Silver spot prices quoted, were they enough?

[WoodenJefferson]

A dealer here told me he was buying silver coins 19.5 times x face - $19 Is this enough for current bullion or do I need to negotiate for more?

 

He already told me he does not pay extra for collectible coins other than spot, so don't even ask.

 

I figure with what I want to sell him he'll pay me $1500 and I'd be leaving about $500 on the table which would be his share. If he were to take out the numismatic collectible coins he could even make more.

 

So, the question is, is 19.5 bad, good or indifferent with current trends?

 

Edit" Good mix of raw Franklins, Walkers, barber qts, barber dimes, commems.

[PerryHall]

At the current silver price of $37.80, there is a little over $27 of silver in a dollar face value of 90% silver coins.

[James_OldeTowne]

19.5 sounds much too low. A local dealer was paying 24x last week (and selling at 26x) (or so he told me).

[thebeav]

I was at 25x yesterday.......

 

Paul

[physics-fan3.14]

$19 is ridiculously low, I think. With silver at almost $38, for him to pay $19 would be a rip-off.

 

If you have silver to sell, I've had good luck with the Money Market here, and you'll get a good price.

[Ducksoup]

A local estate seller sells me coins for about 20x face value because most of them are in VG-F condition. I would say that 19x FV is way to low and that you should ask for more or sell here as you'll get a better deal.

[WoodenJefferson]

Thanks for all the input, I kind of figured 19.5 was to low, but I'm certain he's buying a lot because most won't check to see what the going rate really is...I'm going to give him a call to see if he will go higher.

 

The next nearest place that might offer more is 1/2 tank of gas away 11 gallons @ $3.39 = $37.29 and if I decide to come back, another $37.29, not to mention my wife would want to go shopping there...so in the long run it just might behoove me to do this locally.

[RGT]

I think you could sell it on the BST for closer to 25X and pay less than $37.29 to ship.

[WoodenJefferson]

I pay 24.50x face right now ...

 

Augustus

 

Does that mean you'd pay me 24.50X or does that mean your paying 24.50X to buy for personal use?

 

I called, the shop owner was out, left a number, he never called back...I heard the door alarm ringing in the back ground, so I know they had customers today.

[jtryka]

At the last show I went to (last Saturday) when silver was only $36, they were paying 24x, so you are getting screwed over. Even if you offer it here at 23x with free shipping, you are making out better!

[thebeav]

I'll pay the 24.5 times. I'd be happy to buy it at that.

Why give eBay the fees ?

PM me.....

 

Paul

[WoodenJefferson]

Augustus...thanks for the explanation but I quit selling on e-bay maybe 4 years ago, it got to be so regulated the thrill was gone. I liked the wildcatter days when e-bay was starting out and they weren't as money hungry as they are now...got some great deals and some great coins....now it's all about fees.

 

sorry

[WoodenJefferson]

I'll pay the 24.5 times. I'd be happy to buy it at that.

Why give eBay the fees ?

PM me.....

 

Paul

 

PM Sent

[Houston Investor]

Current BV of $1.00 90% silver is $27.37 based on current silver spot of $37.83

(.7234 ASW x 37.83 = 27.37)

 

I would look at what I could get on the Bay less their fees, etc. If these are beautiful Gem BU coins you may be able to get much more than just BV. A good closeup photo is a must. I had a number of rolls and partial rolls of Gem BU 90% silver quarters and dimes BIN / Make offer. I got some good offers and they are gone. I am fairly sure these also appeal to people buying stuff that is their birth date.

 

His offer of $19.5 vs $27.37 dollar face of 90% silver is roughly 71% of BV. Would not float my boat.

 

I would suggest building an excel sheet that calculates BV on the silver coins your interested in. You will need columns for description, ASW, BV. You can then input the spot price in one place and set it up to calculate BV for each coin. That someone is paying xx $ per dollar face is irrevelant to me. Their use of this terminology helps them to hide how much they are paying below BV. What I am interested in is what % are they offering vs BV. With an excel sheet or a basic knowledge of bullion weights (ASW or AGW) one can calculate this. Heck I can do this on my cell phone. If buying and selling this material one needs to be able to do these basic calculations on their own before makeing a buy or sell decision. Committing the ASW / AGW of certain USA silver and gold coins to memory helps too so calculations can be done quickly.

 

Lately I have been loading up on silver proof sets and mod silver commems off the Bay bidding BV + $10 as a max bid. This is for my table at shows (and personal investment) and I am planning on having one (glass display) case full of this material. The other cases will be the usual quality classic slabbed coins along with US and World Currency.

[e1cnr]

don't trash the store front, as they have high expenses as well

 

 

just take your product elsewhere

 

 

and it looks like you got it covered at 24.5 face on these boards

[WoodenJefferson]

I was not aware all this was going on with silver, what actually is driving the market, someone said to hang on to it, now I can see why? Oh yeah, the dealer went up to 20X face said for me to bring it in and we'll deal. I told him 22.5 and we'd talk, he laughed, so I figure I maxed him @ 20X. I have time on my side.

