Junk being treated as junk!
philographer
Posts: 1,346 ✭✭✭✭✭
Not selling but was curious. Called a major coin shop. With silver at $46.50, 90% is worth about 33.6x face value. Their buy price for 90% is 25x face, which is about $35.50 per ounce. Ouch. 😳
Buy price on ASE’s is $1.00 less than spot.
Another large local dealer quotes $4 under spot for 90% junk, which is about 30.7x face. This place has a buy price for ASE’s at 50 cents under spot.
It can be rough out there!
He who knows he has enough is rich.
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My local shop is selling @ 33, buying at @ 30. Not too bad. They are getting hammered with people walking in the door with bags of 90%. It's coming out of the woodwork.
Dave
There is such a glut of 90% on the market right now, the smelters are going crazy. The prices are so low, it's been almost all my purchases for months.
So pig out while the pigs are good!.
Their buy price for 90% is 25x face
Scotsman in St. Louis is paying 31.12 x face with Spot at $46.63. If there is a shop paying 25 x face, I would never deal with them for any reason.
I knew it would happen.
I sell it for less than spot on eBay auctions.
``https://ebay.us/m/KxolR5
That's why they call it the gutter metal folks. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Wonder if the same is happening with gold?
Wonder if the same is happening with gold?
It was about a month and a half ago, and I'm sure that it's still happening now.
I knew it would happen.
They? You're the only one that calls it gutter metal.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
I am not strong on 90% either, no where to go with, no sales otc, and the places we ship are lowering and lowering buy prices, also, more and more processing time to get the funds back, Most of the time, instead of offering lower , i just refuse to buy it. Im not quite that low@ (25x) but low enough, here the thing, other shops I know in the area are offering 20x and getting all they can if you can believe that. Only silver that still sells somewhat is ase's
Had a guy bring in 1000 oz .999 generic today, Im closing the store an driving it myself this am to the refinery
90% is what it is. 90%.
.999 plus however, gutter? lol no.
COPPER is gutter !
I like .999 and 90% silver about equally, for various reasons. The main thing that they have in common is that they are REAL - unlike ETFs or crypto or even dollars.
I knew it would happen.
Local shop paying just over 31 times face value, making early 60's mint sets saleable for almost $53 just for the silver.
>
Welcome to January 1980.
Last I checked the SLV was paying out at 100%. No lowball offers, just click click. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Dave,
Which one? There are a few.
I'm playing with the idea of taking some 5oz ATB (PCGS slabbed from first year), some silver proof sets, and some SAEs to the Tukwila PNNA show this weekend to see what buy may be, but, if it's too low, I'll just hang with them until it goes up more
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
Redmond Rare Coin
Thanks. I've found them (Are Chet and Ralph still there and in charge? haven't been there in awhile) and Steve (Renton Coins) to be the most fair when it came to PM buy pricing.
Had 2 guys at Bellevue Rare Coins try to tell me a 90% gold commem was only 70% or something (about 5 years ago), even when I showed them proof it was 90%. Called Redmond RC right there in the shop, got an acceptable price, waved goodbye to BRC, and drove 15 and sold it in 1 minute. Chet was waiting.
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
RRC changed hands. Santo Roman and Carolyn Beko purchased RRC a few years ago. I really like their shop, although it's a little heavy on the bullion side of things. Very friendly people. I buy and sell there on a regular basis. Check 'em out.
I've been a little disappointed in Bellevue RC lately. I rarely visit them. I used to buy gold Krugerrands and Eagles there, one at a time. If they didn't have one in stock (usually the case), they would order them for me. Last year I got an email from them raising the minimum for ordering gold. That ended my gold stacking with them. To me, they seem to be a place that's more interested in purchasing gold/silver/collections, which is fine. It's just not for me. That said, when I did sell 90% to them a few times, I received a very fair price.
Dave
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I was there in 1980. The day silver hit $46 and change, I rounded up every bit I had to sell, and I also advised a friend's family to sell as well. We called all over town (Denver). The best offer was 21 times face for my 1961-1964 proof sets and $24 each for my friend's Morgan Dollars. We sold that day. A day or so later, the price crashed. Everyone expected that to happen, and that is why the offers were so much lower at that time compared to now, even though the price of silver is about the same now as it was then.
