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 Replies: 15 / Views: 1,743 |
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Valued Member
United States
133 Posts |
If I have twenty eight 72% Mexican silver un pesos, I suppose you would buy them using this formula right?
72% x spot price of silver x 28
*** Moved by Staff to a more appropriate forum. ***
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Pillar of the Community
United States
1795 Posts |
I wouldn't use that unless you're a dealer, sounds to me like you're looking for a profit. I can understand not wanting to loose money but I wouldn't purchase them using that formula myself.
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Bedrock of the Community
 United States
12866 Posts |
Hammbone, Try posting in the bullion forum. Why don't you call your local bullion dealer and ask what they'd give you for them? You could also probably sell on ebay for a profit if that's what you're after. |
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Pillar of the Community
United States
2563 Posts |
As of 1:28 P.M. May 3, 2014:
$210.56 USD
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Pillar of the Community
United States
2563 Posts |
You need to include the weight of the peso also. Not a dealer, I'm just pretty good with math.  Edited by CoinCollector2000
05/23/2014 2:30 pm
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Pillar of the Community
United States
1699 Posts |
I know a few dealers don't like anything less than 90% so they buy and sell below spot. I don't know about this specific type, but maybe they do sell at or above spot.
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Pillar of the Community
United States
797 Posts |
Getting Spot price from a dealer for 72% will not happen. Refiners wont pay dealers nearly as much for less pure copper(90% and up is preferred), costs more to refine.
I could see a dealer offering you maybe 50% silver spot price due to the cut they will take for it.
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Valued Member
 United States
133 Posts |
So would an offer to buy them all for 180.00 be correct? I'm not wanting a profit as I know the dealer needs to make money but I figured since silver and gold goes up and down it would be like stock. I want FAIR not ripped off. I think that offer was too low but since I acknowledge I don't know how coin buying and selling works it's hard to know what's fair.
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Pillar of the Community
United States
865 Posts |
I'd take the 180 and run. Sounds fair to me.
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Pillar of the Community
United States
1949 Posts |
On 72% silver, $180 is very fair... If dealers were looking at their silver purchases like a stock, and anticipating it to go up and down, they would not be buying 72% (or 40%, or 35%) silver to hold onto, they would be going with 90%, sterling or .999
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Valued Member
United States
133 Posts |
That makes.a lot of sense. Thank you. It's an all or nothing deal- and those were included with others. Thank you very much for the replies.
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Valued Member
United States
113 Posts |
As a dealer, If I'm buying these as bullion value and not numismatic value, I'm going to look up their ASW or Actual Silver Weight, Multiply that by the current silver price and then offer you 60% of that number. This isn't to try and rip anyone off, It's because my refiner is going to do the same and but offer me around 80% of silver value. After I package, insure and ship the coins I'll probably end up with around a 12% profit. This is the main reason I suggest if people are looking for the best price on world silver..ebay is often your best bet.
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Pillar of the Community
United States
5362 Posts |
If a dealer will only offer 50% of spot by weight for 720 fine silver - that dealer is a thief. Refiners DO NOT use a discount system anywhere that steep. A far more correct offer would be 70% which still allows a 10% margin for the middleman. Of course I presume the sale is to a dealer working DIRECTLY with a refiner.
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Valued Member
United States
113 Posts |
Quote:
If a dealer will only offer 50% of spot by weight for 720 fine silver - that dealer is a thief. Refiners DO NOT use a discount system anywhere that steep. A far more correct offer would be 70% which still allows a 10% margin for the middleman. Of course I presume the sale is to a dealer working DIRECTLY with a refiner. SwamperBob, I hope this wasn't in reference to my post. If you re-read my post, you will see that I offer 60% of melt for world silver, not 50%. If you find a refiner that will offer me more than 80% of melt for WORLD SILVER (not 90% U.S Silver) I would like to know about them, as myself and every other dealer in my area that I do business with gets an average of around 80% to 85% from refiners depending on the Actual Silver weight and cost of refinement of the coins. Please respond to this post with proof of refiners that pay more than that. Calling honest dealers thieves for making 10% or 12% on a buy isn't something that sits well with me. You do realize that most dealers have to ship to a refiner, and WE pay the packaging, insurance and shipping costs, not the refining company. Most dealers around here are very lucky to make 15% on a buy like this. I suggest you do a little more research before calling someone a thief. |
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Pillar of the Community
United States
5362 Posts |
The figures are the actual percentages that were paid to me two weeks ago based on an 85% rate for the recovered silver price paid by the local refiner in our area. Paying 75% to the customer (me) yields a 10% rate of return for the shop.
All silver from 700 to 925 whether coin foreign, US or scrap silverware jewelry or anything else got that same rate based on calculated silver content based on raw weight multiplied by the fineness. I was selling a mix of bad Mexican culls and broken jewelry. The rate to me has never been under 70%. At times silver under 500 fine gets rejected and returned to me. The costs at the refinery include a per transaction fee of $15 for silver - eaten by the shop because they spread that over all daily activity.
My objection was to a 50% rate I saw in the thread. Using 50% would return a 35% profit to the dealer who acted only as a middleman. That is too close to the cut the owner got. Even with 10-15% for shipping the remaining 20-25% is a rip-off for a bullion transaction.
Your post indicates that in your area you do get 80-85% from your refiner. That is about what is received here so it is not the refinery rate. Your margin of 20-25% is simply higher than the place I use because you have higher shipping costs apparently.
So I think the keys here are the proximity so low shipping cost, large volume over the counter, a rapid turn around time from the refiner (also proximity) and a smaller profit margin requirement 10%.
Of all of the above proximity to an actual processing refiner and smelter is likely the biggest difference.
But I still say 50% to the customer is theft.
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Pillar of the Community
United States
1234 Posts |
.7200 fineness peso at my LCS to buy is $10, better then the US half's at $10 0.3856 ASW (peso(KM# 455)) Vs. 0.3617 ASW (half) .02   it all counts  |
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Replies: 15 / Views: 1,743 |
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Posted 05/23/2014 2:24 pm
