Trade 40% for Eagles?

[chinman]

I think I'd like to keep what limited 90% silver coins I've come across, but what do most of you do with your 40%ers?

Provident Metals says they will buy 40%ers for $9.23 per $1 face value.

Let's use $50 face (since that's what I'd sell). I could sell to Provident for $462.

I could then buy approximately 12.5 American silver Eagles.

That's 12.5 Eagles for $50 out of pocket. That doesn't seem like much of a loss. Like I mentioned, 90% silver is good for keeping, the 40%ers I think would be a good deal to swap out. Would I rather look at 100 40% halves, or 12 1 oz Eagles?

Thoughts?

 

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[GEOFF]

your questions have been mentioned many times here before.

Its all about personal preferences, some folks like to keep all the finds, some wants to trade up and take some loss between the trades. Whos to stop you right?

Do as you like.

I personally have not traded anything so far. I would if I only took a small loss but not a 25% loss with these .com traders. Plus no point trading AG for AG.

Have you considered trading Gold coins?

 

[Piledriver]

Do you prefer to have some .999 instead of a lot of 40% ?
Then the choice is to make the trade you proposed.

But if your preference is to gain the greatest possible value from your CRH finds, then this trade fails because of the price you always pay in spread.

The greatest possible value is obtained by holding silver until you spend it for it's END USE, that is, the goods or services for which you would finally trade silver.

40% has already increased in value a tremendous amount in the last 10 years, a trend that will not be reversed if silver values continue to increase.

All of this is JMHO.



Keep on Rollin' !

 

[ArkieBassMan]

I think I'd like to keep what limited 90% silver coins I've come across, but what do most of you do with your 40%ers?

Provident Metals says they will buy 40%ers for $9.23 per $1 face value.

Let's use $50 face (since that's what I'd sell). I could sell to Provident for $462.

I could then buy approximately 12.5 American silver Eagles.

That's 12.5 Eagles for $50 out of pocket. That doesn't seem like much of a loss. Like I mentioned, 90% silver is good for keeping, the 40%ers I think would be a good deal to swap out. Would I rather look at 100 40% halves, or 12 1 oz Eagles?

Thoughts?

If my math is right, and I ran out of fingers and toes - so I guarantee nothing , Provident is paying you ~94% of spot for your 40% and charging ~$37 each for ASEs. Both of those amounts seem very reasonable. Even more reasonable considering it isn't a high-volume trade. But, don't forget to include your shipping costs (both ways). Insured shipping isn't cheap. After shipping costs are factored in, you may find yourself only getting ~11 (or maybe even less) ASEs for your 100 40%ers.

Is it a good deal? Only you can answer that. Its your silver. You worked for it. Don't let anyone tell you what you should do with it. Do with it what makes you happy. However, I don't necessarily agree with your "$50 out of pocket" assessment. At a minimum you have to add gasoline consumed, wear-and-tear on your vehicle, and your time to that $50. Plus, just because you obtained something cheaply, doesn't mean that you have to resell it cheaply, nor does it necessarily make it a good deal if/when you do. Take this example: While walking to my mailbox tomorrow, I find a $100 bill. I then take that $100 bill and "swap" it for a single ASE. Technically, I now own an ASE that didn't cost me one red cent "out of pocket." Realistically though, I just gave away about $63.

Just another way of looking at things. Do what makes you happy and don't look back!

 

[FormerTeller]

I think I'd like to keep what limited 90% silver coins I've come across, but what do most of you do with your 40%ers?

Provident Metals says they will buy 40%ers for $9.23 per $1 face value.

Let's use $50 face (since that's what I'd sell). I could sell to Provident for $462.

I could then buy approximately 12.5 American silver Eagles.

That's 12.5 Eagles for $50 out of pocket. That doesn't seem like much of a loss. Like I mentioned, 90% silver is good for keeping, the 40%ers I think would be a good deal to swap out. Would I rather look at 100 40% halves, or 12 1 oz Eagles?

Thoughts?

I've considered doing almost the exact same thing, figuring that as silver went up, 90%'s would rise more than 40%'s. Then I did some rough calculations. The way Provident pays, both types of coins actually rise at the same rate, contrary to what I thought was common sense. That means I'd be selling the $60 face I found last year, have to pay for shipping, and end up with the 90% junk silver I planned to buy. Between shipping and purchasing the 90%'s, I'd end up losing something like 8% - 9% in value.

Bottom line, if you have the room to store them, your best bet is to save your 40%'s until you're ready to sell everything.


edit - forgot about shipping each way. Bump that up to maybe 12% or so. I told you the calculations were rough!

 

[MIhunter]

I see no point is trading silver for silver, the value of all silver coins go up with the rise in silver price.

If you wanted to diversify your holdings, I would suggest gold coins.

 

[madwest]

I'll answer the same way I always answer similar questions:

You will almost never find ASE's CRH'ing (http://forum.treasurenet.com/index.php?topic=437378.0; http://forum.treasurenet.com/index.php?topic=430895.0). If you adore ASE's and like the feeling that you got some via CRH'ing, trade your 40% for them with the understanding that there is a cost to doing it.

Shop around though. You might get a better deal by selling to one dealer that pays a little higher and buying from a different dealer that sells a little lower. Or, as mentioned, you might find a way to avoid the cost of shipping at least one direction - sell online, buy @ local pawn shop.

There is some logic to the 40% coin being worth less than a 90% or 999_Fine_Ag by ASW. The cost to refine the same amount of Ag from 9 40% coins is greater than it would be from 4 90% coins. (Even though the same amount of silver might exist, it is buried deeper and has to be processed more to get it.)

 

[oxbowbarefoot]

As a business, Provident Metals offers fair compensation and is very reputable. You could find better prices if you search, but you will also find that they PM's prices are better than most local dealers.

 

[Bigheed]

I say get whatever you like, Eagles are a much prettier coin than 40%'s , but at the same time 40%'s also have a known amount of Ag in them and the gov't has already paid the minting cost for you 50 years ago.

If you do the math ya you are losing some value, but you only paid face for the 40% anyways, so the loss is really just a loss of ounces, theres no loss in fiat currency until you actually sell them and who knows by the time you sell them silver should be worth more anyways!

Do whatever makes you happy!

Bigheed

 

[chinman]

Thanks all, i was looking for various opinions and that's what i got! I appreciate the different viewpoints.

 

[Generic_Lad]

Depends what you like. Myself, I generally trade 40%ers for British collectable coins and keep the 90%ers in my bullion vault. But it all depends on what you like. Some people like Eagles better than 40%ers, some people like trading 40%ers into 90%ers, others trade their silver into gold, some trade it in for cash, some people trade it into more boxes. It all depends on your individual tastes, chances are there are people on this forum that think I'm crazy to trade in some of my 40%ers to get a high grade George IV Farthing, after all, I'm trading silver in for copper! But for myself that was a good trade.

 

[Lawrence]

The way I see it, 40% is much harder to move than 90% or ASEs. Places like Provident or refiners will give you good money for them, but if you need to sell or trade them in a hurry you're not going to do very well with private individuals or local shops.

 

[tmjones550]

I personally trade my 40%rs for any 90%rs.You may lose a little silver in doing so but my argument in it is what is easier to sell when you need the money?It's all in what you prefer.I use provident metals.They gave me last week $4.43 a piece for each 40%r.I traded up for morgan dollars.

 

[quiksilver]

If you like eagles then sure.

If it is for profit then probably not as eagles generally command a premium to buy but often are bought back at the same price as 1 ounce rounds.

 

[Darth Walker]

I find, sell, find, Sell, Find, Sell, find, sell