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 Replies: 11 / Views: 1,807 |
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Valued Member
United States
315 Posts |
Imho, supply is vastly higher than demand. But, everybody knows that the mint sells them at spot +2 to banks and dealers, so that's what everybody pays. It's surprising to me to see that many ASE sales and all of them are at exactly the same price, when silver in all other forms go at spot or less. |
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Pillar of the Community
United States
4901 Posts |
I will first assume you are referring to bullion ASE's and not the W version.... The "spot plus $2" and "all being the same price" is because, as you said, the Mint charges a premium for the .999 bullion coins. In order to make any profit the price would be higher than that cost. They are all the same cost because they are all .999 bullion regardless of year of issue. I doubt you will get any .999 silver "at spot or less". You can buy .999 private mint silver at less premium than the ASE's but they are not as easily traded on the other end. Bullion ASE's are very easily exchanged and are a well known and respected product. For comparison these are the present premiums on various bullion products at my favorite online dealer: ASE's $2.70 (over spot) Canadian Maples $2.19 (.9999 purity) Private mint rounds .79 Private Mint 1 oz. bars .99 I did not consider junk or 90% silver |
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Pillar of the Community
United States
5825 Posts |
ASE's are struck from dies and on prepared planchets.
That costs extra.
Hence they sell for extra.
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Pillar of the Community
United States
2543 Posts |
Quote:
Imho, supply is vastly higher than demand. By Congressional decree, bullion Eagles must be minted to demand. So if they are minting 40,000,000 then demand must be 40 mil. I agree with everything that F.M. said in regards to ASE's vs bars/rounds. It is only the uninformed buyers and collectors that will pay over spot + modest profit, because at the end of the day , it is still just silver. Every once and a while my LCS will buy a monster box from someone at spot or on the rare occasion below spot from someone. He then will have a short sale at spot + .99 just to get people in the door. |
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Valued Member
United States
477 Posts |
I recently sold 3 ASEs there and got over $30 for each one, that's about $9+ over spot.
Rick
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Pillar of the Community
United Kingdom
2869 Posts |
You do realise that ebay will charge the seller 10% of the final value + Paypal fees if they are included - so if a seller buys them at spot +2 to make a profit he needs to include that in the asking price. |
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Bedrock of the Community
United States
17884 Posts |
With ebay and paypal fees running about 12%, if you bought at spot and sold for spot + $2 you are still losing money. |
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Pillar of the Community
United States
5202 Posts |
Quote:
But, everybody knows that the mint sells them at spot +2 to banks and dealers, so that's what everybody pays. So how many have you bought at +2 over spot because I would venture to say none as no one sells them for that price because they would be breaking even. The main bullion dealer here who supplies all of the other dealers in town sells them to club members for +4 over spot cash no tax. If you are selling at +2 over spot I am a cash buyer. |
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Valued Member
 United States
315 Posts |
What I'm saying is that on ebay, any other form of silver is at the mercy of supply and demand. Only ASE's seem to be immune. I've never seen them less than +2, and +3 is most common. |
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Pillar of the Community
United States
1903 Posts |
It all boils down to confidence. People are confident in the content of a silver eagle and are willing to pay a premium for it. The ASE is a universally recognised standard in silver. Silver bars and private minted rounds are made in such huge variety that it is harder to recognise a fake vs the real deal, therefor people aren't confident enough to pay a premium for them. A good analog would be vodka....vodka is a clear distilled spirit....alcohol is alcohol, yet people will pay a premium for well recognised brands for the quality standard they represent. |
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Bedrock of the Community
13014 Posts |
None of the silver is at the mercy of supply and demand and never really has been other than short periods of massive buying due to an extreme price change. They all have pretty well established premiums or lack thereof. If it was supply and demand none of the silver would come anywhere close to spot. Theres 100s of thousands of silver listings on ebay, more than enough to go around. ASEs are a premium form of silver and as such they command a premium price compared to junk silver or generic rounds. |
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Pillar of the Community
United States
1590 Posts |
Up till 2010 most older ASE's could be had for spot or a touch above. Prices at +4 and above are a relatively new phenomena. Up till the "mad silver rush"; I bought at spot minus a dollar and sold at spot, or spot plus a dollar. I expect that in 2 or 3 years when everything has died back down to normal that it will be about the same again. |
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Replies: 11 / Views: 1,807 |
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Posted 10/16/2013 08:24 am
