Your opinion on this... (regarding 90% silver coin prices)

GoldenEyeNumismatics · September 16, 2007 8:16AM

One of my favorite dealers, whos been a great friend to me for almost all my numismatic life, is a major buyer of junk silver. I like to do business with him as much as possible just because he's helped me so much over the years, but he refuses to buy my junk silver at anything above 50% of it's melt value, claiming that he has to ship it off and pay for refining costs.

50% of melt seems kinda ridiculously low. I usually can get 95-100% of melt on ebay. Is 50% common amongst dealers?

SilverEagles92 · September 16, 2007 8:19AM

The dealer I frequent most often pays 90%.

09sVDB · September 16, 2007 8:24AM

Sounds very low to me. I would think 85% would be the lowest. 5% for cost and 10% profit?

DoubleEagle59 · September 16, 2007 8:25AM

gold is usually bought between 93% and 95%

and silver is bought a little less, usually around 90% of spot price.

Texast · September 16, 2007 8:26AM

Just take them somewhere else, at 50% he is trying to steal them. May even get some decent offers on the BST.

Greeniejr · September 16, 2007 8:27AM

It all depends on the quantity. For a small quantity you are going to get unfavorable rates though anything less than 85%-90% is low. As far as a bag, 90%-95% is pretty reasonable considering that for full bags wholesalers pay a couple points back of melt.

coinsomniac · September 16, 2007 8:28AM

If he is a major buyer of silver as stated, beware. 50% of melt is unusually low, especially from a "friend".

LindeDad · September 16, 2007 8:31AM

Maybe he needs to learn about Flat Rate boxes at USPS.

Priority Mail

commoncents05 · September 16, 2007 8:34AM

Find a new dealer, he is ripping you. Silver coins are rarely refined, they trade in bags. You should be getting somewhere in the range of 7.5 to 8 times face value.

-Paul

AUandAG · September 16, 2007 8:46AM

That senerio no longer works as no refinery, assayer, etc will melt US coins anymore. Nope,
it's now against the law via the Patriot Act. So, his explanation no longer holds water. However,
if he can buy that low he will. Friend or no friend he is in the business of buying, selling and making
money! My first offer is often 50% of melt. I lose a lot and win a few and negotiate on most. So,
why should he start high??? I think you need to learn how to negotiate a bit. When he offers a
lowball amount counter with: "melt is $x.xx and I'd like to get as close to melt as possible. Will
you come up to that amount?" Then you have begun to negotiate and I'm willing to be he'll come
up a bunch. See what happens!
good luck next time.
bob

OPA · September 16, 2007 9:40AM

That senerio no longer works as no refinery, assayer, etc will melt US coins anymore. Nope,
it's now against the law via the Patriot Act.

I did not know that. I do know that Congress just recently passed the law that you cannot melt pennies & nickels. Does that also apply to the Silver Eagles? If the Patriot Act prohibited the melting of US coins, then why did Congress have to pass a separate law covering the pennies & nickels?.......something does not compute here.....

roadrunner · September 16, 2007 9:55AM

The Patriot Act is anything but patriotic.

The USPS has a standard 75 lb rate that is quite cheap for shipping out bulk silver in boxes. It's a pittance of the total deal. Your dealer "friend" is taking advantage of you. The only real hassle is packing it up and driving it to the nearest post office.

roadrunner

jdimmick · September 16, 2007 10:14AM

I normally buy it a 1 full point behind what ever I can sell it at:

For example if I can sell at 8.7, Ill buy at 7.7. If the quantity is larger say 100.00 face Ill close in the spread and pay like 8.2. But if its a few scattering of loose amount of coins over the counter I have dropped back to say 7.0 even.

There is a local dealer here that pays 4x face period, and he buys a bunch becuase he has been established since the late 80's. I have been trying to put a serious dent in this but its been tough becuase they have been around so long.

jim

CaptHenway · September 16, 2007 12:48PM

<< <i>That senerio no longer works as no refinery, assayer, etc will melt US coins anymore. Nope,
it's now against the law via the Patriot Act. So, his explanation no longer holds water. However,
if he can buy that low he will. Friend or no friend he is in the business of buying, selling and making
money! My first offer is often 50% of melt. I lose a lot and win a few and negotiate on most. So,
why should he start high??? I think you need to learn how to negotiate a bit. When he offers a
lowball amount counter with: "melt is $x.xx and I'd like to get as close to melt as possible. Will
you come up to that amount?" Then you have begun to negotiate and I'm willing to be he'll come
up a bunch. See what happens!
good luck next time.
bob

>>

I believe you are mistaken. It is only illegal to melt cents and nickels.
TD

Deadhorse · September 16, 2007 2:41PM

90% silver US coins are still being melted on a regular basis.

Many do trade in bags, but many do get smelted and refined as well.

lordmarcovan · September 16, 2007 2:48PM

<< <i>50% of melt seems kinda ridiculously low >>

I agree.

I wouldn't necessarily hold it against him personally, but I would sell my junk silver elsewhere.

BlindedByEgo · September 16, 2007 3:27PM

You can send them in a flat rate box to ajpm.com and lock in a buy price at about 92-93% of melt, a couple points higher on full bags. After shipping and insurance, depending on quantity, you can certainly net better than 90%.

50% is very, ahem, opportunistic.

DennisH · September 16, 2007 3:38PM

Put another way, it's a rip-off.

291fifth · September 16, 2007 8:07PM

50% of melt is extremely low. He is telling you he doesn't want to bother dealing in it and won't buy it unless he can "steal" it.

Your opinion on this... (regarding 90% silver coin prices)

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