Discussion in 'Bullion Investing' started by bigjohn56, Sep 14, 2010.
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But if you are not buying by the the number of coins, if you are buying by the weight it don't matter if the coins are worn they will just throw in more coins to reach the right weight. I would not buy coins that were not sold by the weight unless i knew they were all AU or BU
Junk silver is most commonly sold by face value, not weight. I buy it because I like it and I think it will all have a numismatic premium some day (like SLQs). And AU and BU coins also carry a pretty high premium.
If silver were to ever get to super high values, you would be selling by weight and not face value. This mainly because the dealer who is buying will not be selling by face value but by weight and he's not going to let himself get screwed over by some clown trying to cash in slick barber dimes.
It has been rare I can afford a face bag (500 or 1,000) at one time.
Interesting Answer For Interesting Question
I believe there is no definitive "best place" to find Silver coins, as interests generally vary between individuals, based on specific criteria. It appears that your interest is based primarily on price, and your "best place" may be in the future, if bullion prices return to the levels you desire.
I will caution you about waiting, based on personal experience, as I'm still waiting for the time where I can resell bags of common date 90% Silver coins that I acquired in the late 1970's at 30+ times face.
I don't need additional tax deductions at the present time, so I'm waiting until that level again returns. LOL :smile
A Rational Answer
If you've read the posts between your initial query and this post, you will have been provided with numerous irrational reasons why you should/shouldn't(?) pay a premium, or purchase halves rather than dimes, quarters.
They are all the equally 90% Silver so it makes no difference. It seems foolish to pay a premium. Except if it is a Silver Dollar, as they command a premium. Yes, they command a premium, as do the ASE, because people like large chunks of Silver. If for no other rational reason, they will pay a premium because it is a large beautiful coin. These same individuals will grope for justification where there is no rational. I have been guilty of the same denial. I just like large beautiful coins, as when I was young, I thought only the wealthy could have a large Silver coin.
I've provided you with irrational justification, and now I will provide you with a semi-rational justification. With elevated PM prices the "poor mans'" large Silver coin of the future may be the half dollar which generally has more affordable design choices (i.e. Barber, Walking Liberty, Franklin, 1964 Kennedy) than the 2 basic affordable(?) Dollar designs. The Ultimate rational reason for paying a 30 cent per ounce premium is: I can show you a buyer who pays a 30 cent per ounce premium when buying your halves.
Are you now more resolute?
Happy Hunting, RICH
My question is, why do they say there is only 715 troy ounces in a bag? That's one hell of a mark up (almost 20%) for coins that aren't very worn. And since all U.S. pre-1965 coins are based on an easy to figure 1 troy ounce per $1 face, it should be easy to determine the actual silver content simply by weighing the coins. I'll bet if you had a bag of very worn coins most dealers would discount the buy price even further.
It seems to me this 715 figure is just a way to scam people or otherwise make what would be easy to understand more complicated.
And so why isn't gold bullion bought / sold like this? I have found the markup always less than 10% on gold.
Wear reduces the weight, and thus the silver content, of a coin. Pricing a $1000 FV bag as 715 ounces rather than 723 is apparently the standard way to compensate for this. But if you're buying a bag of 10,000 slick Barber dimes, you're not getting your money's worth, at least in terms of silver content.
http://www.coinflation.com/ is your friend.
Here's what I found out...
You learn something new every day. I was under the impression that
10 dimes = 4 quarters = 2 halves = 1 dollar and all of those has the same silver content when minted. But what I found out based on the link posted earlier in this thread is:
A bag of silver dollars (never circulated) weighs 859.37 ounces. 90% of that is 773.433 ounces.
773.433 - 715 = 58.433, or 7.555%
A bag of halves weigh 803.76 ounces. 90% of that is 723.384 ounces. 723.384 - 715 = 8.384, or 1.159%
A bag of quarters is the exact same as halves.
A bag of dimes weigh 803.8, slightly more than quarters or halves.
So worst case is a 7.55% markup & best case is 1.15%, IF and I must emphasize IF, you got spot price. But that never happens.
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