Rounds VS ASE's Which To Buy

Not $0.794, but 0.794 ozt vs 0.715 ozt.

One dollar of circulated 90% silver coins contains around 0.715 troy ounces of silver.

Since that 0.715 ounces is not the total weight of the coins, you can't place them on a scale and expect to see "0.715". To verify the weight, you have to calculate the total weight by dividing 0.715 by .9 and the result is 0.794.

If a vendor is guaranteeing you that there are 0.715 troy ounces of silver in the 90% silver you are buying, then the total weight of those coins should be at least 0.794 troy ounces.

Simply put:

0.715 Troy Ounces = Average silver weight of $1 face value circulated 90% silver coins.
0.794 Troy Ounces = Average total weight of $1 face value circulated 90% silver coins.

 

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Exactly right. Since 2010, I have NEVER bought junk silver (or my few ASE's) from a dealer. In this 1.5 million person metro area, there's always plenty of private buyers and sellers. Plus there's no postage, and a chance to get acquainted in hopes of buying items for my other hobbies, stamps and postcards.

The only downside is I have to buy something at McDonald's. A fish sandwich seems to be the least of their culinary evils.

What I DO occasionally buy from dealers is foreign silver, which they sell by weight and fineness. I've learned which ones just dump it in a box and never check the dates or catalog values, etc. You've seen me resell some low-end items on CT.

 

Blaubart, the "weight" side of junk silver is pretty much unknown to me, as I buy using the formula "dollar cost per $1 face value," and don't worry about worn coins, since I examine the goods first-hand before buying.

There's usually more than enough 1960's vintage Roosevelt 10c and Washington 25c to offset older worn Mercury 10c and SLQ (which I very seldom see anyway).

 

Yikes! That's a steep price!

I typically meet people at my bank, which is within walking distance of my work, so there's no gas expense.

 

When you're buying in these quantities, you should be concerned about liquidity and the bid/ask spread on the products you are considering.

At least in the U.S., liquidity is only slightly better for selling ASE's than silver rounds. There are lots of places you can sell each, but you're more likely to get the sale done faster with ASE's.

Bid/Ask spread is a different matter. At least for the prices I'm seeing both online and locally, the spread is 15-30% smaller for ASE's than for generic rounds, Zombucks, and the like. Whether that will remain true in the future, of course, is anyone's guess.

 

Yeah, I only mention the total weight for use in circumstances where someone buys junk silver online and receives a bag full of highly worn/holed coins that might not weigh up to any silver weight that might have been specified.

It's also handy to use in confirming just how worn a lot of coins might be. The total weight of decent .90 silver coins should be between 0.794 and 0.804 troy ounces per dollar of face value. The closer they are to 0.804, the less worn they are. Anything less than 0.794, I consider heavily worn and I will negotiate based on weight instead of face value.

I have a "roll" of silver dimes that are so worn, they only fill up a coinsafe tube about 3/4 of the way. They weigh in substantially under 0.794 per $1, but I can't remember for sure their exact weight. I bought them online for under melt (based on face value), knowing they were worn, but I didn't realize just how worn they are. I'm not sure if I came out ahead based on silver content on that one.

 

So put them on eBay, title: "Much-Loved Mercury Dimes" fresh from Scrooge McDuck's money pit."

 

Someday. For now, they're still 90% silver and a reminder to not buy highly worn coins sight unseen...

 

Personally, all things equal, I'd opt for ASEs or junk silver for a reason not usually covered. Many of the no-name silver rounds (not from a major silver distributor) are actually measured in AVDP ounces, not Tr ounces. So, buying a one ounce round that isn't expressly marked troy runs the risk of losing ~9.7% as a haircut. If you're going to buy non-sovereign PM rounds, always verify the metal content in grams, so you know exactly what you're getting. Case in point would be NorFed dollars. The ones not marked troy ounces are only 28.35 grams of silver, as compared to the 31.10 grams that buyers assume they're getting.

Edit: There's also the problem with the unregulated nature of non-sovereign bullion. For example, in 2008, NorFed manufactured both one ounce and 2/5 ounce $20 medallions. The one ounce ones go for $50-$65 on eBay (when a listing is able to end without getting pulled by eBay), while the 2/5 ounce ones are regularly offered for $15 on non-eBay sites. It makes it difficult to buy $20 NorFed medallions when there are no pictures for this very reason. Someone might end up spending $50+ on a 2/5 AVDP oz piece, unwittingly.

 

Really!?!? Crooks! I knew there was a reason I didn't buy rounds.

That's a problem I have with junk silver sold on ebay, all the crooks list their silver in ounces and it isn't troy ounces.

 

You should show us some of those AVDP oz rounds...yes, I'm call BS on this

 

Here are a few:
http://www.ebay.com/itm/141024780995
http://www.ebay.com/itm/201145494174
http://www.ebay.com/itm/201114141746

 

They say AVDP ounce right on them...he posted like they were curvy and not disclosed as such.

Should you be wary and know what you're buying, yes. Should you be paranoid and believe everyone is out to scam you, good luck with living your life that way. I'm sure you'll have lots of friends and admirers...

 

It might be time to bring the age old adage into the 21st century:

19th century: A sucker is born every minute.

21st century: Thousands of suckers log in every second.

 

After watching this thread go into the ditch, I have a word of advice for the OP--

I changed my mind -- It doesn't matter whether you buy rounds, ASE's, junk silver, or 24 karat horseshoes. You're just lucky you can buy some kind of PM; most people can't, or don't, especially those good folks living in the State of Denial.

They will be savaged again when the hard times come. The average middle-class household has lost over 20% of its net worth since 2007, and wages adjusted for inflation are FLAT since 2003, source BLS.

 

Just a clarification post. A Troy ounce is 31.10 g while an Av. ounce is 28.35 g. HOWEVER a Troy pound is 373.2 g versus 453.6 g per pound for Av. Any questions about why we should use grams?

 

Depends how many grams in a gram pound?

 

My gram weighed 114 pounds.

 

And how much wood could a woodchuck chuck if...................

 

Back to the original inquiry, why limit yourself to either ASE's or rounds? I'm not a fan at all of the ASE. But there are many government issue silver coins out there to choose from. Personally, I like the Chinese Panda series. I but them at just a dollar or two over spot when they are released, but if you look, their premiums are probably higher than any other gov issue after the fact. Not to mention the design changes yearly and in my opinion are the nicest looking each year. Basically, don't limit yourself to ASE's or rounds.