Dealer fair melt price?

I know all dealers have different prices for coins. But what about the silver content melt value? Is there a $2 to $4 lower for melt value so a profit can be made? Example: Silver= $16.40/oz

A 1939 walking liberty would have a melt value of $5.93. What would be a fair dealer price be for melting that coin? My wording is awful but I hope you get the gist of what I'm trying to ask. zeke

 

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I know my buddy coin shop is overloaded with cull & sterling silver ,that he is turn folks away.unless there nice coins,or gold

 

I believe it depends both on the dealer and the venue. At a coin show, you will probably receive a a higher price than walking into a B+M because of the competition. Many dealers price by reference to a multiple of face value. At a recent local show, a dealer had a big sign "Buy silver 10X; sell at 11X".

 

TO GDJMSP-----That sounds right, thanks. Explaination: a dealer gave me a price of $4 so that was close but still on ther low side. Let's make sure, please:
10%of $16/oz=$1.60, $16-$1.60=$14.4/oz, for a walikng liberty 1939=0.36169oz so $14.40X.36169=$5.21.
Whoa, that price I was given was way low. Glad I didn't accept.

zeke:rolling:

 

That's odd. Most B++Ms will buy all day long and just flip it. I know some folks that made a killing during the great silver run of the 1980s.

 

There only 2 coin shop Huntsville & then 100 miles the north Nashville and then about 110 the south in Birmingham.last week he had about 275-300 pounds & about the same this week cash in.but I sure he not turn to many away.he trying to be picky and just take in nice resell able silver coin's

 

No silver coin is "worth" less than melt value. The dealer is trying to maximize his profits, and so are you. He isn't "entitled" to make money on the transaction just because he is in business, and neither are you. It is a pure negotiation, and the dealer needs the customer as much as the customer needs the dealer. Somehow, the customer frequently forgets that. If the dealer offers less than melt value, you could probably sell to a neighbor, relative or co-worker for melt value if you bothered to ask around.

 

Yeah, but if you have a coin with $5.93 of silver in it and a dealer will pay $5 for it, how much effort are you willing to expend to make 93¢??

To answer the OP, the last time I checked (more than a week ago) we were paying about 10X FV for junk silver, and a little more if it was in full $1000 FV bags.

 

No dealer I've ever seen pays full spot price. They wouldn't be in business long if they did, seeing as most silver people bring in is junk and doesn't sell again. So that dealer has to assume all silver and gold is going to the refiner, and no refiner pays spot either.
Guy~

 

A simple formula for calculating what dealers in my area pay for common circulated silver is to multiply spot times .65 then round to the nearest quarter dollar. If spot is 16.40 then $10.50-10.75 times face would be what you can expect. Other factors have influence, but that works for me as a benchmark.

 

That seems mighty low. Using your .65 multiplier a walking liberty with a $5.93 silver content would have a $3.85 melt price. HMMmmmm let me think about that. Naw too low for me.

 

He's using the .65 multiplier on the value of silver, at the time, to determine how much times face value he should get.

So if silver's 16.40 an ounce (16.40 x .65) = 10.66, so $10.66 x face value of the silver coins.

Imo that's a pretty accurate formula.

Just a few days ago I sold a bunch of common circulated WL halves. The highest price I got was $5.25 a piece, and the lowest was $5.00 a piece.

 

I liked your first post of a 10% below spot. I'd accept that anytime. Even
15% is very good. 20% isn't too too bad either . One dealer around me olny offers 7X face value. He makes a pretty nice profit when siver is $16 or more.

 

Maybe this will help. Common silver (ie. dimes, quarters, or halves) contains basically 72.3% of an ounce of silver at $1.00 face value. If spot is $10.00 then 10 merc's or 4 washingtons or 2 franklins would be worth $7.23 in silver value. Then take $7.23 x .9 = $6.51, which is the .65 multiplier I utilize. Dealers are not selling common silver to the smelter for spot. They need to make a profit and less than 10% is extemely fair. Most businesses would not be viable at that margin. The "closer" you can get to the final destination the better the price you will recieve. Dealers sell bullion to each other just like coins. Smaller dealers will offer a lower price as they don't have the bullion volume to receive the best price from the melting pot.

I enjoy buying and selling common silver. It's been a great way for me to add dollars to my coin budget. Try going to a flea market and waving 6-8 benjamins in front of someone who has a few coins, but may not be aware of the current spot price. Use a .55-.58 multiplier, then sell it to your dealer for a 10%-15% profit. Make that happen few times per year and you've earned yourself a nice coin.

 

You could always sell silver on the cointalk classifieds or your local clasifieds and sell it at spot or above. Why would you go to a dealer if you can sell locally or on here?

 

Coinkeeper that is a good question. My answer is that I do not know of any other places to go to sell silver for a decent melt value and/or numismatic price. Ignorance is what you might call it but inexperience fits too.

 

Just last week I sold a bunch of junk silver to my dealer at 11.5x face.