fair junk silver premium for dealers?

[JKK]

I'm trying to get a reality check. For junk Morgans and Mercuries, what's a fair premium to pay above current melt? I have one guy who charges 15% over melt, and one whose method is to price silver as if it were $6 higher, and I'm trying to find out if this is pretty normal.

[Denver Dave]

 

 

10% to 15% is about right, 30% ($6) over spot is a rip in my opinion...

 

They buy 10% to 15% under and sell 10% to 15% over making a fair cut to all...

 

Here's $2.45 over spot on New 2014 ASE's, better then junk..."-)

 

http://www.jmbullion.com/2014-american-silver-eagle/?utm_source=compare%20silver%20prices&utm_medium=banner&utm_campaign=Compare%20Silver%20Prices

 

 

[Coindude]

Usually if you put a note out that you want to purchase junk silver at spot you can get some offers. Even if you have to pay a little more than spot you'll do better than you would if you bought from your dealer.

 

Dimes usually sell for less than spot believe it or not. Not much, but still less.

 

Now silver dollars are a different animal altogether. When silver weight is $16 or so for a dollar you can still expect to pay $20. So a 15% markup isn't bad there.

[James_OldeTowne]

Unless they are horrible, Morgan dollars do not qualify as "junk silver". They will always command a strong premium over 90%. It's even gotten to a point where decent (i.e. not worn slick) half-dollars are commanding a small premium over other common 90%.

 

As an example, right this moment, we are charging basically 15x face for common 90%. But silver dollars are 24x for AG/VG, and 28x for decent Fine or better.

 

If you can get silver dollars for only $6 over melt per, that's a good buy.

 

Mercury dimes do qualify as common 90% and shouldn't command a premium, though.

[Kurtdog]

I'm trying to get a reality check. For junk Morgans and Mercuries, what's a fair premium to pay above current melt? I have one guy who charges 15% over melt, and one whose method is to price silver as if it were $6 higher, and I'm trying to find out if this is pretty normal.

It depends on the market trend. In a "flat" market, or a "down" market, they'll ask more. In an "up" market, they'll ask less. The market trend dictates that.

[JKK]

Great information, folks, thank you. I really disliked the place with the melt + $6/oz, where I was mainly looking at Mercs. Boise is loaded with bullion places, in my experience so far none of them anyplace I want to see make a profit. The 15% is my normal dealer, who overall I consider a good guy, but I sought a reality check on his premium.

 

By the way, I dumbly misspoke earlier. I forgot to mention Walkers as well. I sense that market treatment is closer to that of Mercs than Morgans, because I've seen the same phenomenon of Morgans commanding a premium just for being Morgans.

[Zebo]

You'd probably do better asking the forum members for what you'd like to purchase.

[RWB]

I do not think there is a premium on junk silver when you trade it for a dealer....not even a well-known dealer.

[Nutmeg Coin]

On silver dollars, here are some of Upstate's current buy prices:

 

Pre-1921 (Fine/VF) $28.50 Pre-1921 (XF+) $29.75 Pre-1921 (AU/Unc)

 

–

 

 

 

No Damage

 

$35.00 1921 (Fine+) $27.00 Peace (Fine+) $23.50 Rejects/Culls

 

(Full Date/No Hole)

 

$21.25 $1 Modern Commem Silver Dollar

 

Caps/Slabs

 

$16.00

 

We can sort for you if you don’t have the time.

 

TOP ITEMS Price

 

90% Silver -

 

Full Bag Price (Multi Bags, CALL)

 

$14,872 90% Silver -

 

Dimes, Quarters, bag separate

 

$14.76

 

40% Halves

 

–

 

Full Bag Price / Less than bag rate

 

$5,502 / $5.46

 

Ike Dollars

 

-

 

Blue/brown/red.

 

$5.70

 

War Nickels

 

-

 

Bag price / Each

 

$3,560 / $0.89

 

80% Canadian Silver

 

- Pre-1967

 

$10.90

 

50% Canadian Silver

 

- 1967-1968

 

$ 5.60

 

$1 Silver Modern Commem

 

- Caps/NGC/PCGS Slabs

 

$16.00

 

 

 

 

 

It wouldn't hurt to call around to find competitive sell prices.