Someone just bid $132.50 on 80 "war nickels" http://www.ebay.com/itm/US-Silver-W...90787269358?pt=Bullion_US&hash=item2c6bceb2ee
So he got them at less than melt. They have $1.75 worth of silver in each nickel. That makes 80 worth $140.00
You're neglecting the cost of getting that nickel back out of the war-nickel alloy. As I've said in other threads, war nickels trade at a substantial discount to melt. This guy overpaid.
What do you consider a substantial discount to melt if I might ask? If silver goes back to or over $50 or even at $35, did he overpay? Maybe he likes them as a possible means of barter in a SHTF situation.
The "substantial discount" I usually see at local coin shows is around 30-40% below melt, compared to maybe 4-5% below melt for 90%. Those are buy prices -- dealers won't sell them that low. If silver goes back to $50, he'll easily be able to sell these for more than he paid. But he would've profited more by buying them at a lower price, or by buying and reselling 90% silver closer to melt. On the other hand, perhaps he didn't overpay by as much as I thought. In fact, now that I'm looking at recently completed auctions, what he paid is a bit under the going eBay rate -- single rolls are going for $70-75 or so shipped, and the first double-roll auction I found closed at $147 + $5.50 shipping. Wow, indeed. Maybe it's time for me to unload some of mine on eBay. Even after fees, it certainly looks like I'd get more than they're paying at the local shows.
Not to mention the fact that silver won't see $50 an ounce for a very, very long time. Silver may not see $40 an ounce for a very, very long time. $35 "may" be possible, but it would only be a "kiss" and then drop back to where its hovering today. $30. The buyer overpaid.
Don't forget the $5 shipping people often take into consideration. War nickels also have numismatic value especially if they are complete set.
maybe they just like war nickels. i bet every single person on this site at one point of their lives spent to much for a coin. some probably gladly paid the price
I think it is a decent price. Looking at ebay, seems to be in line. A few years back my LCS was selling at just below melt. Now they have them in a box $2 per. The ones that go on the bid board auction are usually of better quality and go for 2.50 to 3. If you got 80, best thing to do would be to make a set if you want to sell. One good thing is that most beginning collectors will want one out of curiosity. You do need them to fill out Jefferson nickel sets.
I buy war nickels only when I can find them for 20% under spot or more, and then flip them on ebay in small lots which almost always go for over spot. Even though it's only a few bucks here and there, eventually under-spot lowly war nickels turn into much better 90% junk or ASE's.
