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Please Explain The Theory Behind Melting Silver Coins
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<p>[QUOTE="Conder101, post: 956963, member: 66"]This is true if and only if I can find enough collectors who want to buy one for their collection at that premium over spot. If I've got 500 1964-D dimes it would take me years to find 500 collectors who need one for their collection. In the meantime my capital is tied up in a non-performing asset and I am LOSING money the whole time I am holding them due to the time value of money plus the fact i don't have my capital available to use on more lucrative deals. A dealer makes money by keeping his money turning. It makes much more economic sense to buy and sell repeatedly for a small markup than the buy and hold for a long time for a larger return. So if he can't more them quickly to a collector, or to a silver speculator, they head for the smelter. Keep it turning, keep it turning, keep it turning.[/QUOTE]</p><p><br /></p>
[QUOTE="Conder101, post: 956963, member: 66"]This is true if and only if I can find enough collectors who want to buy one for their collection at that premium over spot. If I've got 500 1964-D dimes it would take me years to find 500 collectors who need one for their collection. In the meantime my capital is tied up in a non-performing asset and I am LOSING money the whole time I am holding them due to the time value of money plus the fact i don't have my capital available to use on more lucrative deals. A dealer makes money by keeping his money turning. It makes much more economic sense to buy and sell repeatedly for a small markup than the buy and hold for a long time for a larger return. So if he can't more them quickly to a collector, or to a silver speculator, they head for the smelter. Keep it turning, keep it turning, keep it turning.[/QUOTE]
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