So a guy walks into a coin shop (silver price quesion)

Silver spot at 15.21

In USA - guy walks into a basic coin shop and has the following 10 oz of silver in each of his pockets to sell.

1) RCM (Canadian) 10 oz silver bar
2) 10 - ASE's

Whats your guess at what he gets offered for these two choices ?

 

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less than spot

 

1) 135 Dollars
2) 145 Dollars

 

ASE 150.00 BAR 130.00

 

<25% of spot.....$114.075

 

If you took it to a dealer by me it would be around 260.
But I am guessing that it was lower.

 

Basic coin/pawn shop near me, $75 and $80.

 

135/150

 

Definitely less than spot price, because the coin shop I purchase at sells silver AT spot price, or with a $1 premium over spot if the bar is hand poured.

Edit: 10 oz bar- $100, 10 Amer. Silver Eagles- $10-14 each

Depends what year of ASEs also. Ones from the 80s are more collectible.
I paid $10 over bullion value for a 1986 (first year) issue.

 

10 ASE FOR 80.00 that's where my mouth would kick in gear and out the door..

 

+1

 

1) $145ish for the Royal Canadian Mint 10 oz bar with spot at $15.25
2) $162.50 About $16.25 each for the 10 ASE with spot at $15.25. If he doesn't get offered that his dealer is a con artist. If he sells for less than that, he's an idiot.


I am SHOCKED by some of your posts, people. Do any of you ever sell? Your Silver Eagles will always sell for over spot.

 

Maybe in a case with certs but if raw the usual around here is any 1oz coin meant for bullion is a dollar or two under. Depending on the market? And selling for a dollar over.
You must have a good dealer @myownprivy

 

Always the lowest price they can offer , they say they have TONS of these items. I asked a coin and currency shop if he was interested in some nice uncertified large notes and he comes back /w an answer no just a$2 educational notes. Yeh RIGHT, they offer melt price on everything

 

Yes, the shops around here are good. But, I am thinking many of you must live in smaller, weaker economies where dealers sell their Eagles at lower prices for locals to afford.

My local shops:
An ASE would be selling for $17.25 or so right now ($2 over spot to sell) but would be bought back for at least $1 over ($16.25) In this scenario, the dealer makes around $1 per ASE. Dealer makes 7% per Eagle sold. My dealers cycle through a large volume in any given month, making a nice profit on every coin sold.

My guess for where you live:
Are ASE sold for only around $16 right now? If that is the case, it makes sense your dealer would offer you only around $14.50ish when buying. But sell for $16ish. If the dealer is buying for 75 cents under and selling for 75cents over, he's making $1.50 per coin. That's a pretty greedy 10%, which indicates to me he doesn't do as much business as my dealers.

Again, my guess is two parts:
1) Your dealers sell their ASE for lower than average prices because the local economy isn't as good. However, this means they must buy them at lower than average prices too.
2) your dealers sell on a nicer spread for themselves because they don't do as much business as dealers in a big cities with better economies

 

Richard K- If the coin shop I frequent sells '64 Kennedy halves for $6 and Roosevelt dimes for $1.25- how much do you think that they purchased them for?
Definitely less than melt price.

 

All of you people in middle America with local coin shops ripping you off, sell online! Go to Provident and Jmbullion and sell to them.

I have never sold to online dealers, because my local dealers are all pretty "with it" and buy for good prices. But if you find yourselves in places that are ripping you off, turn to online dealers instead.

 

Actually I am in a booming economy. Denver
The norm is buy a 1$ under and sell 1$ over.
But at certain times it is worse 2 under and 1 over.

 

Junk silver is bought below spot, always. This is not unique to middle America coin shops, my coin shops, or or online shops. This will be the case everywhere.

 

Yeah, but your dealer in Denver is probably a crusty old man who was there when Denver was still a nothing town. He might want to get with the times.

No one should EVER sell their Eagles below spot. Eagles, Maples, Kangaroos, Pandas, Britannias, should always buy and sell at a premium.