Need a little advice

kurtma12

Jr. Member
Apr 19, 2009
89
2
Georgia
Alright, I know this is a pretty incredible dilemna to have, but I don't want to upset the 'silver gods' so I'll share it and see what others would do...

A few weeks ago I posted about some silver I bought at a pawn shop at well below spot. It was 10 oz bar, a 1 oz bar, and some coins, all for $300. Well, while I was there that day I was talking to the guys at the pawn shop and was just showing an interest in coins. They don't usually deal with coins, mostly just check cashing and phone services in that part of town, but they said they'd call me if anyone brought anything in.

Well, I got a call today to come look at some paper currency they had gotten. It turned out to be just 9 - 1957 silver certificates, but when I was there he pulled out $20 in mercury and roosevelt dimes he had bought earlier that day. He said he paid $10 per $1, and his refinery was going to pay him $16 per $1, and that I could have them for that same price if I wanted so that he wouldn't have to mail them off.

Of course I bought it, it was $25.50 total that they had broken up as:
$2.50 in 1964 Kennedy halves, $1.50 in 1964 Washington quarters, $8.40 in Roosevelt dimes, and $13.10 in Mercury dimes.
While I was there, I checked for any key or semikey date Mercury dimes to show them, but there weren't any in the lot. I ended up paying $415 for the $25.50 in face 90% and the 9 well worn and circulated silver certificates. So basically, they called me, they set the price, and they got that amount. But, I know how good of a deal it is, so what would you do in this situation?
 

Well it seems like they made a 60% profit and if you could get full melt value you could make 20% so I don't see what the delima would be :icon_scratch:
 

Yeah, I know they made a lot of profit, but it's still well under what they should be making. I know it isn't my job to tell them to look at ebay or coinflation or any other site out there to help them determine value/price, but they seem pretty far off. Even their "refinery" seems like it isn't paying them nearly what they should. The reason I got the bars of silver so cheap last time is because their refinery was going to pay them $24 per ounce of .9999 silver when spot was $30.10. Who would think that .9999 needs to go to a refinery?
 

kurtma12 said:
Yeah, I know they made a lot of profit, but it's still well under what they should be making. I know it isn't my job to tell them to look at ebay or coinflation or any other site out there to help them determine value/price, but they seem pretty far off. Even their "refinery" seems like it isn't paying them nearly what they should. The reason I got the bars of silver so cheap last time is because their refinery was going to pay them $24 per ounce of .9999 silver when spot was $30.10. Who would think that .9999 needs to go to a refinery?

How exactly do you know what a refinery should be paying or their profit margins, cost of production, etc? I don't mean to be frank, but don't you think a pawn shop owner knows what stuff is worth? That is how they make a living, buying and selling stuff. Pawn shop owners who have been around are probably the most knowledgeable people in the world when it comes to knowing what an item is worth, especially common things like coins and jewelry.

You answered your own question when you stated the pawn shop owner would rather sell to you than ship it off. By selling to you he gets his money now instead of having to wait for a check.

It is not like you ripped off a little old lady on welfare.

Jim
 

If it were me and I had the money to invest in silver I would take out an ad in the paper offering to buy silver coins. Now that you know what the pawn shop pays you can beat their price by a couple of bucks and cut out the middle man. You make more and the folks selling their silver make more then they would selling to a pawn shop. Sounds like a win-win situation to me.
 

At those prices, I would have bought all the silver...no questions about it. If I couldn't afford to keep it, I would have flipped it on ebay.

While I haven't checked it in a over a week, prices for silver coins were crazy on ebay. Our local shop was paying 20X face.

You did well, and if you can, you should start buying everything that they get at those prices.

As well, I wouldn't be too interested in teaching them anything more about key dates.

I know a guy that has made a living buying from coin and pawn shops and selling to other coin and pawn shops, refiners, and to a long list of retail buyers.
 

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