Silver has been pretty low lately, so I've been buying some junk silver. I usually try to get it for spot or less when I can, but some dealers sell for a little over spot. How much over spot should I be paying for junk silver, and does it matter what type coin it is? I've been buying barber dimes and quarters for the same price as roosies and Washingtons.
Other than the fact that Barbers generally weigh less than 90% of the 50s and 60s, I think it's hard to go wrong buying up those older coins. My criteria is not strictly spot price, but whether the lot's been picked over, and it only takes about 5 minutes to determine that fact. I find there are MANY small coin dealers (and pawn brokers) who simply don't have time to sit down with a bag and examine it. The Mercury set I'm building from rolls and bags is now missing only 3 coins (after 3 years) -- 1916D, 1921, and for some reason, 1928S. All the rest have come from bags, including a handful of AU-BU sliders after around 1938. The 1921D is AG, better than you'd expect.
Get the barbers, mercury dimes, walking liberty halfs when you can for the same price, unless they are very well worn. (unreadable date or close to it) I'd say about $2 over spot per oz is about the max you should go on junk silver. When silver price was higher I could find it for spot or even below spot, but that has become a lot more difficult with the lower silver price.
I am willing to pay 5% over spot on any of my purchases. You can find many deals with War Nickles and Silver Dimes on Ebay for these prices. I buy it whenever I find it.
Silver dimes are the preferred junk silver, IMHO, because they are the most convenient size for commerce, i.e., currently in the $1.25 range. After all, that's the point, stack something that's highly liquid and hope you never have to use it. Anytime someone has to "make change" for you, you risk not coming home with the emergency items you needed. Folks who stack eagles, ingots, rounds, or junk silver dollars will find a big problem down the road. I wouldn't touch Warnicks unless they are XF or AU-BU sliders, and then only for numismatic value, not bullion. The same goes for Canadian and foreign silver. I try to sell them as fast as I find them. I don't take ultra-thin Mercury dimes, either. Around here, it's a buyers' market. New member Histman, welcome. But what about the postage you pay? Tell me if anyone sells for 5% and pays $6-11 postage too (minimums for the most likely flat rate Priority boxes).
When I calculate my total purchase price I include the price of shipping in the 5%. I find large lots that will ship for free or for $5.85 flat rate and still be within the 5%.
