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Questions About My Very First $1 Silver Eagle

 
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Valued Member
United States
203 Posts
 Posted 11/19/2020  6:48 pm Show Profile   Bookmark this topic Add Nells250 to your friends list Get a Link to this Message
I hope I am not boring all the experienced collectors on the forum, but my brain keeps coming up with questions.

I recently decided to purchase my first $1 Silver Eagle... I SHOULD have done so a while ago but NO, I waited, so the prices went up.

Anyhoo, that aside, the first thing I did was go to "the horse's mouth", the US Mint's website. As soon as I saw their prices for single coins, I changed my mind. Perhaps I was just naive and don't understand coin collecting protocols yet, but when I purchase stamps from the USPS, I don't pay a premium for any of them! Face value is face value. Only dealers mark them up.

Then I did a little searching online and started seeing coins being offered for closer to what the stock market was saying silver was worth that day (I think that is what is called "spot"?).

I waited a bit longer, then decided to purchase one 2020 Eagle from APMEX. I got the MintDirect version that comes in a holder so I wouldn't have to worry about getting my corrosive little fingers all over it. It arrived yesterday, $44.56 including taxes and s/h/ins.

So it ended up costing me MORE than silver's daily value. BUT, it was way better than paying the Mint $67-$73 for one coin, PLUS shipping, tax, etc.

But then I discovered that the $1 Silver Eagle is NOT considered a circulating coin! It is legal tender, but falls under the category of bullion.

Suddenly, I felt like a total idiot. My coin has no mint marks, is not a proof, and not grade-worthy. Sure, I intended to get one just for the silver content, but had I made a huge mistake affecting any desire I may have in the future to sell it? It seems that there is no "market" for my bottom-of-the-barrel coin.

How do I know where was my coin minted? Will it ever go up in value if left as-is? Even a little? Are 100 year old gold coins also considered bullion? They always have value. will mine only be worth the value of its silver? Are mint-marked uncirculated versions that much nicer in quality?

As an added aside, I am seeing listings for "emergency" 2020 silver eagles. they only way to know that is what they are is if they are taken from original marked packaging. Who's to say that is what they really are? Doesn't that mean an unopened box of coins has to be submitted to the grading company? Boxes can be resealed, you know. And why do these carry a premium, because a different mint had to take over for a short time? Isn't it still the same boring coin as mine?

So many questions.





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7798 Posts
 Posted 11/19/2020  6:57 pm  Show Profile   Check GrapeCollects's eBay Listings Bookmark this reply Add GrapeCollects to your friends list Get a Link to this Reply
Lot of questions, but I'll do my best.


Quote:
Then I did a little searching online and started seeing coins being offered for closer to what the stock market was saying silver was worth that day (I think that is what is called "spot"?).


The stock indexes are usually either inaccurate or heavily delayed, kitco.com and kitcosilver.com are my goto sites for everything PM related.


Quote:
$44.56 including taxes and s/h/ins. So it ended up costing me MORE than silver's daily value


That's 100% normal. You would be extremely lucky to ever get an ASE at spot price, like, stupid lucky. ASEs have higher premiums attached to them due to the fact beyond being a bullion coin they are arguably the most collected coin in the world.


Quote:
But then I discovered that the $1 Silver Eagle is NOT considered a circulating coin! It is legal tender, but falls under the category of bullion


NCLT. Non-circulating Legal Tender. Think of it as the Kennedy half dollar nowadays. They still make them, they are legal tender but aren't a circulating coin per se.


Quote:
My coin has no mint marks, is not a proof, and not grade-worthy. Sure, I intended to get one just for the silver content, but had I made a huge mistake affecting any desire I may have in the future to sell it? It seems that there is no "market" for my bottom-of-the-barrel coin.


Not sure why you think that. Almost all ASEs are produced at Philadelphia, that can be found with a quick search, proofs are much more scarce in terms of number produced and have much higher premiums, and no modern ASE is really grade worthy. As for it being detrimental to future salability and marketability it makes little difference. Your coin as of now is worth spot plus a premium, what that premium is changes in relative proportion to spot. That ratio will likely not change within your lifetime.


Quote:
How do I know where was my coin minted?


Philly


Quote:
Will it ever go up in value if left as-is?


Nobody can tell the future


Quote:
Are 100 year old gold coins also considered bullion? They always have value. will mine only be worth the value of its silver?


Sometimes they are, sometimes they aren't. They always have value because they're gold, your ASE will always have value because its silver.


Quote:
Are mint-marked uncirculated versions that much nicer in quality?


Not at all


Quote:
As an added aside, I am seeing listings for "emergency" 2020 silver eagles. they only way to know that is what they are is if they are taken from original marked packaging. Who's to say that is what they really are? Doesn't that mean an unopened box of coins has to be submitted to the grading company? Boxes can be resealed, you know. And why do these carry a premium, because a different mint had to take over for a short time? Isn't it still the same boring coin as mine?


There is no difference, it's a marketing gimmick.
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Valued Member
United States
203 Posts
 Posted 11/19/2020  7:16 pm  Show Profile   Bookmark this reply Add Nells250 to your friends list Get a Link to this Reply
GRAPE: Some good answers there!

Especially about the "emergency" mintings, and the fact that the marked uncirculated coins from the Mint are NOT of better quality than mine. I knew the proofs were, but assumed the uncircs were as well.

