Traded in some 40s for ASEs

[silveraddict]

Traded in some 40's for ASE's

I decided to trade in some of my 40's from last year for some ASE's
I traded 420 for 40 2016 ASE's.
Since the 40's were all found at FV each ASE cost me $5.25.
I am happy with the deal.

 

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[maverick]

Those sure are pretty! I only own 1 ASE it is a 2003, I found it 2 yrs ago when I ordered a few bags of IKEs to search. HH, Maverick.

 

[CardsNCoins]

I get that you found them at face, and I know you don't want to hear it, but you lost 22 ounces of silver. Bottom line.

 

[mxh5891]

I decided to trade in some of my 40's from last year for some ASE's
I traded 420 for 40 2016 ASE's.
Since the 40's were all found at FV each ASE cost me $5.25.
I am happy with the deal.

If your happy with the deal, then that's all that matters. Is there a reason you didn't sell them on ebay or craigslist? You would have made a ton more of money and then could have bought another tube of ASE's

 

[silveraddict]

Never bought or sold anything on ebay.
Like I said i'm happy with it.

 

[mxh5891]

Never bought or sold anything on ebay.
Like I said i'm happy with it.

That's all that matters then. Can't wait for the day I have 420 silver coins..let alone that many 40's. It is a lot easier to store 40 ASE's then it is 420 40%ers

 

[fistfulladirt]

If you're happy that's a big plus. Besides, it sure beats throwing those 40's back.

 

[toolmanbutch]

What are 40's verses ASEs. Not a coin collector, but I want to learn.

I decided to trade in some of my 40's from last year for some ASE's
I traded 420 for 40 2016 ASE's.
Since the 40's were all found at FV each ASE cost me $5.25.
I am happy with the deal.

 

[mxh5891]

40's are 40% silver Kennedy half dollars. They were made between 1965-1970.

ASE's are American Silver Eagles. They are a 1 ounce silver coin.

 

[Joe777Cool]

If you sold the 40% for $2 each ($840) and purchased the ase's for $17.50 each, both of which are very reasonable numbers, you could have ended up with 48 ase's instead. Ase's are $17.21 on apmex right now.

 

[LooseChange]

You did fine.

Presumably, you avoided the hassle of shopping around and negotiating. That might have cost you a handful of fine Ag, but it is rare to get the best possible deal. That takes work - especially if you do not have existing contacts and/or connections. You paid a reasonable premium to avoid the hassle.

 

[CardsNCoins]

......You paid a reasonable premium to avoid the hassle.

Throwing over $300 (22 ounces at over $14 an ounce) out the window is not a reasonable premium.

 

[LooseChange]

Throwing over $300 (22 ounces at over $14 an ounce) out the window is not a reasonable premium.

Sorry, but the real world does not work that way. There is ALWAYS a premium on pure/fine/0.99 PM as compared to alloyed PM. ASW of sterling or 40% kennedy or 90% pre-64 or 80% CAD does not trade at spot. Nor do ASEs trade at spot.

The premium works in both directions - buying or selling (or trading up or trading down). OP left 6-8 oz on the table. Not 22 oz. The dollar value of that 6-8oz is meaningless until it comes time to sell or trade again. Call it $100 for argument sake - big wup.

 

[toolmanbutch]

Thank you.

40's are 40% silver Kennedy half dollars. They were made between 1965-1970.

ASE's are American Silver Eagles. They are a 1 ounce silver coin.

 

[silveraddict]

Sorry, but the real world does not work that way. There is ALWAYS a premium on pure/fine/0.99 PM as compared to alloyed PM. ASW of sterling or 40% kennedy or 90% pre-64 or 80% CAD does not trade at spot. Nor do ASEs trade at spot.

The premium works in both directions - buying or selling (or trading up or trading down). OP left 6-8 oz on the table. Not 22 oz. The dollar value of that 6-8oz is meaningless until it comes time to sell or trade again. Call it $100 for argument sake - big wup.

Thank you!
That is how I was looking at it.
From what I have been seeing people are not buying 40's for spot or over. This was the easiest deal for me.

 

[Darth Walker]

I do the same selling 40% found in CRH and taking it at face is like $5 or so. But many here will say that you are loosing Ounces by the exhange.

 

[CardsNCoins]

Sorry, but the real world does not work that way. There is ALWAYS a premium on pure/fine/0.99 PM as compared to alloyed PM. ASW of sterling or 40% kennedy or 90% pre-64 or 80% CAD does not trade at spot. Nor do ASEs trade at spot.

The premium works in both directions - buying or selling (or trading up or trading down). OP left 6-8 oz on the table. Not 22 oz. The dollar value of that 6-8oz is meaningless until it comes time to sell or trade again. Call it $100 for argument sake - big wup.

Even though you ended your rant with the very popular adult phrase of big wup, I will still respond to you as if you can understand me.

You are stuck on dollars, and that is where your ability to understand falls short. My first comment in this thread never mentions dollars. Only when you mentioned "reasonable premiums" did I equate it to a dollar value. Read this next part slowly if you have to.

He was holding 62.12 ounces of silver, and now he holds 40 ounces of silver. Period. End of sentence.

I dont care if it is 40%, 35%, or fillings from your teeth, I always want to hold as much silver as possible.

