Recently, over several days, I saw full page ads in the Ft. Worth Star-Telegram. . . for one of those “we will buy your gold and silver coins and scrap jewelry” advertisements. It promised “1200% of face value” for silver coins minted before 1964. This ad is from a major dealer, the Dallas Gold and Silver Exchange.
Wow—1200%! That’s amazing, right? Maybe not . . . let’s review some basic math. If we convert the 1200% to a whole number, we must count over two digits to the left and insert a decimal point. 1200% becomes 12—that would be 12 times face value for your silver coins.
Wow—12 times face value! That’s also amazing, right? Wrong! Twelve times face would $1.20 for dimes, $3 for quarters, $6 for halves, and $12 for silver dollars. At today’s silver melt values, those same coins have a value of $2.71, $6.79, $13.58, and $29.05! So, perhaps a lack of a basic knowledge of mathematics can cost you a huge “percentage” of your silver value. . . And, I observed these ads at the same time coin dealers were advertising 24 times face value for silver coins, a (gasp!) whopping 2400% of face value.
In a similar vein, there are national firms that will rent a room at a local motel, run flashy full page ads, and promise you great prices for your gold and silver coins and scrap jewelry, too. These firms do not do this for your benefit. They are out strictly to make a profit. The last group that was in Brownwood offered an elderly lady “thirty something” dollars for a few silver coins that I had offered her over $300 for a few weeks earlier!
Do you want to sell some gold and silver coins and maximize what you can get for them? Coins have a book value, just like your four year old Toyota does. Many coins are only worth their silver value. More rare coins should be worth more than melt value. You may or may not realize that price when you sell it. Coin dealers will NOT offer you full retail value for your coins; they are in the business to make a living. You should reasonably expect 70-80% of melt value for your coins from a dealer. To get full retail value, you would need to sell your coins to a collector who wants exactly what you’re selling!
Be careful selling your gold and silver! If you’re not getting a fair offer, go to someone else. Eventually, you will find a fair price for your valuables.
Are you interested in learning more about coin collecting? I encourage you to attend a Brown County Coin Club meeting, on the second Tuesday of each month. Our next meeting is June 14, at 7:00, at the Austin Avenue Church of Christ. Call me (325-217-4129) or President Bill Cooper (325-642-2128) for more information. I hope to see you there!
Bob Turner, Brown County Coin Club