Is this a fair price?

[apush]

I had the good fortune of having this past friday off. Mr. Apush and I ran some errands--he helped me with my weekly dump . Total of 5 silvers out of 3 boxes of halves this week. Certainly not impressive, but I am not complaining.

There is a small coin shoppe in our town. Thought I would venture out, and take a look around. The dealer was nice enough, but kept ranting and raving that his shoppe was a coin shoppe not an internet scam or a fly-by night operation . I never mentioned either?

Well, he had a bag sitting on his work desk that had a mixture of 20-90%ers: kennedies, walkers, bens. As I glanced, I notice the coins looked as if they were from coin rolling, metal detecting, etc. The coins were not top grade by any means. I asked him what he wanted for the coins, if I were to buy 10. He said $72.50.

Is that a fair price and something I should consider? I am like most here; that is, I would prefer to find them in the wild, but I would like to obtain a nice small collection for that rainy day.
apush

 

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[Kauka]

the best purchase price i've seen of a coin dealer from a crh'r is about 10x face value, so about $5 per half
he wants to sell it at $7.25 per half, almost 15x face value
so, yes, he wants a sizeable profit margin
unless they were coins of good numismatic value, which you indicated they were definitely not,
i'd say stay away from that price range
continue with your 'search in the wild'
you would likely be better off
silver hasn't gone up that much (yet) to merit you spending that much right now
that's my humble 2 cents

hh

 

[dave5710]

I agree with Kauka, I wonder what he would take for the whole works. Or I wonder what he would say if you offered him $6.00 a piece. Thursday, I gave one of my loyal bank tellers $5.50 each for some that she had saved over the years.

 

[jim4silver]

The best ways to look at this are first, what is the price per ounce of silver you are paying?

it takes approximately 2.76 halves (90%ers) to make an ounce of silver. At his price, you are paying roughly $20.00 per ounce of silver via junk halves. Silver is at $18.40 or so per ounce, so you would be paying over $1.60 per ounce premium.

Second, what do other stores in your area and online charge for them. If everyone else charged that much then maybe it is a "fair" price, but still might not make it a smart buy to make. I like to check sites like Apmex to see what things are going for. I have never bought or sold online but I like to compare my local prices to theirs.

For that much of a premium you could possibly get very good name brand rounds/bars like Engelhard, JM, etc.

I would not pay that much for average circulated junk halves personally, but you are not getting "robbed" either. Most coin stores here are PAYING over $6 for each silver half you sell them, so you know you are gonna pay more than that if you buy from them.

the best purchase price i've seen of a coin dealer from a crh'r is about 10x face value, so about $5 per half

No way can you buy for $5 per half anymore, unless you are buying from someone who does not know about silver content (like maybe a bank teller or at a yard sale, etc). At that price you would be paying $13.80 per ounce of silver.

Jim

 

[jrf30]

I had the good fortune of having this past friday off. Mr. Apush and I ran some errands--he helped me with my weekly dump . Total of 5 silvers out of 3 boxes of halves this week. Certainly not impressive, but I am not complaining.

There is a small coin shoppe in our town. Thought I would venture out, and take a look around. The dealer was nice enough, but kept ranting and raving that his shoppe was a coin shoppe not an internet scam or a fly-by night operation . I never mentioned either?

Well, he had a bag sitting on his work desk that had a mixture of 20-90%ers: kennedies, walkers, bens. As I glanced, I notice the coins looked as if they were from coin rolling, metal detecting, etc. The coins were not top grade by any means. I asked him what he wanted for the coins, if I were to buy 10. He said $72.50.

Is that a fair price and something I should consider? I am like most here; that is, I would prefer to find them in the wild, but I would like to obtain a nice small collection for that rainy day.
apush

Right now if you want to buy some 90% coins, they are running about 13X face. This offer from the coin dealer was at 14.5X face value. So it was high.

If you want to buy some, you should be able to get some at about 12X face on craig's list. If you offer 12X face, someone will contact you and sell there, since they are getting about 10X face from the coin dealers. You both get the benefit of a better price than the dealers, since you split the spread.

