Exchange 40%ers for bullion

[Sfynks870]

Well, I have a couple appointments with coin dealers today. We will be discussing trading my 40%ers for 90% or silver eagles. However, I am new to the silver game and have zero idea as to what I should expect. What bottom dollar should I have on the worth of my 40%s? What is the top dollar in worth I should be willing to give for 90%s or silver eagles?

 

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[BuffaloBoy]

I would not take less than $1.80 for my 40% silver halves at today's spot price. Good luck!

 

[323GTX]

Well, I have a couple appointments with coin dealers today. We will be discussing trading my 40%ers for 90% or silver eagles. However, I am new to the silver game and have zero idea as to what I should expect. What bottom dollar should I have on the worth of my 40%s? What is the top dollar in worth I should be willing to give for 90%s or silver eagles?

My assumption is that by "coin dealers" you mean people who run a physical coin shop. This is just my opinion, obviously, but I would HIGHLY suggest that you stay as far away as possible from coin dealers if you want to sell, trade or purchase coin, bullion, scrap, or currency.

Don’t get me wrong, I’m all for supporting small local businesses. It's quite OK to go to a LCS to buy storage tubes, 2x2 flips, or other supplies.... but NEVER sell, trade or buy coin from them, as your behind will be metaphorically sore for weeks afterwards.

There are alternatives to dealers. Try putting a post up on your local Craig’s list, go to a local antique / collectible / coin auction and simply strike-up conversations with people in attendance, post your stuff on a local metal detecting forum’s “buy/sell/trade” section (if you can for free), do ANYTHING other than deal with coin dealers.

Be patient, be firm, be tenacious and you might be able to trade your 40%ers for 90%ers at a 3-for-1 rate or better (a straight-up trade would be 2.44 to 1, but that isn’t going to happen).

Good luck!

 

[Avago]

I'm with Buff on the price, I would not go any lower than that. I'm not sure what my dealer pays for 40%, but it's probably a bit less than he pays for 90%.

My dealer pays $1 under spot and sells for $1 over spot (He's a great guy!). If he paid the same rate for 40% as 90%, you should get right around $2.00 a piece. Since 40% are less desirable, he might pay less.

Right now you can get ASEs on JMBullion for $18.63 a piece with free shipping on any order.

If your dealer gives you the worst case $1.80 per 40%, you could take the cash from 10.35 of them and buy the ASE from JMBullion ($18.63/$1.80=10.35).

Since it would take 10.35 40% to buy the ASE from JMBullion, your dealer should ideally straight up trade 10.35 40% for each ASE WORST CASE. You would essentially be trading 1.53 oz. of 40% for 1 oz. of .999 ASE. ($3.70 net loss a piece)

Best case at $2.00 a piece, you're at 9.32 40% per ASE ($18.63/$2.00). That is essentially trading 1.37 oz of 40% for 1 oz. of .999 ASE. ($1.48 net loss a piece)

To summarize, he should straight up trade between 9 to 11 40% straight up for an ASE. The closer you get to 9, the better. If he's much over 11 per ASE I wouldn't take the deal.

As a disclaimer, your "net losses" are certainly covered by the fact that you found your 40% at face value, so you don't necessarily need to consider it a loss per se.

My personal opinion is to try to find another collector who is looking to diversify into coin from .999 pure. You will likely get a fairer trade since you have something that he wants and he has something that you want. Let us know how it goes!

 

[Darth Walker]

My coin dealer sella the Eagles ar $17.57 and buys 40% Keens at $3.50 per dollar. This means I have to sell him 10.04 Kenns ($5.02 face )40% for one Eagle. I am ok doing this because in my mind the Eagle is just costing me $5.02 in 40%. Halfs.

 

[Darth Walker]

Due to the fact that I find the 40% crh

 

[fistfulladirt]

My six rolls of 40% halves sat on Craigslist for about a month. I was able to get about 70% of melt, which was about twice what my LCS would pay.

 

[CardsNCoins]

Why in the world do you want to reduce your silver position?

 

[Sfynks870]

Well, the meetings went about the way you guys predicted. The best offer I got was 3 times fv. And then it occurred to me... I could actually probably come out a little ahead if I just sold them on the bay.

 

[Zomotion]

Has anyone here looked at the cost of melting the 40%ers into silver bullion? Is it feasible?

 

[Avago]

As an FYI, I asked my dealer today what he pays for 40% and he said he would do $3.75 on the dollar or $1.88 a piece (again, good guy). Spot price is $14.55 today, for reference.

Sfynks, if you head out to the Bay, make sure you take fees into account... 10% off the top + PayPal + shipping.

 

[FormerTeller]

Before I'd sell silver at a dealer, I'd check to see how much Provident, JM Bullion, etc would pay, and how much their ASE's cost. A quick glance at Provident's website shows that they're paying $4.09 per $1 face for 40%'s. They're selling BU ASE's for $17.74. By my math that's 8.7 40% Kennedy's per ASE. However, you do need to figure shipping.

Bottom line, do your homework to give you leverage when bargaining with your LCS.

 

[CardsNCoins]

......Provident's website shows that they're paying $4.09 per $1 face for 40%'s. They're selling BU ASE's for $17.74. By my math that's 8.7 40% Kennedy's per ASE............

Good math FT. That's losing over 1/4 ounce of silver per ounce transacted (without accounting for shipping).

I have 6,170 40% Kennedy halves, so divided by 8.7 means that I can get about 709 1 oz Eagles.

My 40% position currently has 912.5 ounces of silver, so I would lose over 200 ounces.

Unless you live in what amounts to the size of a hall closet and need more room, it makes no sense.

 

[Liu21]

Selling or trading 40% halves you will never get full silver value...

 

[Darth Walker]

So then you accumalate them just? For what?

 

[CardsNCoins]

So then you accumalate them just? For what?

If you're in a cash poor position, then I might understand trading silver for cash. Trading silver for other silver at a 25% loss is ridiculous.

 

[Darth Walker]

But ASE get scare and dificult to find when silver is very high do you may be able to sell them at a premium.

 

[Darth Walker]

CardNcoins, also you are converting 40% for 99%.

 

[Liu21]

If you're in a cash poor position, then I might understand trading silver for cash. Trading silver for other silver at a 25% loss is ridiculous.

How is he going to gain more if he trade his 40% for cash?

 

[Joe777Cool]

But ASE get scare and dificult to find when silver is very high do you may be able to sell them at a premium.

You are buying them for a premium so the point is moot. And they will never be scarce - 45 million minted this year, 44 million last year.....

Buy what you want and what you like, but if your goal is to stock pile as much silver as possible then silver eagles are not the way to go.