If you had the chance.......

[billjustbill]

I came across a situation where a fellow wants to sell 'average U.S. silver quarters' for .56 cents each over the current spot/melt price.

I'm new to buying 'junk silver' coins. What are your thoughts about this?

Thanks for your insights.

 

[TheCoinKid]

I would say that's fairly reasonable. I bought a few rolls of Washington quarters this week and paid right around the same premium.

 

[TheCoinKid]

FWIW,

Last week I bought silver Washington quarters at an average multiple of 17.95 x face value, or $4.49 each. Spot prices were jumping around quite a bit, but let's say the average spot price was $22.00 per ounce. At .18084 ounces of silver per quarter, the spot value was $3.98 each, which comes to a premium of $0.51 over spot.

Pretty close to what you're being offered.

TCK

 

[skeeterd]

That's a fair price.

 

[jim4silver]

I would pass because that is roughly 17.59 X face, which comes to 24.60 per ounce of pure silver you'd be paying. For that much, why not get brand new ASEs? Would cost a few pennies more, but is better than old junk. I am guessing you are not talking about BU 90% quarters but regular worn and circulated. Even cheaper gov minted silver like Maples or Philharmonics would be a better bet at the premiums you mention.

My local stores are cheaper than your price, but even that is too much unless we're talking unworn 90% halves. Keep in mind that traditionally junk silver has had very low premiums (sometimes almost none) when compared to nice .999. If things ever moderate a bit you could lose value simply because the high premiums on junk disappear. I am not trashing junk silver because I buy it when I get a decent offer, but today's retail premiums are crazy high and there is no real reason for such premiums when other forms of silver are available for roughly the same price (or cheaper).

Just my opinion.

Jim

 

[TreasurePirate69]

I agree with what Jim said. Halves might be a different story since the Franklins and Walkers have some small collectible value to the common man. Most people have never even seen them before. But plain old Washington quarters are just that... plain old quarters. Put a silver Washington quarter in someone's hand and they will think that they are holding 25 cents. I consider warn silver Washington quarters and Rosies to be just another plain old form of silver with no additional collectible value. So I don't really care to pay more for them than I would for ASE's or silver rounds/bars. Although it is true that worn halves are really just another form of silver too, I give them a slight edge in future collectible value in the form of "common man appeal". I still wouldn't pay a huge premium for them. But I like to buy them when the price is decent. I only buy silver quarters and dimes when I can get them at spot price.

All just my own personal opinion and worth absolutely nothing in the grand scheme of things. Of course, I have a friend who specifically collects graded Washington quarters. If he heard me talking like this he'd probably disown me. But everyone is welcome to collect what they like.