Tuesday, June 3, 2014

Why I Buy Junk Silver

You can get cheap Sterling or 925 on Ebay in the vintage rings. The people buying silver dimes, quarters, half dollars etc are just stupid.  Go to any 10 of those auctions and do the math. These retards are bidding on average $30 over for every $70 worth of silver and you can't legally melt coins now. Idiots.  Seriously go look at the auctions.  You have ripoff artists out there posting 1/2 pound, 2 Pound lots silver coins and then when you get down in the description it has 140 silver nickels which are only  35% silver. Still worth money but they make up the bulk of the weight. Just go to coinflation dot com and check out the current melt price of these coins, add them up, and you will see idiots paying stupid amounts for this crap.  Silver would have to go up 25%, 35%, even in some cases of extreme stupid 40% or higher for them to just break even on initial cost and postage.  If you do the calculation of Current price for 1 TROY OUNCE not AMERICAN OUNCE divided by 31.1 grams will give you your gram price then you multiply by silver content of what you are buying.  Coins 90%  sterling 92.5%, Dutch sterling 84%, etc and that gives  you the value per gram of whatever medium you are buying. While I am typing this I will go to Ebay and randomly pick a silver coin sale with bids.

Here is what I found in the first 4 auctions with bids.

1/2 oz (american)  12.25 - auction had time left
6 oz (american) 130.92
4 oz (american)    85.68
4 quarters   16.85

What each was worth as of today - 02/04/2014?

Just by weight alone.  MONEX says 19.56 for TROY OUNCE or 31.1 grams. American Ounce is 28.3g or   28.3 / 31.1  = roughly 91% of a troy ounce which means an american ounce is worth roughly $17.80.  Now plug that into the auctions.  Remember these coins are only 90% silver so lets reduce that down across the board. So 17.80 x 90% = $16 an ounce.

Here are those numbers.
1/2 oz worth $8  paid $12.25  over 50% too much
6 oz worth $96 paid 130.92  over 35% too much
4 oz worth $64  paid 85.68  over 32% too much
4 quarters on coinflation dot com worth $3.53 auction had an hour to go will probably  go up another $10 but just at this moment $13.12 they paid $16.85  over 28% too much.

That is how high silver will have to go for these people to just break even. Then how will they sell it? What will it cost to ship? etc.

Stupid people.

I put them on my watch list and will write a follow up in a few hours how it turned out. In the meantime I am going to go bye stamped sterling rings and other marked items at or below the price of silver.