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Thread: The Growing Price Markup on Junk Silver

  1. #1
    Iridium
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    The Growing Price Markup on Junk Silver

    http://www.junksilverbook.com/?m=201509

    Over the last couple of months the premiums on Junk Silver have exploded.

    Using the Wayback Machine website I went back in time to see what prices were historically on $100 bags of 90% Junk Silver from Apmex:

    Prices for $100 Bag of 90% Junk Silver from Apmex:

    There are some interesting facts here:

    It is more expensive now with spot at $15.24 than in August 2014 when spot was at $20.49.

    The current markup price is a staggering 42.59% over spot.

    Apmex’s purchase price (that is what they will pay people to buy Junk Silver), previously was right at or very close to spot. Currently the advertised purchase price is 15.75% over spot.

    However, their current sale price ($1,553.70) is marked up 23.19% over their purchase price ($1,261.26).

    Compare to August 2014 when the sale price ($1,535.82) was only marked up 4.83% over their purchase price ($1,465.03)

    What is interesting is that even with these high premiums many businesses are still sold out of Junk Silver frequently. This indicates that either people are still purchasing in high volume and/or businesses are having a hard time purchasing Junk Silver to resale. But based on the very large difference between their advertised purchase price and sale price it is clear that they are making a healthy profit.

    The markup on other premium silver products like American Silver Eagles is also very high currently, especially when purchasing small quantities.

    It is hard to say if the price markups on Junk Silver will ever return to how low it used to be. It used to be fairly easy to purchase Junk Silver at or even a little below spot.

    One advantage of purchasing Junk Silver historically when the price markups were low was the fact that it is a scarce product, and there was the possibility that a larger premium price would develop. The amount of Junk Silver coins in existence is what it is , and since no more are being minted, the amount of coins in existence will never increase. Compare this to things like American Silver Eagles which have millions of new coins minted every year.

    It seems like the best option right now, to avoid paying extreme markups, is to buy generic rounds and bars, and hope that once the price of silver stabilizes that markups on Junk silver and ASE’s will come back down to more reasonable levels.

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    Hitch (30th September 2015),hoarder (29th September 2015)

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    Moderator madfranks's Avatar
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    Re: The Growing Price Markup on Junk Silver

    Even generic silver is $3-5 over spot. Hard to find anything less than a 25% premium.
    "Liberty is so creative, and the government is so stupid, that I’m very optimistic about the future"
    - Lew Rockwell

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    Great Value Carrots Sparky's Avatar
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    Re: The Growing Price Markup on Junk Silver

    Our time will come.

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    cheka. (29th September 2015)

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    Unobtanium Shami-Amourae's Avatar
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    Re: The Growing Price Markup on Junk Silver

    I'm so glad that almost all of my Silver is Junk.

    I thought it was the smartest buy since it was cheap, and a limited supply.

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    cheka. (29th September 2015)

  9. #5
    Iridium
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    Re: The Growing Price Markup on Junk Silver

    Quote Originally Posted by Shami-Amourae View Post
    I'm so glad that almost all of my Silver is Junk.
    coin, not commodity eh?

    shopping for friend right now. best i can do is 13-14x face with rebates, etc. it's ugly out there

    on feebay franklins have really popped.....washington quarters still cheapest.....then rosie dimes and kennedy halves

    i'm partial to the mercs

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    Great Value Carrots hoarder's Avatar
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    Re: The Growing Price Markup on Junk Silver

    Quote Originally Posted by Shami-Amourae View Post
    I'm so glad that almost all of my Silver is Junk.

    I thought it was the smartest buy since it was cheap, and a limited supply.
    Back in 2002-2003 I started buying 100 ounce bars, thinking it was the best way to hoard silver. I was paying about a 40 cent premium. Then I figured out I could buy 90% at spot or a nickel below and that's all I bought thereafter. Even back then, guys on GIM1 were saying to buy eagles and semi-numismatic and I laughed at them.
    I never expected to sell at a premium above spot, I was investing in silver, not premiums. This is just icing on the cake. Even at today's buy prices it's still almost 3 times what I paid for it.

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    Unobtanium palani's Avatar
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    Re: The Growing Price Markup on Junk Silver

    What is really going to blow your mind is that the same two silver dimes that would buy a gallon of gas in the '60s will still purchase the same gallon of gas in 2015. In fact with gas prices dropping the buy price is closer to $.15 per gallon than $.20.
    Make me one with everything.
    -- Zen Master to the hot dog vendor

  12. #8
    Iridium
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    Re: The Growing Price Markup on Junk Silver

    Quote Originally Posted by cheka. View Post
    on feebay franklins have really popped.....washington quarters still cheapest.....then rosie dimes and kennedy halves

    i'm partial to the mercs
    I was just browsing ebay, and the prices seem extremely high for junk silver. Some folks are asking up to 50% over melt value. You used to be able to pick up junk silver for at spot, or even less than spot. Not anymore.

  13. #9
    Gold Half Sense's Avatar
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    Re: The Growing Price Markup on Junk Silver

    They aren't making any more of it.

  14. #10
    Great Value Carrots Silver Rocket Bitches!'s Avatar
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    Re: The Growing Price Markup on Junk Silver

    Quote Originally Posted by Half Sense View Post
    They aren't making any more of it.
    Not sure how far that logic goes. They haven't been making anymore since the 60s.
    everything we learn changes that which we know to be true

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