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Junk Silver Coins and what it’s telling you about the silver market.

I have been in the silver business for years and have noticed the public for the first time in a long time isn’t selling junk silver back to dealers. If you look at the current premium dealers are charging (if they even have any coins in stock) it’s around $4.00 per troy ounce (you can view the melt silver value of coins here http://www.coinvalues.com/silver ) This problem didn’t come about due to the crash in the silver price from a couple weeks ago. The coins have not been available for under $2.75 premium for months.

I believe this is very telling as no more junk coins are obviously being minted the old coins are falling into strong hand investors. These investors are unwilling to sell the coins back to dealers thus creating a major shortage. It also appears investors are in line to buy more junk silver bags. I spoke with 4 dealers today trying to purchase a $500 bag of coins. None of them had any coins in stock and each stated they have a waiting list of buyers. One dealer even stated he has $25,000 worth of face bags spoken for. It appears I will be unable to purchase my beloved junk bags for a reasonable premium any time soon.

If you know of dealers with junk silver bags in stock please let me know, as I would like to buy some coins.

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90% silver bags

My cost for the 90% silver bags is $3.75 over spot and a 1% commission (24 cents) with free delivery. Unfortunately have a minimum purchase of full bags. Full bag at $23.72 spot is $19,641.

If you can get the bags in smaller amounts today at $4.00 or less with commission, with free delivery, it's a good buy.

The premiums are falling though. I expect them to fall further, even though product is hard to come by at present.

Gilhodges is right though. When people buy the 90% silver bags, they don't sell. It's a mindset for the most part that they have a barter coin if needed.

Author of Buy Gold and Silver Safely
Next book: Illusions of Wealth - due out soon
Also writing book We the Serfs!

"There's no silver shortage" - LOL!

We used silver as "short term" savings for money to develop the farm. (We did quite nicely, thank you, even selling in the recent "crash.") It was sort of an interesting journey...
We try to shop local, went to the pawn shop in town to sell the first time, got straight spot. I was thrilled. Next time, a modest premium, OK. Next time, the owner was out and his employee was just an idiot - offered to look each one up for numismatic value but would only pay face... Went back the next day, paid a slightly higher premium. By now, it was worth it check other dealers, my husband found a shop near where he worked. Paid a reasonable premium that was substantially less than the local guy. One day, we needed to get some cash and did not want to run to the valley, so went back to the local guy. He offered us 1/4 spot. Understand, my husband was there in "farming" clothes, he looked like a bum and he'd been selling silver all summer. This guy thought he had a desperate person in front of him. I wish I'd have been there to see the look on his face when my husband said "Well, I'll buy everything you have for that price." The guy admitted he had NONE.
The price drop finally got to us, we had to find a way to buy a little, so my husband went to the place near where he worked. The guy had very little, we cleaned him out. He then put us on a list to be notified when he gets more. He said we would go to the top of the list, since we had sold him some.
:)
By the way, the biggest dealer in the Boise area (and so probably Idaho) was out.
Thanks for your insight. I've said for years, the day that Bob the electrician is offered paper silver, things will get very interesting, very quickly.

Love or fear? Chose again with every breath.

Junk silver is still minted.

There are 90% dimes, quarters, and halves that are still minted. They're not intended for circulation, but they can be circulated.

Please come join my forum if you're not a trendy and agree with my points of view.

http://www.goldeneaglecoin.co

http://www.goldeneaglecoin.com/Buy_Silver/90%25_Silver_US_Coins/90%25_Silver_Coins_(Smaller_Bags)

I live in a small rural town in Illinois.

Went to the "hardware" store (Its a sorry excuse of a hardware store, mainly containing outdated tools and supplies, possibly from 10-20 years ago, which has drum sets, kick pedals, coins, odds and ends stuff) to look into a new sliding patio door he had. Wanted $400 (it's been there for over a year.) Bartered him down to $250 but I was only looking to spend $100. Figure ill let him sweat it out and try again in a few months. ANYWAY, to my original point, he has sleeves of coins in the counter display case, a lot being pre 1964 quarters and they're all marked at $2.00 :) Not sure if they've just been there since he opened up shop and he hasn't adjusted the prices, or if he has them and doesn't follow silver prices, but I'm going in Monday to clean out his display case.

