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 Replies: 9 / Views: 1,323 |
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Pillar of the Community
United States
3640 Posts |
Maybe this has been discussed in the past but I was wondering on peoples perspectives when it comes to why they may purchase 90% junk silver coins for more than or at the least there silver melt value but are not willing to pay the same for 40% or even 35% silver coins ? After all, silver is silver. When silver junk coins are sold to a dealer they go to the smelter. They don't care what the silver percentage is. When all is said and melted the silver is the same. In reality there would be more silver in an unc. or au 40% half dollar (weight/percentage wise) than in a worn out Mercury dime of 90% Seems odd what people do. Just an example here: Let's say the current spot price of silver is $14.50 an oz., converting that to the silver value of a 40% half and that equals $2.15 and a 90% half equals lets say around $5.45 People will pay the $5.45 or more for the 90% but will not pay any way near $2.15 for the 40% coin. The better bargain would be to pay just a little less for the 40% Any thoughts ? |
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Moderator
 United States
6563 Posts |
40% and 35% coins are sometimes not worth the shipping weight if bought or traded online. Any small margin you might make is lost to USPS  |
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Pillar of the Community
 United States
3640 Posts |
That is true. But if bought in bulk or through a bullion dealer
that offers free shipping the prices are still way off.
One could mail 50 lbs. or even more of any silver coins for only $10.00 and change.
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Pillar of the Community
United States
2520 Posts |
I would think the cost of smelting would be a factor! Let's say the smelter can hold 1000 ounces of coins at one time. You process 90% coins and you end up with 900 ounces of silver. Processing 40% coins you only end up with 400 ounces of silver. Yet your energy usage and time is still the same. Just a thought.
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Pillar of the Community
United States
3640 Posts |
That may be the bottom line on it then.
Makes sense.
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Pillar of the Community
Australia
2830 Posts |
further to what Ratman wrote:
I don't know that there is much demand for 40% silver.
Most jewellery, etc is 80% or more. "Sterling silver" is 92.5%. So, if you smelted 40% coins, you'd still have to separate the silver from the alloy before you had a marketable product. I'm guessing that the process of refinement is expensive unless carried out on a very large scale.
Peter in Oz
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Pillar of the Community
United States
3640 Posts |
Just a thought here and it would have to be looked into
as I am no expert on the silver smelting process, but what if they
just put any and all % silver coins in at the same time ?
Whatever process they use on the 90% or .925 they still have to remove
the other metals/alloys anyway.
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Valued Member
United States
436 Posts |
If they are being used just for bullion, a lot of places won't even take 40%, as the coins don't contain enough silver to justify the removal of the 60% copper. Usually, if the 40%ers don't have numismatic value, they are just worth face.
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Pillar of the Community
United States
2541 Posts |
I was speaking with a dealer about this and he said there is much less demand for 40% halves than 90% halves. He told me that when people come in to his store looking to buy silver, they want 90%. Thus, he pays people less for the same amount of silver in 40% coins as would be in 90% coins.
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Valued Member
United States
290 Posts |
I've read on another forum that the 35% is difficult to smelt.
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Replies: 9 / Views: 1,323 |
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Posted 08/31/2009 10:36 pm
