What can I expect when buying junk silver

[zoomzoom71]

Hi all:

Newbie here. I'm just getting started with my silver purchases, in the last 6-8 months. My father-in-law got me started with a small gift to our stash, then I found a local pawn shop to pick up some 1oz rounds. Unfortunately, that pawn shop isn't a good source for junk silver. My father-in-law has used a company out of CA, CT Group, which I did use once. But, now I can't get a response from them. He also said I could use ASI (Asset Strategies Int'l, Inc). I've called them, and they seem like they'll be a good source for my junk silver. But, I have a question about what I can expect to pay in commissions when buying junk silver. ASI said they charge 9% above Spot, or Spot plus $2.55 per oz. I guess I don't understand, or maybe I'm overthinking it, but since the silver content is 90%, I'm actually paying a 10% premium on the silver, plus the 9% commission. Is this normal? I know this 90% silver is no longer produced, so I guess I should expect to pay a premium.

Thanks for any input you can provide.
Thanks!!

[db23]

You should look at the Buy it Now forum right here. Frequently find 90% at just around spot. Some of the best deals you'll find anywhere on 90%.

[Sheba]

Another question about 'junk silver coins'. What about the culls that are so thin (specially dimes) that they seem little more than a piece of paper ... no date, faint image, etc. Is it even remotely possible to know that if someone buys that kind of silver (from this forum) they won't end up with 10-20% less actual weight than a silver coin should have? Not looking to get BU or AU of course, but at least good, full 'junk' silver coins for my hard earned dollars

Thanks for answers, specially from those who do a lot of buying from this forum? Advice here is greatly appreciated. Have been considering doing this, but just haven't been sure, quite yet.

[SilverJack]

Go to coinflation.com or do a google search for calculating silver values and you'll find that paying for spot value, or any premium or discount to it, for junk silver is only taking into consideration the value of the silver in the coin, not the total weight. This means you're not paying a 10% premium because the coin is only 90% silver. Essentially you're getting the copper in the coin for free.

Once you run through the calculations a time or two, you'll get it.

As to your point about the wear reducing the amount of silver in a coin, there are a couple threads here that address that as well. You'll have to do the search yourself (I just don't have the time right now). But many times, the value of troy oz/coin conversion factor used to determine the buy/sell price has been reduced. Let me give you an easy example. For dimes, Coinflation reports that the troy oz./dime is 0.07234. But this is the amount in an uncirculated coin. Because of wear, that figure is often reduced by dealers to 0.0715. Using the first figure, it would take 13.82 dimes to make an oz. With the second figure, it takes 13.98 dimes to make an oz. Make sense?

Beware of the dealers that sell to you using the full value of troy oz./coin and buy using a discount, often on the exact same coins. Those folks are playing you on both ends.

[Chief]

If you are worried about under weight coins, you could always stick to buying '64 Kennedys, Franklin Halves, Washington Quarters, and Roosevelt Dimes. The closer to 1964, the more weight the coins should have.
Or you could just buy by weight. Around .715 toz per $1FV is acceptable.
The only times I've had issues with under weight coins were Barber Dimes and Walking Liberty Halves. While 1964 Kennedys would have the most weight, I love stacking Franklin Halves. They are older than '64 Kennedys and close to full weight.

[ScottyTX]

I have never seen an honest dealer/person try to sell 90% silver as pure silver as per your reference to +10%.. A very common use for calculating an average mix of 90% silver is .715 ounces per 1.00 face value. Check out coinflation.com to get up to date melt values for US coins but do take in to mind that it will quote the actual melt value of Brilliant uncirculated non worn coins which I believe is actually .72347 ounces per 1 dollar face value. Try to look for the least worn coins or at least make sure your getting at or better than the standard .715 if you can.. You may want to get a gram scale if you are not sure of what a .715 average should look like when buying. Currently I would suggest aiming for spot or less when buying 90% silver for a good deal. Good luck and welcome to the forum. Now swing by the member introduction thread and drop us a line

[slickeast]

First, welcome.

Beauanderos has a weekend silver sale almost every friday. Best prices you will find for 90%. He charges a flat shipping fee, so buy as much as you can afford.

Coin shops and some online dealers are way overpriced. Apmex and Tulving are two to look at that are good online dealers.

Use coinflation.com to find the currant melt of all U.S. coins. If you look at the silver dime price you know the amount times face 90% is worth. Say a dime is worth $2.03 melt. Move the decimal to the right one place and 90% is worth 20.3x face value.

Ask questions, we are here to help. There are a bunch of great knowledgeable members here that are willing to answer any question you might have.

[Lemon Thrower]

if you are willing to deal with the risks of transacting with the folks here, you will do a lot better price wise than a coin shop.

i have done many deals on this board and only had a one problem.

the silver price jumps around a lot and sellers usually post friday p.m.

you should be able to buy at melt or close.

in the coin business, there is a convention that 90% weights .715 troy ounce per dollar of face value. if you sell a $1000 bag to a dealer, he'll count the face value but for now everyone assumes it weights 715 ounces. quarters and dimes tend to be more worn than halves, so lots of dealers price halves differently but they still base off .715 convention for now.

if you do a private transaction, you can tell them you expect a certain mimimum weight, not slicks, holed or bent coins, etc. people you deal with - on this board or coinshops - are all over the map but i have generally had remarkable good experiences here and Ray (beaandros) has a good reputation earned over many years.

so bottom line (1) buy here, (2) dip your toe into the water before diving in head first, and (3) learn about how 90% is prices, the 715 convention, and communicate clearly with people you are dealing with.

personally i don't mind slicks (thin coins) becuase i'll eventually flip a bag to a dealer. but dealers don't want holed or bent coins, and if you resell 90% buyers want full weight coins with full dates etc.

do a search under my name for more about the 715 convention.

[jcz1]

Part of the fun for me in junk silver is the mystery, and the tiny, tiny chance of something more valuable in the lot. There's a much better chance of this on the bay than on here or most coin shops, so the higher cost of the bay for an occasional gamble can be worth it in entertainment value.

[Hades12]

I buy from my local shops by weight. One sales to me at melt and the other at spot. My wife really likes getting.925 at spot.

[zoomzoom71]

Thank you for the responses, folks! I love the insight!