Coin show etiquette question

I'm getting ready to go to a local coin show, my first since getting sucked back into the hobby.

I've been planning to convert some of my junk silver into higher-grade, higher-numismatic-value pieces.

Is it welcome, or offensive, to offer a dealer payment in junk silver? If it's not a faux pas, what sort of conversion should I expect -- spot silver value (i.e. coinflation figures), slightly less, slightly more?

If a dealer is buying junk silver at an advertised rate, I might expect them to offer me that rate as a conversion. (In effect, I'd be selling them the junk, then instantly spending the proceeds on their other coins.) I'd hope, though, that they'd give me more favorable terms than that.

If a dealer is in the habit of playing fast and loose with tax reporting, I might expect them to offer me a better rate -- trying to get away with it as quiet, unreported barter, or if they're more brazen, reporting it as a face-value transaction. (I'm still undertaking this strictly as a hobby pursuit, so I'm not thinking much about my own tax situation, although maybe I'm getting into the realm where I should.)

There are some better-than-junk items I wouldn't mind bartering as well, but I'm nowhere near knowledgeable enough yet to hold my own against a dealer in negotiation, so I'm going to try to keep things simple for now.

Is this (buying coins with junk silver) something people do at shows? If so, what should I expect? If not, I'd like to know that too, so I don't end up pointlessly hauling a bunch of heavy change.

 

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You should be able to cash in on the junk silver with at least a handful of different dealers, those dealers may or may not be the ones you want to buy from. In my experience (only sold silver at one show) you will get less then spot, I think I got 18.5x face value when silver was about 20x. It is possible to get a slightly higher rate if you are "trading" but probably very little. Many dealers didn't seem to want to deal with it and offered a much lower price around 17x, even with a trade they wouldn't have been up to the 18.5x I got.

As far as tax reporting, (just my opinion) I would guess that the amount that gets reported from a show is 1/10 or less of all cash sales that actually happen. I could be wrong but I think I only remember getting one receipt from a dozen purchases at shows.

 

This will vary greatly from dealer to dealer so i would definitley shop around to see who
Will give you the most

 

I would definetly sell the silver, then spend the money (you will most probably not find what you want to buy at the dealer's offering the more for your junk)

Q

 

It is always worth a shot, and in my experience a significant amount of dealers will give you more for in-house credit than cash payout. You may have to ask up front though.

 

I was in this exact spot several years ago; i.e., getting back into the hobby and wanting to sell some junk silver and cull my collection of low-end coins from younger days.

I found a great dealer in the area who has given me a very fair price for my "better than junk" silver coins as well as a good price for junk (bullion). I meet him at local shows; Brick and Mortar merchants usually offer less, in my experience.

To keep things simple I would keep the transactions separate. That way there's no grey area. Sell your silver to someone who gives you a good price. Then you can buy from him or shop around and pay cash. It should all work out the same on paper anyway, to the penny.

Here is a good site for silver melt value. Scroll down to their Melt Value Calculator. http://www.coinflation.com/silver_coin_values.html

I wouldn't concern yourself with the dealer's tax reporting; why give yourself the extra headache? Dealers (or anyone) can lie regardless of their actual transactions.

 

PS: find someone you can trust; that might take a little time (and a few transactions or at least attending a few shows and asking questions) but then you can rest assured he's giving you a fair price regardless of your knowledge of a particular coin. For low-end stuff, a dealer is not going to "negotiate," he'll just make an offer which you can compare to other dealer offers.

 

I wouldn't advise bartering. You'd be best served by selling your silver outright and then using cash to buy the coins you need.

 

Oh yeah, have fun! I felt very intimidated when I began going to shows again. Once I realized how nice everyone was, I was able to relax and feel comfortable negotiating (on buys). Some of the dealers at area shows are in our local coin club, which helps. (That's not to say there aren't dealers out there who will try to take advantage of someone new.)

 

Thanks, everyone! I think I may end up making two trips, one to show the kids around until their limited attention spans falter, and another for me to take my time and study what's available. I may not buy at all this time -- I don't have any sort of shopping list or wish list, and I tend not to be a big impulse buyer. I'll see how I feel when the time comes.

 

It depends on the dealer, but I would expect some to be receptive. There's nothing wrong with asking. Just do so BEFORE you start to discuss price. It would not be very nice, IMO, to try and sneak in "OK, we've settled on $100 as a price, would you take junk silver?"

That said, trades are always dangerous -- two sides to a price/cost equation and if you go wrong on either one, you lose. Be careful.

Personally, I would just take your junk silver to Silvertowne, sell it to them for cash, then use cash to purchase your coins. I think you'll likely end up with a better and easier deal that way.

 

Dang, you guys forgot to tell him the change (change hehe get it!) that went down over the last few years? First thing you need to do when you enter the dealers room is, take your right fist and hit it twice in the middle of your chest while yelling 'what's up dogs'... You will literally get escorted out if you don't (Ask me how I know?)

BTW: Buying money with money alway has my head hurting! I think it means another person somewhere in the world got screwed by Kentucky Fried Chicken!

 

I don't do "trades" at shows nor do I like surprises where I negotiate a price then the guy wants to unload his trash on me because he's either broke or a cheap a. Now if he wants to sell me his junk silver to me at around 80 % of BV then that might work depending on what it is and if I have a use for it. I either buy coins or sell them and expect to make money either way. The op should blow out his junk silver at a shop that has a use for it or on the bay to get top dollar. Junk silver is not money, it costs me money to sell it.

My advice - sell the junk silver somewhere else and only offer cash to the dealer for the coin you want to avoid looking ignorant or cheap.

 

Try selling it and then see if they will pay more if it is a store credit.