In 1980, there was only one significant buyer in the world. Coin shops across the country took in silver from the public. That silver was channeled to refineries which produced large 999 bars that went to satisfy Hunt Brothers orders.
Today it seems the same dynamic is in effect, except for one thing. There are multiple large buyers and many are overseas.
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No, SLV is not "100%" . It currently trades at $42.91 per share. At inception, one share of SLV was worth the same as one troy ounce of silver. But now, SLV is worth only 90% of "spot" (a 10% NEGATIVE premium).
A long-term holding of SLV has had 10% of the silver evaporate. For this reason, I am opposed to SLV on principle.
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Click-click-click away. Feed that gambling habit.
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I was there in 1980 also. Stood in long lines twice at my local B&M to sell some circulated 90% from my small stash, including a roll of AG-VG Barber dimes. As I recall, the dealer was paying about 25% back of melt when silver was around $45 per ounce. After the crash, junk silver actually traded at a 10 to 15 percent premium to melt for a while before stabilizing at slightly under melt. Those were wild times.
SLV began trading in April 2006, so that 10% fee was spread over nearly 20 years, amounting to 0.5% per year. This is also less than the negative premium dealers are currently paying for junk silver, so anyone holding SLV from 2006 is financially better off than someone who bought junk silver that same year.
SIVR, another major silver ETF, has an even lower fee of 0.3% per year.
I can sit here in my underwear and buy/sell the SLV at the exact $42.91 price. Good luck hauling your junk around town being lowballed at 25-30x face. Then you can turn right back around and buy it back at 34x. Stack on. LLZ!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Per the SLV Fact Sheet
The amount of silver represented by shares of the iShares Silver Trust will decrease over the life of the trust due to sales of silver necessary to pay the sponsor's fee and trust expenses ( currently 1/2 %) . Without increase in the price of silver sufficient to compensate for that decrease, the price of the shares will also decline, and investors will lose money on their investment.
Also the increase in SLV holdings required the SLV Trust to hold more physical silver, increasing demand, which helps increase silver spot prices, so we thank you for that.
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You assume that if had silver to sell that I would "drive around town being low-balled".
But you are mistaken. I would have other avenues and contacts to sell silver.
I would not sell to some dealer who pays the low end of wholesale (or less).
I know who those people are and I wouldn't even bother calling or visiting them.
And there is no reason for someone to sell their silver to a shop that just turns around and sends it to a smelter, when the seller could sell directly to said smelter (eliminating the middle-man shop).
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AGQ is paying out 200%. Great chance to double your winnings (or your losses).
Does being a fiancial whiz with dollars make one an expert with gold?
I prefer the SLV, backed by the real deal not just paper like the AGQ. THKS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
all ETFs are just paper promises, you can't convert them to the underlying product.
Does being a fiancial whiz with dollars make one an expert with gold?
The only ones who can convert into silver from SLV are the big players, such as the Saudis - and they probably have plans to do just that.
I knew it would happen.
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And if Saudi Arabia does request to exchange their SLV shares for physical silver, will that silver be available ?
We assume so. But with any type of paper derivative there can be a counter-party risk.
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And if Saudi Arabia does request to exchange their SLV shares for physical silver, will that silver be available ?
We assume so. But with any type of paper derivative there can be a counter-party risk.
All this means is that SLV would have to replace their stock from an ever-shrinking supply, at a time when much of the mine supply is already committed to end users via established contracts. The price will jump when this type of supply shortness manifests. The market is already aware of this.
I knew it would happen.
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If SLV does have the full amount of physical silver backing, they could just give Saudi Arabia the physical silver and cancel those SLV shares that are being turned in. SLV would only have to buy more physical silver when new SLV shares are issued to other entities. All of this, of course, assumes that they do maintain the full physical silver inventory to back all issued shares.
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In November 24 there was a thread about First Majestic Silver Mint offering a 50 cent per ounce discount for direct sales if you owned 100 shares of their stock, ticker AG, then selling for about $7.18 per share. I bought 2 ten oz bars but at that time did not own the stock. Later I bought some of the stock at around $5.70 per share, now, 10/03/25 at closing it is $12.11 per share, probably due, in large part, to the significant increase in the price of silver since then, around $31 per oz. Stock doubled, silver up about 50%. Thank you CU.
