will overproduction of ASE hurt or help value?

Unless there are unusual circumstances, like in 1964-1966? and 1975-1976.

 

Log in or Sign up to hide this ad.

I agree. However, some people collect them and that makes the rarer dates and better quality examples worth a little more to those people. I generally pass on those since there are plenty of others available at bullion prices.

 

Apples to oranges.

First off, Scotch Whiskey is not readily available in most third world countries. It's not like there's a liquor store every two miles. Same with Nike gear, which has held a premium regardless of what country it's sold in because it's quality stuff.

As stated, 1 oz. silver rounds(which ASEs are), will not be effected by the total number minted as the price of silver is what dictates the value of the ASE.

 

So please explain the 1995W AES.

 

When Congress authorizes a special coin, the legislation usually specifies what limitations are placed on production.

 

I think that even without slabbing, ASEs will have numismatic value once the Mint stops producing them [and they will] because demand will continue to rise but supply will be fixed. ASEs will someday be considered to be in the same category as Morgan and Peace dollars. They just aren't there yet. This is only my opinion since nobody knows the future.

 

IMO ASE was issued as bullion the idea being they are products intended for investment vehicle for diversification of one's asset and should not have numismatic value they are not called commemorative/collector's coin for a reason. I actually want states to accept the use of bullions' for cash transactions (based on current spot value).

Anyway Morgan/peace dollars are not bullion's apart from that those coins where circulated and so yes in spite of their high mintage amount available in good condition is rare. Unless we have 3rd world war or government seizure with ASE the number of MS68+ for any year is never going to go down even 50 years into the future and in fact the numbers' will only keep raising. Only possibility is increasing collector base in other countries but if you want to play that i would stick with Perth mint products than anything from US mint.

 

I don't know if any of that matters. ASEs will have numismatic value if collectors decide they do. When people 75 years from now look to collect the great coins from the late 20th and early 21st century, I would be very surprised if ASEs aren't near the top of the list. One of these years, I don't know when, the Mint will discontinue production of ASEs or start a new design. There is going to be continuing demand for individual coins and complete sets, and the lower mintage years will sell for a premium even if the higher mintage years sell close to bullion value. And this will only increase over time.

 

That is an interesting question. That is, will modern bullion coins have the same historical status, and hence numismatic value, in the future that circulating coinage from a century ago has now? It seems to me that it probably won't but this is nothing more than an opinion and I admit the worth of an opinion.

 

It doesn't matter how many of them they make. They've already made plenty to ensure the bullion coin premiums stay where they are, notwithstanding the anniversary sets and reverse proof coins.

 

Well, ancient coins still have numismatic value yes? It's not so much about how far in the future do we need to go for this to happen, but rather how rare will the metal be in the future, and will it be desired more for the metal content than the coin itself? If silver returns to a monetary role through natural selection via a barter system I would imagine most folks won't care about what premiums were paid in the past. I don't know the answers, but since there is no guarantee that numismatic value will be retained indefinitely I stick to mostly bullion.

 

Yes, the production of more ASEs will affect the value of *those* ASEs. We are already seeing price divergence between different dates of ASEs (e.g., the '96 generally sells for more than the others). And there is precedence for certain kinds of bullion to carry a premium as collectibles: the Engelhard bars generally sell for a premium compared to other bars, even though they were designed as bullion. But because ASEs are made of 1 ounce of pure silver, they will always be worth at least 1 ounce of pure silver. They will also carry a small premium due to being a product of the U.S. Mint.

 

Despite some divergence in values between different dates of ASEs, they should be considered first and foremost as bullion and not collectibles. I personally think it's ridiculous that people are paying extra money to buy ASEs in slabs.

 

I used to be able to purchase ASE's at $7 over spot. I did. What have you got to lose at $7 over spot for a slabbed coin? It will carry a premium unslabbed ASE's cannot match (for the most part - I have heard tales differently, but ebay sales figures don't lie (I think)).

 

Well, to each his own. With tens of millions of the newer ASEs, many will remain in high mint grades. This is especially true as many people, such as myself, tend to immediately place ASEs in plastic airtites or tubes. I think it makes some sense to buy those with lower mintages in slabs, but those as well can be bought raw (edit: not if they are significantly more expensive, which they probably are).

I just think when the SHTF, investors will get better returns by generally regarding ASEs as nothing more than bullion.

 

Price difference between slab and non slabbed bullions' is very small unless they are gradded 69/70. In fact for example many speculators who bought 2012 Dragons in bulk, unslabbed any 68s and re sold their lunar dragons since they got a better price in ebay (since people were hoping to grab it and get it a better grading).