I’m EXTREMELY new to silver, investing etc. and have a question as I’m looking at ‘junk silver’ to try to prep for TSHTF, and I just ‘don’t get’ the pricing….
Let me lay this out (my thinking) and someone please let me know where I’m right/wrong….
Ok – using silver at spot price of 32.00 per oz for ease of math – If you have 1 pound (16oz) of 90% silver coins (no new, war nickels etc – all 90% coins) then what is ‘retail price’ you should be paying?
I take 16oz x $32/oz and that is $512 if coinage is 90% then spot price for the silver in these coins is $460.80 (512x 0.9). But everywhere I look (ebay, silver seller links on pages etc) a 1lb bag of coins is selling for at least $520 – isn’t this too high? 520/16= 32.50/oz but again this isn’t pure silver it’s 90%…
Am I missing something? Or is it just demand is putting the old coins up over melt value or ???
Am I just looking in the wrong places? If Canadian coins are only 80% silver – then shouldn’t a pound of them sell for 409.00 (512x 0.8)
Patience please - as I said (& as online name signifies) I’m a newbie!!!!
It’s 90% silver but for every $1.00 face value isn’t there only like .715 ounces of silver? If so then you are multiplying by the wrong percentage. To extrapolate, $100 face value of pre-65 silver would then mean you have 71.5 Ounces of Silver.
Apmex: $500 face value bag of pre- 1965 silver costs 11,969$. That is 357.5 ounces of pure silver at around 33.48$ which is just about $1.70 above spot.
My math ain’t what she used to be… anyone wanna check my figures and make sure I’m not full on retard yet.
THANKS Orion (cute owl!) and Sheep Dog – all I can say is you gotta live where it’s warmer then me! LMAO
Thanks for the link Marchas45 – have been playing with it today. Lots of the ebay sellers sure seem to want to add a ‘whole bunch’ of the War Nickels in pkg deals – not really a deal…. guess they catch the ones not watching.
I’m a crazy Canuck – so most ebay seller don’t ship here – will keep watching kijiji for small amounts I can afford to grab here/there – maybe I’ll have to start checking out pawn shops and seeing what they get in to.
THANKS for the help gang – much appreciated, clears up things (for US junk silver) much better – now I have to figure out how much/oz per face value for Canada. Some coinage in link, but not the older stuff…
@newbie1 – no problem. If I were you I would look up some local coin shops, print out the price page on coinflation.com and arm yourself with as much knowledge of coins pre-hand.
My local dealer sells the privy marked coins for the same price as the regular ones so I can go through say the Canadian Maple Leafs and find privy marked coins for the same price as regular maple leafs. If you haven’t found out yet the privy marks catch a higher premium than just a regular maple leaf. I dunno everyone has their stories and usually these little shops are the best place to look for deals you can’t find online.
Not to mention shopping at your local coin store allows for cash sales so the gummint only knows about half my stack. Besides I think everyone should have a nice relationship with a local coin guy because you start getting special pricing if you go in enough. Besides it’s a ton of fun, I take my 8 year old in and we have a blast…
I’m tired so I don’t know if this helps, but $1.40 face value of 90% junk equals one ounce troy of silver content. That would apply to any denomination of 90% junk silver. A 90% junk silver dollar, or any combination of denominations that add up to a dollar, does not weigh one ounce troy, even with the other metal in the coin, or coins, included.
Also, on eBay a lot of people are cheating and lying, using avoir du pois, which is supposed to be against eBay policy, but the perps are never dealt with.
This helps considerably & I managed to find a calculator that does Canadian coins (older then coin inflations) where if you’re buying mixed lots you can punch in each different quantity for total value – very cool!
@newbie1 – I have an app on my smart phone called AG Calculator and gives up to date spot price and price for every type of coin in multiple currencies. You just hit a plus sign next to each coin to signify how many of each you are buying and gives a spot total. Awesome App. I use it at estate sales and garage sales all the time.
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