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 Replies: 10 / Views: 1,706 |
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Pillar of the Community
United States
1116 Posts |
Just out of curiousity, when do you feel that the U.S. mint will lower the price for its silver products. The reason that I'm asking is that the price of its 5 ounce products = $41 per ounce. The ASE = $61/oz for a proof coin, I'm not sure of how to translate the commerative 90% silver weight but I believe that the current mint price is more than twice what we'd pay for a Morgan or Peace dollar (granted they are 70 years older than the latest commerative dollar). With my poor math, I believe that the silver proof set of quarters is about $48 per ounce. When the new SF ASE come out they will probably be priced equally as high. I am currently holding off on purchasing some items from the mint because of their prices. But quite honestly how do you avoid a monopoly. You can't. So eventually I'll have to make my purchases or fall behind in my collecting.  I am probably going to be behind the  |
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Pillar of the Community
United States
2269 Posts |
I have purchased plenty of silver from the mint in the last 6 years. One thing I learned is they are slow to adjust their prices if the spot price drops and quick to raise their prices if there is an increase in the spot price. If silver continues to stay under $29 dollars for the next week, they might make an adjustment soon.
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Bedrock of the Community
13014 Posts |
For the silver prices the Mint goes off of the average price for a period of time, I think its like a week or two but cant remember the exact amount of time.
The pucks are over priced at the moment and should probably come down soon unless thats the lowest the Mint wants them to go.
All of the coins in terms of pure bullion value are over priced at the moment, but most of the prices you were quoting are for proofs. Only the actual bullion coins depend solely on the metal price. The proofs and uncircs will always carry a premium over the spot price especially the proofs. Their value is also more in the coin itself (without significant spot price changes) than just the raw material.
That said they are carrying a larger that usual premium at the moment but no matter what silver does you will never see $10 or $15 proof ASEs
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Pillar of the Community
 United States
1116 Posts |
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you will never see $10 or $15 proof ASEs We can dream can't we? But in order for this to happen the price of silver really has to go into the toilet. I wouldn't want to see that either. Edited by ghostrider
05/23/2012 01:18 am
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Bedrock of the Community
13014 Posts |
Ghost I would be fine with it under 1 condition, it rebounds fully. Give me a week to stock up on every coin I need to back fill and then rebound so everything else isn't basically worthless. I do wonder what the lowest they would go on an ASE if silver was back to 5 bucks for whatever reason. I'm guesing 30-35 for a proof |
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Pillar of the Community
United States
2269 Posts |
I think in 2006 I paid $22.00 for the Uncirculated W Silver Eagle. I know it wasn't a proof, but that was the lowest price I paid for a Silver Eagle directly from the mint. Silver spot price might have been around $15.00.
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Pillar of the Community
United States
2661 Posts |
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One thing I learned is they are slow to adjust their prices if the spot price drops and quick to raise their prices if there is an increase in the spot price. Just like "Big Oil"  |
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Bedrock of the Community
United States
17884 Posts |
Quote:I do wonder what the lowest they would go on an ASE if silver was back to 5 bucks for whatever reason. I'm guesing 30-35 for a proof In 1986 silver fluctuated between $4.80 and $6.20 I believe the proof eagles were around $22 to $24 then. And there was a lot of complaining about the excessively high price. |
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Pillar of the Community
United States
1116 Posts |
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In 1986 silver fluctuated between $4.80 and $6.20 I believe the proof eagles were around $22 to $24 then. And there was a lot of complaining about the excessively high price. If the pos was between those figures I would hope that there would have been a lot of complaining and well as a lot of people not buying. Nothing speaks quite so loudly as an empty cash register. I wasn't in the game back then (and probably should have been) but I wonder if the mint eventually lowered their prices. I understand that bit about signorage (spelling) being paid to the government, but still there is the bit about a good price for a good product. Why is it that the US Mint is the only federal government operation that is supposed to earn a product when everything else is that the government handles is a money losing event or fiasco. (This is not a rant about the govenment.) |
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Bedrock of the Community
United States
17884 Posts |
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If the pos was between those figures I would hope that there would have been a lot of complaining and well as a lot of people not buying. Look at the mintage figures, they bought. Why? Because the proof was considered a collector coin not just a bullion item and $22 wasn't that much money And no the price of them did not go down, at least not from the mint. It was possible to buy them cheaper on the aftermarket. Quote:
Why is it that the US Mint is the only federal government operation that is supposed to earn a product (sic profit) when everything else is that the government handles is a money losing event or fiasco. Don't worry, they have finally fixed it so the Mint will lose money this year. At least on the circulating coinage. They will have to use whatever profits they make on the collector coins to offset the circulating coinage losses. Last year they made between circulating and collector coinage over $400M. If they had been operating under this years rules they would have made $11M. And the only reason it would have been that high was because they made $51M on the collector coin sales. |
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Bedrock of the Community
Australia
21786 Posts |
The Mint buys it's PM's on forward contract which has it's own inherent risk.
Like any other mint, they have all of their 'on' cost above the price they buy their PM's for.
Those costs are to name a few, no particular order:
labor costs, insurances, profit, buildings and plant maintenance, packaging, marketing, and machinery purshase. Usually, the customer pays for the shipping, but for the customer, that becomes part of the premium above the PM price.
These costs can vary somewhat, but the customer still has to pay for all of them, if they wish to buy Mint product.
The decision to buy still rests with the customer, for whatever reason.
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Replies: 10 / Views: 1,706 |
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Posted 05/23/2012 01:05 am
