Where does all the sold crhd silver go?

[fistfulladirt]

Where does all the sold crh'd silver go?

I've often wondered, after sale of crh'd silver, where does it end up? Does it only change hands over and over again? Does anyone know how much actually goes to melt, if any?

ffd

 

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[jrf30]

Re: Where does all the sold crh'd silver go?

When you sell it to someone on this board, it just changes hands.

When you sell it to a coin dealer, they almost ALWAYS send it in to melt. They don't try to sell "junk silver", which is what they call anything that doesn't have numismatic value. So it goes in for melt right away. then ... it is used again and STILL just changes hands - and format. It may be a coin, it may be a bar, it may be anything. Some also obviously is sold for consumption (Which is different than gold, which is mostly NOT consumed) for industrial uses.

:-)

 

[jim4silver]

Re: Where does all the sold crh'd silver go?

When you sell it to someone on this board, it just changes hands.

When you sell it to a coin dealer, they almost ALWAYS send it in to melt. They don't try to sell "junk silver", which is what they call anything that doesn't have numismatic value.
:-)

Sorry JRF30, but this is absolutely incorrect for 90% junk silver. Maybe a higher amount of 40% gets sent to refiners, but even alot of 40% gets bagged and sold to investors. It may have been true in past times when investor demand was very low for junk silver that it went to a refiner.

Check the prices of coin shops to see what they sell junk silver for and you will see that they usually get some premium over spot for it, and at the lowest they sell for spot. If they sold to a refiner they will get less than spot, since the refiner has to make some profit on the deal as well. Also, refiners pay less for junk silver than they would for .999, since junk silver contains other metals that must be refined out in the process.

Coin dealers can make a much higher profit selling junk silver to customers than they can from selling to refiners. Where else would all the junk bags come from that coin dealers across the country sell everyday to customers?

I know all the coin dealers I buy from in town repackage and sell to customers or dealers in other states who retail it in junk bags or by the coin. Retail junk silver bags are a huge business, and many customers will only buy junk silver because of the lower premiums compared to bullion and the belief it will help them if the end of the world happens.

Jim

 

[Diver_Down]

Re: Where does all the sold crh'd silver go?

I'll have to disagree with jrf. When selling to a coin dealer, it almost always (unless it is really bad) gets sold off as junk silver. One small dealer will accumulate and buy inventory from another dealer with the junk silver only for that amount to accumulate and be sold again. 40% are never sold for junk silver and end up in the melting pot. There is quite a bit of a premium when selling 90% junk silver (more than what would justify selling for melt). Of course, the junk silver is bought up by the consumer eventually.

 

[Diver_Down]

Re: Where does all the sold crh'd silver go?

My post was at the same time as Jim's. In my experience, I never see 40% offered at coin dealers or shows (except BU or above). That is why I drew the conclusion that I did with regards to 40%'ers.

 

[mts]

Re: Where does all the sold crh'd silver go?

I've been buying junk silver recently at coin dealers and shows so I have to agree with the last two posts. No doubt some of it gets melted and that may have been the case in the past. But junk silver is in high demand right now and most coin dealers can't keep it in stock. So there is a decent profit margin on the stuff.

A lot of dealers don't want to deal with it and only like to deal in rare coins due to the markups involved. But at the last show I went to I bought a bunch of junk silver off of a dealer who told me that he pretty much hadn't sold anything but junk silver all day. All of those dealers sitting there with nothing but nice collectible coins weren't selling anything at all to speak of. If he hadn't brought some junk silver to the show he wouldn't have even been able to pay for his booth.

 

[mts]

Re: Where does all the sold crh'd silver go?

By the way, I'm looking to buy a bunch of junk silver halves so if there are any CRH'ers in the Columbus, Ohio area who would like to sell I'm sure we can work an equitable deal.

 

[jim4silver]

Re: Where does all the sold crh'd silver go?

My post was at the same time as Jim's. In my experience, I never see 40% offered at coin dealers or shows (except BU or above). That is why I drew the conclusion that I did with regards to 40%'ers.

DD,

Again it goes to which is more profitable for the coin dealer, retail it or melt it. From what I was told by one of my coin dealers, refiners don't pay much on 40% because of the very low silver content. I guess if the only way they could unload it was to send to a refiner they would. But I would bet they could do better retailing to the public or wholesaling to another coin dealer who does sell lots of 40%.

The coin stores I frequent offer 40% junk coins but it is not displayed as a premium item or anything. I actually have seen a few customers buying it. The guy working at the shop tried to tell the buyer he would be better with 90%, but the customer insisted.

Just an example here of two national dealers selling 40% --Apmex and CNI. I never have bought or sold from them so I am not recommending them in any way.

http://www.apmex.com/Category/243/40_Silver_Coins_Rolls__Bags.aspx

http://www.golddealer.com/about_bullion.html


Jim

 

[jrf30]

Re: Where does all the sold crh'd silver go?

I stand corrected.

And learned some new information too. :-)

 

[quiksilver]

Re: Where does all the sold crh'd silver go?

Ive bought more at street value then i have found searching. In fact that is how i stumbled upon the treasure hunt, looking up rolls of silver. In fact i still occasionaly buy at a local pawn shop.

 

[Darth Walker]

Re: Where does all the sold crh'd silver go?

The only coins that are sold to investors are the ones in very good shape.
My coin dealer sells the 40% to smelters

DW