!! ALERT !! My LCS won’t buy this SILVER

Stateside Stash

18 Jul 202409:36

Summary

TLDRIn this video, the host discusses the challenges of selling silver to coin shops, highlighting the importance of having a good relationship with a local coin shop (LCS). He explains why some items, like silver shot and colorized coins, are not favored by LCSs due to low demand and difficulties in selling them. The host shares his personal experiences and offers advice for new collectors on what to avoid when buying silver, emphasizing the value of purchasing recognizable and easily sellable items.

Takeaways

💼 Coin shops are businesses that may refuse to buy certain items based on their value or desirability.
🏦 Selling silver for $10 under spot price might be a way to ensure a sale, but it's not necessarily the best deal.
🤝 Building a good relationship with a local coin shop (LCS) can be beneficial for both buying and selling silver.
🔍 Not all silver is easily recognizable or sellable; some forms may be harder to offload quickly.
💡 Silver shot is a form of silver that can be used for casting bars, rounds, or figurines, but it's not always desirable in the market.
📦 Silver shot was once a cheap way to buy silver, but its market value has changed over time.
🚫 Local coin shops may refuse to buy silver shot due to its low demand and the hassle of selling it in small quantities.
🎨 Colorized coins, especially those altered from their original state, are generally not favored by coin shops and can be difficult to sell.
💰 The value of colorized coins is often less than their original, unaltered state, making them a poor investment for resale.
🌐 Recognizable and easily sellable items are crucial for those who might need to offload their silver in the future.
🔄 When considering buying silver, look for forms that are currently the most affordable and easily sellable, such as buffalo rounds.

Q & A

Why might a coin shop refuse to buy certain types of silver?
-A coin shop might refuse to buy certain types of silver if the price is too high, the piece is undesirable, or it would take up too much space in their display or storage.
What is the significance of having a good relationship with a local coin shop (LCS)?
-Having a good relationship with an LCS can help in understanding their buying preferences and potentially getting a better deal when selling or buying silver.
What is silver shot and why might it be less desirable for a coin shop to buy?
-Silver shot is small pieces of silver used for casting into bars, rounds, or other forms. It might be less desirable for a coin shop to buy because it can be difficult to sell in large quantities and handling it for smaller transactions is cumbersome.
Why might someone prefer buying recognizable silver items over silver shot?
-Recognizable silver items are easier to sell quickly due to their widespread acceptance and understanding among buyers, unlike silver shot which may require more explanation and might not be as readily accepted.
What are the challenges of selling silver shot according to the script?
-Selling silver shot can be challenging because it requires breaking open a new bag and measuring out the correct amount, which can be time-consuming and messy.
What is the speaker's opinion on the use of silver shot in an apocalypse scenario?
-The speaker does not agree that silver shot is the best form of fractional silver for an apocalypse scenario, as it would be difficult to convince someone unfamiliar with silver of its value.
What are colorized coins and why might they be less valuable to a coin shop?
-Colorized coins are regular coins that have been altered with color. They might be less valuable to a coin shop because they are often considered damaged and may not be accepted at face value.
Why might a coin shop refuse to buy colorized American Silver Eagles?
-A coin shop might refuse to buy colorized American Silver Eagles because they are often placed in the damaged bullion section and are not considered as valuable as their original, unaltered counterparts.
What advice does the speaker give for new buyers of silver?
-The speaker advises new buyers to be cautious and look out for items that might not hold their value, such as colorized coins or silver shot, and to focus on buying recognizable and easily sellable items.
What is the speaker's recommendation on buying silver for potential future sales?
-The speaker recommends buying silver in forms that are easily recognizable and offloadable, such as buffalo rounds, which are currently the least expensive option and more straightforward to sell.

Outlines

00:00

💼 Coin Shops and Silver Shot

This paragraph discusses the challenges of selling silver to coin shops. The narrator explains that coin shops are businesses with specific buying criteria, which might not align with the seller's expectations. They mention that some items might be undesirable or too expensive for the shops to buy. The narrator shares their experience with a local coin shop that refuses to buy certain types of silver, particularly silver shot. Silver shot is described as a raw material used by people to create their own silver bars or rounds. The narrator mentions that their local coin shop does not buy silver shot due to low demand and the inconvenience of selling it in small quantities. They also discuss the historical affordability of silver shot and its current market status, advising viewers to consider other forms of silver like buffalo rounds if they are looking to buy silver for investment or hobby purposes.

