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 Replies: 10 / Views: 3,158 |
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Pillar of the Community
United States
4867 Posts |
Why can't regular issue bullion coins be bought direct from the mint wether they are Silver Eagles or Maple Leafs? I know they sell proofs and whatnot but why not regular strikes?
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Bedrock of the Community
United States
12437 Posts |
The profit margins are very tight for bullion, The US Mint would either lose money selling them to the public or would have to raise the prices to prohibitive levels. The Authorized Purchasers operate on a contract system where they are mandated to purchase minimum quantities, they also must have a distribution network and meet capitalization requirements as well. Silver Eagles can be obtained for $2 over spot but only in quantities of 25,000 coins(50 green monster boxes).
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Pillar of the Community
Canada
1502 Posts |
Exactly
Not worth their money to set up and run the required customer service department and massively more taxing shipping services.
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Pillar of the Community
 United States
4867 Posts |
Would be nice to cut the middle man and buy direct. The authorized purchaser probably marks them up quite a bit.
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Pillar of the Community
United States
1450 Posts |
Welcome to American commerce. If we bought everything we need directly from the producer most goods would probably be 50% of what we pay if you could pay the actual production cost plus a small premium. The down side is, many goods would not be readily available to most of us so our commerce system developed to meet the demand for worldwide products.
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Rest in Peace
United States
9104 Posts |
Quote:
Would be nice to cut the middle man and buy direct. The authorized purchaser probably marks them up quite a bit.
Yeah, like 25ยข a coin. I guarantee you would not be able to buy cheaper from the mint, and they ceretainly don't have the time for hand holding of every bigtime investor who wants to buy $100 worth of silver. |
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Rest in Peace
United States
9104 Posts |
zig-
If it was more practical to deal direct, don't you think commerce would have developed that way?
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Bedrock of the Community
Australia
21786 Posts |
Most mints are in the business of producing coins, not bullion. In the last 20 or 30 years, a lot of mints have found it profitable to produce bullion collector coins, and so they have extended their minting expertise into this area. These products are usually of high quality and usually carry a high premium over their bullion value.
If you are STRICTLY into bullion, these products are often better value on the after market and perhaps are best for consideration, when a buying or selling opportunity presents itself, and according to your budget. It is a bit like buying second hand jewelry at a much less price than the new product.
If you can also see collector value in these products, then maybe these are OK to buy from the Mint or their agents. Some mints only sell through agents.
It is a bit like buying second hand jewelry at a much less price than new product.
Like all investments, you must know your market before buying or selling.
Edited by sel_69l
10/09/2011 09:05 am
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Pillar of the Community
United States
667 Posts |
All good points but I really believe it was pressure by a few companies and congress to set it up this way.
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Bedrock of the Community
Australia
21786 Posts |
If you are after silver bullion coins, there is nothing wrong in buying the products from other recognised Mints around the World in the after market.
IMO there should be one consideration only, if you are into bullion silver:
?How many actual silver ounces or grammes for the price?
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Pillar of the Community
United States
931 Posts |
I think it creates another payoff opportunity for mint officials to make a little greasy money by "choosing" their distributors, much like all of the free lunches that our representatives enjoy. Someone buys thir dinner an they can just pocket their per diem.
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Replies: 10 / Views: 3,158 |
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Posted 09/30/2011 10:30 am
