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 Replies: 16 / Views: 3,180 |
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Valued Member
United States
100 Posts |
There are 3 coin dealers near me. I traded in some broken/unwanted jewelry and used some of the proceeds to purchase some pre-64 coins to add to the pile. This was yesterday. One of the dealers wanted 24.5 times face value to sell their circulated 90% coins. Another wanted 25 times. The 3rd quoted me $2 above spot which worked out to $32 yesterday. Naturally I assumed that was the better deal so went there. Now I'm wondering if there is really any difference between the pricing methods at all? I ended up picking out 7 Morgan dollars, 2 Peace dollars, 5 half dollars and 4 dimes - total silver weight would be what about 9.68 troy ounces I'd guess. Face value was $12.90. He quoted me a price of $340 for the coins and we did the deal. Well if I had gone to the ones that charged by FV it would have been $316.05-$322.50 (plus tax). When I got home and totalled up my silver weight based upon the coin estimater and came up with 9.68 troy and multiply that times $32 well that comes out to $309.76.. There's some funny math in here somewhere..I do remember the dealer gets the total weight from his scale then takes 90% of that. They weighed a little more than 11oz total. Ok, if you do that then unless my math is wrong that would come out to 9.9oz. Times 32 that still only comes to $316.80. He never mentioned he was doing it but he had to have also added .085 sales tax into the mix which would get us at exactly the figure I paid. So, long story short - I take it (unless something is funky in the math/charges he gave me) that selling a couple of dollars above spot is pretty much the same ballpark as 24.5-25x FV? (at least assuming a $30 spot price). Earl |
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New Member
United States
43 Posts |
ya thats pretty good for silver. how long did it take you to right all that?
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Valued Member
United States
256 Posts |
I found a dealer near me on Tues this week when spot was roughly 29-30 where I was able to buy Peace at 26.50 and Morgans at 27.00 Guess I should have bought more.
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Valued Member
 United States
100 Posts |
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 |
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Valued Member
United States
239 Posts |
That's not too bad considering my lcs charges roughly $36 for morgans! However, I went in there two days ago and bought 90% washingtons @ 22x fv.
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Valued Member
United States
286 Posts |
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Pillar of the Community
United States
1660 Posts |
How much weight is lost when a silver coin becomes very worn? A choice between using either face value or spot silver price would depend, to me at least, on that.
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Pillar of the Community
United States
4333 Posts |
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.
When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
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Valued Member
United States
100 Posts |
Man I have got to get to a show. There is one in the metroplex next month and it will be my first. Hopefully there will be some of those $24-25 Morgans there and some good prices on silver eagles.
Earl
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Bedrock of the Community
United States
17884 Posts |
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.
Edited by Conder101
01/17/2012 2:57 pm
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Valued Member
United States
100 Posts |
Found a local dealer with some of those $25 Morgan and Peace dollars tonight. They aren't anything numismatically special (typical circulated condition) but are nice Morgans (1881-o, 1882, 1882-o, 1883, and 1900). They were $25 OTD each so I couldn't complain with that. Wish I just had more to spend with him at the moment. Earl Edited by EarlB
01/17/2012 6:48 pm
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Valued Member
United States
318 Posts |
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. |
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New Member
United States
43 Posts |
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Rest in Peace
United States
9104 Posts |
 , 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. |
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Rest in Peace
United States
9104 Posts |
Quote:
Near as I can tell from the information given you paid for 9.9 troy oz of silver and got 9.9 standard oz. And this confusion/deliberate fraud is exactly why it's better to use times face. If you're buying $10 face, it's either $10 or it isn't. |
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Valued Member
United States
100 Posts |
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
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Replies: 16 / Views: 3,180 |
Posted 01/13/2012 5:33 pm