05:03

🌈 Colorized Coins and Their Market Value

In this paragraph, the narrator addresses the topic of colorized coins, emphasizing their lack of appeal in the market. They differentiate between officially minted colorized coins, such as a Lord of the Rings-themed coin, and those that have been altered by individuals. The narrator expresses their disapproval of altering coins, such as painting or plating them, as it devalues the coin and makes it less desirable for collectors or investors. They mention that local coin shops often categorize these altered coins as damaged and sell them at lower prices. The narrator also warns against buying colorized coins for investment purposes, as they are unlikely to fetch a premium in the market. They conclude by reiterating the importance of buying recognizable and easily sellable items, especially for those who might need to liquidate their assets in the future.

Mindmap

Keywords

💡Coin Shops

Coin shops are businesses that specialize in buying and selling coins, often including precious metals like gold and silver. In the video, the speaker discusses the challenges of selling certain types of silver to coin shops, emphasizing that not all items are desirable or easy to sell. This is central to the theme of understanding what is valuable in the coin market.

💡Silver Shot

Silver shot refers to small pieces of silver that are often used for melting down and casting into bars, rounds, or other forms. The speaker mentions that silver shot was once an affordable way to acquire silver but has become less desirable in the market. This concept is used to illustrate the changing value and demand for different forms of silver.

💡Local Coin Shop (LCS)

A local coin shop (LCS) is a store in the speaker's area that deals with coins and precious metals. The video emphasizes the importance of having a good relationship with an LCS for buying and selling coins. The speaker also discusses the types of items that their LCS refuses to buy, highlighting the importance of understanding the preferences of local dealers.

💡Spot Price

The spot price is the current market price of a commodity, such as silver or gold, per unit of weight. The speaker mentions that selling silver at $10 under the spot price might make it more attractive to a coin shop, illustrating how pricing can affect the buying and selling of precious metals.

💡Fractional Silver

Fractional silver refers to small quantities of silver, often in the form of small beads or pieces. The speaker discusses the idea that some people consider fractional silver to be an excellent form of investment, especially in an economic crisis, but the speaker disagrees, noting the difficulty in convincing others of its value.

💡Colorized Coins

Colorized coins are coins that have been altered to include color, often through painting or plating. The speaker criticizes this practice, arguing that it devalues the coin and makes it less desirable in the market. The video uses this concept to caution viewers about the potential downsides of altering coins.

💡Barter

Barter is a system of trade in which goods or services are exchanged directly for other goods or services without using a medium of exchange, such as money. The speaker uses the term in the context of discussing the practicality of using silver shot in a barter situation, suggesting that it might be less effective than other forms of silver due to its lack of recognizable value.

💡Pew Pew

In the video, 'pew pew' is a playful term used to refer to a weapon or firearm, possibly in a hypothetical scenario. The speaker humorously suggests using silver shot in a 'pew pew' rather than for barter, highlighting the impracticality of using such small pieces of silver in a real trade situation.

💡Buffalo Rounds

Buffalo rounds are a type of silver coin that the speaker mentions as a more affordable and recognizable option for buying silver compared to silver shot. This term is used to illustrate the importance of choosing forms of silver that are both valuable and easily sellable in the market.

💡Premium

Premium in the context of coin collecting refers to the additional amount paid over the spot price of the metal content in a coin. The speaker warns that certain types of coins, like colorized coins, may not retain their premium, meaning they could be difficult to sell at a price that reflects their initial cost.

💡Damaged Bullion

Damaged bullion refers to coins or bars that have been altered or damaged in a way that reduces their value. The speaker mentions that colorized coins are often considered damaged and are not desirable in the market, illustrating the importance of maintaining the original condition of coins for their value.

Highlights

Coin shops are businesses that may not buy everything you bring in due to price or desirability.

The narrator's local coin shop refuses to buy certain types of silver.

Maintaining a good relationship with a local coin shop (LCS) is beneficial.

Silver shot is used by people to pour their own silver bars, rounds, or figurines.

The narrator bought silver shot when it was one of the cheapest ways to get silver.

The narrator's LCS dislikes silver shot due to low demand and the hassle of selling in small quantities.

Silver shot is considered by some as the best form of fractional silver for an apocalypse scenario, but the narrator disagrees.

Colorized coins are not favored by the narrator, who believes they destroy the coin's value.

Local coin shops often refuse to pay spot price for colorized coins.

The narrator advises against stacking colorized coins due to their lower value.

The narrator's first purchase was a colorized coin, which he now sees as a mistake.

The narrator suggests buying recognizable and easy-to-offload items for new collectors.

Buffalo rounds are currently the least expensive option for buying silver.

The narrator recommends considering buffalo rounds for melting down instead of silver shot.

The narrator emphasizes the importance of buying items that are recognizable and easy to sell.

The narrator concludes by asking viewers about other items they avoid or have seen LCS not buy.