Bulliondirect.com, where I get all my buys, is at 13.1X face right now, and they are reputable, so if you wanted to buy for your collection without the risks of meeting someone from the internet, you can buy there for less than this fellow offered.

He was not scamming you, and not terribly high, but you can buy lower than 14.5X face. So thank him, and buy elsewhere. CL or bulliondirect are my two spots (Although I normally SELL on CL, and buy at bulliondirect, as I get closer to retail on selling on CL)

My thoughts on it. :-)

 

[Kauka]

the best purchase price i've seen of a coin dealer from a crh'r is about 10x face value, so about $5 per half

No way can you buy for $5 per half anymore, unless you are buying from someone who does not know about silver content (like maybe a bank teller or at a yard sale, etc). At that price you would be paying $13.80 per ounce of silver.

Jim

[/quote]

That's what I've seen here in this area
Offers from the dealers aren't too favorable for the crh'rs
Haven't been able to buy for this either
Gotta remember - dealers are looking for profit, too

 

[Rich Hartford]

This week I bought a few coins, 33 40% Kennedys, 5 1964 Kennedys, and 11 Rossevelt dimes. About 7 1/2 ounces of silver. I think I got a great deal on this small purchase, $20.10. That's about $2.68 an ounce.
I'll buy more next week.
This deal is of course is only available from CRHing.
Unless you are a coin collector, or a gambler who wants to chance buying and selling silver for a quick profit,I can't see buying silver coins, when you can get them at face.
If I had mad money to spend on coins I'd rather buy gold. You can still pick up some gold coins for under a hundred dollars, if you don't have a lot of money to spend.
HH
Rich

 

[mts]

...I think I got a great deal on this small purchase, $20.10. That's about $2.68 an ounce....
This deal is of course is only available from CRHing.

Of course, if you factor in your time...

 

[jim4silver]

This week I bought a few coins, 33 40% Kennedys, 5 1964 Kennedys, and 11 Rossevelt dimes. About 7 1/2 ounces of silver. I think I got a great deal on this small purchase, $20.10. That's about $2.68 an ounce.
I'll buy more next week.
This deal is of course is only available from CRHing.
Unless you are a coin collector, or a gambler who wants to chance buying and selling silver for a quick profit,I can't see buying silver coins, when you can get them at face.
If I had mad money to spend on coins I'd rather buy gold. You can still pick up some gold coins for under a hundred dollars, if you don't have a lot of money to spend.
HH
Rich

RH,

I agree that it is better to get silver at face value, but the average person is not going to be able to acquire a decent position in silver via CRHing if they are just now getting into the hobby. I spend way more time CRHing than I should even now after I have cut back, and my finds don't amount to much at all. For many it is not practical or possible to spend many hours chasing after a few silver coins via CRHing. I guess if you are in an area that constantly is producing silver than you can build a nice position or if you started years ago.

I agree with your view on gold and most of my PM purchases have been mostly gold in the past year or so. But a person should still have a good position in silver bullion if they are into PMs. Many including myself see silver and gold prices skyrocketing in the next few years. No way to know for sure which is the best PM to be in, so better to diversify between silver and gold, and perhaps the platinum metals group if you are into those (I stay away from these myself).

Just my 2 cents.

Jim

 

[Rich Hartford]

...I think I got a great deal on this small purchase, $20.10. That's about $2.68 an ounce....
This deal is of course is only available from CRHing.

Of course, if you factor in your time...

