Should I buy silver coins at melt value?

Discussion in 'Coin Chat' started by JakeTheBarber401, Sep 25, 2016.

  1. Kentucky

    Kentucky Supporter! Supporter

    Don't quit your day job.
     
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  3. SuperDave

    SuperDave Free the Cartwheels!

    Who, exactly, is going to sell silver for less than it's worth?

    People who collect "junk" silver tend to hold to a tradition of face silver value. It is, in my opinion, a contrived and baseless market held up only by the beliefs of its' members. I wouldn't buy it.

    That said, the market works the way it works and if you choose to enter it under those conditions, this is a good value. If silver doesn't fall in value.
     
  4. Kentucky

    Kentucky Supporter! Supporter

    To be smart, buy when silver is low and sell when it is high. To be like most people, buy when it is high and everyone says it is going higher and sell when you run out of money. Slightly better to buy coins, some added numismatic value sometime.
     
  5. NorthKorea

    NorthKorea Dealer Member is a made up title...

    I'm glad you admitted, to yourself, that you made an error.
     
  6. ToughCOINS

    ToughCOINS Dealer Member Moderator

    The cheapest major sellers of 90% are getting about 15x face value plus shipping. And that's not likely to include much of the obsolete coinage you mentioned, if any.
     
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  7. Ericred

    Ericred Active Member

    I'd buy them, love old dimes
     
  8. Jason Hoffpauir

    Jason Hoffpauir Avid Coin Collector

    it's a fair deal..don't get greedy or you will lose it. Next time you might get a discount if you take the offer. Both of you will do good and that is important in developing a good numismatic relationship. JMHO. ;)
     
  9. fish4uinmd

    fish4uinmd Well-Known Member

    I find it hard to believe that there is this much discussion on $120 worth of junk silver. Welcome to CT Jake...can I get a trim? :wacky:
     
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  10. tradernick

    tradernick Coin Hoarder

    Guys keep in mind premiums have fallen lately. Paying melt for 90% is a good deal, yes...but not a steal. I've sold this week in the shop in $100 increments at melt but that's in the shop. No fees or shipping expense, just over the counter. Several months ago I was paying $1 over and selling for $2 over. I should point out that's "in-house prices", if I have to buy from another dealer or wholesaler my cost would be higher. So buying it at melt is attractive, in the hopes that the premiums may move upward again soon. The only problem is that spot might move down in the near term and melt might be way less than what it is now. Today is a good example of that. So for the long term outlook, I'd say yes, buying silver at melt is generally safe. If you're buying to try and resell it next week...well that can be difficult. Hope this helps!
     
    Last edited: Sep 27, 2016
  11. imrich

    imrich Supporter! Supporter

    I must take exception to your claim which has been disputed repeatedly through actual analysis of circulated rolls of 90%.

    If you do as I suggest, having done repeatedly, and reported as others on this site. I believe you'll determine that the 715 oz. Silver value in a $1000 Face bag of 90% Silver is believed to be within the mint tolerances for "new" coins.

    I have weighed bags of Almost Uncirculated dimes finding the coins to be within the believed 99% range of the nominal ~25000 gm/$1000 Face., or 716+ Troy ounces Silver.

    I believe the PM industry uses 715 Troy ounces Silver as the standard for the Silver content in a bag of 90% "Junk Silver".

    I sell $100 Face 90% Silver G-VF nominal grade bags to local Craigslist customers. I bring coins specifications, a vernier caliper, beam balance, and electronic scale with Tare weight. Many rolls have been weighed, and customers are generally impressed with consistency of weight. I've not yet had a reject of the product.

    Do you have a published source for your stated values. I'll share mine for yours, as "the Donald" might say.

    I believe you may be incorrect, but I'll gladly admit fallibility.

    JMHO
     
  12. BooksB4Coins

    BooksB4Coins Newbieus Sempiterna

    I've seen people leave this hobby in disgust over bad buys or poor decisions that cost them much less than $120, so 12 cents is worth it if the OP (or any reader) can take something beneficial away from the discussion. JMHO, of course.

    Plus, it's always good to remember that pocket change to one man may be a significant amount of money to another.
     
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  13. NorthKorea

    NorthKorea Dealer Member is a made up title...

    My claim that keeps getting quoted it based upon my experience with Mercury and Seated Liberty dimes in grades of VF20 and lower. You lose a significant (up to 20% in the case of AG3 and FR2 coins) amount of silver weight on those. Separately, VF20 (down to AG3) quarters can see up to 10% (2.5g) of weight loss on the 90% silver
     
  14. David Setree Rare Coins

    David Setree Rare Coins Well-Known Member

    Never mind. I messed up my calculations.
     
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