If he would have traded the 40% for cash to pay bills or buy food I could almost understand taking the loss out of necessity, but he went into a different silver position and reduced his silver holdings by 22 ounces.

Hmmm, I really like owning physical silver so I wont sell it for worthless paper, but I'll trade for a different kind of physical silver and take a 22 ounce loss.

If that's the way the "real world" you spoke of works, you can keep it.

 

[mxh5891]

Even though you ended your rant with the very popular adult phrase of big wup, I will still respond to you as if you can understand me.

You are stuck on dollars, and that is where your ability to understand falls short. My first comment in this thread never mentions dollars. Only when you mentioned "reasonable premiums" did I equate it to a dollar value. Read this next part slowly if you have to.

He was holding 62.12 ounces of silver, and now he holds 40 ounces of silver. Period. End of sentence.

I dont care if it is 40%, 35%, or fillings from your teeth, I always want to hold as much silver as possible.

If he would have traded the 40% for cash to pay bills or buy food I could almost understand taking the loss out of necessity, but he went into a different silver position and reduced his silver holdings by 22 ounces.

Hmmm, I really like owning physical silver so I wont sell it for worthless paper, but I'll trade for a different kind of physical silver and take a 22 ounce loss.

If that's the way the "real world" you spoke of works, you can keep it.

I agree with everything you wrote here. It doesn't make financial sense trading in 62 ounces of silver for 40 ounces of silver. But the OP is happy with the deal and he has stated he just wanted to get the "easiest" deal done. So the person who made the deal with him made out really well.

The only reason I can see making this type of deal is if you have no space to store any more silver coins and your wife is threatening divorce. So you try and either sell some, or you trade in all our 40's for something easier to store. I wonder how much gold the OP could have got? Ifeed he could have gotten a half ounce gold coin , a 1/10 ounce coin, and a gram bar or two that would have been a fair deal.

 

[ArkieBassMan]

You can use a variety of factors, statistics, manipulation of numbers, and fancy wording to justify (or refute) almost anything. The OP stated that because the 40% were found CRH, he had exactly 50 cents each tied up in them. He traded exactly 10.5 40%ers for each ASE, claiming to have technically only paid $5.25 for each ASE which is an absolute steal of a deal. That is a bit of a manipulation. First, CRHing incurs expenses (gasoline, vehicular wear-and-tear, etc). You NEVER have only face value tied up in your CRH finds. Its always more, but damn near impossible to figure down-to-the-cent and is different for every CRHer as well as every CRHing excursion. However, the expenses cannot be negated or ignored if claiming things like, "I got a good deal." or "I'm making a profit from CRH.", or "I essentially only paid $X.xx because I used CRH finds.") etc.

Second, those traded 40%ers had a value themselves over 50 cents each. I would venture to guess that 99.99% of all pawn and coin shops in this country would have happily and quickly paid more than 50 cents in cash for each of the the 40%. For example, say this morning I luckily find a $100 bill on my way to the mailbox. I then "trade" my $100 for an average condition 1921 Morgan silver dollar. By the seller's logic, I'd have a completely free silver dollar because I had absolutely no money whatsoever tied up in the found $100 bill. In reality, I basically gave away ~$80 as that coin can be bought all day for ~$20. Even if $1 each is all the seller could get per 40%, he has now "paid" $10.50 + CRH expense per ASE. Still a probably good deal depending on how much expense he incurred, but we're now a far cry from $5.25 each. At today's prices and without shopping too hard, I think $1.50 each (if not more) could have been pretty easily and quickly obtained. Now he's paid $15.75 each + expenses. That's likely very close to full-blown retail price. Still, not horrible by any stretch of the imagination, but no longer anything that can be classified as a "bargain."

As with any deal, you'll almost always come out ahead by selling what you have and paying cash for what you want vs. trading what you have for what you want...especially when dealing with a business and not an individual. The business will generally make money of you "at both ends" by giving you a price for your item(s) at which they can resell for profit as well as charge you a price for their item(s) at which they turn a profit. Generally, you can get more than trade-in value by selling your items to an individual. Similarly, when paying with cash, you can often buy at a lower price than when trading. You will almost always "pay for convenience" by trading, as it should be. The one doing most of the leg work should make most of the money.

Now with all of this said, did the trader in this case make a "bad" deal? No one can answer that, but the trader himself...and even that will technically depend upon what he gets for the ASEs when he trades/sells them vs. what 420 40% silver halves would bring at that time. Its all a matter of opinion. There are spot-on arguments to show how he lost value. He now has over 20 ounces less silver than he did prior to the trade. Did he overpay? Possibly, but again its all opinion. You could even argue that the ASEs themselves are overpriced. At over $17 each, you're paying over a 20% premium on the spot price of an ounce of silver. With almost anything we purchase, someone somewhere probably has a valid argument of how we overpaid, while we could come up with some numbers or other beliefs on how it was a good deal. Brand-name vs. non-brand name, be it food clothes, whatever...you'll pay more for the brand name. Who gets to say whether or not its "worth it?"

Bottom line is that if the trader in this case (or any case) never regrets the trade, then he gets to claim it was a good deal...for him. However, he does not get to claim that he essentially paid $5.25 per ASE in this deal. That argument does not hold water.

 

[Darth Walker]

The thing is that one day we all have to sell the silver or pass it to some one else. So what is the meaning of just staking it?