American Coin Hoarder Posted May 1, 2019 Share Posted May 1, 2019 I attended my first estate coin auction which included bulk silver quarters, dimes and half dollars. I was surprised people were buying well above silver value on these bags of bulk silver. For example, people were paying around $3.50 per quarter for what each bag of qaurters sold for. Quarters are currently around $2.7 in silver value. They all sold at the same price too. Why were these people paying well above the silver value? Is it because of the convenience of acquiring large amounts at once? Is it because they are hoping to score a key date that was missed? I doubt this because both the coin collector who passed away and the auction service would have not missed something. Is it because they want the enjoyment of looking through piles of coins? Is it because they think silver is going to go up? Link to comment Share on other sites More sharing options...
jgrinz Posted May 1, 2019 Share Posted May 1, 2019 5 hours ago, American Coin Hoarder said: I attended my first estate coin auction which included bulk silver quarters, dimes and half dollars. I was surprised people were buying well above silver value on these bags of bulk silver. For example, people were paying around $3.50 per quarter for what each bag of qaurters sold for. Quarters are currently around $2.7 in silver value. They all sold at the same price too. Why were these people paying well above the silver value? Is it because of the convenience of acquiring large amounts at once? Is it because they are hoping to score a key date that was missed? I doubt this because both the coin collector who passed away and the auction service would have not missed something. Is it because they want the enjoyment of looking through piles of coins? Is it because they think silver is going to go up? All of the above is possible - I find it too much work myself :-) Link to comment Share on other sites More sharing options...
JKK Posted May 1, 2019 Share Posted May 1, 2019 They might be in the weed business. I am not sure of specifics, but I knew of one grower who was involved in how the stuff gets from legal states (where there is a glut) to illegal states (where better prices obtain). He couldn't use a bank account, so he lived in silver, and part of the key was that he needed to avoid legal reporting of transacting large quantities. So when he needed cash, he sold metal, and when he had spare cash, he converted it to metal. Price fluctuation risk was just a hazard of his business life. It might be that an auction would not have the reporting requirements and that would be considered worth the premium. Link to comment Share on other sites More sharing options...
American Coin Hoarder Posted May 1, 2019 Author Share Posted May 1, 2019 Thanks for the replies so far. I feel like there is a specific reason because multiple people were buying the silver and each lot number was going for like the same price. It was like there was some sort of exact ceiling. I figured the ceiling would be right at silver value or just a hair more for convenience. But like I said, people would max out paying $3.50 per quarter. Numismatic, A.A.S. 1 Link to comment Share on other sites More sharing options...
Numismatic, A.A.S. Posted May 2, 2019 Share Posted May 2, 2019 On 5/1/2019 at 12:39 AM, American Coin Hoarder said: I attended my first estate coin auction which included bulk silver quarters, dimes and half dollars. I was surprised people were buying well above silver value on these bags of bulk silver. For example, people were paying around $3.50 per quarter for what each bag of qaurters sold for. Quarters are currently around $2.7 in silver value. They all sold at the same price too. Why were these people paying well above the silver value? Is it because of the convenience of acquiring large amounts at once? Is it because they are hoping to score a key date that was missed? I doubt this because both the coin collector who passed away and the auction service would have not missed something. Is it because they want the enjoyment of looking through piles of coins? Is it because they think silver is going to go up? Some believe that there are errors or certain varieties not found by others yet....unfortunately, behind closed doors dealers feed these smaller auctions, selling people on hopes and dreams....not grandmas stash never seen for 60 years... Others get caught up in the drama excitement....most people aren't winners, so...they try an win at auction to feel better about themselves, only to over pay in the end... Some are wealthy and could care less Some who bid are actually working for the auction house secretly... People are stupid and don't know what they're doing.... No paper trail with taxes... True worth of silver in that area of the Country...vs. where it's over abundant available.... Just my thoughts/experience.....peace American Coin Hoarder 1 Link to comment Share on other sites More sharing options...
Conder101 Posted May 4, 2019 Share Posted May 4, 2019 And believe it or not, some people bidding may have no idea what the melt value actually is. Link to comment Share on other sites More sharing options...