Saudis could care less about gutter metal they are all about the Metal of Kings. I spent quite some time there. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
.
Saudi Arabia is interested in continuing to be a provider of energy once the petroleum era is over.
Silver has important energy-related uses including solar cells, batteries, and high-conductivity.
Gold does not work for those applications.
https://linkedin.com/pulse/why-saudi-arabia-accumulating-silver-alongside-gold-edge-forex-txzic
I ran into a major state buyer of silver, etc. today at a shop. He's paying $5 under on silver; as he said and as others have indicated, there is an oversupply and refiners are often not accepting metal as they have too much. I was glad to get rid of some burnished silver eagles with box and papers around spot price delivery on ebay.
If SLV does have the full amount of physical silver backing, they could just give Saudi Arabia the physical silver and cancel those SLV shares that are being turned in. SLV would only have to buy more physical silver when new SLV shares are issued to other entities. All of this, of course, assumes that they do maintain the full physical silver inventory to back all issued shares.
At some point, SLV will declare a force majeure if they have no silver left when a major holder requests delivery and it can't be replenished. They will have to settle the remaining shares in cash and share owners of the ETF won't be able to buy silver without paying through their noses at a much higher price. Another benefit of holding physical - it's real and you have it in your hot little hands.
Saudis could care less about gutter metal they are all about the Metal of Kings. I spent quite some time there. RGDS!
Then please explain why the Saudis bought almost a million shares of SLV. Please explain - this ought to be entertaining.
I knew it would happen.
Please explain? Well, they clicked a button to buy, and they plan too or perhaps already clicked the button to sell. It's called makin DoLLaZZ! RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Please explain? Well, they clicked a button to buy, and they plan too or perhaps already clicked the button to sell. It's called makin DoLLaZZ! RGDS!
Thanks for explaining your dartboard approach to investing. It's about what I figured.
I knew it would happen.
Exactly! THKS!!!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
.
You would have done better by just buying and holding silver, rather than the constant click, click, click.
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Two days ago, I was browsing at a coin shop.
I heard the dealer offer a seller 19X face for junk silver.
My junk is a jewel and I treat it as such.
``https://ebay.us/m/KxolR5
I got nearly 33x at my LCS yesterday
Successful BST Transactions: erwindoc, VTchaser, moursund, robkool, RelicKING, Herb_T, Meltdown, ElmerFusterpuck, airplanenut
This is absolutely wrong. Nobody can convert shares of SLV into actual metal. Just stop. If you want delivery you have to trade full contracts on COMEX.
And before everyone claims you may not get physical silver from COMEX that is also not true:
_The delivery of silver futures can be cash-settled upon expiration for E-mini contracts, while full-sized contracts may involve physical delivery of silver meeting a fineness standard of at least 999. Physical delivery typically occurs upon expiration, executed through designated depositories (https://www.fool.com/investing/stock-market/market-sectors/materials/silver-stocks/silver-futures/?msockid=29c2bf72d8df69c51edfab0cd91d686e). _
Actually, the SLV authorized participants (registered broker dealers) who were/are involved in the creation of the aggregated share baskets for distribution to retail customers may redeem their block baskets for silver since they delivered silver for the creation of these baskets.
At creation in April 2006 of the SLV trust, these authorized participants had to deliver 500,000 ozs. of silver to the custodian for their basket of shares. Silver was priced at around $10 per oz and the participants received 50,000 shares to sell. Unless the Saudi's own a registered B/D, they have no more privileges then you, although their trading probably will cause price volatility.
Nobody can convert shares of SLV into actual metal. Just stop. If you want delivery you have to trade full contracts on COMEX.
Nobody? See the post above made by coastaljerseyguy re: authorized participants
You don't know what you don't know. The inventories on SLV are changing daily, and I dare say that you don't know who is taking delivery, or delivering into SLV on a daily basis. Further, I doubt that you know what deals that the Saudis have made with SLV or JPM.
I knew it would happen.
You make a good point. The Saudis or any big player can have an agreement with JPM or Citi when they helped fund the initial startup of SLV, that when they were liquidating big blocks they wanted the silver delivered. When we. the little guy liquidate, JPM must buy into inventory and wait to sell to others. But if it amounts to whole baskets, 50,000 share blocks, they can turn them in to the Trust for physical silver delivery.