As for marked vs. unmarked value, I was getting the impression that non-mint-marked coins were like -step-children.
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United States
2655 Posts
 Posted 11/19/2020  7:33 pm  Show Profile   Bookmark this reply Add hfjacinto to your friends list Get a Link to this Reply
Nells

I have a full set of the "bullion" ASE. They are not the step children. They sell more of the bullion in 1 year than all the "proof" version ever made.

Check out my post here:

http://goccf.com/t/386399


As to price see if you can find a local coin shop, ASE sell about $2.50-$5.00 over spot.

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 Posted 11/19/2020  7:33 pm  Show Profile   Bookmark this reply Add westernsky to your friends list Get a Link to this Reply
OP...

Pay attention to the direct mail and Sunday newspaper advertising supplements and you will sometimes see Littleton Coin Company advertise a current year silver eagle "at their cost".

I just bought a 2020 from them back in September for just under 20$ delivered. They do this as an advertising promo to gain more customers.

They did not send me any coins on approval so I did not have deal with returning anything. All I got was my 2020 eagle and one of their advertising catalogs.

Works for me!
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Australia
17599 Posts
 Posted 11/19/2020  8:08 pm  Show Profile   Bookmark this reply Add sel_69l to your friends list Get a Link to this Reply
If I was to acquire a pure silver bullion coin, I would go for a banged up example, from a coin show for as close to spot value as possible.
No matter how good the condition a bullion coin may be, it
can only be sold back onto the market for its bullion value - less perhaps 5%.

That's why I find 1 kg cast silver bars so attractive.
Also less storage space required, because there is less packaging.
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2655 Posts
 Posted 11/20/2020  2:01 pm  Show Profile   Bookmark this reply Add hfjacinto to your friends list Get a Link to this Reply
Hi Nells!!

Because of your post I went to my local coin shop. Standard Bullion ASE sell for $29. If you want a proof, random dates are $52. Those are not slabbed they come in a box for proofs and in a flip for bullion.
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 Posted 11/20/2020  5:46 pm  Show Profile   Bookmark this reply Add Bret to your friends list Get a Link to this Reply

Quote:
No matter how good the condition a bullion coin may be, it
can only be sold back onto the market for its bullion value - less perhaps 5%.

This is not true. I recently sold a monster box of the 5oz ATB pucks. I got around $3 per ounce over spot. That said, I agree with your idea of just buying whatever at as close to the spot price as possible. The problem with the 5oz ATB, 1oz ASE or other mint products is that the premium also goes up or down depending on the availability of the coins in the market. On average, the premium you'll pay will be significantly more than the premium you'll be able to get when you sell, if any. When you sell these mint coins you really have to work to find a dealer that will give you the most premium. With plain silver bars or gold bars, you don't have to work near as hard to get the most money because nobody pays a premium for them.
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United States
203 Posts
 Posted 11/20/2020  5:55 pm  Show Profile   Bookmark this reply Add Nells250 to your friends list Get a Link to this Reply
I don't think we even have coin shops in Massachusetts anymore. There used to be one right here in town, but they left YEARS ago.

Lemmy look................

OK, I guess I was wrong! I know the stamp stores are gone...

There does indeed seem to be a mix of $$$ coin-only shops, coin & jewelry shops which I always have been weary of, even a bullion specialist not far from me, though they seem to not be open to the public.

I am not in the financial position to buy much of anything right now, but maybe someday I can "invest" in more of these coins.
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 Posted 11/21/2020  1:07 pm  Show Profile   Bookmark this reply Add suipakpaikungfu to your friends list Get a Link to this Reply
I always manage to sell my ASE's to bullion shops for over melt. usually $1-2 over.
Regular bullion rounds always have to sell below spot.
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 Posted 11/21/2020  3:08 pm  Show Profile   Bookmark this reply Add BStrauss3 to your friends list Get a Link to this Reply
The mint does not do enough to prevent confusion...

The ASEs sold on the mint site are collector products (proofs and enhanced uncirculated) so they sell for premiums over the spot silver price. Whether the premiums are justified, well that's another discussion.

The ASEs sold for bullion as bullion products. The mint sells them to 12 or 13 "authorized purchasers" at spot plus a bit to cover manufacturing costs. Those APs sell them direct to customers such as yourself and also to other sellers.

(IIRC APMEX is an AP but Provident is not - so to get the ASEs that Provident sells they have to buy from an AP which will cost at least a smidge of a markup)

The prices of the bullion coins pretty closely track the spot price of silver with a premium to buy and a smaller premium (or even a discount) to sell.

It's not uncommon for the prices of the collector's editions to fall below mint issue price (sometimes while they are still on-sale from the mint!)

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Valued Member
United States
203 Posts
 Posted 11/22/2020  1:25 pm  Show Profile   Bookmark this reply Add Nells250 to your friends list Get a Link to this Reply

Quote:

It's not uncommon for the prices of the collector's editions to fall below mint issue price (sometimes while they are still on-sale from the mint!)


Yikes, REALLY? Wow, that hurts... I do see as I learn a bit about this hobby that brand spankin' new issues are OFFERED for $$$ on Ebay, etc... whether or not they SELL for that I don't know, though I can't help but think there are the usual brand of collectors who MUST have the latest and (potentially) greatest.
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