When buying 90% Silver U.S. quarters. At the time of this posting: Silver Price: $17.87 / troy ounce Total silver value (of a single quarter) is $3.23 So... what does "7.1 x spot" mean? I Googled it and someone said: "SPOT price is the spread between the bid and ask prices ..." If that is true, how do I know what the current bid/ask prices are?
My local dealer has a page on their website that updates frequently with their current bid/ask prices. I just check there.
Generally in that equation spot means melt value of the coin. They're saying 7.1 times melt value for it. For example if melt was 10 bucks it would 7.1 x 10 which would be 71.
@baseball21, but current melt value for a single quarter is ~$3.23... there is no way anyone would pay $22.93 for a quarter... so what am I missing? Am I misunderstanding you?
You got it right, they may just be expensive. Depends some on what series the quarter is from too Edit to add that they may not have changed the formula in a while too. Some people update them faster than others and some just use the same one all the time.
Never heard this term. Usually it is X x face, 14x face, 13x face. $1.40 for a dime, 1.30 etc. To find the spot price all you have to do is pop in Spot Silver in to the Gizoogle search engine. Click Kitco or whatever, you will see a chart, and the BID and ASK price (current) and from that page you can click for the live spot on GOLD or anything else. Link for the lazy: http://www.kitco.com/charts/livesilver.html
It should be times face 7.1 X Face Value 40% silver would be the only thing currently going for anywhere near 7.1 X Face
That would make sense, but as you pointed out, in this case it doesn't... My guess is that someone must've made a mistake and this shouldn't be taken literally.
I have a dealer that charges x melt for slabbed common bullion but he stops using that system after 1.5X, after that point he just puts Melt + $ Amount(numismatic premium)....That's mainly gold.
I think "7.1" might have been misspoken. What I believe is or was meant is ".71 x spot". That's about how much silver (measured in troy ounces) is in a DOLLAR's worth of junk silver. In your example spot is $17.87. 0.71 x $17.87 = $12.69 That's for a DOLLAR's worth. So a quarter here would have: $12.69 / 4 = $3.18 How this is about a nickel difference from what you said I think is rounding. Some people say .71, other's say .715, etc. There is an official number somewhere, but some like to round down for the sake of "accounting for wear".
