Melt for 40% Kennedy halves is about $2.55. LCS is offering $2.13-$2.25. Melt for 90% Kennedy halves is about $6.23. LCS is paying $6.50. He is willing to trade dollar for dollar. I.e., he will give me one (1) 90% half for every three (3) 40% halves I give him. Is there any reason I should not do this?
Do the math (assuming you are looking only at melt value) [not to mention that collector value tends to be higher on 90% coins]. 3 x 2.55 = $7.65 (3 x 40% halves) 1 x 6.24 = $6.24 (1 x 90% half) therefore you are LOOSING $1.41, that's a loss of 18.4% per trade
If you sell him 40% at the low figure of $2.13, he would give you $6.39 for your 3 halves. If you trade them for 1 90%, then sell THAT to him for $6.50, you'd be ahead 11 cents. So strictly with THAT dealer, you "win". But on melt value, you're trading $7.65 for $6.23, a loss. Have to factor in the convenience factor, I guess. 40% can be hard to sell (as evidenced by your dealer offer below melt for 40% and above melt for 90%). Rob
Out of curiosity, what is that dealer selling each of these for? You posted his bid price, I'm wondering is ask price. I take the spread into consideration.
Why not? If you can ask about 30% over melt for junk 90%, why shouldn't someone else be attempting to hypothetically ask less than 20% over for 40%ers? What's good for the goose....
You can't get "melt" for 40%. More precisely, people will pay less of a premium over melt for it, or demand more of a discount from melt for it, than they will for 90%. Coinflation melt values for 40% coinage and war nickels are misleading for that reason. You'll also find that you get less per ounce for .925 sterling than for 90% junk silver, even though the sterling contains more actual silver.
Who are you to say what they should or should not do? This is America right? I know where you are coming from with your statement, but I'm charging you to think a little differently from a different perspective. How do you know he hasn't carefully only selected to deal in BU 40% halves instead of mixing in some circulated examples? If a customer values that for whatever their reason be, then that value comes at a numeric price. His customer service may be above and beyond industry standard and his clients really like him as an individual and are willing to pay more. Really what I am challenging here is that people view buying coins as something so specific as a "money-making deal" instead of what it should be. When you go to eat at a restaurant, you don't tell them "you shouldn't be charging over $15 for a ribeye." Perhaps a more relevant example would be grocery shopping. You can shop at Wal-Mart for groceries for a lot cheaper than some other local groceries. Why shop at the more expensive groceries? Because you value something other than what is in the bag going home. People get too caught up in trying to get the "best buy" that they miss what's really of value- relationships.
Just thought I'd say I've always gotten melt for 40%, war nickels, and odd silver content coins. It may take a little longer, and you have to deal with people on Craigslist saying "you'll never sell those for melt! I'll give you 2x face!" But you will. And Craigslist people are crazy. Also, I think the condition might be taken into consideration. Are you trading beat up 40% halves for BU 90% halves? Are the 90% all 1964 Kennedy or are you going to get some nicer Franklins or Walkers? Just a thought.
Well, yeah -- but the folks who'll pay melt for 40% or war nickels will also pay well over spot for 90%, so again, 40% trades at a discount to 90%. As you say, it's often possible to trade up, because not all 90% (or 40% or 35%) is created equal. There are all sorts of arbitrage possibilities among the silver-is-silver people, the 1964-pocket-change-is-less-worn-and-holds-more-silver folks, the worn-Barber-is-worth-more-than-full-weight-Kennedy folks, and so on.
40% is a discount to me and my LCS reflects that. That said they are far more common roll searching and OTC finds than 90%. Right now I have about 40 of them I am waiting for silver to go up and then I will sell them.
With all sincere respect I kinda don't think you know where he is coming from. Books was speaking literally when he told josh This was not hypothetical but literal.
get off my back man. that's not my actual sale price right now. I'm currently upgrading the site.. it takes a lot of work. You guys take any chance you can to put me down. yeah kick a man while he's down that's really nice.
What I find curious in the pricing on the particular website is that the seller is charging more for circulated Mercury dimes than circulated halves. Usually when you are selling or buying "junk" silver halves get a bit of a premium. Now if they were guaranteed to be early date Mercs or even Barbers the opposite would be true.
Josh, when you go out of your way to dictate how a local coin shop (who pays a lease, taxes, and possibly labor) should price their silver coins, you can't then say others are bashing you for pointing out that you're actually charging an even larger spread/premium. I doubt anyone would have said anything about the prices on your site if you didn't first respond by saying the OP's LCS shouldn't be selling at 20% premiums.
I know you are talking to the poster who posted below my comments. But back to my comments. I did not mean to harass you in any way. I was instead asking you to think a little differently. I believe that approach is a lot more constructive than putting down another's logic.
With all due respect; those ARE your listed prices right now, were earlier today when I checked, and obviously were when Vic posted, so if you've any problem with it, you've no one to blame but yourself. While I've no doubt a website indeed takes a lot of work, it is not a valid excuse, especially since the prices have been the same (with similar premiums) for quite some time now. Honestly... you've two bullion offerings, so it's very hard for me to believe adjusting prices would be THAT time consuming. Think about it.... if you're asking huge premiums for junk, is it really wise to insinuate that someone else would be wrong for doing similar, but at less of a premium? This is the type of thing that draws negative attention to yourself, so be smart before you post. Also, perhaps if you tried not to come off as so authoritative or speak in absolutes, people wouldn't be so quick to call you on things. Really all this comes down to this: "those living in glass houses shouldn't throw stones". I'm sorry, but Vic isn't the one on your back, Josh.... it's you. Who is putting you down or kicking you when you're down? What has been said in this thread that is not true? You said something you probably shouldn't have and were called on it, so that's my fault? Instead of always thinking someone is out to get you, why not consider a change in the way you approach things?