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Fair Trade Silver To Gold?

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akane17's Avatar
United States
404 Posts
 Posted 01/26/2012  1:40 pm Show Profile   Bookmark this topic Add akane17 to your friends list Get a Link to this Message Number of Subscribers
Not an offer to trade, just want to know what a fair trade would be.

Having a lot of 90% US silver coins(mostly halves, quarters and dimes, not trading morgans and Peace dollars) and would like to trade some for a 1/4 oz. gold eagle.

What would a fair trade be?

Thank you.
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Silverhawk74's Avatar
United States
3670 Posts
 Posted 01/26/2012  2:11 pm  Show Profile   Bookmark this reply Add Silverhawk74 to your friends list Get a Link to this Reply
Last time I checked, the gold silver ratio is about 52 to 1 or so....

I traded about 29 grams of high quality/premium gold, for about 50.15 oz. of high quality/premium silver back in late part of the year, with another member in PoboxW here at the forum and the ratio was about 54 to 1 at the time. Since the trade, gold an silver lost about the exact same percentage, and gained back about the exact same percentage, perhaps with silver closing that gap from 54 to 1 to 52 to 1 or so, and that is just a guess off the top of my head. So I am sure you find someone in the market for some 90%, may just trade you for a quarter oz. gold coin. I can honestly say I think it was good trade for both in my estimation, as silver is a poor man's gold, an I definitely qualify as poor, lol....

O.K., with gold at 1725 roughly, that is about 55 bucks per gram, or 431 bucks for spot quarter oz.. The best price I can find on ebay for a quarter oz.,is this example below of Jamican gold coin at 455 bucks, not to shaby I must say for ebay....

http://www.ebay.com/itm/1-quarter-o...em3f12f5d8ca

Now then, a better average price on buy it nows, is around 500 bucks, nicer examples, proofs, etc.. I use this simple hunt formula on ebay, as I am sure many do the same. I HIGHLIGHT buy it now only, as to eliminate running auctions. Then I put my price range in to what I think is a fair price, such as the search guidlines I used to find that link above, was all quarter oz. gold coins buy it now, BEWTWEEN THE PRICE OF 450 AN 500 BUCKS....

I have not taken the time to read about that coin or its purity, but I bet if it is close to 21k or better, you will not find a better price on ebay, just is what my searches produce, lol....

Now then I will find 475 dollars face value price of 90% silver, and we will have a good trade total for you, bare with me here....

Here you go, a full pound of silver 90% priced at 486 bucks, there is your trade formula....

http://www.ebay.com/itm/Full-Pound-...em3cc15b1144

The link above does not say whether it is 12 troy oz. of silver or 16, but the way it is priced, I bet you can bet the farm it is 12, lol....

Fourteen oz. would be a fair trade in 90% in my estimation, as 14 times 33.50 is 469, so maybe 15 oz. of junk silver if it is a nicer quarter oz. proof or something....

Edited by Silverhawk74
01/26/2012 2:34 pm
Valued Member
akane17's Avatar
United States
404 Posts
 Posted 01/26/2012  2:30 pm  Show Profile   Bookmark this reply Add akane17 to your friends list Get a Link to this Reply
Sounds reasonable. I just wasn't sure about the gold premiums.

Thank you for the breakdown.
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Silverhawk74's Avatar
United States
3670 Posts
 Posted 01/26/2012  2:43 pm  Show Profile   Bookmark this reply Add Silverhawk74 to your friends list Get a Link to this Reply
I think anything over 14 oz. would come down to how much of a premium over spot does the quarter oz. gold coin you seek brings....
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BH1964's Avatar
United States
10982 Posts
 Posted 01/26/2012  3:51 pm  Show Profile   Check BH1964's eBay Listings Bookmark this reply Add BH1964 to your friends list Get a Link to this Reply
BU GAE are worth $450 wholesale right now. Your 90% is around 23X FV to a good buyer.

A fair trade would be $19.50 FV 90% for each $10 GAE. I doubt many holders of quarter-ounce GAE will want to make that trade but I would not go over $20 FV in 90%. This is assuming you have decent 90% (no slicks/culls/etc)
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Valued Member
akane17's Avatar
United States
404 Posts
 Posted 01/26/2012  4:07 pm  Show Profile   Bookmark this reply Add akane17 to your friends list Get a Link to this Reply
Thank you BH. I think that's a fair range.

I don't know if the person with the gold will feel that way, I guess we'll find out.
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