Expert: Joe Hylas - 7/2/2006

Question
joe, are you aware of any formula to determine the scrap value of 90% us silver coins based on the the bid or ask price of the spot silver market.
also, is there a rule of thumb that would determine the cut off date that a silver coin's collector value would exceed it's scrap value.
example: if you had 1000 1964 circulated 90% silver coins, would it be worth your time to check each one for condition & rare mint marks etc. for collector value?
thanks, RSK  

Answer
Hi,
There really is no set formula, every dealer is different.  But as a guideline, there are about 712 ounces of silver in a $1,000 face value bag.  If you take 712 times the spot price, you will have the melt value.  For example, if silver is $10 per ounce, a $1,000 bag would have a melt value of $7,120
Reducing that, the coins would be worth $7.12 for every dollars worth face value.
But every dealer is different and premiums change based upon market conditions.  Sometimes dealers will only buy below melt value, while at other times, they will pay over melt.
The easiest way to answer the second part of your question is that there is no rule of thumb.  Take a look at a current REDBOOK (Guidebook to US Coins).  In there you can see what the difference in value is between a circulated coin and one in mint condition.  It only pays to sort out the much better pieces, and even then the value must be substantial.
If a coin is worth $1 in circulated condition and only $5 in mint condition, collectors will spend the $5 to get a mint coin, so it doesn't matter how close to mint your coins are, there probably will not be a buyer for any premium worthwhile.
I hope this helped.
Regards,
Joe Hylas
WWW.AllCoins.US