opportunity next week to buy some ( a lot ) of silver...

DNADave

I've set an appointment next week to view an accumulation of silver. The seller had inherited most of it from his mother who put it up years ago as she pulled it from the till in a family store. He says it's about 30 pounds of 90% with "several rolls of early 1900's and late 1800's silver dollars". Some merc dime rolls too. Also in the SDB he has a $1000 dollar bill and some odds and ends.

I'll definately be in over my head if he'll sell it all, as I only have about 3K in disposable income right now.

So without knowing any more than that until I see it, I'll have to plan what I want to try and buy. I don't know yet if I'll refer him to some local dealers after I've spent my bank (in which case he's sure to come back to me after hearing their offers). If I'll ask him to sell me about $1000 worth a month until it's gone. I don't want to get a loan so that's out.

What would you go for? Best condition? Dollars? Mix it up? I'm kind of excited about it, and wish I was bigger fish in this pond.

chumley

get a partner you trust

calleocho

whats wrong with taking a loan?

TheTalkingWalnut

What state or region is this happening in?

cone10

I would go for the dollars first and then buy has much of the 90% you could afford. Your 3k will buy a couple of rolls of Morgans and about 80 to 100 face silver.
Good luck

ve3rules

I have been in the same boat several times and always opted to buy only the part of the collection that I could afford, giving the remainder to a trusted dealer or friend. Looking back, I'm kicking myself. Each time I could have purchased everything cheap enough to make it worth my while if I would have had enough cash. If you don't have enough cash, sell something, ask friends and family for loans or borrow from a low interest credit card. There is no sense in missing out and letting the next guy have the good deal.

Find some dough and buy it all!

BTW I am so jealous. I love going through all those coins and finding the hidden treasures. Have fun and good luck.

AUandAG

Would your bank give you a personal line of credit for say 5K?

Buy what you can and sell what you need to repay the loan. Would not cost an arm and a leg
in interest. Perhaps a few sawbucks is all.

bob

Ahrensdad

I would work out a arrangement to buy the deal in pieces. I'd be upfront and tell him you're willing to pay him strong money, but will need a little time. Win-win. You get the deal, he gets paid better. If that doesn't work, take a cash advance on a credit card, pay a price you can easily turn the deal around for and pay back the card during the grace period. You're only out the cash advance fee of 3% (which is usually capped at $50-$75). Sounds do-able to me.

I've never borrowed money from friends or family to fund coin deals. I don't think I'd want to answer the questions.

Andrew

racecap97

Quite surprised that no one has told you that the $1000 bill could easily be worth enough to resell and buy the rest off the profit. If I were you i'd get more information about the note to be able to figure out what its worth. You might be ahead by flipping that note first and foremost, then going back for the rest.

Of course it could be a complete common rag and that would change everything.

agentjim007

you won't come close to buying 30 lbs of 90% from the profit on a common 1K bill. tell her to hold the check for 2 days because you have to transfer funds then run it to a deep pocket dealer.

jdimmick

This is why it takes plenty of cash to make it as a dealer. The last hour of the day on friday, I purchased 28k in silver , then only to buy anohter 10-12k on sat. And I am only open from 11-3 on sat.

yellowkid

I think a loan is a terrible idea, who really knows what the short term moves are going to be? It will be tough to look for dates, but I would try for the pieces in best condition, there could be a numismatic value. And what are you going to pay for them??????

DNADave

<< <i>I think a loan is a terrible idea, who really knows what the short term moves are going to be? It will be tough to look for dates, but I would try for the pieces in best condition, there could be a numismatic value. And what are you going to pay for them?????? >>



I've made the mistake of getting a $3000 loan before for coins , I'm not going to do it again as tempting as it is. I've put my money where my mouth is in terms of financial responsibilty... and have NO credit cards. If I can't afford it, I don't buy it.

It looks like I'll buy what I can and see if he'll spread it out.

As for my offer,

I want to make a little (of course) without being a pig, and with accounting for a possible correction in silver. So I'll be offering somewhere between 19x - 20x for 90%, and 22.50 for circulated dollars. It looks like almost any $1000 bill is worth about $1400 or more.

What's left over, if my offer is accepted, I'll be recommending a dealer from Morgantown who'll be buying at our local coin show in March.

that's the plan for now. my biggest concern is getting the right multiplier for silver... with it at 25X right now, where's the safest and fairest offer?

tee135

I would take all the silver to a big gold/silver dealer in the am, sell it right away and then run back to the seller with the cash in hand on the same day...has to be cash...do not take out any kind of loan... no paper trail is the best paper trail...do not loose this buy....

racecap97

<< <i>you won't come close to buying 30 lbs of 90% from the profit on a common 1K bill. tell her to hold the check for 2 days because you have to transfer funds then run it to a deep pocket dealer. >>



This is correct, however your missing the point of what I said. If its been put away for that long, there is a chance that its in good condition meaning that he could make a pretty quick proffit off of flipping it in which case he could have more money on hand to buy the 90% silver if thats what he's really after. I can guarantee that the $1000 bill will have more value over face than that of the silver "melt" value no matter how you look at it. Of course there could be a lot of coins in there worth a lot over melt value as well. It just seems to make more sense to flip ONE thing immediatly to get more for your money. That $1000 note could also be a star note, special serial number, gem condition, ect...... of which could all "possibly" mean that its worth a lot of money. Thats why I said i'd get more information about it. Could be cut into 4 pieces and taped back together. Your looking at roughly $14k in melt value at what the melt value is right now. If you check Heritage auctions archives you will find A LOT of currency that has sold for a lot more than that.

guitarwes

I would work a deal with the seller to sell me about $1K worth every couple of weeks for CASH untill it's all gone. That way:

1) They don't have one huge cash deposit at one time if they were plannning on putting it into the bank.
2) You don't have to pony up all the cash at one time possibly missing part of the deal
3) You can sell some in the lag time to pay for what's to come
4) You can see what the market is doing to see if you want to adjust your prices (if you and them don't settle on a fixed price)

chumley

think my biggest deal was 3 rolls of Libertads.....I,d be poopin bullets in your position

mkman123

find a family member or someone you really know to let you borrow a few extra thousand and tell them you will give them the money back + extra in one day or so. Find out which coin stores would pay you top or flip it on the bst. Do it fast before the person changes their mind.