Discussion in 'Bullion Investing' started by Mountaineer, Sep 24, 2020.
The amount varies daily and of course depends on the dealer.
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This is a good guide (and changes daily):
I did sell some of my circulated silver halves the next day and am glad I did! Walked out of the coin show with more cash in my pocket than when I walked in (and I did buy some stuff), and THAT'S unusual!
A "bag" is $1,000 face value of coins. For that amount, this firm is paying 40 cents under the silver melt value times 0.715 which is the amount of silver in a dollar's worth of 90% coins. For quantities under $1,000, they are paying 50 cents under the spot price of silver times that conversion rate....etc. (they pay over spot silver for the halves). I have not done business with this company, but several dealers I know use this guide for setting their pricing.
Still though confuses me about why not just account for the .715 in the -.40 or -.50 under spot? Unless it has to do with the dimes and quarters having different copper amounts.
I am pretty sure it has to do with the -.40 number changing on a regular basis as the market changes; whereas the .715 is a constant that everyone uses to calculate the silver content of 90% silver coins. A few months ago (July 27th) there was a +1.15 premium on the $1000 bag amount, +1.05 on lesser amounts and +1.5 on the halves. Until 2020, it seemed that there was a steady -0.60 on 90% bags.
I'm also surprised that modern proofs are so heavily discounted, given that they should have the most remaining silver weight. But if I were looking to buy a bag of silver coin, I'd find older stuff more interesting than modern, and I guess much of the market feels the same way.
Finally, I'm surprised the discount on 40% isn't higher. I guess when silver is in a general uptrend there's more demand for them. I remember a couple of shows when nobody was buying 40%, unless you were willing to sell it at half melt value.
If you're gonna hold and you're still holding then continue holding if you want to make some money! Not only that, take advantage of the price drop at some point and buy more! Bottom line is, don't get discouraged!
Ebay is not a good place to pick up silver from at all. You will almost always get a way better deal from you LCS! The lower prices will show on Ebay but it takes awhile! How long? Who knows?
Maby my mind is playing games but I think ebay prices are even higher now after the drop
Run of mill worn 1960 to 1964 quarters with ebayers asking $7 or $8 dollars.
There are really no coin shops near me, just a ton of pawn shops. The pawn shops are also hit or miss with silver coins and they won't haggle even a little bit.
I can drive to some close towns but iv'e also been told by some coins shops that they have some inventory of coins but when I get there its just a plain out lie or not what I wanted.
I need to practice what everyone here preaches, patients
Yeah, you gotta have patience, no doubt about it! You buy it and you forget about it! Along the way, there will be dips and when the dips get attractive enough, buy em' up if it feels right to you! Gold and Silver is a long haul purchase and it's always been that way! If you don't think the price is gonna go up, and you get discouraged easily, then do yourself a favor and don't buy into it! Sometimes you will see members of this forum selling silver coins and bars in the For Sale tab. Most of the sellers are honest and trustworthy but there's a warning as well!
I agree believing its "going to the moon" is always unwise. However, I buy and hold long term, since I hold PM for two reasons. One, as a contra asset to my other investments, and second as a type of insurance policy. In history, by the time you realize you wish you had portable wealth, its basically too late. I view the safety of my family as paramount, and if I take below average returns for a portion of my portfolio for the security of having portable wealth if it is ever needed, so be it.
In isolation, you are correct about any asset. One should always look at taking profit off the table at times. I remember a famous investor who when asked how he consistently made money, he replied, "I sell too early". However, many of us have more than just financial appreciation why we own pm.
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