coin value and melt value

[kakcsdad]

does anyone buy coins on their numismatic value rather than melt value
i go to auctions here and there and it seems that when they bring up coin(S) to sell eveyone bids on their melt value not the type, rarity. etc...
just curious...

hh

jeff

 

[jeff of pa]

Been awhile since I Hit an Auction, but

around here Dealers bid on Melt,

& the Unimfomed apparently bid on
TV Coin dealer prices. Or speculation

Dealers couldn't compete when
$10.00 worth of Wheats sold for $50.00

& worn Silver dollars brought $60.00 plus

This was when silver was under $15.00 an oz.
& Pennies less then 2 cents each

It is now getting to the point alot of silver
is worth more to melt it down

example an 1963 ms-63 roosie is worth $1.75
according to the 2010 Red book.

It is worth $2.16 to melt it

a 1921 morgan dollar in VF is worth $18.00 in the red book
if you sell it for Melt $23.13

 

[NHBandit]

I am a coin collector and have been for 30+ years. With that being said, I also go to alot of auctions and will sometimes buy lots of coins. Unless I see something that I know is obviously a rare mint & date I will usually bid according to melt value simply because you don't have time to look up each individual coin, grade them, etc at the auction. So for example, if there is a lot of Morgan dollars I know that the melt value is around $22-$25 each so that is what I'm willing to pay. When I get home and look them up individually I'll find out if I scored any better dates but if not I still can't lose money. People get caught up in the "need to win" like Jeff said and pay too much sometimes. The last one I was at some woman bought a large lot of common proof sets from the 70s and paid around $18 each for them. When you add in the buyers fee on top of that she paid roughly 3 times what most of them book for. My auction strategy is simple and should be followed by anyone thinking about hitting some auctions. Go early and preview the lots. Take notes on everything you're interested in and write down the MAX amount you're willing to pay based on what you value each item at. If the auction is listed online & has pictures it's even better because you can look things up online BEFORE you go. http://www.auctionzip.com/ is a great website for listings with pictures. Once the auction starts any time an item goes over the price you have written down walk away. Do not let yourself get sucked into the "need to win" and you should be ok. It's fun and there are some real bargains but do your homework.

 

[Seajay]

Jeff,

As a collector and part-time dealer, I buy common silver coins at melt. Collector coins (1921 Peace Dollars, LW halves, SL qtr, and Merc. dimes) I will pay between graysheet and retail. Most everyone in my area does the same. Most silver coins in circulated condition we encounter are worth more at silver melt than numismatic value.

cj