I probably spent 8 hours of my time, picking up, searching, and dumping. Probably drove 7 miles.
I'm retired, and get payed x amount of dollars per hour,24 hours a day,7 days a week,365 days a year to do absolutely nothing.
So I don't figure in the time.
HH
Rich

 

[rileyboy]

Apush,
Coin dealers have to make some money on the sales to pay their rents etc.
If I were you, I would just keep CRHing and get them at face value. I agree
with the others who responded that silver finds are getting scarce compared to
a few years ago. But, you never know when you will hit the "Big Score". I can
say that because I am on the east coast near a large city and there are tons of
banks available to me. Your situation may be different. But remember, CRHing
is a hobby not a profession. Just my two cents.
Good luck
rileyboy

 

[Rich Hartford]

This week I bought a few coins, 33 40% Kennedys, 5 1964 Kennedys, and 11 Rossevelt dimes. About 7 1/2 ounces of silver. I think I got a great deal on this small purchase, $20.10. That's about $2.68 an ounce.
I'll buy more next week.
This deal is of course is only available from CRHing.
Unless you are a coin collector, or a gambler who wants to chance buying and selling silver for a quick profit,I can't see buying silver coins, when you can get them at face.
If I had mad money to spend on coins I'd rather buy gold. You can still pick up some gold coins for under a hundred dollars, if you don't have a lot of money to spend.
HH
Rich

RH,

I agree that it is better to get silver at face value, but the average person is not going to be able to acquire a decent position in silver via CRHing if they are just now getting into the hobby. I spend way more time CRHing than I should even now after I have cut back, and my finds don't amount to much at all. For many it is not practical or possible to spend many hours chasing after a few silver coins via CRHing. I guess if you are in an area that constantly is producing silver than you can build a nice position or if you started years ago.

I agree with your view on gold and most of my PM purchases have been mostly gold in the past year or so. But a person should still have a good position in silver bullion if they are into PMs. Many including myself see silver and gold prices skyrocketing in the next few years. No way to know for sure which is the best PM to be in, so better to diversify between silver and gold, and perhaps the platinum metals group if you are into those (I stay away from these myself).

Just my 2 cents.

Jim

Jim,
Your 2 cents is always valueable. I enjoy listening to Gerald Celente and was in fact listening to him last night. He won't recommend any type of investments, but does talk about his own. All of his PM investments are in gold, which amounts to 80% of his assets. He nevered mentioned silver.(He does not get payed to push gold ).
I found it odd that he does not mention silver. In fact I never really hear anyone pushing silver.
What's your opinion on this?
Best
Rich

 

[rsc]

NOT a good deal, unless you are desperate for silver.
Ask him what he will give you for your 90% halves.
I think it would be difficult to make rent in a small town.....
HH Gayle

 

[rileyboy]

Rich,
I think silver "bounces" around too much in price. Gold is more stable and rises slowly and consistently. I'm with you. Gold is a better investment. Just my thought.
rileyboy

 

[spartacus53]

A fair price is what you are willing to spend on a purchase, or take as a sell. As Apush mentioned he is a business and needs to make a profit, you can't remain in business without a profit no matter what the item is. If you feel it is worth the money, that is all that should matter.

 

[fistfulladirt]

I'm beginning to think silver is stagnating. Too much manipulation, probably to keep industrial costs low. 13 x face is the buy rate in my area. $20/oz. peak a few years ago, stagnant since.

 

[apush]

I have 10 years before I can have a job like Mr. Hartford's . And yep, I want that job!!! Retirement . . . Smile.

apush

 

[golden silver]

I would pass this guy up who seems to have a screw loose. My advice search harder and with more money. Then you will have your rainy day nest egg.

Golden Silver

 

[jim4silver]

This week I bought a few coins, 33 40% Kennedys, 5 1964 Kennedys, and 11 Rossevelt dimes. About 7 1/2 ounces of silver. I think I got a great deal on this small purchase, $20.10. That's about $2.68 an ounce.
I'll buy more next week.
This deal is of course is only available from CRHing.
Unless you are a coin collector, or a gambler who wants to chance buying and selling silver for a quick profit,I can't see buying silver coins, when you can get them at face.
If I had mad money to spend on coins I'd rather buy gold. You can still pick up some gold coins for under a hundred dollars, if you don't have a lot of money to spend.
HH
Rich

RH,

I agree that it is better to get silver at face value, but the average person is not going to be able to acquire a decent position in silver via CRHing if they are just now getting into the hobby. I spend way more time CRHing than I should even now after I have cut back, and my finds don't amount to much at all. For many it is not practical or possible to spend many hours chasing after a few silver coins via CRHing. I guess if you are in an area that constantly is producing silver than you can build a nice position or if you started years ago.

