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 Replies: 21 / Views: 3,573 |
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Valued Member
United States
420 Posts |
Good Morning, I'm currently looking for a 2003 and 2011 American Silver Eagle. I called a local coin shop and they are asking $44 ($8 over the spot price of silver.) I checked ebay and Buy it now prices were around the same (including shipping.) Some auctions were lower though but closed auctions were the same and coin shows are about the same too. My question is how much over spot is too much to pay? I know there is no "set rule" and I'm a collector not an investor, I'm not sure if that matters. Some people are adamant that they will not pay more than $3 over spot and everyone else should too. Based on what I'm seeing even at coin shows $8 over spot is the norm at the moment. Do I not understand how price markup works or supply and demand? I know precious metals are really big right now too. Any thoughts would be greatly appreciated. Thanks, Rich Rich M. - Collector since 2008
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Bedrock of the Community
United States
12437 Posts |
Nominal price for a 2011 Silver Eagle is $2/coin over spot with a minimum order of 25,000- that is what the Authorized Purchasers are charged by the Mint. APs do not usually sell directly to the public, so the coins must pass through another hand which bumps them up another $2 or more. Soaring silver has also been putting pressure on demand- higher demand leads to higher prices over spot.
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Pillar of the Community
United States
3184 Posts |
demand is causing stores to overcharge hence your seeing prices like $5+ over spot
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Valued Member
Canada
442 Posts |
have to agree, the rising price of silver is making it harder to find certain items.
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Pillar of the Community
 United States
2448 Posts |
Sorry to hear that. I'm looking for a couple of 2011s my self. I'd sell you one of my extras (I have lots of earier years) but I don't have 2003s.
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Pillar of the Community
United States
2424 Posts |
my coin shop has most ASE's selling for $2 over spot... |
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Valued Member
United States
118 Posts |
Coin shop near me sells them for $3 over spot, but usually have only few in stock.
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Valued Member
United States
463 Posts |
Its a waste of money thats why I dumped all my ASE except the one that filled my album. This has been talked about by many and I totally agree with it so I dumped all of them and bought pre 1965 silver, isn't the main goal to get as much as possible with your money. For example say you want 1000 troy oz of silver and we will use todays spot which is closed at 34.35 ASE $2 over spot 1000 x $36.35 = $36,350 (spot for total $34,350) now lets use the same money used to invest in the 1000 ASE ($36,350) 1368 Peace dollars = 1058.0803 troy ounces of silver = $36,345.06 wouldn't you want about 60 oz more in silver for the same price? and another thing to consider is if silver falls you now loose more due to the higher make up |
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Pillar of the Community
United States
2424 Posts |
Bingo bryan!
gotta love that 90%
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Valued Member
United States
198 Posts |
The problem is if you are a coin shop like I work in. You have competition. A person brings in a 100 oz bar.At 36 an oz we paid 3400 for each 5 bars last week. Now silver has dropped to what we paid for it.We have to sit on it till it gets to 36 again.
Had our Eagles at 42 lately. Did not sell many. Dropped to 40 today sold 900.
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Valued Member
Cyprus
349 Posts |
sounds like lots of competition in the USA for silver. Wish it was the same in Australia.......
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Bedrock of the Community
Australia
21788 Posts |
I don't like paying anything over the spot price. All of my scrap silver coins have been acquired almost accidentally as part of a lot or parcel of coins, some of which would have been scrap silver. I only have about 6 ounces of scrap silver, which is not really enough in my opinion to be bothered with selling.
If I sold them to a dealer, he would probably offer me way below the ASW spot price for such a mixed lot of world coins in poorer grades.
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Rest in Peace
United States
9104 Posts |
If you don't like what dealers charge for stuff, run an ad in the paper buying silver, and get it for 20% under melt. Then sell the 99% of what you buy that you didn't want.
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Pillar of the Community
Canada
3692 Posts |
Hey Bryan, I realize that the following is a moot point because you're talking about price, but if I had the choice I'd take the pure because it would take up less room. If we're talking about a lot like you are then I think storage might be an issue. You have to look after those Peace dollars, making sure they don't numismatically become worth less than before (unless they are "junk"). And packaging each individual coin that way takes up even more room than the 10% copper, whereas the pure is all in tubes or physical stacks. A question, if you wanted to dump your load at a critical point, which would be easier to sell all at once? |
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Rest in Peace
United States
9104 Posts |
Quote:
demand is causing stores to overcharge hence your seeing prices like $5+ over spot
What you suggest is impossible. If dealers ask too much, the customers just won't buy. The premiums are there because that's the price buyers are willing to pay, and therefore is the market price, not an overcharge. |
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Valued Member
United States
425 Posts |
Quote: "A question, if you wanted to dump your load at a critical point, which would be easier to sell all at once?" And this is the real issue! I went in my local shop to trade some Silver for Gold. He did not want to give me anything for the 90% or a few 10 oz. bars, but he was begging me for my ASE's! If you are holding 90% as an investment, you must understand that when you try and cash it in, someone has to have it melted and refined. An ASE is already there and can be bought and sold in hand! |
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Replies: 21 / Views: 3,573 |
Posted 03/14/2011 12:56 pm
