy it in smaller amounts. I like 90% over bullion because I like having old coins, I think they are interesting. A good site to find the value of old silver coins is coinflation.com that will save you the hassle of having to do any calculations.
Hi all, I gotta agree with bsowa. It's much easier and much more practicle to buy 90% over bullion both because of the cost and the amount of coin that can be bough on a given day (at my local coin store they don't cary alot of bulion). Don't getme wrong, rounds and small bars still has a place in my collection, but it certainly takes back seat to silver halves, dimes, and quarters. -CopperJacket
use your brain here and there i went to coinflation a couple of times, too slow. I can enter 2 numbers in my calculator faster than you can look things up. i can even do face value in my head.
