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- - Silver Wartime Nickels - always below spot? (http://goldismoney.info/forums/showthread.php?t=24473)

AgCollector | 10-04-2005 10:28 AM
Silver Wartime Nickels - always below spot? Hi All, First time post (though have been reading a while) and I'm just starting to get into purchasing PMs. I have mostly purchased 90% junk but have also started to buy silver nickels. In doing so, I've noticed that they're almost always below spot (at least on eBay) in terms of their silver content- sometimes 10-20% below. Has anyone else noticed this? If they're really that discounted why doesn't someone buy them up and melt them all and make 10-20% profit? Is that illegal? Is the discount because they're not desirable and/or not liquid? Most importantly, is it a mistake to buy silver nickels? I don't see much discussion of them here (as opposed to 90% / 40% or rounds, etc...) I'd really appreciate any insight anyone can lend! AgCollector

RossL | 10-04-2005 02:54 PM
Re: Silver Wartime Nickels - always below spot? Quote:
Originally Posted by AgCollector Hi All, First time post (though have been reading a while) and I'm just starting to get into purchasing PMs. I have mostly purchased 90% junk but have also started to buy silver nickels. In doing so, I've noticed that they're almost always below spot (at least on eBay) in terms of their silver content- sometimes 10-20% below. Has anyone else noticed this? If they're really that discounted why doesn't someone buy them up and melt them all and make 10-20% profit? Is that illegal? Is the discount because they're not desirable and/or not liquid? Most importantly, is it a mistake to buy silver nickels? I don't see much discussion of them here (as opposed to 90% / 40% or rounds, etc...) I'd really appreciate any insight anyone can lend! AgCollector
During the 1979-1980 silver price spike, the refiners had all the 90% silver bags they could handle. With weeks of backlog. Silver war nickels are more than half copper and only 35% silver. Since this made them harder to refine, the refiners would not bid for them if 90% bags were available. It's not illegal to melt them.

AgCollector | 10-05-2005 05:50 PM
Re: Silver Wartime Nickels - always below spot? Quote:
Originally Posted by RossL During the 1979-1980 silver price spike, the refiners had all the 90% silver bags they could handle. With weeks of backlog. Silver war nickels are more than half copper and only 35% silver. Since this made them harder to refine, the refiners would not bid for them if 90% bags were available. It's not illegal to melt them.
I guess the cost to refine them must be the 10-20% discount to melt that exists.

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