Wednesday, April 7, 2010

Sell Silver Coins - Selling your common silver coins

Selling your silver coins is relatively easy. Especially now that silver prices have climbed back up to nearly $20/ounce. Demand for silver and gold has driven prices higher and higher. Especially since many people demand to invest their money in hard assets, instead of speculative stocks and bonds.

Here's a list of the most frequently asked questions regarding US silver coins:

#1 What US coins contain silver, and how much silver content is there in each? How do I tell if my coins are silver?

  • All US Dimes 1964 and older contain 90% silver content, or .07234 oz. of silver.

  • All US Quarters 1964 and older contain 90% silver content, or .18084 oz. of silver.

  • All US Half Dollars 1964 and older contain 90% silver content, or .36169 oz. of silver.

  • All US Dollars 1935 and older contain 90% Silver, or .77344 oz. of silver.

*A few additional US coins that have some silver content:

  • Kennedy Half Dollars 1965-1970 contain 40% silver content, or .14179 oz. of silver.

  • Jefferson Wartime Nickels 1942-P thru 1945-S contain 35% silver content, or .05626 oz of silver.

#2 How do I figure out how much each silver coin is worth?

All one has to do to figure out the silver content value of each coin is take the current silver bullion price, and multiply that by the silver content of each coin. Keep in mind this will be the retail value of the silver coins, and not the wholesale, or trade-in value of the coins. More on this later. Today silver closed at $18.13/ounce. So let me give you a couple examples.

Example #1: A 1964 Roosevelt Dime $18.13 x .07234 = $1.31

Example #2 A 1950 Franklin Half Dollar $18.13 x .36169 = $6.55

That is the simplest way to figure out the current retail silver value of each of your coins.

The way dealers figure out the value of silver coins is to use a Face Value multiplier. When you call a dealer to get an estimate of your silver coins value, they will typically quote you a Face Value multiplier for a price. In otherwords, a silver half dollar has a retail value of approximately 13 times it's face value, based upon today's silver price of $18.13. And this multiplier will change with silver price fluxuations. Here's how the dealer would figure it out.

Example #1 Silver Half Dollar .36169 x $18.13 = $6.55, $6.55/.50(face value) = 13.1

Example #2 Silver Quarter .18084 x $18.13 = 3.28, $3.28/.25 = 13.1

This is just a shortcut dealers use to quickly figure out the value of the silver coins without having to do a lot of complicated math. It's easy for a dealer to quote the silver value to a customer by asking how much face value in silver coins they have. The dealer can easily quote a price for your silver coins by offering a quick quote of say, 13 times face value. For example, a customer may have 500 silver dimes, or $50 face value. A dealer only has to multiply 50 x 13 = $650 to quickly figure the retail value.

One thing to keep in mind when figuring out the silver value of your coins, is that the figure you come up with is the retail value of those coins. The retail value is what the dealer would be selling those silver coins for, so if you are selling your coins to a dealer, the dealer will be offering you a wholesale value for your coins.

Typically a dealer will offer you a wholesale price, about 80%-90% of the retail value for your silver coins. A dealer will offer you closer to 80% if you only have a few coins to sell, and closer to the 90% if you have a large quantity of silver coins.

For example: Say you have $10 in face value of silver coins. The retail value at today's silver price of $18.13 is 13.1 x $10 = $131. A dealer would typically offer you 80%-90% of that 13.1 multiplier, or 10.5 - 12.0 times face value, or $105-$120, leaving the dealer a small margin for profit. A dealer must be able to make a profit, and is certainly entitled to do so, that is why they are in business. In the case that a customer has a large quantity of silver, say $1000 face value in silver coins, a dealer may be able to offer more than 80% of the retail value for that size purchase. Each dealer is different, and I always suggest calling around and checking prices.

You may also wish take into consideration the service each dealer is willing to offer you, in addition to the prices they offer for your silver coins. Some people may be willing to sell their coins at a slightler lower price, especially if a dealer is willing to come directly to you to make the transaction. First of all it saves the clients time. Secondly, it may be inconvenient or not possible for a customer to physically carry a large collection of coins to the dealer. Or perhaps a client may be concerned about the safety or security of carrying around a significant amount of coins or cash, and may feel more comfortable if the dealer is willing to come to them.

Charlton Coins always offers to come directly to the clients home, place of business, or secure agreed upon location, to make a transaction. Whatever is most convenient for the client, Charlton Coins is pleased to offer this additional service at no cost to our clients.

Charlton Coins can be reached at 508.335.6788

1 comment:

ahnn said...

It's really a good source of income because of its value. Nice post to read.

sell coins