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 Replies: 43 / Views: 4,769 |
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Pillar of the Community
United States
4901 Posts |
Quote:
Why was it so much
? What is "it" ? If you mean the $64 W...it was $18 over spot...like it is now..$18 over spot |
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Pillar of the Community
United States
1817 Posts |
Quote:Quote:Quote:I wonder what's on the horizon for the ASE in 2013? They're probably chasing the rattlers out of the Carson City Mint so they can rev up operations.... Wouldn't that be fun? And maybe the New Orleans Mint? I can see it now... box set of one ASE from each of the W, P, S, CC, and O mints... Maybe throw a D in there for good measure.  And make each mint's proof ASE have a companion reverse proof, too!   |
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Bedrock of the Community
 United States
12819 Posts |
Oooh right! Let's see, how crazy could we get... bullion, proof, reverse proof, vapor blasted, ultra-high relief. 5 coins times 4 existing mints. That would be awesome. A 20-coin set for $1,500. Ok, maybe a bit much for the 27th year of the series. Maybe for the 30th though.....  |
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Pillar of the Community
United States
3755 Posts |
Wow, I think I just had a coingasm....a CC and/or O ASE? Oh man, THAT would be INCREDIBLE! I would like sell my children into the black market to get those. |
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Bedrock of the Community
13014 Posts |
If were going to do this for the 30th lets do it right and just go all out. The Dahlonega GA mint needs to be included and we should also include the Manila one was well. Just for the fun of it and its an extra special occasion lets finish construction on the Dalles Oregon mint as well. What better first coin than the 30th ASE series? Thatd be 8 mints at 5 coins each. We could either do the 40 coin set on the 30th or if they need more time to prepare could have a 40 coin set for the 40th anniversary Edited by basebal21
07/14/2012 7:01 pm
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Valued Member
United States
157 Posts |
But it's a lot over spot therefore I ask why is the 2012 ASE so expensive |
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Pillar of the Community
United States
1817 Posts |
Because they are marketed as COLLECTOR'S coins, and not as coins for their PM content only. The Mint tries to charge a significant premium on their silver products to allow for PM price swings, but only to a point. It's when the spot price approaches the cost of the product that two things happen, they fly off the shelves, and the Mint takes them off sale for repricing. That happened several times in 2011.
Edited by Bizybackson
07/14/2012 8:33 pm
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Bedrock of the Community
United States
12819 Posts |
They will also go the other way from time to time if spot falls too far below the list price of the coin. Happened a couple of times with the ATB pucks as Ag plummeted towards the end of 2011. |
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Bedrock of the Community
United States
36744 Posts |
I've bought these burnished surface coins since they came out in 2006. Seems like at today's silver spot prices, these are grossly over priced by the Mint. This will be the first year I don't order any so those of you who did will probably end up with the key date of the series.
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Bedrock of the Community
13014 Posts |
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They will also go the other way from time to time if spot falls too far below the list price of the coin. If only the mint was as quick to adjust prices downward as they are when silver climbs |
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Pillar of the Community
United States
927 Posts |
If you look at the percentage over spot for last year's coin with $42 spot and $18 premium, this is 43% over spot. But this year's coin with spot at $27 then an $18 premium is 66% over spot. Using the same 43% over spot would price this year's coin at $39. So this comparison means this year's coin is priced $6 too high. I am not ordering any.
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Pillar of the Community
United States
1027 Posts |
The point you are missing in the pricing is that a part of what the mint charges is fixed, not based on a percentage of the silver price. First, the mint pays a small premium over spot to get the blanks, which it buys from one of three vendors. Then, for the uncirculated coins, the mint burnishes the blanks to reduce surface defects and increase die lifetimes. Then we throw in the fact that the uncirculated coins, just like the proofs, are hand fed into the presses and individually handled after being struck, put into capsules and then into their blue boxes. Then we really have to subtract the $2 that the mint charges the APs for bullion coins as this is the absolute minimum cost to produce an ASE in bulk. Virtually all of these costs are fixed and do not reduce just because the cost of bulk silver goes down. I think that the current prices for the ASEs and the AtBs are just about as low as they can go unless silver drops below $10, but it is hard to tell. The mint may be poised to reduce prices at a $25 spot or some other price that we haven't reached yet. They don't have silver on a grid like gold and platinum and even if they did, the price changes happen in jumps, not as a fixed percentage of, or dollar amount over, spot. The fact that the mint has to go through a multi-week process to reprice the silver coins means that they can't have too many spot price points where a repricing occurs. It they did, then there would be a lot of times when the coins were not available for purchase when spot was rising. If you want bullion prices, then buy bullion coins. Pristine bullion is usually available for about $4 over spot in reasonably small quantities and culls can approach the $2 over that the APs pay for new stuff. Five years ago, when silver was about $14 and the mint produced huge amounts of the uncirculated ASE, the premium was $16 over spot, so it has only gone up $2 as of today. Even if the mint is poised to make a price adjustment at a $25 spot, it probably won't happen unless sales drop. If the coin is selling at historical levels, there is no reason to lower the price. Putting some extra money in the coffers may allow them to stay off the next price increase. |
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Pillar of the Community
United States
4901 Posts |
Quote:
If you look at the percentage over spot for last year's coin with $42 spot and $18 premium, this is 43% over spot. But this year's coin with spot at $27 then an $18 premium is 66% over spot. Using the same 43% over spot would price this year's coin at $39. So this comparison means this year's coin is priced $6 too high. I am not ordering any.
Correct, since the Mint is obviously not percentage orientated, if you look at cost over spot last year's was $18 over spot....and using the same comparison this year's would be.....$18 over spot...If spot was $10 then the price would be......(fill in the blank) Look at the 2012 S set that sold at around $45 over spot per coin....and has pre-sales already at $90 over spot.... Spot has very little significance with a "collector" oriented issue Edited by Foxwoods Man
07/15/2012 12:38 pm
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Bedrock of the Community
13014 Posts |
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Putting some extra money in the coffers may allow them to stay off the next price increase. The price increase is happening very quickly when silver hits their target point. They arent going to say well we didnt adjust down when we should have because sales were too good so well just leave it as is. |
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Bedrock of the Community
United States
12819 Posts |
clairhardesty makes a good point. The mint is in fact a business, and it costs money to keep the lights on, pay salaries, do marketing, etc., let alone buy silver blanks & packaging and mint the coins. I realize they only charge AP's $2/bullion coin, but they're probably not making any money on it at that point. Also they don't have collectors' interests in mind for the bullion version. If you look at the silver quarters sets, they're selling for $41.95 right now. With $1.25 face of 90% silver, that's currently a little under $25 for the silver. That's a 68% markup, very similar to the ASE. Looks like there may be a forumla in play here. |
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Replies: 43 / Views: 4,769 |
First Page
Posted 07/14/2012 3:48 pm
