Question about premiums on 90% silver
hornetsnest
Posts: 65
Hello, I've been a lurker for a few years, but don't post all that often. I really value the boards though and appreciate all of the great information/ articles the more active members share. I'm hoping you can shed some light on a question I have:
Why is the premium on 90% silver dollars (morgan/ peace) so much higher than on other generic 90% coinage (halves/ quarters/ dimes)? I understand silver dollars contain 0.7734 ounces of silver/ coin v. 0.715 ratio in other denominations, but I'm curious as to the extra mark-up.
For example, based on current spot price, $100 face of silver dollars contains 77.34 oz of silver and depending on condition (let's use good in this example) will set you back approx. $3,400 ($43.96/oz), if not more. However, $100 face of generic silver contains 71.5 ounces and costs approx. $2,300-$2,400 ($32.16/oz - $33.57/oz).
Is it just the convenience of having $100 of the same denomination and coin design? The novelty of owning silver dollars?
I usually stack ASE/ AGE/ and 5 oz ATB, but I also have a fair amount of 90% I have an opportunity to buy a few rolls of morgan and peace dollars (ranging from good - AU condition) at $27/ coin and am trying to determine if that's a good/ reasonable price. Thank you for any insights you can share.
Why is the premium on 90% silver dollars (morgan/ peace) so much higher than on other generic 90% coinage (halves/ quarters/ dimes)? I understand silver dollars contain 0.7734 ounces of silver/ coin v. 0.715 ratio in other denominations, but I'm curious as to the extra mark-up.
For example, based on current spot price, $100 face of silver dollars contains 77.34 oz of silver and depending on condition (let's use good in this example) will set you back approx. $3,400 ($43.96/oz), if not more. However, $100 face of generic silver contains 71.5 ounces and costs approx. $2,300-$2,400 ($32.16/oz - $33.57/oz).
Is it just the convenience of having $100 of the same denomination and coin design? The novelty of owning silver dollars?
I usually stack ASE/ AGE/ and 5 oz ATB, but I also have a fair amount of 90% I have an opportunity to buy a few rolls of morgan and peace dollars (ranging from good - AU condition) at $27/ coin and am trying to determine if that's a good/ reasonable price. Thank you for any insights you can share.
0
Comments
$27/coin is ok of a buy price for a mix of G-AU problem free coins on average. If there are some culls in there I would try to buy down to more of melt value.
Too many positive BST transactions with too many members to list.
<< <i>IMO $27/coin for VF-AU coins would be a good buy, but not for the lower grade material >>
If you can even get it.
Very unlikely to find a dealer willing to sell anywhere around $27 when wholesale buy prices are $29-$30 and up - with VF+ buy prices at $33 and up.
<< <i>Besides having a touch more silver with the same face value, Morgans/Peace will usually command a slight premium due to the collectability factor. They are in more of a demand than junk 90%, so the price is higher.
$27/coin is ok of a buy price for a mix of G-AU problem free coins on average. If there are some culls in there I would try to buy down to more of melt value. >>
Yup.
I'm with Wes.
For readers of this thread in the future I will remark that silver is presently at $31.50 give or take.