What are you all paying for 90% junk?

Bought for the first time at a local coin shop today. I want in just to chat &get a feel for things. Nothin new learned & no great deals,but he had pre 64 dimes for 1.25. Provident has them for 13.98 per 1.00 face. I,figured it was a decent price so I bought 15.

 

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Bought a roll of dimes for 13xFace today. Much better than what they have on Provident right now.

 

I'd buy a few at that price, too, just to establish myself as a paying customer.

 

I'll buy all the 90% I can get my hands on at 10x face, even though I'm not 100% sure it's wise. (I remember not too many years ago when I was buying all the 90% I could get my hands on at 20x face.)

 

I'm a buy and hold guy, on silver, so I'm not too concerned about the price dropping. If melt goes to 5x face, I'll still be happy, as that means that the economy is doing good and as a result, my 401(k) should be doing good. I'm using silver as an inflation hedge, and only as a small portion of my portfolio, such as it is. That being said, I'll buy what comes my way at 10x face as long as it makes sense.

 

Ok, I don't know if I have been calculating my 90% correctly. Online sites say .715 is what you multiply spot plus the premium to get the one dollar face value. I have been using coinflation and it says one dollar face value is .7234. So here is the difference in the equations:

Premium of one dollar; spot=$16.77+1=$17.77*.715= $12.71 x face
Premium of one dollar; Spot= $16.77+1=$17.77*.7234=$12.85 x Face

So, i should be using the .715 number I guess. Been doing it the other way for awhile.

 

Trying to wrap my.. what's left of my mind around that... BMAN..

 

If one dollar over spot was $17.75 then you multiply it by .715. Dough! I just realized I put division symbols in there. Let me edit that. Ok done, So I should be paying $12.69 face value for 90% if I was paying $1.00 over spot.

 

YEP.. understand.....now

 

I was using .7234 from coinflation which ends up being higher.

 

Price was 13.50 per 1.00 face today.

 

Looking forward to the local show this Saturday and Sunday, where competition drives up buy prices for 90%. I may be selling a bit if the price is right.

I still miss the days when I could buy from one dealer who was selling at 25x, cherry-pick, then sell the remainder to another dealer -- who had just bumped up his buy price to 26x.

Edit: March 2011 -- those were the days...

 

Paid 19.05 for 15 dimes today. A shade higher than I wanted to pay. The ideas was to establish a relationship with a dealer. The guy never even looked at me. Same as last time. Moving on.

 

Is 90% usually a better deal at coin shows or local coin shops?

 

Supply is the key at coin shows. If you are attending a show with 20-30 vendors, the supply may not be that great, thus you might get a slightly higher price. What buyers are willing to pay is always the question. Good luck.

 

Junk silver was 13x at the LCS yesterday.

 

Learned something new about 90% Junk Today. 10 dimes, 4 quarters or 2 halves comes out to .7234 ounces of silver. Dealers use .715 ounces in their calculations to make up for circulated coins. Something that I wondered about for awhile. Mystery solved for me.

 

HOW MUCH OVER SPOT

 

So if you bring in a roll of older Mercury dimes the dealer makes out big time because he pays much less than if your dimes were uncirculated Roosevelt dimes and then turns around and sells the Mercs for a premium. Sounds like a deal to me.

 

As of now it doesn't matter both scenarios get multiplied by .715. I believe that's an industry standard.