 

From article: Overall, silver’s importance in the technology of the day is huge. We’d go so far as to say that the demand from silver has transformed from a want to a need. So whether we are in a boom or bust silver’s demand will remain robust. It is now needed to make all facets of an economy run well and at all levels, even down to individual needs. This secures its future and assures us that Silver Prices are well supported.

 

In 2010…

 

Cell phones used 404.35 tonnes of silver;

Computers consumed 684.29 tonnes;

Thick film PV consumed 1,461.90 tonnes;

Automobiles which used 1,119.75 tonnes;

Electrical and electronics demand for silver reached an all-time high of 7,555.21 tonnes;

Solar power demand in 2011 is expected to reach 2,177.29 tonnes, up 40% from 2010;

RFID tags in 2010 reached between 31 and 62 tonnes with a long way to go before reaching full market;

Water purification used 62 tonnes, and is set to grow to 74.65 tonnes;

Medical applications may grow strongly to reach 93.3 tonnes by 2015;

The use of nano-silver in goods packaging and hygiene combined would consume 124.4 tonnes of silver over the next five years.

 

While photographic use of silver allows for the re-cycling of silver, reclamation of silver from most of the above uses is difficult to nigh-on-impossible. This in itself assures either a constant or rising demand for these applications.

[JCM-Houston]

Sorry, but he wasting your time with an offer to pay 19.5 x face value, and I doubt he will negotiate up to anything reasonable. Offer it on the forums, shipping is cheap using flat rate priority mail boxes.

[WoodenJefferson]

Guess what, the dealer called yesterday, 4/19 and offered me 22.50X face and I accepted.

 

When talking to him, I asked about the low-ball offer of 19.5X and he said there is a local ordinance where buyers of bullion, no matter the form, they must keep the items for 2 full weeks before they are allowed to dispose of the purchases. He said this allows the police department to recover stolen jewelry, etc. so, he said they have to put a slight hedge in their offers just in case the price drops during that two week period.

 

Also in my case, he had already sent a lot out and was awaiting payment, nothing more than a money flow thing...well, the money flowed today and I was a happy camper.

 

Thanks to those board members who offered to buy my junk silver.

 

~Woody~

[physics-fan3.14]

Unfortunately, in the interim, silver went up considerably. You should have now gotten over 30x face. Again, you would have done better offering it for sale on the boards.

[WoodenJefferson]

The initial offer, silver had just broke $40 now it's $43, for ease of transaction, for me this was the safest way out and guaranteed payment. Plus, I stayed for 2 hours chatting with others to avert me from looking in the cases.

 

I was satisfied and I know the dealer will do me well in the future.

[jtryka]

Wow, I bought some from another board member last night and apparently I paid WAY too much...

[cpm9ball]

I was not aware all this was going on with silver, what actually is driving the market, someone said to hang on to it, now I can see why? Oh yeah, the dealer went up to 20X face said for me to bring it in and we'll deal. I told him 22.5 and we'd talk, he laughed, so I figure I maxed him @ 20X. I have time on my side.

 

From article: Overall, silver’s importance in the technology of the day is huge. We’d go so far as to say that the demand from silver has transformed from a want to a need. So whether we are in a boom or bust silver’s demand will remain robust. It is now needed to make all facets of an economy run well and at all levels, even down to individual needs. This secures its future and assures us that Silver Prices are well supported.

 

In 2010…

 

Cell phones used 404.35 tonnes of silver;

Computers consumed 684.29 tonnes;

Thick film PV consumed 1,461.90 tonnes;

Automobiles which used 1,119.75 tonnes;

Electrical and electronics demand for silver reached an all-time high of 7,555.21 tonnes;

Solar power demand in 2011 is expected to reach 2,177.29 tonnes, up 40% from 2010;

RFID tags in 2010 reached between 31 and 62 tonnes with a long way to go before reaching full market;

Water purification used 62 tonnes, and is set to grow to 74.65 tonnes;

Medical applications may grow strongly to reach 93.3 tonnes by 2015;

The use of nano-silver in goods packaging and hygiene combined would consume 124.4 tonnes of silver over the next five years.

 

While photographic use of silver allows for the re-cycling of silver, reclamation of silver from most of the above uses is difficult to nigh-on-impossible. This in itself assures either a constant or rising demand for these applications.

 

A bit of trivia posted on the reality show, Gold Rush: Alaska, stated that the 180 million cellphones discarded each year contain $130 million in gold.

 

Chris

[WoodenJefferson]

But to get to that gold, acid leaching is required, a nasty process that some third world countries still allow. It's killing our planet.