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proteus5
New Member
2 Posts |
 Posted - 04/03/2010 : 22:20:37
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Hello, first post, I just started staking and have a question:
If I buy junk silver $20 face value for 13x that equals $260.00, and is 14.3 ozt. If spot is $17.88 my purchace would have a spot value of $255.68 (.715x20x17.88) and I've paid $4.32 over spot (.30 an ozt over).
Now my question. Since the junk silver will always be worth face ($20.00) I got $20 back with my purchase (vs. generic rounds which have no face value)
I really paid $240 for my 14.3 ozt which would be $15.68 under spot (or $1.09 under an ozt)
Am I looking at this right, or do you guys just figure that you paid the $260 ($18.18 an ozt) and not worry about the original $20 face value??
This would also work for ASE's, GAE's, Maples(exchage rate at almost 1:1) since they have a face value.
I figure this is better than buying generic rounds or bars since they have no face value so you get no return and are paying full spot + premium
I hope this isn't too confusing, I'm just wondering how others look at it.
Buy the way got a 1935 wheat in change today in good shape 
Thanks.......>Robert:-D
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uthminsta
1000+ Penny Miser Member
USA
1872 Posts |
Posted - 04/03/2010 : 22:46:03
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| Hey welcome to the forum! I'm sure you will get some varied responses, but the way I look at it is you bought it for $260. Because if you sell it you have to give up the coins, not just the silver that's in 'em. I very much prefer buying coins to generic silver, but that's partly because I'm more a coin collector than silver investor. Many others like to buy silver rounds or bars or ingots, and I will let them explain why... but I can totally understand their reasoning as well. |
Come to the new and improved realcent: http://realcent.org
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thogey
1000+ Penny Miser Member
USA
1617 Posts |
Posted - 04/03/2010 : 22:55:04
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You can't subtract the face value from the total melt value. Because if you melt the coin the face value becomes null...Because you've melted the coins.
If you spend the coins the bullion value is null because you no longer possess the coins.
I think that face vs. bullion value are exclusive. |
Come to the new and improved realcent: http://realcent.org
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theo
Penny Hoarding Member
USA
588 Posts |
Posted - 04/04/2010 : 00:25:48
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Since all silver coins are routinely bought and sold for far more than their face value, it has no impact on the coins' actual or market value. Face value is only referenced in the old 90% coins because it is a convenient way of expressing their actual value. If 90% silver coins (be they dimes, quarters or halves) are selling for 13 x FV then the price of $2.00 FV of 90% silver would be $26.
Also, the ASE sells at a premium over generic rounds, because it is arguably the most recoqnized (and many feel the most beautiful) silver coin in the world. The $1.00 face value on the ASE (and $5.00 FV on the Maple) is little more than window dressing. |
Edited by - theo on 04/04/2010 00:28:18 |
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IdahoCopper
Penny Pincher Member
125 Posts |
Posted - 04/04/2010 : 07:36:57
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If one wanted to trade at spot 1oz rounds for junk coins:
The trade ratio is 7 rounds for 9 dollars of 90% silver coins.
With spot at $18.00, seven rounds' spot value is $126.00, and $9 of face value for 90% Ag is $125.31.
$18 per ounce spot works out to
90%= 13.923 x face, and
40% = 5.692 x face. |
See - http://IdahoCopper.com
and:
http://beefjerky.com |
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beauanderos
1000+ Penny Miser Member
USA
2408 Posts |
Posted - 04/04/2010 : 10:16:42
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welcome, newbie  Word of advice... silver is going to go WAY up in value within a few years. If you decided to accumulate, think about who your buyers will be when you sell. Buy the smallest increments you can find, like junk silver dimes, or if you prefer ingots, then maybe Kurr's A&M 1gm Fine Silver pieces. There is also one company that is starting to issue 1/10 ounce .999 silver rounds  |
Hoard now and hold on!
http://coppermillions.blogspot.com/
http://wherewillyoubein2012.blogspot.com/ |
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Dumpster Diver
Penny Collector Member
USA
474 Posts |
Posted - 04/05/2010 : 20:02:13
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Concentrate on 90% junk and name brand bars/rounds.
You'll find two schools of thought on this forum on the "name brand" debate:
A)Those who like the comfort level of the recognized brand when it's time to sell
B)Those who think silver is silver...buy it all.
I'm a name brand guy- don't like the santa claus rounds
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"You're not really gonna throw that out...are you"? |
Edited by - Dumpster Diver on 04/05/2010 20:10:31 |
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Dumpster Diver
Penny Collector Member
USA
474 Posts |
Posted - 04/05/2010 : 20:03:18
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| Oh yea and welcome! |
"You're not really gonna throw that out...are you"? |
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dakota1955
1000+ Penny Miser Member
2212 Posts |
Posted - 04/05/2010 : 20:43:03
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| Yes but Christmas does come once a year so Santa does have a place. |
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proteus5
New Member
2 Posts |
Posted - 04/07/2010 : 21:12:20
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Sorry I've been away for a week, but I did want to thank everyone for thier opinion on this. So it looks like the face value only comes into play on a trade. That is good to know. Yes I too believe silver is on the way up gold too. I've known this for a long while, but like a dummy haven't bought until recently. I guess I just really didn't want to believe what is happening to the USA was really going to happen. I think it may be too late for us, just trying to perserve something for my 3 year olds now. maybe they will be OK in the future.
Also thanks for the welcome. This looks like an informative and friendly place. |
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rosco
Penny Collector Member
USA
254 Posts |
Posted - 04/07/2010 : 23:24:41
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When you start saying MY stack is bigger now. You will be hooked.
Welcome to this Crazy bunch |
Old Geezer a HAND Sorter |
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Junk Silver Question
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