I agree with your view on gold and most of my PM purchases have been mostly gold in the past year or so. But a person should still have a good position in silver bullion if they are into PMs. Many including myself see silver and gold prices skyrocketing in the next few years. No way to know for sure which is the best PM to be in, so better to diversify between silver and gold, and perhaps the platinum metals group if you are into those (I stay away from these myself).

Just my 2 cents.

Jim

Jim,
Your 2 cents is always valueable. I enjoy listening to Gerald Celente and was in fact listening to him last night. He won't recommend any type of investments, but does talk about his own. All of his PM investments are in gold, which amounts to 80% of his assets. He nevered mentioned silver.(He does not get payed to push gold ).
I found it odd that he does not mention silver. In fact I never really hear anyone pushing silver.
What's your opinion on this?
Best
Rich

RH,

My guess is that Gerald and others who push gold more than silver do so because they believe that if TSHF gold will be more valuable due to its "money" status, where silver is seen as a more of an industrial type of metal whose use may decline if consumers buy less stuff made with it because the economy has tanked??

There are alot of silver pundits out there though. Some say that one day silver be more expensive per ounce than gold and also say there is less above ground silver than gold right now. I don't believe either of these statements to be accurate in my opinion. But, I think as gold rises silver will tag along and might very well make higher percentage gains over time, which would mean a higher return on your investment. For gold to double we would need to see 2400 per ounce, silver just 37 per ounce. I personally think we will see silver double before gold. And I think each could go even higher than these figures if the economy/world currencies keeps tanking.

I generally read as much as I can from different sources and get a gut feeling from everything I have read. I try not to rely on any one person because with so many different people giving different views it is not possible that they will all be 100% right.

I try to keep a 50/50 split between the two for my own stash. Silver's uses have been growing as technology grows. Much of that use involves the silver not being recycled after it is used. I have read that each guided missile or torpedo that is used by the military uses up to 1400 ounces of silver in one shot (no pun intended). I don't know if that is true, but alot of electronic devices need silver. The medical community is using more silver for its proven antibacterial effects. The reason silverware was made from silver was because of silver's efficacy in this regard.

And believe it or not there are some companies using silver fibers in clothing since it reduces bacteria growth and cuts down on BO. They only use very small amounts in each clothing item, but if the idea catches on it will add up to lots of used silver over time, and no way to recycle the silver used in this form.

One interesting note is that for centuries there was a 16 to 1 silver to gold ratio. This was before we had electronics or photograpy, etc. that used silver industrially. It was pretty much all used as money back then. So the silver is not money argument may not be so accurate based on history.

I hedge my PM position by owning some silver instead of all gold. I figure if the silver pundits turn out right my silver stash will skyrocket. If the gold camp is right my silver will probably not go lower than it is now since I believe we will have high inflation someday due to all the bail outs and printing going on and unless an industrial silver replacement is invented silver will always be needed. I see it as a no lose being 50/50.

PS Another interesting twist is that some pundits are saying online that certain big bank(s) are being investigated for allegedly manipulating the silver markets with huge concentrated short positions, etc. I don't know what will come of this, but if somehow this was uncovered during the investigation I think it would have a bullish effect on silver prices in the commodity markets, which in turn would increase the value of physical silver. We will have to wait and see if anything comes from this issue.

But owning just gold would be easier since it is so compact and easy to store.

Jim

 

[golden silver]

Jim you are a walking library of info my friend. I agree with your take on silver. You add into your scenario the world population growing exponentially, it is not hard to imagine the demand for electronics and silver skyrocketing much beyond todays numbers. I am talking in a short period of time like 20-30 years we could see a dramatic shift. Good gouge.
"You have been saving for a rainy day? Well, guess what?...It's raining"
golden silver