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 Replies: 17 / Views: 2,197 |
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Pillar of the Community
United States
787 Posts |
I am wondering if anyone may know of a reliable, proven company for smelting old, scrap US silver coinage.
I have been lucky enough to purchase a lot of "scrap" half dollars of late and think smelting them might be preferable than trying to hold or resell them on E-Bay.
I have found one called Midwest Refineries, LLC but would really appreciate feedback from others who may have more experience in the smelting arena.
Thank You In Advance - Kenscott
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Pillar of the Community
Australia
7096 Posts |
Don't do it.
How many are we talking about?
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Pillar of the Community
 United States
787 Posts |
I have purchased a few hundred.
Why are you saying not to do it? Is the reason the current lower price of silver, bad reputations of smelting companies, or maybe a personal preference not to melt coins?
Kenscott
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Pillar of the Community
Australia
7096 Posts |
If you can afford to hang onto them do so.
The price of silver can only go up in the long run and you will kick yourself if it does and you sell now.
Give it at least 6 months and see what happens.
Even if the price drops to $20 dont sweat it. it will definatly improve
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Pillar of the Community
United States
609 Posts |
You are destroying history, plus you can get more for them as coins.
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Pillar of the Community
Australia
7096 Posts |
If they are worn and ratbaggy I don't see any problem melting them at one stage.
I think you would get better value selling them as bullion instead of sending them off to be smelted.
I'm pretty sure that the smelters will pay you a lot less than melt value for them anyway.
I would sort through them and put the better ons aside and flog off the grotty ones as bullion in batches of 50 or so.
The better ones will probebly bring a better price than spot
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Valued Member
United States
320 Posts |
edit: read the question again.
Personally I'd hold for a while. Silver tanked within the last little bit, but is expected to move higher. If you're going to sell, sell as bullion, perhaps to another collector. You can get melt for them pretty easily. If you sell to a smelter they can SELL it for melt, and have their costs to cover and want to make a profit too. SO you would get a lower price and be destroying history.
Edited by Secret Argent Man
10/01/2011 12:50 am
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Pillar of the Community
United States
4989 Posts |
Why on earth would you melt them? Coins have purity and weight that is more or less guaranteed; many collectors will pay right at spot and some will even pay 5% above spot. Happens every day at coin stores.
A melter, by contrast, might pay you 75 or 80 cents on the dollar.
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Pillar of the Community
United States
787 Posts |
I know of at least one smelter paying 90% of current spot. Thus, the price difference is 10%.
To sell in E-Bay is around 12% of the total price you sell them for. Thus, to me, there is a 2% profit margin
to smelt versus selling on E-Bay. If I knew of any local dealers, or collectors, which would pay me spot value
then I would more than gladly sell to them.
I am not in a large metropolitan area and thus do not have the same market presence as some who may be posting here.
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Pillar of the Community
United States
1042 Posts |
Just my 2 cents worth... If you can get 90% of spot from them, and you don't want/need them...sell them. If you can afford to keep them for awhile, hang onto them. The roller-coaster ride with silver isn't over yet in my opinion. I haven't found ANY coin dealer, or collector that's willing to pay 90% of spot for silver "melt-value" coins. I've never used a smelter for coins, but I have used one for some scrap gold. http://www.specialtymetals.com/index.aspIf this link isn't allowed, I apologize. |
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Pillar of the Community
United States
968 Posts |
I've been seeing dollars and half dollars going for at least 30-50% above melt on ebay. Melt for a half should be around $10 right now, but they go for at least $15. Morgans and Peace dollars are going for at least $30-35 while melt is around $23. I do a lot of metal detecting and on the forums I frequent the current favorite refiner is Aragold, with Midwest a close second. Aragold wins by a nose because they are paying 98% of melt on gold while Midwest pays 95%. I just checked and they both pay the same for silver, 90%. I've heard many good things about both places. The only possible negative I've heard is that someone suspects that they use the lowest melt value of the week for the metal instead of the melt value on the day it is actually processed. This is anecdotal evidence though so take it with a grain of salt. http://www.aragold.comEdited by Saruma
10/01/2011 02:39 am
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Pillar of the Community
United States
787 Posts |
I did not comment on where I think silver values will go in the near future. It is more of a tangent thought to the original post I made about the smelting company.
Honestly, I first and foremost think the price of silver is being manipulated beyond the supply and demand model. I have read there is a current law suit against JP Morgan which pretty much has them nailed on manipulating the market. Also, I think I may partially understand why the price has taken such a dramatic drop in the last week or so.
I believe the model goes somewhat like this with a lot of traders. If the world economy is likely to continue in it's current demise, then the demand for overall goods will decline. If the decline is as strong as some suspect, there will be less manufacturing demand for silver and gold. Thus, the value of silver and gold is likely to be less than when there was more optimism in the market.
Now, with the almost impending failure of Greece and Spain, one can see the fuse about at it's end. Add to this the likelihood of a universal, digital currency and there is a good potential for silver to go down further and possibly stay low.
To me, that saddest thing is that fear of what MIGHT be is actually causing the MIGHT to become reality. Maybe a return to what is should be followed but I am afraid the powers that be do not wish for such to happen.
In short, I see a good possibility of silver going down and staying there. This being said, I feel the immediate future may see price increases as bargain hunters buy at what they feel is a bottom and thus drive the price up to some degree. Yet, when overall fear overcomes overall optimism, I would be out of the silver arena.
Kenscott
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Bedrock of the Community
United States
20753 Posts |
Quote:
I am not in a large metropolitan area and thus do not have the same market presence as some who may be posting here.
That is the main problem. In some large city areas there are as many metal smelters as gas stations. Not as many as Starbucks coffee though. Most people I know that do have coins melted usually just take them to jewlers that are none for that. |
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Valued Member
United States
466 Posts |
hmmm
I would never melt any of my coins, that is because I have either found all of my silver or bought maybe about 5% of it.
I am the kind of guy to be happy with any silver coin no matter what the grade. If you bought these coins as an investment then I suggest you wait a bit before you dump them, too bad you didn't do it when silver was pushing well over $40/oz. 90% seems like a nice deal though.
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Pillar of the Community
United States
787 Posts |
Actually, I did have quite a bag full of silver quarters which had been picked out of change for years. I did sell them around the $40 mark on ebay. As for the majority of the rest of the coins, I was able to purchase a lot of them at $5 to $7 below spot in the $33 to $35 range. This sounds good until you realize ebay around 12 percent just to list and sell them. My job is currently in a likely state to end in a month or so after being there almost 20 years. I started right out of college with a B.A. in Communications. So, though I would like to hold for the duration if possible, I am not personally in a comfortable position to do so at this time. My plays on silver now, if any, will be limited purchases at decent prices when I can find them for a quick turnaround profit. I may keep some nicer pieces longer term, but this will be the exception. My more likely play will be swing trading the stocks and ETFs. Volatility seems to be good now to make some profit. Kenscott |
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Valued Member
United States
368 Posts |
www.aragold.com is the most reliable company....they pay 90% of spot price.
Personally, I'd list them on Craigslist and get 95% or above of melt value. Only thing I would send to a smelter is junk Sterling. Good luck though!
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Replies: 17 / Views: 2,197 |
Posted 10/01/2011 12:25 am
