Is there any mass melting of 90% and cull silver lately?
Prethen
Posts: 3,454 ✭✭✭
Since premiums are so high, relatively, above silver spot, I was wondering if that means a lot more melting is going on now? Also, if there was, would the coin market even realize it's happening? For instance, would silver dollar culls be less prevalent?
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There is a higher premium on 90% also. Too costly to smelt and not profitable.
Many buyers of bags of 90% silver are likely preparing for an economic disaster. US silver coins will be much easier to use than large bars. Can you imagine asking for change from a 100 ounce bar when you buy a loaf of bread? I doubt if much melting of 90% silver coins is going on at present.
Just looking at the current economic situation, combined with contributors of employment, virus and politics - I would say that most are holding 90% and culls....would still be good for spending/barter. Cheers, RickO
Wish someone would pay me $30/ea for $20 face of ms61-63 peace dollars.
I've always wondered about this. You would assume that smelters are full-time operations but the supply of cull "stuff" never seems to diminish. I'm guessing they just melt jewelry or wait for silver to get back to $40? I wish they'd make it illegal for people to take cull rolls and list the coins individually on eBay (somewhat tongue in cheek).
Even if they did, it would take smelting on an industrial scale to even make a dent in the supply of silver coins out there. It's far cheaper to use an existing product with known silver content rather than something else. Would you trust my smelted bar with a smiley face or a 1964 Kennedy?
Premium to spot doesn't cause melting. The spot price going parabolic does.
I agree with @TwoSides2aCoin. Huge price run ups will cause a lot of silver to come out of the woodwork and a lot of the silver will go to the melting pot.
Prethen, good to see you posting again on this side of the street.
Life member of ANA
I'll hang onto the coined silver for now. I feel safer with that then bars jmo
MONTHS AGO there was some mass melting because Silver could Not get from where it was stored in London to where it needed to be delivered to the Comex in New York.
That was months ago and that problem is not longer apparent...
You can always tell when 90 gets melted. You just need to watch the premium.
When it's trading at a premium, of course it doesn't get melted. When bags trade at a discount, it's going into the pot.
90% silver us coinage that is of junk silver quality has been referred to by dealers I have spoken with as a "River of Silver". This River Of Silver flows from one place to another depending on various factors; however it rarely changes form (i.e. from 90% silver into a smelter to be poured into molds that create silver bars).
I saw a 1,000 ounce silver bar (62.5 pounds) at a dealer's shop one time. Very large, very heavy, not very portable and definitely not something that you could easily use in day to day commerce. Seeing (and lifting) that silver bar made me realize that junk silver US coinage has many advantages that would cause many persons to keep it as is.
Are people allowed to own both large and small pieces of silver?
If so, in an economic disaster, they could use coins to buy their bread, and 100 oz bars to buy their fast cars, comfortable furniture, and fine art.
Liberty: Parent of Science & Industry
Anyone ever tried BUYING something with silver bars or rounds?
I did. Just for fun. Not even a Chinese smorgy would take one.
Not even when I showed the manager how much more it was worth than the meal.
Of course when silver hits $2,000..............
