At silver's current price, melt for that 90% would be $36.75, and melt for the 40% would be $47.40. I don't consider that a good deal, but it's likely better than you'd do by selling the 40% to them and then buying the 90% in a separate transaction. I'd expect my favorite buyer to be offering around 4.1-4.2x FV for 40% at today's price. I wouldn't sell at 3.675x FV, but that's just me. Or, flipping it around, I wouldn't be buying 90% at 15x FV.
I know I'd do better selling on Craigslist, but people seem a little "gun shy" on there lately... due to the recent trend downwards I guess. I realize that 90% will almost ALWAYS demand more of a premium, so I'll lose a little bit on the conversion. I'd rather get rid of a few rolls of 40 in exchange for 90% and am just trying to decide if I would have been better off doing it back when silver was $18-$20 oz.
I doubt it would have made *much* difference when silver was 20% higher. Personally, once silver drops below $15, I'd start seeing if anyone is willing to sell 40% at a 10-15% discount to spot. I figure that 90% will be sold at 0-5% below spot, so 10-15% on 40% doesn't seem so far off.
75% of melt isn't that good. My dealer does 90-91% of melt consistently. Maybe wait til you can find a better percentage or ratio. You can do that by looking for other dealers or wait til silver gets hot and see if you can get a better deal.
I'm honestly stunned that your dealer offers such a high rate on 40%. What does he offer on 90%? What is his "random" (no cherry picking) premium on 40%? 90%?
I have never sold 90% to him because I like it so much. I have asked him and it does vary. He usually gives spot for 90%. Right now he is a little under at around 98%. He sells 40% at spot and 90% between $.50 to $1.00 over.