Do Coin Shops Typically Sell Below Melt?

[MentalUnrest]

I ask because for the past week, I have gone in mine looking for junk silver and have been pleasantly surprised to see 4 huge folder books full of junk silver coins well below melt. I bought several hundred dollars worth of quarters and halves that were way under melt. I got all the quarters for 6.00 each and the halves at $12.50 which are what they are worth when silver was at about $33.00. They have a sign stating prices may not reflect current market price, however the past 2 visits I made have been a huge win for me as they are ringing me up for what is written on the coin folder.

I will be heading back and clearing out the rest - They have at least 30 more halves - Barbers, Franklins and 64s all marked at $12.50.

 

[clovis97]

I'd be going in first thing in the morning, and be waiting for the doors to open at those prices!!!

 

[MentalUnrest]

I have only been in to one coin shop, so what is normal? Do coin shops generally sell their junk silver for whatever the current silver spot is or do they put a premium on it? I didn't need to visit 100 coin shops to realize this one was giving me a heck of a deal!

 

[fistfulladirt]

My local usually buys at 50 cents on the dollar, sells at melt or more.

 

[jim4silver]

The answer to the question you pose is, it depends.

Generally, there are two ways a coin dealer sells coins. By coin dealer I mean someone with an established storefront, whether on a local or national level. The first way to sell is retail, or to coin collectors like yourself. This is where the coin dealer makes the most profit for the most part. A second way they sell is wholesale, or to other dealers, who in turn resell the coins to other dealers or collectors. There is a third way, to sell to refiners but let's forget that one for now.

As far as what a dealer sells for will depend on the "going rate" which fluctuates. In a time where there is high demand for a given item, the dealer can sell it for a higher premium, irregardless of the actual spot price.

Right now it is not difficult to get junk silver for a bit below spot if a person shops around enough. That is because I believe the higher prices are creating decent inflows of silver as people let go of silver to take some profits.

The prices you list though are far below what most people can get from a coin store, so I cannot explain why the stuff is so cheap. It is way below wholesale even. I wish I could happen upon some finds like that.

Jim

 

[maine_Jim]

Strange stuff can happen in coins stores and pawn shops. A few weeks back I was in a pawn shop and picked up a bag of silver dimes and counted out 42 of them. I asked the owner what he wanted for them and he said $20. Ok, here you go! That was all he had - sometimes you get lucky and have to take advantage of it when you can. I'm sure the dealer was making a decent profit on what he sold you as most anyone dealing in silver and gold has in the last few months. You never know though when it will be 1980 all over again and wham, the price drops in half in a couple days.

Maine_Jim

 

[clovis97]

I have only been in to one coin shop, so what is normal? Do coin shops generally sell their junk silver for whatever the current silver spot is or do they put a premium on it? I didn't need to visit 100 coin shops to realize this one was giving me a heck of a deal!

I've not been in many coin shops either, but we've got an A+ shop in town.

He sells coins for spot plus a little. When he buys, he buys so close to spot that I can't imagine how he stays in business.

He tells me that "I just try to make a little on each deal. I'm not trying to get rich." The guy is making up for it in volume. That little shop is BUSY!!!!!

 

[jeff of pa]

My hunch would be
the Person who Priced them wasn't
the person in the shop that day.

Just a worker who Didn't know silver Fluctuates,
or didn't care enough to do the math

Grab it all quick

 

[quiksilver]

some do some dont , gotta do your homework, being a regular wouldnt hurt.

I have noticed some shops dont raise prices when silver is clinbing so you gotta time it right. Last week at a shop that i buy from regularly when silver climbs i asked for a break on his "junk" coins in the back he was selling at spot and got them below melt. Of course besides being a regular , offering to buy a good amount doesnt hurt either.

 

[gordon and tanner]

My guess is the coin dealer made a good profit on the coins. I was in shop where the dealer bought someones collection, cherry picked out the key dates, and sold off the rest. They are not making any money when the coins are sitting in behind a glass counter. He may have paid a dollar or two (or less) for those coins. He made is profit now go make yours.

Gordon and Tanner

 

[Generic_Lad]

In my experience, most coin shops aren't like that. But it depends. There are two main styles of coin shops, bullion coin shops and collector coin shops. The bullion coin shops never sell below spot, but often times with enough searching you can find some nice VAM Morgans or some semi-key dates. The collector coin shops may, after large increases in silver prices, become outdated for their junk silver. The reason is that most of their business is buying large lots of coins, and selling the key dates/mint state coins for much more than they paid for them.

Bullion coin shops are also great places to get seated/Barber and even some worn capped bust for cheap prices since they are mostly concerned with the bullion value rather than the collectable value.

 

[dougbfromnorthga]

All depends on how much you buy.. more volume better prices. AT least that is my experience... He makes a little & cuts regular customers a little slack... Doug