Silver - Am I getting taken?

Discussion in 'Financial Cents' started by USMCwife, Apr 28, 2010.


  1. USMCwife

    USMCwife Monkey++

    Hey guys. Today I made my first silver deal. I haven't officially bought yet, because I needed to be sure and shop around. I walked in to a coin store today with $400 cash and they offered to sell me 1oz bars of silver .999 pure for $20 a bar. They started out at $23 and I told them they were nuts. I got them down to $20, but that still seems a $1 high to me. What do you think? Anyone out there with more experience that can give me some insight at how far over spot is normal?
     
  2. melbo

    melbo Hunter Gatherer Administrator Founding Member

    You can always check against APMEX.
    Here's the 1oz 'bars' although your dealer may have had some that they considered a premium for the brand name.

    Buy Silver Bullion | Silver Bars (1 oz - 1,000 oz)

    $23 is out of the question. $20 is only $1.80 over spot. If it's cash and carry, no shipping, no tax, I'd go for it. You may not find any for less but if you do have other local people, take a look.

    Most of the APMEX stuff this moment is $19.64 + shipping.
     
  3. USMCwife

    USMCwife Monkey++

    Thanks Melbo. I think I'll go for it. I would probably waste more in gas money checking out stores in the next towns over. I'd rather have a tangeable asset, than let it sit in a savings account losing value. Thanks again! Feels good to dump paper for the real thing.
     
  4. melbo

    melbo Hunter Gatherer Administrator Founding Member

    I would do exactly that myself.
    scrooge-mcduck. scrooge-mcduck-make-it-rain.
     
  5. caduckgunner

    caduckgunner Monkey+++

    I expect to pay no more than $2 over spot. And I always buy from the local places pay cash, that way there is paper trail.
     
  6. tacmotusn

    tacmotusn Mosquito Sailor

    I think you mean..... That way there is no paper trail.;)
     
  7. caduckgunner

    caduckgunner Monkey+++


    Shhhh...... I'm trying to throw the "The Man" (.gov) off :oops:
     
  8. USMCwife

    USMCwife Monkey++

    Well this local store is decent on price, but unfortunately they are having a hard time scraping up $400 worth of silver. They say they'll have it tomorrow, but we'll we see. I'll probably end up paying more since the spot is already up 50 cents. I'll report back tomorrow.
     
  9. USMCwife

    USMCwife Monkey++

    Well yes, I've been had---or more appropriately, my time wasted. Now the transport car from one store to another conveniently broke down on the side of the highway yesterday, and no one will answer my calls this morning. So much for trying to support local businesses. I'll be heading to ampex.com now. Same deal with $20 shipping. At this point, its worth it.
     
  10. tacmotusn

    tacmotusn Mosquito Sailor

    Another question on this subject. Pre 1964 dimes, quarters, half dollars, and silver dollars.... 90 percent pure? dime 1/10 ounce? quarter 1/4 ounce? Half dollar 1/2 ounce? and silver dollar 1 ounce?
     
  11. JTClimber

    JTClimber Monkey++

    I buy only Junk Silver, dimes quarters and such (pre 1964).
    The best way to buy as far as I am concerned is ebay. I usually pay spot or a very tiny bit above with shipping.
    If you need a calculator to figure how much the coins are worth, go here.
    U.S. Silver Coin Melt Value Calculator - Coinflation.com
     
  12. melbo

    melbo Hunter Gatherer Administrator Founding Member

    No and that's what gets confusing for some. Pre-65 US coinage that was in circulation is calculated at .715 oz per dollar. a "Silver Dollar" contains .715 oz of silver whereas a 'bullion coin' like an American Eagle or a Canadian Maple leaf still say $1 or $5 on the face but contain 1 troy oz.

    It's called 90% because the coins are alloyed with copper to make them hold up to circulation. The copper is currently not factored into the equation of worth.

    The calculation used by dealers and private individuals looking to sell or buy is:

    Spot Price x .715 = Factor
    Factor x Face Value of coins = FRN 'Value'

    Example using 9 pre-65 quarters with a spot price of $18.60

    18.60 x .715 = 13.29
    13.29 x 2.25 = $29.90*

    (*plus premium)
     
  13. melbo

    melbo Hunter Gatherer Administrator Founding Member

    So what did you end up buying?
     
  14. USMCwife

    USMCwife Monkey++

    1 oz. bars from apmex.com. Got what I wanted and glad I did. I feel like going all in now. I wish people just did commerce in precious metals. All this paper is going nowhere fast.
     
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