buying "junk silver"

on eBay, there is an auction for a half-pound lot of junk-silver (of course, the seller states otherwise, but lets just assume they are all junk-silver), for about $135, shipping included. is that a good deal for half a pound of junk-silver at current silver prices? thanks for your input

 

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Silver is $13.20 per ounce so figure roughly eight times that for $105. So at the very most I would say it is worth that if it was melted. However since it is junk I doubt it is even worth that depending on what the coins are. Most aren't pure so it drops lower than this.

So I would say this is a bad purchase.

 

Since you've done a little mixing of oranges and apples in your computation, it's a worse deal than you think.

The reference to a "half-pound" undoubtedly means 8 oz. av., the same weight as the patties in two quarter-pounders. However, precious metals are measured in troy ounces, which are somewhat heavier.

The correct multiplication factor is 7.29 x the price of silver (~$13.32 as of the market close on 3/29), so a full half-pound of pure silver would have a melt value of only $97.10. Of course the coins could be anywhere from 40% to 90% silver (assuming they are all US coins - other countries have used as much as 92.5% sterling). Using the standard US fineness of "coin silver" - .900 fine - the silver in that lot is only worth $87.40, less than 2/3 the opening bid!

 

With silver eagles selling at modest premiums to melt, there is less reason to buy junk silver now than there was years ago. Don't just consider what you are paying to buy. Also think about ease of sale someday. Silver eagles will be far easier to sell, so you may actually net a greater profit than with junk silver.

 

"Since you've done a little mixing of oranges and apples in your computation, it's a worse deal than you think."

Actually I didn't mix apples and oranges, I rounded up and said roughly to just get a close figure. We can't say what the value of this junk is without seeing it so to try and put an accurate number doesn't matter because it is a loss no matter how it adds up. And there are some "silver coins" out in the market that only have 10% silver in them. The mexican peso comes to mind from the 50's and 60's.

 

It depends on if they're using troy pounds or avoirdupois pounds (avoirdupois pounds are used to measure just about everything other than precious metal). When you're talking ounces, precious metals are almost always measured in troy. A troy pound is 12 troy ounces, not 16, so half a troy pound would be 6 troy ounces, not 8.

You are correct though if they mean half an avoirdupois pound (which they usually do when they use the word "pound," even when referring to precious metals; even when someone refers to more than 12 troy ounces, they generally stick to using ounces rather than pounds when they mean troy), that would be about 7.29 troy ounces. If the coins are 90% silver should multiply that by .9 to get how much actual silver you're getting.

 

I have been buying 40% silver IKE Proofs and uncirculated for $5 picking up 71 unc and 40 proofs next week. I feel I'm getting nice coins and silver for very little over spot

 

The 40% silver ikes are .3162 oz troy, giving them a melt value of $4.21. That's based on $13.34 silver. So they are a decent buy at $5 each, especially if they're in the original plastic case and brown box. I think they're in the greysheet at $4-$5. Remember the '73 is a better date so they are worth more.
The ebay auction that the OP mentioned is likely NOT a good value.
Hope this helps!
tradernick

 

All are in original mint cases Iwillbe geting them Tuesday night heres the break down

Blues / 1971-#24 1972-#15 1973-#14 1974-#18

Brown Box Proofs / 1971- #16 1972- #10 1973-# 6 1974- #8

I picked up 30 last week in un opened mint boxes

 

Well the guy showed with the 111 Siver Ikes last night. I took them all

Blues / 1971-#24 1972-#15 1973-#14 1974-#18

Brown Box Proofs / 1971- #16 1972- #10 1973-# 6 1974- #8

Thats 200 Silver Ikes in the last month hya:
Pic of last nights Haul

 

not a bad way to hold silver at $5 each.

 

The whole lot cost me $555.00 / 5 bucks each but the 1973(6) brown Ikes are going for about $19 each and the 1974 are about $12 each (8)

I have got to go over them with the a Loupe I will find something good

The short lenth of years for the Silver Ikes will make them a little bit harder to find down the road (maybe)

 

wasn't the 73 brown once a $100 coin ?

 

I mean just an average one like in the mid to late 70's, before we had ten grades of mintstate and proof routinely being used. Back then there was usually just one price for recent proofs.

I recall that item getting pushed up really high at one time, before slabs were around.

 

is there any site that gives prices from years ago for more common stuff ? Basically something like redbook values from 1979, or whatever year you want ?

 

The 1972-S Silver Blue Ike uncirculated is getting a little harder to find in nice shape with a mintage of only 381,425 the lowest of the blues

 

It actually got all the way up to $150 before it crashed.