Junk Silver Coins and what it’s telling you about the silver market.Submitted by gilhodges on Sat, 05/11/2013 - 12:50
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.