Buying from a private person

[weighit]

Have a neighbor wanting to sell his small collection of silver coins and silver bars. Has about $50 face in the coins and 5 pieces of 1 oz silver bars. He got this collection from a relative and would like to sell. He would like what the silver value is according to one of the internet web sites at that days siver spot rate, knowing that the spot goes up and down. With silver in the middle $16 range should I just give him what it is worth per piece? or let this small pile walk? I think silver will go up and not worried about losing money, but hate to just give it away too. Thoughts?

 

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[Toecutter]

Id scoop it up at spot, cant buy silver retail at spot and its difficult to get it at auction at spot.... I dont have a hole lot of experience but hope this helps...

 

[Dozer D]

Are they all common silver, or any OLD coins that might have numismatic value? He'd be very lucky to get Spot anywhere else.

 

[smokeythecat]

Yes, it's hard to even get spot!

 

[GMan00001]

Are they all common silver, or any OLD coins that might have numismatic value? He'd be very lucky to get Spot anywhere else.

I was going to say the same thing.

Also, is the whole $50 in face value in 90% silver coins or does it include any 40% halves? My impression is that 40% halves have slightly less demand and thus the prices are typically slightly less than 90%, but as I don't follow the buying and selling of silver very closely I might be wrong on that.

 

[LooseChange]

Find out the local coin shop buy and sell values for 90% coin and for generic 1oz rounds. Then, offer something in between. Neighbor gets a bump and you get a discount.

Make 2 phone calls to 2 coin shops to get this info. If you call the same shop for both, they might recognize your voice and the similarity in your questions.
First call: "Do you buy 90% US Silver coins? How much do you pay per face value? How about generic silver rounds/bars - what do you pay per OZ?"
Second call: "Do you sell 90% US Silver coins? How much per face value? How about generic 1oz rounds or bars - how much per OZ?

My LCS posts their spot-determined prices on a whiteboard - both buy and sell. So, I'd just need to stop in and read the board.

Or, you could check APMEX.com. They state their buy and sell figures on their www site.

 

[xr7ator]

Great advice, LooseChange.

 

[tanz 82]

Find out the local coin shop buy and sell values for 90% coin and for generic 1oz rounds. Then, offer something in between. Neighbor gets a bump and you get a discount.

Make 2 phone calls to 2 coin shops to get this info. If you call the same shop for both, they might recognize your voice and the similarity in your questions.
First call: "Do you buy 90% US Silver coins? How much do you pay per face value? How about generic silver rounds/bars - what do you pay per OZ?"
Second call: "Do you sell 90% US Silver coins? How much per face value? How about generic 1oz rounds or bars - how much per OZ?

My LCS posts their spot-determined prices on a whiteboard - both buy and sell. So, I'd just need to stop in and read the board.

Or, you could check APMEX.com. They state their buy and sell figures on their www site.

That’s exactly what I do then when they say no I respond “ I’m offering this offer once “ if there smart they take it

 

[GlenDronach]

I'd do it this way:

$50 fv in 90% is $600
5 oz is $83

I'd offer $650 for all of it. They get most of their ask, and you get it a little under spot.

 

[jrf30]

I've been successful buying at 11X face. SO $50 face would be $550. the bars trade about spot, so 5 X $16.50 is $82.50. That makes $632.50 for the whole thing. About the same as the one who said $650 above.

 

[weighit]

The neighbor is supposed to be coming to the house later this week, he said he is fighting a cold. As soon as I see and offer I will post what I was able to do. Thanks all for the great advise and will try to make him and ME happy with the sale/purchase.

 

[ArkieBassMan]

Paying cash for silver at spot to a private individual isn't a horrible price, but it certainly is no bargain. I personally wouldn't pay spot, unless there are - as others mentioned above - some numismatic value possibilities in the coins. There is no way he can sell to any local business for immediate cash and receive spot. In my area (unless things have changed considerably in the past few years), he MIGHT get 50% of spot as they were offering 8x face for 90% back when silver was in the $30's.

In the end, the "correct" price is the price both buyer and seller agree upon...regardless of its proximity to "spot."

 

[fistfulladirt]

The dealers locally pay 50c on the dollar, have him get a quote there...and go from there. BTW, we used to throw the 40’s back.

 

[Buchsy]

At $16.50 per ounce, the local dealers to me pay 8x face. Wholesalers are at 90% of Spot. When silver was in the $30's per ounce, the discounting started. The max I saw as a retail value was 20x face when silver was at $35 per ounce. That multiplier stayed the same even as silver went to $50 per ounce

 

[fistfulladirt]

At $16.50 per ounce, the local dealers to me pay 8x face. Wholesalers are at 90% of Spot. When silver was in the $30's per ounce, the discounting started. The max I saw as a retail value was 20x face when silver was at $35 per ounce. That multiplier stayed the same even as silver went to $50 per ounce

Ok, but silver has never hit $50/oz.

 

[islamoradamark]

make a offer and wave the cash if he says no thats cool nothin lost nothin gained

 

[jrf30]

"Ok, but silver has never hit $50/oz."

Highest close was $48.70 on Jan 17, 1980, but it traded intraday on January 18 at $50.36.

Does that count? ;-)

 

[fistfulladirt]

"Ok, but silver has never hit $50/oz."

Highest close was $48.70 on Jan 17, 1980, but it traded intraday on January 18 at $50.36.

Does that count? ;-)

I’ve never seen the Jan 18 report, or $50! Wha ‘chu talkin bout Willis!

 

[weighit]

Ok the neighbor came by today. What he thought he had and what was in the little bag were two different things. As I went through the small pile found quite a few spender coins, steel pennies, wheat cents, halves, Ikes, nickles and quarters. After removing the non silver we ended up with 4 1950's quarters, 3 1950's dimes, 2 40% halves, 1 90% half, 5 10z silver bars, and 1 1 oz silver round 1982 collector coin that on Ebay they are selling for $25.00. I gave him $100 and he was delighted and I felt I was OK with that. Not a killer deal, but got slilver under spot and that was good. Thanks everyone for all the suggestions and thoughts. He was not aware he could spend the older coins that were not silver. He thoguht old was good?

 

[fistfulladirt]

Ok the neighbor came by today. What he thought he had and what was in the little bag were two different things. As I went through the small pile found quite a few spender coins, steel pennies, wheat cents, halves, Ikes, nickles and quarters. After removing the non silver we ended up with 4 1950's quarters, 3 1950's dimes, 2 40% halves, 1 90% half, 5 10z silver bars, and 1 1 oz silver round 1982 collector coin that on Ebay they are selling for $25.00. I gave him $100 and he was delighted and I felt I was OK with that. Not a killer deal, but got slilver under spot and that was good. Thanks everyone for all the suggestions and thoughts. He was not aware he could spend the older coins that were not silver. He thoguht old was good?

Dayum! You kilt it - at minimum $800 in silver for one hundred smacks! Sure you can sleep?