The Math behind buying 90% Pre-1964 U.S. Coins:
Sorry it's taken a couple of days since my last post, but work has been hectic. When I last left off, I was explaining the math behind buying silver on a somewhat regular basis; the dollar cost averaging behind it; when to slow down; and how to maximize your buying. Next, I want to explain why buying pre-1964 U.S. coins is such a good deal.
Most dealers will charge about $1.50 - $2.00 above spot for generic rounds and bars. They'll charge about $2.50 - $3.00 above spot for premium silver like American Silver Eagles. And about $4.00 over spot for the newest current year and uncirculated American Silver Eagles.
Pre-1964 coins however, you can get basically for spot price. Figuring out spot price however is different. For you noob's, you'll hear the terms 90% silver and Junk Silver. There's definitely nothing junk about 1964 and earlier dimes, quarters, halves, and dollar. But if you aren't aware of the math, it's definitely easy to get screwed on. For instance, some dealers, mainly pawn shop type places will have you believe that 90% means that there's 90% of an ounce in a dollar. Therefor, if silver spot price is $35 an ounce, 90% for a dollar in face value should cost you $31.50 for spot. If you get that type of spot price from a dealer, then they are B.S.ing you or they are totally ignorant. A pawn shop might be ignorant, but a dealer won't be. If a coin shop gives you that line; simply leave. Don't even try to deal with them. The truth is, the 90% simply means that the coin is 90% silver. NOT 90% of an ounce or any weight.
So, exactly how much silver is in, say a dime, quarter, of half dollar? Because these were NORMALLY used coins, they have wear and tear obviously. So the universally accepted amount of silver is: .715 of an ounce, PER DOLLAR face value. That means if you have 4 quarters, you'd have .715 ounces. If you had 10 dimes, you'd have .715 ounces. If you had 2 half dollars, you'd have .715 ounces. If you had 2 quarters and 5 dimes, you'd have .715 ounces of silver. So it's real simple. Whatever the spot price of silver is; e.g $35, multiply that by .715, e.g. $25.03. That is the price you will pay for 90% pre-1964 silver american coins, PER FACE DOLLAR. In other words, 4 quarters would cost $25.03. A $5 roll of dimes would cost you $125.15. There's 2 really good things about this.
1) Most dealers will round up or down, so basically, they will charge you $25 instead of $25.03. They'll also probably charge you the $25 even if the spot price of silver gets closer to around $35.50.
2) Most legitimate dealers won't charge you a premium. If they charge you $25.03 per $1 of face value, that would be equal to spot price of $35 per ounce.
Most dealers will however make their profit on buying it back. If the 90% conversion price is $25 per $1 face value for pre-1964 coins; and that's what they sell them for; the dealer will probably buy it back at $2 below. So they'll buy back in this example for $23 x Face Value. But this is still the best bang for the buck when it comes to silver. One thing to note. The .713 of an ounce PER $1 Face Value is for dimes, quarters, and half dollars. Actual silver dollars like the Peace dollar or the Morgan dollar, are a little more silver value. They are .773. So use that number to multiply by spot if dealing with silver dollars. And remember; an AMERICAN SILVER EAGLE is NOT A SILVER DOLLAR. Yes, it says it's worth $1.00 on the back, and Yes, it is silver. But a Silver Eagle is PURE SILVER. It is Fine, .999 silver. Never confuse it with an 1800-1900's Peace and Morgan Silver dollar.
Last thing. In my first post, I mentioned how I bought silver in order to reduce debt and to buy at a discount. That's what I've been showing you here. I also mentioned that some people buy silver as an investment for their retirement and future; while still some others buy because they believe in the possibility of a total economic collapse. While I said I really didn't believe too much in the economic collapse theory, I said that I did put away a little silver in case I was wrong about the economic collapse. THIS IS WHERE THE 90% Silver Coins; AKA Junk Silver; shines the MOST. In the normal silver world, the 1oz silver round or silver eagle type coin is the smallest increment. After that, there's 4oz, 8oz, 10oz, 16oz, and 100oz. Occasionally, you can find 1/10 ounce, but those are too expensive to buy. 10 of those is like 25-50% more thana 1oz round. But if there is a major economic collapse, and we are using silver to buy and barter with, how are you going to buy say a $10 dollar product/item/service if you only have 1oz rounds and silver is at $100+ per ounce??? Do you think the person you are buying from or bartering with is going to have change??? You'll probably have to spend that $100 silver round on something that doesn't cost $100 worth. But if you had pre-1964 dimes, quarters, and halves, you wouldn't get screwed and you'd have more to barter with. Because the pre-64 coins are .715 of an ounce per $1 face value, 10 dimes would be worth $71.50 based on the $100 an ounce for silver example. Each dime would be worth about $7.15. So you obviously have smaller increments to work with.
