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 Replies: 15 / Views: 1,837 |
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Valued Member
United States
466 Posts |
Well since silver is getting low I am interested in buying bulk silver to fill some holes and also hold onto as an investment. I was at a coin show today and found a few dealers who had bulk silver for sale. When I asked the price one of the dealers was selling bulk 90% for he answered with "20 to 1" I felt dumb since I wasn't sure of what this meant and said thanks I will come back to you after I make a walk around to all the tables. Does this figure I was given mean 20 american dollars to one dollar face of silver? That was all I could figure in my head, but was kind of embarrassed to ask. I didn't want the guy to think I didn't know what I was doing, because I didn't want him to take advantage of me or look at me like I was an idiot. I would rather look like an idiot as GooGoo, internet creature on the CCF. Any information on buying silver would be greatly appreciated. Tips of what to watch out for, and how to get the most bang for the buck would help. I am very interested as of right now, and have the money to spend.
thanks
GooGoo
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Pillar of the Community
United States
2120 Posts |
I believe so, Yes.
Usually when buying US 90% Junk silver, it is sold by a face multiplier. So 20x Face would mean just that, $1 face value of 90% silver coins for $20 fiat.
This is a good deal, since right now the 'melt' value of those silver coins would be 21.6x times face. Many Coin shops currently are selling $1 face for about 22x face.
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Pillar of the Community
United States
751 Posts |
I assume he meant that he was selling for 20x or "20 times face". That's 8% below melt and a very good price IMO.
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Pillar of the Community
United States
2120 Posts |
Something to be careful of, If the 90% you are buying is all Very worn out, you are actually losing out. When buying 90% silver you want it to be mostly in the VG-F range, otherwise a lot of the design is worn off, which means a lot of the silver has worn off. If its just a couple coins out of 100 its no biggie, but when over half are, you could be talking a big diference in what they should have, weight wise, and what they actually have.
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Valued Member
 United States
466 Posts |
hmmm wouldn't a certain amount of face dollars of silver weigh the same amount no matter what the coins are that are making it up?
for instance wouldn't 10 dollars face of silver be the same if it were made up of a mix of coins rather then all silver dollars?
when buying silver could you weigh it to see what kind of a deal you are getting after you are told how much face it is?
but then you would have to take into account the 10% of the weight that isn't silver right?
anyone have an equation for weighing bulk silver?
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Valued Member
United States
123 Posts |
Quote:
hmmm wouldn't a certain amount of face dollars of silver weigh the same amount no matter what the coins are that are making it up?
for instance wouldn't 10 dollars face of silver be the same if it were made up of a mix of coins rather then all silver dollars?
when buying silver could you weigh it to see what kind of a deal you are getting after you are told how much face it is?
but then you would have to take into account the 10% of the weight that isn't silver right?
anyone have an equation for weighing bulk silver? Yes, except for the silver dollars. Peace and Morgan silver dollars have 0.7735 troy ounces of silver, compared to 0.7234 troy ounces for $1 face in dimes, quarters, or half dollars. Edited by John Bonzo
10/02/2011 3:56 pm
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Pillar of the Community
United States
5854 Posts |
Just to keep in mind the amount of silver in a silver dollar is actually more than a dollar face of a mix of 90% dimes, quarters, and half dollars. According to the Red Book a silver dollar would have a ASW of 0.77344 oz while a dollar of the 90% would have a ASW of 0.7234 oz. |
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Pillar of the Community
United States
5854 Posts |
Darn, you just beat me to it.
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Pillar of the Community
United States
2120 Posts |
Actual weight x 0.9 = ASW for 90% silver
Actual weight x 0.8 = ASW for 90% silver
Etc
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Pillar of the Community
United States
751 Posts |
ian is correct that you can lose a few % of silver weight with well-worn coins. However, I have never seen 90% silver bought or sold by weight...only by face value. I'm guessing if you want to melt it you'd get paid by weight, but that's not my thing.
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Pillar of the Community
United States
2120 Posts |
Quote:
. However, I have never seen 90% silver bought or sold by weight Oh, me neither. But 'what if' in a few years silver is over $100/ounce and people then weigh 90% for buy/sell. Just something to think about now. Same purchase, different values. |
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Pillar of the Community
1028 Posts |
Quote:
However, I have never seen 90% silver bought or sold by weight...only by face value. Kitco and some other online companies that sell large lots weigh the silver when they buy or sell. I have never seen it done that way by any individual or coin shop, however |
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Pillar of the Community
United States
548 Posts |
Yeah, I've actually sold some "junk" (I despise that term, btw) by weight. I've also done some weight tests of worn silver coins. The most I've seen has been about a 1% loss off their spec weight. I suppose I could imagine a 1.5% loss, but man, that's a lot of wear. Oh, the 1% weight loss coins ( Mercury dimes), the 50 that made up the roll were somewhere between 0.5 to 1.0 inch shorter than some Roosies I had. Amazing. |
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Bedrock of the Community
United States
12437 Posts |
For face value bags, $1 of 90% silver circulated minor coinage is assumed to contain 0.715oz vs 0.7234oz for unc coins.
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Bedrock of the Community
United States
11951 Posts |
So now you have the X face for buying 90% silver coins down.
The other one you might hear is, spot, back of spot and over spot.
You will hear thses terms when buying bars, rounds and american eagles.
For example - If you were going to sell a 1 oz silver bar, a dealer might pay
you $2.00 back of spot. (Spot = current silver price)
The same dealer might sell you the silver bar at $2.00 over spot.
For a american silver eagle the dealer might pay you spot, but sell at $5.00 over spot.
So if silver was at $30.00 per oz.
$2.00 back of spot would be $28.00
Spot would equal $30.00
$2.00 over spot would be $32.00
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Valued Member
United States
466 Posts |
lots of helpful information here. This will help when I am calling around to coin dealers and such this week sometime.
Thanks a ton everyone
If I make a big purchase I will share it on here with a few pics if I can manage to get them on here
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Replies: 15 / Views: 1,837 |
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Posted 10/02/2011 2:22 pm
