Buying coins from a neighbor

[weighit]

Neighbor has a small pile of old silver coins. Knows what the silver value is per coin and watches the silver prices almost daily. Told me he would sell for 75% of what the coin silver value is that day, and he has about $50 to $80 face value. I told him i would let him know this weekend. Thoughts?

I rarely buy coins as i hunt rolls from boxes and thus have a low cost per coin invested now, but will buy when the prices seem good.

 

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[Mackaydon]

If you are saying your neighbor will sell you US silver coins at 70% of their melt value, don't wait for this weekend to accept.
Don.....

 

[GlenDronach]

I would buy all I could. Even if I couldn't afford to hold it. Buy at 75%, sell 75% of it at 100%, keep 25% of the silver. You could basically have free silver.

 

[Carolina Tom]

Offer 10x or 11x face value... that's the way us hillbillys do it!

 

[Bquamb]

Buy it all, I bet he may have a 1 off coin in there for you!

 

[GMan00001]

I don't see any issues with buying it all if you plan to hold it all for yourself long term.

However, if you plan to keep only part of it and sell some (or most) of it right away, you may want to consider disclosing your intentions in advance just to make sure there is no change in your friendship. If the transaction with a complete stranger, the disclosure would be completely unnecessary, but your neighbor might be offering the lower price because of your friendship and might feel used if you were to immediately sell for profit (especially since you mentioned that he watches the price of silver closely). If you tell your neighbor up front that you plan to sell some (or most) and they are still okay with the sale, no issues - buy it all.

Ultimately since this is your neighbor and you will still live near each other after the transaction occurs, you will have to decide if the possible ~$250 in profit (assuming 25% of $80 face at today's silver value) is worth the risk to your friendship with your neighbor that could happen by not disclosing.

If it was me, I would probably disclose if I planned to sell some of it right away.

 

[jcole77]

I'd buy it all, check for scarce dates and hold on to those. As for the rest, your call...though I would echo GMan's sentients. Right now, since silver has slipped from $21-ish to the $18.60/oz range of late, I would hold on to them too as I expect between now and Christmas to see $25/oz silver.

 

[barneyb71]

Great advice GMan! If it was me, I'd buy all and hold it. Great way to pick up a small collection for a good discounted price. THE SEEMS GOOD TO ME.....

 

[kingskid1611]

Buy and hold is what I would do and take him to dinner too......

 

[Greastart]

I say give me his number and I'll buy it all!

 

[weighit]

He is really not my neighbor but a neighbor to a relative we are staying at for a few weeks. I talked with him the other night and he brought out the box of coins he inherited from a relative. He said he has no attachment to them and would be interested in selling. He left for a week and will be returning next week and I will let him know i will take his deal. Thanks everyone for all the help in thinking this through.

 

[THBrock]

Buy low sell high. Just kidding. That's a gimmick in the business world though, right?

I'd buy it as low as possible. If he offered at 75% of cost, he either knows refineries and gold/silver joints charge or is needing the cash. Without insulting him, you may try for 70% of value with intention of one transaction and buy it all! Even the junk!!!! Good luck and stack it deep.

 

[barneyb71]

Make sure you update us with what you ended up with, I know we all love silver porn too....

 

[barneyb71]

Any kind of an update on this?

 

[weighit]

I have only seen him one time since we talked about his coins, he was leaving again to go north to close up his cabin and have not seen him since. Still waiting to catch him once I see his car back in the drive.

 

[barneyb71]

I don't know why I was thinking about this post this morning.....any kind of update on these coins weighit?

 

[Dozer D]

Has he come back yet? Waiting to find out if you got in on the deal.

 

[Death&Taxes]

See if he will go lower. Tell him he will only get 60% at a pawn shop or something. Or maybe say that because the market is doing well silver is going downhill... idk, but there is a lot of money to be made here. Settle for 75% if you have to, but if you can work him down that would be ideal. If they are 90%ers you can get 85-90% of melt easily at a coin show or online if you know what you are doing. Great score!

 

[weighit]

Sorry for the lack of update. The fellow never got back before we were to leave. He probably still has the coins and if we return to Michigan this summer, I will attempt to make contact again.