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 Replies: 13 / Views: 2,270 |
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Pillar of the Community
United States
1745 Posts |
People have been asking me to buy 90% silver from them. I generally point out any collectible coins and then which ones should be considered for their melt value, only. With more requests to buy junk silver, my question is: - Do dealers buy at melt and sell at a premium, and if so, what premium?
- or, do dealers buy at a percent of melt and then sell at melt
I am most interested in the collectibles but am willing to buy the others. Just trying to find the best method to turn a little profit on the margin. |
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Pillar of the Community
United States
1418 Posts |
My dealer buys slightly under melt, and sells slightly over melt.
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Pillar of the Community
 United States
1745 Posts |
tumbleweedtrumpet,
What does the spread end up being? 10%?
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Pillar of the Community
United States
1418 Posts |
Honestly, I've never asked him, but that sounds about right judging by some of his prices.
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Pillar of the Community
United States
1348 Posts |
I suauly buy a bit under melt and sell everything to my parents. I still sell to them under melt. If I find a collectable coin I pull it out and add it to my books/folders.
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Valued Member
United States
341 Posts |
The dealer in my town buys at 10% under melt. Puts everythings in flips at RedBook prices and pushes the grade a bit. I have never seen a junk silver bin there, but also have never asked if he has such. |
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Pillar of the Community
United States
2335 Posts |
Dealers with enough volume & an immediate outlet can afford to work on a 10-15% margin. People that buy silver because they believe in it as an investment can also afford to work with that margin. If you are small time & want to turn a profit you will eventually get burned on that margin. I wouldn't buy anything except the collectible coins unless I was convinced silver was a good investment.
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New Member
United States
37 Posts |
Dealers buy below melt and generally sell at a premium over melt. This is especially true when the market price is rising.
Usually a dealer will open with an offer of ~65% to ~80% of melt value. If you negotiate, you can generally get them up to ~90% of melt value.
If you are buying, expect the opening price to be ~120% of melt value, and you can negotiate it down from there, usually to ~110% of melt, sometimes as low as current melt value.
If a dealer has some older stock that he's tired of looking at, and he knows you're a good customer, you might even get some stuff at or ever so slightly below current melt value. I've been able to pick up some deals that way from time to time.
Usually the deals I find are on slabbed circulated common date stuff that's been sitting around for more than six months, so the dealer is still making money even selling it at or below current melt values.
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Pillar of the Community
United States
1026 Posts |
Well I have nothing to do with APMEX but you can't get a better deal then their I do not think and they sell it all from junk silver to new silver of all types, same with gold. |
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Pillar of the Community
United States
3184 Posts |
Like what tumbleweedtrumpet mentioned, dealers pay below spot or melt and sell slightly over melt or spot.
For instance, on 90% some buy at 22-23x and sell at 26-27x. For bullion, they buy at 35-36 and sell at 37-38 depending on the type......silver eagles they add on even more premium.
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Pillar of the Community
United States
1745 Posts |
Ok, so far so good, and I totally understand the downside if silver crashes.
Yesterday I bought some silver @ 25X face and sold today at 30X. I was pretty lucky silver bumped up today.
Edited by The_Duke
03/23/2011 7:59 pm
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Valued Member
United States
426 Posts |
My favorite dealer pays a .50 cent premium over melt on ASE's which I haven't been able to find anywhere else when selling. On other silver its just like mkman123 said "dealers pay below spot or melt and sell slightly over melt or spot" |
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New Member
United States
29 Posts |
You could call your local dealer and match their quote. @realpeso providentmetals is giving $2.10 over spot for ASE but you lose on shipping. |
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Valued Member
United States
439 Posts |
I am a small collector and buy silver around 85% of melt. I try to sell at melt but will sell at 95% of melt.
You have to be careful becasue you can get beat if the market moves violenty against you.
It seems the buyers are starting to dry up a bit too.
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Replies: 13 / Views: 2,270 |
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Posted 03/22/2011 7:57 pm