Sage

Apmex has 93 bags of the $100

Apmex has 93 bags of the $100 face value right now for under $2000. They show as the lowest at www.comparesilverprices.com

http://www.apmex.com/Product/27/90_Silver_Coins___100_Face_V...

“Let it not be said that no one cared, that no one objected once it’s realized that our liberties and wealth are in jeopardy.”
― Ron Paul

Monex is out of stock! I doubt Apmex has any...

If Monex in Newport Beach is out of stock, a firm going back many years, who used to hold 'Junk' on margin but no more, then I doubt Apmex has any... not to say they do not say they have or can obtain some in time to ship reasonably!

Further, Monex is paying between 19,000 and 20,000 (FRN) for 'Junk bags' as of yesterday, just to obtain stock to sell. That works out to between 26.57-28.00 per oz Ag!

Another prominent and long term dealer on the west coast is not selling for less than ~29.00 per oz for 'Junk'. "It has become scarce", they said.

APMEX

APMEX has some

I love liberty like fresh cool air in my lungs.I love freedom like fresh cool water on my tongue.I love peace like the smooth skin of my sweet lady.And Dr.Ron Paul is the hero I believe will change the world.

I've been checking on eBay

I usually try to get some good deals there, and I thought that with the drop in prices, I could buy some junk coins at a good price. The prices on eBay have not changed since last year.

I'm not a dealer, I just buy silver coins whenever I have some extra money, but I have not seen a drop in prices. People are bidding strong.

I don't trust eBay sellers

I don't trust eBay sellers for my silver. I would use eBay to sell...not buy (of course, we'll have to get to the next paradigm first where people are paying me with something other than useless green paper)...

I also recommend that when you buy from reliable and trustworthy sources (Apmex, Provident, Miles Franklin, etc) save your receipts showing where it came from. If you ever have to PROVE authenticity OR that you are the legal owner, receipts will help. You never know when government thugs may try to say your precious metals were purchased with 'drug money' and attempt to confiscate. With receipts, you can trace the source of your funds and show it was paid for from a checking account, bank wire, etc.

“Let it not be said that no one cared, that no one objected once it’s realized that our liberties and wealth are in jeopardy.”
― Ron Paul

I buy off Ebay.

I'm currently collecting the Sunshine Minting 1oz. silver bars, (without the new "chip" or whatever the hell that decoder deal is that they're now doing.) There are A LOT of fakes. But I've read up on what to look for so I'm confident that the ones I'm getting are the real deal. The fakes are typically pretty obvious. They aren't selling the older version at PM retailers, and an wanted to get up to at least 25 of them before I start investing in other makes.

Sage

I just prefer Apmex,

I just prefer Apmex, Provident, etc. I'm yet to find many deals on ebay. It may be ok for some smaller transactions, but if you're dropping 5-10K+ at a time, the risk of counterfeits, as well as having a seller who might take your cash and run...just isn't worth it to me.

personal preference.

“Let it not be said that no one cared, that no one objected once it’s realized that our liberties and wealth are in jeopardy.”
― Ron Paul

Good point about large transactions!

I don't generally have a lot of money at one time when I purchase. Usually, only enough for a couple of ounces. If I was looking for silver eagles or anything other than the older sunshine 1oz bars, which retailers no longer sell, it'd be Apmex all the way. I've always had good experiences with them. The Ebay prices for the older sunshine bars are rediculous, but as I said, I want 25 old ones before I start diversifying, so the price, I'm usually willing to pay. They're great looking bars, plus they don't make them anymore, which I think may add value later on down the road.

Sage

Try Europac metals

Peter Schiff's company. They might have some