Buying From Dealers - Paying By Spot Or Fv?

Shhh 1922, I'm supposed to be working! I'm still looking for those sub $30 Morgans Brian. I got a few on ebay before the latest uptick in silver prices. Earl

silvers hot

I haven't seen many dealers weigh out 90% when buying or selling, I'd say that's a little unusual. You have to shop around when buying. At the show 3 weeks ago I picked up nice Morgans and Peace for $24 ea.

Near as I can tell from the information given you paid for 9.9 troy oz of silver and got 9.9 standard oz. The coins you got would have been 11 oz standard, and 9.9 oz standard of silver. Problem is a troy oz is heavier. So there was only 10 troy oz of weight there and 9 troy oz of silver. You got charged for almost an oz more silver than you received.

9 silver dollars at 26.73 grams = 240.57 grams
5 half dollars at 12.5 grams = 62.5 grams
4 dimes at 2.5 grams = 10 grams
Total 313.7 grams times 90% = 281.76 grams divided by 31.1 grams to give troy oz = 9.06 oz of silver.

9.06 times $32 = $289.9 Plus 8.5% sales tax = $314.56
$340 - $314.56 = $25.43 over charged $25.43 divided by $32 = .8 oz of silver paid for that you did not receive.

Working with standard oz
313.7 grams times 90% = 281.76 grams divided by 28.34 to give standard oz = 9.94 standard oz
9.94 standard oz times $32 = 318.08 plus 8.5% sales tax = $345

You still paid less than you would have paying 25 times face plus tax 12.9 times 25 = $322.5 plus tax = $349.91
and just about exactly the same as what 24.5 times face would have been. But you were charged at $32 per oz for about .8 oz more than you received. So he actually charged you $35 an oz.


One other thing, when a dealer tells you he charges so much times face for 90% silver they are talking about diems quarters and halves. Silver dollars get charged extra because a silver dollar has more silver in it than a dollars worth of fractional coins. So the other dealers would have charged you more than 24.5 or 25 times face value for the 9 silver dollars. So even with the overcharging you probably came out ahead.

The shop down the street from me charges $21.50 per dollar of face on junk 90%. Cull Morgans are $26. Doesn't change until the price of silver moves by a couple bucks.

The other shop is downtown, and he charges spot x .72 per dollar of face.

Depending on the price when I have a few bucks to spend, I do the math and figure if I want to drive downtown or down the street.

I sound like a shill for APMEX, but their site is super easy to use. Works good on a phone if you have one with internet. Check their Top 40 for a glance. If you are doing better than their prices, you can feel like you're getting a good deal.

, EarlB!

Two factors you're not figuring in:

A dollar coin has more silver than $1 silver change.

Dollars tend to go for a premium even above their difference in weight.

I agree biggfred I sort of like that calculation method better myself...still I'll continue to check the other place. It was at a sister store to the first one that I went to and picked up the 5 Morgans for $125 out the door. I don't care how that gets calculated I was happy enough paying that price. Hope I can get some more from him tomorrow.

Earl