"But I Hate Doing Math!"

Let's be realistic, most people fog over when confronted with even simple math problems. If they're selling silver or gold, anything past $xx.xx per dollar face, and you might as well be talking root canal work.

What inspired this post was someone mentioning midwestrefineries as a good place to sell, except they don't take 40%. Another poster said providentmetals bought 40%.

Life would be simple if they paid as much for nine 40% halves as four 90%, but that ain't happening. For starters, there's 8.7% more silver in the 90%, even though you'd think they were the same (40% halves are lighter).

Now let's calculate what PM pays. I don't care for opinions (ripoff or nice guys), just for the facts, from which people can draw their own confusions.

$1 in 90% halves weighs 0.8 oz and contains 0.7234 oz of silver.

$1 in 40% halves weighs 0.74 oz and contains 0.2958 oz of silver.

PM pays as follows:

90% Silver US coins Spot -$1.00 per Ounce
40% Silver US Kennedys Spot -$2.00 Per Ounce

Using $46.55 as spot, since it allows me to compare to posted prices at silvertowne:

$45.55 * 0.7234 = $32.95, ST = $30.86
$44.55 * 0.2958 = $13.18, ST = $11.96

Oddly enough, 1318/3295 = 0.4, where 40/90 = 0.444

So is PM a better deal than ST?

Not necessarily!

These figures would only be accurate for new coins. If you had a $1000 bag of 1964 Kennedies, the refinery buying on weight is obviously the better deal. A bag of used- silver coins is generally agreed to be 715 ounces, or $32.57 per dollar.

And we're not figuring costs like transportation or how fast you get paid (ST will cut you a check as quickly as they can count/weigh the coins).

If silver prices stay high, look for more major dealers to buy by weight, rather than count. After all, at $50 an ounce, the 8oz+ difference between new and typically worn circulated is over $400 a bag! $xx.xx per dollar face will only be used as an estimate, pending weighing the lot.

One last factor in the 90/40 battle.

If a 90% coin is worn to where 20% is gone, what's left is still 90% silver. The same is true of billon warnickels.

If a 40% half is worn to where 20% is gone, what's left might only be 20% silver, because the high silver content is in the outer layers, and is first to wear off.