Is it worth searching for better offers?
konsole
Posts: 795 ✭✭✭
I went to 2 LCS today to see what they had for buy offers. At the time silver was $31.20/oz This was the best offers between the 2 places...
10-oz older Johnson Matthey struck - $310 (1% under spot)
5-oz Sunshine Minting struck - $150 (4.2% under spot)
$10 face of average circulated Washington quarters - $209 (7.7% under spot)
I know what these offers are compared to their actual melt value, I just dont know if these are reasonable for what people are getting wherever they sell their silver at. I'm sure I can find betters offers, but I know these offers are not terrible and I dont want to put alot of time and effort into getting another small fraction of a percent. I have more quantity then listed above so a 2% better offer makes a difference.
Do those offers seem to be close to the most I can expect to get if I want to sell it quick and easy all together at an LCS?
Comments
On the bars that is about what I would expect you to see from most dealers. They lowballed you on the 90% junk. You could certainly do better here on the BST although you have to account for shipping. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Low on the 90% I'd think as well. Average for the bars, and my guy doesn't like to pay under spot for bullion if he can.
I wonder how hard it would be to find an LCS that will buy the Washington quarters for 5% under spot instead of 7.7%. There probably is places that will offer spot for them, but I cant imagine I will have much luck finding them. Atleast at 5% under spot they should still make money on it, and its not too bad of a hit for me.
Would it be unreasonable to find an LCS that will offer 5% under spot for the Washington quarters, or am I setting the bar too low and should expect no more then a few % under spot?
They gotta eat too!
Everyone has to eat but not caviar.
True...but my guess is 2% is not worth your time driving all over the place, either.
I sold it this morning. I was able to bump up the offer for the quarters but only a tiny bit. This morning I tried calling a chain place nearby but their offer was insulting at 17.7x face on the quarters. Silver at $31.33 puts the melt value at 22.4x face, so their offer was a little more then 20% under melt. They were just as bad with the offers on the Sunshine and Johnson Matthey bars.
I may have gotten a little better offer on the quarters then I thought because I may have slightly over calculated the silver in those quarters. I thought a quarter had 0.181 oz, which would mean $1 face has 0.723 oz, but it seems like 0.715 is commonly used for $1 face which would make each quarter have 0.179 oz.
My guess is my number of 0.181 oz per quarter and 0.723 oz per $1 face is how much silver there is when they are minted but its not taking into account a small amount of silver lost from circulation? 0.715 is about 1% less then 0.723 which is probably a safe estimate of how much silver is lost during circulation?
coinflation has more ads than information, but you can see melt value on the age if you look long enough (and it's owned by pcgs too!?)
$5.6731 is the rounded silver value for the 1932-1964 silver quarter on November 22, 2024.
22.6924 x face melt
there are some that buy by weighing it, but those are few. it also causes confusion on value. sell to the people who pay a ratio of face
I would have bought the bars, but shipping is an extra cost. I have been buying silver in the $31 or spot range.
My US Mint Commemorative Medal Set
I was thinking about selling some, or all, of it here, but all things considered I decided I was willing to take a little less to get it all sold at once and a check in hand the same day. It would have been alot more difficult selling on here, and there was enough that if a buyer(s) used paypal then they would probably want to use the 3% fee option to cover themselves. That paypal fee plus shipping costs would have net me probably not a whole lot more then what i ended up getting at the LCS, assuming it sold on here for about melt value. All total I sold everything for 96% of spot melt value. The JM's for 99% of melt value, the Sunshines for 96% of melt value, and the quarters for 94% of melt value.
You did pretty good with your LCS decision.
However, I think silver will go up, so am not selling, but buying.
My US Mint Commemorative Medal Set
Here are some of the reasons i think silver wont go up from here.....
I'm sure there were a few other things going through my mind to make me think its may not be a bad time to sell, or hold off buying, but I think those things cover most of it.
The LCS's that I went to said they where getting alot of people selling, even selling everything, but not much buying
Prices go higher when the selling stops.
Knowledge is the enemy of fear
But has the selling stopped? If we had any numbers showing that significant selling is widespread and has been going on for a while then that might mean a bottom is near. If its not widespread and or hasnt been going on for that long then a bottom is probably not near. The 2 LCS's said that they are getting more selling with some liquidating and not much buying, but how widepsread is that and how long has it been going on for, I dont know.
If the significant selling is widespread and has been happening for a while then that could indicate a bottom soon because not many people left to sell. However if the significant selling just started then theres alot more selling to go before a bottom is found. Tops and bottoms usually have significant volume spikes, and when bulls see an asset hit some sort of major number and bounce off it hard then thats an indication to them that it might be the top so theres a big spike in selling at that point, but this is just after the top and nowhere near the bottom. After the price has fallen alot and then at some point sees significant selling volume then this is what you are talking about where investors interpret it as there is nobody left to sell and then the price proceeds to rise.
Well I have to agree, you sure crashed the market with your silver sale so far this morning.
My US Mint Commemorative Medal Set
It was all me and I apologize