Ok, I'm confused. And yes, I realize the difference between buying a coin from a coin dealer vs selling and completely respect their right to make a profit as they have overhead, risk, inventory etc. This is not a 'bad coin dealer' thread. This is a question about something I've witnessed it a few different coin shops and all dealers seem to do the same thing so either *I* am not getting it the point of it or there seems to be a private agreement, universal handshake. So I'd appreciate some input and feedback. I've sat quietly and watched other customers come into sell coins that are sterling silver and there is always this big 'Oh, this is .925 sterling' and then the coins are purchased by 'grams' instead of troy ounces and in the end, the purchase is less than if it had been .90 silver - yet I would think it'd be comparitively more as there is .025 more silver. Not huge, but enough to make me wonder. I understand a lot of the big picture; I realize old worn 90% coins are melted, the 'big spot price' for silver is based on massive amounts not one or two coins for sell. But I don't get the point where .925 would bring less. So help me out, please. What am I missing or misunderstanding? Thanks everyone ~ CoinGal
Um, when you say they pay for the coin based on grams rather than troy ounces and it ends up being less than the price based on ounces. Well, I know a troy ounce is different than an ounce. For example, one pound is 16 ounces. But a troy pound is considerably less. Im not positive on the exact weight, but I believe a troy pound is rougly 12 ounces. So, a troy pound should be considerably less than a pound.
To be precise, an avoirdupois pound (your customary measurement) is equal to 7,000 grains, and a troy pound is only 5,760 grains. But, and it's a big but, a troy ounce (480 grains) is more than 9% heavier than an av. ounce (437.5 grains). Since 1 troy ounce of Sterling (.925 fine) contains about 3/4 of a gram more silver than 1 troy ounce of coin silver (.900 fine), anyone offering less for the sterling is engaged in a ripoff! At the current silver price of about ~$14, a gram of Sterling is worth around 2-1/4¢ more than a gram of coin silver. Converting measurements from troy ounces to grams simply does not change the value.
CoinGal, you've hit upon something I noticed a long time ago. Coin collectors are not intelligent when it comes to selling silver coins that have little or no numismatic value. Once silver is put into coin form with a recognizable and trusted hallmark identifying it as .90 or .925 or .999 silver, it should all sell for the same price per gram or troy ounce, and should sell at a modest premium to the bullion value since the content and purity are known without assay. But the dealer network continuously bamboozles the collectors into parting with their silver at a discount for a variety of imaginary reasons. One of the highest and best uses for silver is the coin form. To melt it at a discount is about the worst use for it. Perhaps someday, collectors will withhold their coin silver from the market unless/until they are paid an honest price for it. Then, fabricators of silver objects can either go and purchase their raw material from the Comex and pay commissions, storage, shipping, and insurance charges, or pay an honest price for it.
The point is that the lower the fineness, the less silver the coin contains. I fail to see the reason for your confusion ?
I thought the point of the original post was that sterling commands a lower price in relation to melt value that .90 coins. I've seen this and it doesn't make a whole lot of sense.
Welcome to my world.. sometimes the question takes me in circles too. Seems to me .925 is more silver than .90 ~ are you saying .925 is less fine?Then that would put .999 at the bottom not the top and we know that's not true. I undertand the difference in grams vs pounds; troy vs al; and .90/.925 vs asw. What I'm trying to understand is how if you take .925 coins in the dealer looks at them, frowns, answers 'well, these are sterling and I'll give you $X per gram' and when I compare that same coin to a .90 coin it's not the same. I've seen .90 coins bought at 8 x face but a .925 coin bought at 5x or 7x... things like that. To me it's like saying 'oh, shoot.. this is only platinum .... sigh..... too bad it's not .90 silver. I know I'm missing something ~ I just can't figure out the 'what'.
I would agree, it doesn't make sense. The only explanation I can think of would be that because the coins are not US coins, the dealer offers a lower price.
I will give you a feasible explanation although I do not know this as fact The US coinage is 90% silver and 10% copper. No 3rd or fourth ingredient. And they have a tested process for refining after melting. Can anyone assure me that this other silver is only mixed with copper? Even if it is less pure copper, the refining process could be substantially more difficult. Therefore, the net cost (cost of silver less refining costs) is actually lower.
One dealer I know always says "Silver's prices are up". Dosen't matter if your looking at cents, quarter or currency, he always says that as if you are going to suddenly want to buy a Silver coin from him. I've been in a coin store when someone brought in a bag of Mercury Dimes and was told there are only 0.90 % Silver and Silver is falling in prices. Can only give you X/coin. I suspect the percentage of Silver or Gold or anything in a coin is worth what you will get from a dealer if selling and completely different if buying. The different percentages are a selling or buying ploy.
