Junk morgan/peace selling over spot?

Discussion in 'Bullion Investing' started by Inquisitive, Jun 2, 2010.

  1. Inquisitive

    Inquisitive Starting 2 know something

    I apologize if the question has been answered elsewhere.

    I noticed today that AMPEX's buy price for cull morgan/peace dollars is above spot (by about 50-60 cents). I was considering selling some of my extra 1921 morgan & (22-25) Peace dollars at the next coin show that I go to, but am now reconsidering.

    I guess my question is as follows: Why would someone pay above spot for dollar coins, but below for 90% junk fractional silver coins?

    Also is there any reason to hold on to whole dollar coins vs. fractionals for bullion value?

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  3. Tom B

    Tom B TomB Everywhere Else

    US silver dollars have often sold at a premium vs. spot when compared to smaller US silver coins. Many people like to hold silver in this denomination.
  4. Inquisitive

    Inquisitive Starting 2 know something

    I would expect them to sell for a premium over fractionals (they contain more silver) but not over spot!?

    Has anyone else seen/been offered for/or offered to buy for themselves (dealer) junk silver dollars over spot?
  5. Tom B

    Tom B TomB Everywhere Else

    I'm not certain of your use of the term "spot" here when you write "over spot". I would gladly buy problem-free US silver dollars at under spot, but do not know that I have ever seen them offered.
  6. Inquisitive

    Inquisitive Starting 2 know something

    But would you buy Culls over spot?

    That is what APMEX is doing. I feel like I am missing something here :confused:

    (although they do have a catagory "worse than culls" (holed, slick or bent)which is under spot)
  7. Cloudsweeper99

    Cloudsweeper99 Treasure Hunter

    I've never seen silver dollars selling under spot regardless of condition.
  8. SilverSurfer

    SilverSurfer Whack Job

    I, too, would like to know the answer to this question. Just saying....I've never seen them for under spot....doesn't really answer the question of "why?"
  9. Cloudsweeper99

    Cloudsweeper99 Treasure Hunter

    It's simply a matter of supply and demand. The coins are far more popular than the smaller 90% silvers and dealers can sell all they have for more than spot.
  10. SilverSurfer

    SilverSurfer Whack Job

    My dealer pays spot price for silver dollars. He puts them in a junk bin with a price tag of $20. This bin seems to fill up and nobody buys for the $20 price they are listed at.

    In this case, I don't think it is a matter of supply and demand as the supply is plentiful and the demand seems to be non-existent. Yet the price doesn't go down.

    I'm wondering how many other people see this overpriced junk bins of silver dollars at the coin shops that they frequent. I guess from the perspective of the original poster $.60 over spot doesn't seem like a bad deal.

    PFCBEGA Staff Numismatist HA.com

    When my old boss and i were at shows it was my job to run around the floor and compare prices on junk morgans, then we would price them up to a dollar below the lowest price and move at least a thousand of em, at the last show we had junk morgans for $15/piece
  12. PeacePeople

    PeacePeople Wall St and stocks, where it's at

    One man's trash is another man's treasure. I've been able to buy a few for under or at spot money over time, but ew and far between. I think the big reason is those big coins feel like something, and the "youngest" ones are 75 years old.

    I think that is why you will never really find them for "sale" at under spot. You might get lucky and win an auction for them at under spot, but beware the seller. The ones I did happen to buy under spot were a pain to get delivery of. I got them, but the sellers made it much harder than it needed to be.
  13. domdino

    domdino Junior Member

    I've been eyeing that advertisement as well Inquisitive. But I just can't bring myself to pay $16 for a damaged Silver dollar. At least you can make a bid at pawn shops.
  14. Cloudsweeper99

    Cloudsweeper99 Treasure Hunter

    Since you can buy a problem free morgan dollar in EF condition for less than $20, junk coins should sell at a significant discount to that. Your dealer probably doesn't care about inventory turnover and is really looking for suckers.
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