a question to the melters.

[theeteetotaler]

A search of ebay shows that the 40% Ag halves sell in the $1.75-2.05, well below the spot of $2.39(16.15oz). When you melters send off your coin and get your checks back, what percentage of spot do you get after any fees you incur during the process.

 

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[jewelerdave]

The company I use for melt charges 35 cents incoming per ounce, or about 13 cents a coin, and pays 98% silver
So today that would be 2.39 - .13per coin = 2.26 x .98 = 2.21 There is also a 75$ refining charge to be divided up by the number of coins you send in. Last time was about 5 cents a coin as I sent in some other things with it. So it ends up being about 90% of spot. I chose to melt my 40s since no one pays a premium for them, and someone has to make them rare so there is demand. Also on large lots Id rather deal with one company that would pay and be reliable. Unlike cheapskates like CMhoose on this forum who asks to buy but then never responds to emails because paying 25 cents a coin over for the right to pick and chose dates is "a joke" to him.
So unless you have the time to deal with very picky people to sell off small bits at a time, I recommend finding a single buyer to avoid the headaches.

 

[65gt350]

JD,

Does your melter lock in the price on the phone before shipment, or do they wait until delivery or after the melt? In other words if I were to call and say I was sending in a bag of 40% (295oz) will they lock in the spot price or will they set the price after delivery or after the melt and assay? I tried to compare your numbers to APMEX prices and it looked to be about $50 better than the bag price but if I can't lock it in it might not be worth the effort.

Thanks,
65GT350

 

[jewelerdave]

I can lock and pool if I want but it depends on the number of ounces. I didnt lock last time, but I did lock for the 12 ounces I sent in the other day but I locked at 855. For me to lock on the day I have to send at least 25 ounces of gold.
For silver I think you have to have at least 300 ounces to lock. I typicaly lock the day they get it especialy if the market is good, that way there are no risks and I know the exact dollar amount I am getting. No waiting on the market. Even when it goes up, i have a locked margin witch is nice, Nothing is worse than having the market go down and being at the mercy.

Best Advise I can give, expect the market to do the exact oposit of what you want it too, and it will every time

 

[Wetgreenie]

JDave.... I talked to a jeweler that said you have to have a biz to deal with the smelter he does.
Is that the same case for who you sell to?

I found a place in Bloomington MN that claims to buy common 90% half's for 10x face.
11.7x if you have $1000 worth. 6x for 40%

 

[jewelerdave]

The one I deal with yes. And not only that you have to fill out lots of forms for patriot act etc etc and show that your not laundering money etc.
Since the patriot act went into place I actually became a financial institution just by being a jeweler. read it, its scary stuff. But all jewelers are labeled as financial institutions.
Basically it makes me open to being audited at any time for any reason etc and does give some interesting perks.
But yes the one I deal with is Biz to Biz only.

 

[coincollector101]

Very Interesting dave,
I apprichate you being here with your knowledge.
I finally got c m hoke's book, It goes from beginner to expert. its a great book so far! Goes threw all the process.

Thanks again,
CC

 

[cmhoose]

Very Interesting dave,
I apprichate you being here with your knowledge.

At least someone does.

The one good point he does make is that no one pays melt for silver. Not yet anyway. I would hold out.

 

[GPURS]

Very Interesting dave,
I apprichate you being here with your knowledge.

At least someone does.

 

[Wetgreenie]

Basically it makes me open to being audited at any time for any reason .....

Wow, to top that off you should get the FFL that allows you to have or sell full auto weapons.
Then they can stop by and search anthing you own on a whim ....Fun fun....

Thanks again J-Dave...

 

[mysterio]

Not enough!