What does "7.1 x spot" mean?

Discussion in 'Bullion Investing' started by Dougmeister, Sep 5, 2017.

  1. Dougmeister

    Dougmeister Well-Known Member

    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?
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  3. Whizb4ng


    My local dealer has a page on their website that updates frequently with their current bid/ask prices. I just check there.
  4. baseball21

    baseball21 Well-Known Member

    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.
  5. Dougmeister

    Dougmeister Well-Known Member

    @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?
  6. baseball21

    baseball21 Well-Known Member

    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.
    Last edited: Sep 5, 2017
  7. Michael K

    Michael K Well-Known Member

    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
    Kentucky likes this.
  8. Collector1966

    Collector1966 Senior Member

    It depends on what the quarter is.

    I'd buy nice 1932-D quarters all day for $22.93 each
  9. Mr Roots

    Mr Roots Underneath The Bridge

    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
  10. BooksB4Coins

    BooksB4Coins Newbieus Sempiterna

    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.
  11. Mr Roots

    Mr Roots Underneath The Bridge

    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.
  12. Argenteus Fossil

    Argenteus Fossil Active Member

    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".
    Michael K, -jeffB and Dougmeister like this.
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