For example, right now at $37.83/oz coinflation says they are worth 27.37 x face value. What would you pay (times face) for a mixture of circulated pre-64 coins including everything from dateless standing lib quarters to fairly decent mercury dimes and franklins. Assuming no numismatic value above melt. Also would you pay differently for proof silver (state quarters, pre-64, other silver sets, etc) for the years that really have no numismatic value above melt? Also assume it's traded face to face with somebody in cash, no ebay fees or shipping or anything. EDIT: Please use the price of silver listed in this post, and give your answer as a multiple of face value. Thanks!
Coinflation assumes that the coins are new and will weigh out at 723 ounces of silver per bag. The more common assumption is that circulated coins will weigh out at 715 ounces of silver per bag. Personally, I won't pay more than 95% based on 715oz./$1000 and prefer to pay 92 or 93%. So, against spot trading 37.83 I would pay no more than 25.7X face. This assumes that there isn't a lot of garbage that won't weigh out in the mix. Other people's experience and opinion may vary.
Does that mean you would pay melt value for proofs or other uncirculated coins that haven't lost any material?
No, I would not pay melt for them unless I believed that they might have some additional numismatic value that might offer some downside protection if I kept them or some additional value if I sold them.
I would have to agree with bigjohn, I sold some Quarters to APMEX fri for $25.60 X face. I felt that was fair. Bill G
To provide a frame of reference Tulving makes a market in bags. Against 37.83 he would be 26.44x bid, 26.98 offered. This is for $1,000 face bags of mixed dimes and quarters.
I would not buy any at this price (because I have alot that I pulled from circulation when silver was a fraction of what it is now). If silver drops to $20 or less I might buy.
I'll pay 27X for proofs and BU halves. I'm not a dime guy so those would be 25X max. Quarters are maybe at 26X right now for BU pieces. Most of my rolls are proofs and BU. I have a few VF quality rolls of Morgans and Peace but they're a different animal. I keep the best and sell the rest.
I would weigh the coins - multiplying by face value is a gamble. It looks like the smaller the coin, the more weight is lost in circulation (ie; dimes > quarters > halfs > dollars).
