I just bought some at 13x face, which was up a bit from spot, but now I don't feel so bad after reading this: http://www.junksilverbook.com/?p=37 Anyone else noticed paying high markups on junk silver?
I know a few wholesale suppliers are paying Dealers $4.00 over melt right now which is 13.22x . The area I sell in buyers are paying 15.5x to 16x retail.
Unfortunately, anything under 14x face is decent. I found a shop last week for 11x and thought it was a steal[emoji20].
I agree premiums are up. I am unsure if its due to normal basis adjustment due to declining spot or something bigger. The availability has been going down for decades, and at some point the numismatic value will overtake melt value. Nice spider geor952. I bought one for my son and they are so well done I bought a few extra for the pile.
I would pay 15x if I had a local store that would let me hand pick the coins and had more than just Wasington, Kennedy and Roosevelt's
that is an ok deal, my local coin dealer PAYS 13x face and he STILL can't keep it in stock selling it at 16x face!
I have bought over 500 face @ 12-13x in my area. Quarter are usually washingtons with some standing libertys, halves WERE mainly franklins and walkers (last guy I bought from gave me 80 face of kennedys) and I stay away from morgans and peace dollars, them things are crazy nowadays. I havent been buying dimes, but I should because everyone is usually pretty happy to get rid of them! I wish I could find 10-11x face, I would have a field day!
13x face is about 10% over melt I believe? I keep 10% as my max when looking for bargains, specially on halves.
I paid about 75 cents on the dollar for a large collection of sterling silverware last weekend with buyer's premium. Ended up with a complete matched pattern set - service for 12 from Int'l Sterling and a few other pieces marked with early 1900's patents. Closer to 90% on some gold jewelry. I haven't seen any coins around here lately. Dried up! Or maybe they think they're getting more at a "cash for gold" place. Either way, slim pickins...
I got some XF walkers for 15x before the recent price bump and am pretty happy with that. While there are good deals to be had, it is my impression that junk silver premiums are at all time highs in general. When dealers are paying a couple bucks over spot for stuff that they used to sell for under spot that should raise some eyebrows.
There is some numi value in junk silver, so it could possibly be that silver has sunk so low, we now need to pay the numi value and it will not decrease as silver falls further.
Exactly. The term "junk" is ONLY valid within a time and price frame. If silver went to $100 an ounce, the vast majority of most people's coins, (MS70 modern silver coins, proof ASE's, most morgans, etc), would ALL be "junk". "Junk" simply means no numismatic premium at this point in time, at this silver price level. If silver fell to $2 an ounce, I would expect all pre-65 coins to have numismatic rather than melt value. Where is the dividing line? I would guess it depends on the coin, with circulated roosevelts, washingtons, and franklins/Kennedy's having the lowest numismatic interest. Maybe today that price is $10, 12, or 15 an ounce, the point at which collectors will pay premiums over melt for them. I simply do not know. If anyone is an economics major, it would make an interesting research term paper. With my school I simply have too much research of my own going on right now.
13X is a great deal right now, I've seen some dealers paying as high as 13.5X. You are doing well anytime you are getting an item at or below what dealers are paying.