STRATEGY 3
BUY and HOLD
If you have money to invest and can hold it for a longer period of time silver can be an effective way to go.
Buying Silver From Professional Metals Dealers
These are multi-million dollar companies that this is all they do. They charge you a premium or commission over spot to sell to you. This is one of the most expensive ways to buy precious metals. The advantage is that they always have silver to sell. You don’t have to look for it. You can just buy it. It’s convenient but you pay for it and then are in the hole from day one.
The reason is you start out with less value of silver than the money you paid. It becomes a real investment. You buy it. You hold it and wait for the price to go up.
If you’re living pay check to pay check or struggling financially this approach is not good for you. Stay focused on Strategies 1 and 2.
However, if you have money in a savings account; CD; checking account; etc. that you don’t need to pay bills with, this might be good for you, especially if you’re still working and just don’t have the time to run around and bargain hunt for silver coins and silver items.
Let me give you a real example of buying silver coins at JM Bouillon a very reputable company.
As of this day you could buy $10 face value of dimes and quarters for a cost of $149.06, or $100 face value of 90% Mercury dimes for $1,640.63 or $500 face value of 90% silver quarters and dimes for $7,483.13. These are real market numbers. Let’s compare these prices with strategies 1 and 2.
If you treasure hunt and find silver it’s the most profitable. It doesn’t matter if you find $10, $100, or $500. Your cost is still the same. $1 per face value dollar. So, $10, $100, and $500 would be your face value costs, of course, if you found it, it’s basically free, because you didn’t know you had it.
If you buy silver items, it will depend on what you buy. How many troy ounces of pure silver are in the item versus what you paid for it? But if you follow our strategy you will be able to consistently buy under $10 a troy ounce.
If you make a really good deal at a pawn shop you can expect to pay a smelters price which is what they normally get, or 97% of spot or .97 x 18.85 (today’s spot) = 18.28 per troy ounce.
Let’s look at the metals dealer to compare apples to apples.
$10 Face Value
$10 face value of junk silver coins x .714 pure silver content means you can buy 7.14 troy ounces of silver for $149.06. This equal (149.06 divided by 7.14) $20.87 per troy ounce. Today spot silver is $18.85. It’s two dollars more per troy ounce to buy this way compared to a pawn shop. In other words, the silver spot price needs to go up two dollars more for you to break even less selling commissions.
$100 Face Value
$100 face value of junk silver coins – $100 face value of silver Mercury dimes = .714 pure silver content means you can buy 7.14 troy ounces of silver for $1,640.43 or 1640.43 divided by 7.14. This equals $22.97 per troy ounce. The pawn shop is still $18.28 so you pay $4.66 more per troy ounce than at the pawn shop. Because these are all Mercury dimes is the only reason I can see that caused the troy ounce cost to increase. But the spot silver price has to increase by $4.66 or more for you to break even.
$500 Face Value
$500 face value of junk silver coins – $500 face value x .714 = 357 troy ounces. You pay $7,483.13 divided by 357 = $20.96. Again, the pawn shop cost is $18.28 per troy ounce so you are paying $2.68 per troy ounce more than at the pawn shop but remember it’s consistent.
This strategy works when the price of silver is on the rise and you can’t find it cheaper elsewhere.
NOTE:
Sometimes professional companies buy items in gram weights instead of ounces. A resource you need is www.kitco.com. This site will always give up to date silver and gold prices. If you click on jewelry they will give you details and prices on what your items are worth and how to calculate gram weight.
Now look at the totals – Pawn shop vs. Metal dealers
Pawn Shop | Metals Dealer | MD additional costs | |
10 face value | 134.77 | 149.06 | 14.29 |
100 face value | 1,347.77 | 1,640.47 | 292.70 |
500 face value | 6,738.87 | 7,483.13 | 744.26 |
The old saying “You make your money when you buy” is also true in precious metals. The market will only pay you so much so the cheaper you can buy it the more you can make.
So obviously, the more you can buy at the pawn shop, estate sales, fleas markets, etc. the more profits you can make up front by buying cheaper. But if you’re too busy to hunt for bargains or make a pawn shop deal then by all means buy silver from a reputable dealer.
A few months ago, I bought some .999 pure silver coins with freight paid to me for right at $15/troy ounce. As you know, as of today, 1 troy ounce of silver is $18.85. I’ve gained roughly $3.85 per troy ounce of silver or a little over 29%. That’s over just a few months. That is more than 30 times what the bank was paying me for an entire year. This Bull Run on metals is just starting. If gold goes to $10,000 silver should be above $150. There’s a lot of money to be made over the next 48-60 months no matter what your starting point is. Millionaires are being birthed. I want to help those in God’s work to receive money to help with current budgets but also receive wealth.
It’s now up to you.
You decide what’s best for you. I never give financial advice to anyone. I provide a financial research report and do my best to give you an ongoing view on ways to make money the easiest ways possible.
RE-CAP
AVAILABILITY
MODERATE Strategy 1– For every 10 dollars in coins you find you get 7.14 ounces of silver. Market value when silver is at 18.85 a troy ounce =$134.77.
OFTEN Strategy 2 – Find 100 face value 90% silver coins – see inside scenario – market value when silver is at 18.85 a troy ounce = $1347.77 Get change from bank and roll over until you find 100 dollars in 90% silver face value coins.
FREQUENTLY Strategy 3 – Pawn Shops – buy 100 dollars of silver items at 97% of spot (smelters price) = $100 worth of silver
ALWAYS Professional companies – buy 100 dollars of silver at spot value – get about 80 – 90 dollars’ worth of pure silver after commissions and freight.
Overcoming Grief can be emotionally painful and difficult. I encourage you to read our devotions. Then get up and get moving. Occupy your mind with fun things. Grab a friend, follow our instructions, and go find some treasure . . . and maybe make some money.
Happy Hunting!
Author Profile
- Lee is the co-founding designer of Overcoming Grief and author of 2 books and numerous articles. He has been in the ministry for over 40 years. He has traveled to over 80 countries and every state in the USA. His ministerial work involves both teaching and business. He is a mentor to pastors and business leaders alike. He is currently working on his upcoming international conference schedule and we will post it when it's ready. We hope you can attend one that will be close to you!! Please contact me at: leeg@overcominggrief.org
Latest entries
- Guest Articles2019.05.25Overcoming Wisdom
- Devotions2019.05.04Devotion 60
- Devotions2019.05.03Devocional 60
- Devotions2019.05.02Devotion 59
Leave a Comment