Expert: Ronald Fern - 7/20/2011

Question
QUESTION: My question refers to whether I should sell my silver coins I have. I have several silver dollar coins. Not sure the dates at this time. However, there is a person in town paying money for gold and silver. My question is whether its smart getting dollar amount from him, as he melts down the gold and silver, or would I get more out of it if I sold it to someone who gives what the coin is worth by the year its from?

ANSWER: Hi Ronn:

Thanks for your question.

The value of your coin depends date, mint mark and condition. The mint mark for a Morgan Dollar (the largest) is found on the reverse of the coin directly below the eagles tail. A lot of coins were minted with no mint mark for Philadelphia, a "CC" mint mark for Carson City, "D" mint mark for Denver, an "O" mint mark for New Orleans, and a "S" mint mark for San Francisco.

As far as melt value, each silver coin is different. A Morgan or Peace Dollar contains a little over three fourths an ounce of pure silver. The dollar was struck in .900 fine silver. With silver at about $39.00 a troy ounce, your dollar has a melt value of about $30.00. Highly circulated coins would be worth about 90% of melt value to reliable dealers. Coins with collector value are worth more. Some dollars could be worth several hundred to thousands of dollars.

For melt values of silver coins, see: http://www.coinflation.com/silver_coin_values.html

Those firms who specialize in setting up shop in a hotel room on a weekend to buy gold and silver should be avoided. Often times, they pay as little as a third to half what a local dealer will pay. Local dealers usually pay more, where they are more accountable to the community. They also do not have to pay for hotel accommodations, food, travel expenses, etc., in purchasing your items.

To grade your coins: http://coinauctionshelp.com/US_Coin_Grading_Guides.html

Values and mintages: http://coinauctionshelp.com/United_States_Coin_Mintages_Price%20Guides.html

You may want to check ebay listings under US coins to see what these coins are going for.

If you live close to a coin shop, they should offer you an opinion as to the condition, and value at no charge. Always try and get at least two opinions and try and deal with PNG dealers if possible. If you should decide to sell your coins to a dealer, remember they will offer about 50% to 60% of the retail value. Here's a link to find one in your area: http://www.pngdealers.com/dealersearch.php
         
Please remember to go to the experts site to rate this answer. Check the nomination box on the rating page below any comments you may have.

Thank You and Good Luck in your collecting.


---------- FOLLOW-UP ----------

QUESTION: Thank you sooo much for your quick and lengthy respond. I will truly rate you tens. One further comment. This guy Im talking about does home parties. One of which I plan on going to. But I better follow your directions on checking with others. What do you think of the individuals who do these home parties? Do you think maybe they are more honest?

Answer
Hi Again Ronn:

Thanks for your rating and the follow-up question.

No. They (the party holders) are in it to make a profit, so they will have to resell your coins to another dealer or resale outlet. Stop and think. This individual has to offer you less than the place he plans on taking the items to for his profit. I doubt that he is going to melt the coins himself. He'll likely only offer you less than 90% of melt, and will not take the time to research the date, mint mark or condition of the coins.

I went to a local show held at a hotel by a company from Ohio. I live in CA. That outfit offered me less than 50% of melt for my silver coins. He also offered me two cents for an EF/AU 1909P VDB Lincoln Cent. It had a retail value of about $20. I should have been offered $10 to $12 for this coin, not two cents.

In my opinion, you'd be better off going to a local shop or coin show where you can get the best price for your items. With melt value, you should expect to get around 90% of the value. If your items have added numismatic value, you'll likely get about 50% to 60% of the retail value. Any business needs to make a profit, and some of your coins may end up in a shop's inventory for a few weeks to months before an interested collector purchases them, but your offer from them will be more than the party holder.

Please remember to go to the experts site to rate this answer. I hope you feel I should be nominated for top expert of the month. Only about half of the people asking questions even bother to read my replies. Half of them rate me. I do not get paid for this. It is my attempt to pay back the hobby for the wonderful education I've received through coin collecting. Check the nomination box on the rating page below any comments you may have.

Thank You Again and Continued Good Luck in your collecting.