So now you pretty much know how to buy silver for paying off debt and buying items at a discount. In my next posts, I'm going to talk about the future of silver. Why, as long as time is on your side, you will make money. CYA: SE
Sorry it's taken a couple of days since my last post, but work has been hectic. When I last left off, I was explaining the math behind buying silver on a somewhat regular basis; the dollar cost averaging behind it; when to slow down; and how to maximize your buying. Next, I want to explain why buying pre-1964 U.S. coins is such a good deal.
Most dealers will charge about $1.50 - $2.00 above spot for generic rounds and bars. They'll charge about $2.50 - $3.00 above spot for premium silver like American Silver Eagles. And about $4.00 over spot for the newest current year and uncirculated American Silver Eagles.
Pre-1964 coins however, you can get basically for spot price. Figuring out spot price however is different. For you noob's, you'll hear the terms 90% silver and Junk Silver. There's definitely nothing junk about 1964 and earlier dimes, quarters, halves, and dollar. But if you aren't aware of the math, it's definitely easy to get screwed on. For instance, some dealers, mainly pawn shop type places will have you believe that 90% means that there's 90% of an ounce in a dollar. Therefor, if silver spot price is $35 an ounce, 90% for a dollar in face value should cost you $31.50 for spot. If you get that type of spot price from a dealer, then they are B.S.ing you or they are totally ignorant. A pawn shop might be ignorant, but a dealer won't be. If a coin shop gives you that line; simply leave. Don't even try to deal with them. The truth is, the 90% simply means that the coin is 90% silver. NOT 90% of an ounce or any weight.
So, exactly how much silver is in, say a dime, quarter, of half dollar? Because these were NORMALLY used coins, they have wear and tear obviously. So the universally accepted amount of silver is: .715 of an ounce, PER DOLLAR face value. That means if you have 4 quarters, you'd have .715 ounces. If you had 10 dimes, you'd have .715 ounces. If you had 2 half dollars, you'd have .715 ounces. If you had 2 quarters and 5 dimes, you'd have .715 ounces of silver. So it's real simple. Whatever the spot price of silver is; e.g $35, multiply that by .715, e.g. $25.03. That is the price you will pay for 90% pre-1964 silver american coins, PER FACE DOLLAR. In other words, 4 quarters would cost $25.03. A $5 roll of dimes would cost you $125.15. There's 2 really good things about this.
1) Most dealers will round up or down, so basically, they will charge you $25 instead of $25.03. They'll also probably charge you the $25 even if the spot price of silver gets closer to around $35.50.
2) Most legitimate dealers won't charge you a premium. If they charge you $25.03 per $1 of face value, that would be equal to spot price of $35 per ounce.
Most dealers will however make their profit on buying it back. If the 90% conversion price is $25 per $1 face value for pre-1964 coins; and that's what they sell them for; the dealer will probably buy it back at $2 below. So they'll buy back in this example for $23 x Face Value. But this is still the best bang for the buck when it comes to silver. One thing to note. The .713 of an ounce PER $1 Face Value is for dimes, quarters, and half dollars. Actual silver dollars like the Peace dollar or the Morgan dollar, are a little more silver value. They are .773. So use that number to multiply by spot if dealing with silver dollars. And remember; an AMERICAN SILVER EAGLE is NOT A SILVER DOLLAR. Yes, it says it's worth $1.00 on the back, and Yes, it is silver. But a Silver Eagle is PURE SILVER. It is Fine, .999 silver. Never confuse it with an 1800-1900's Peace and Morgan Silver dollar.
Last thing. In my first post, I mentioned how I bought silver in order to reduce debt and to buy at a discount. That's what I've been showing you here. I also mentioned that some people buy silver as an investment for their retirement and future; while still some others buy because they believe in the possibility of a total economic collapse. While I said I really didn't believe too much in the economic collapse theory, I said that I did put away a little silver in case I was wrong about the economic collapse. THIS IS WHERE THE 90% Silver Coins; AKA Junk Silver; shines the MOST. In the normal silver world, the 1oz silver round or silver eagle type coin is the smallest increment. After that, there's 4oz, 8oz, 10oz, 16oz, and 100oz. Occasionally, you can find 1/10 ounce, but those are too expensive to buy. 10 of those is like 25-50% more thana 1oz round. But if there is a major economic collapse, and we are using silver to buy and barter with, how are you going to buy say a $10 dollar product/item/service if you only have 1oz rounds and silver is at $100+ per ounce??? Do you think the person you are buying from or bartering with is going to have change??? You'll probably have to spend that $100 silver round on something that doesn't cost $100 worth. But if you had pre-1964 dimes, quarters, and halves, you wouldn't get screwed and you'd have more to barter with. Because the pre-64 coins are .715 of an ounce per $1 face value, 10 dimes would be worth $71.50 based on the $100 an ounce for silver example. Each dime would be worth about $7.15. So you obviously have smaller increments to work with.
So now you pretty much know how to buy silver for paying off debt and buying items at a discount. In my next posts, I'm going to talk about the future of silver. Why, as long as time is on your side, you will make money. CYA: SE
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