Silver Premiums for Classics, Commemoratives, & Bullion

Figured a thread on the premiums we are seeing on bullion coins, classic coins (i.e., MSDs), and commemoratives would be useful.

The most coins I have -- but not the biggest $$$ committment -- is silver coins. Most of mine are commemoratives or bullion coins like ASEs, Wedge-Tailed Eagles, Koalas, etc.

It appears at first glance that the premiums on these coins have followed the same path as gold premiums, that is to say, erosion. My Wedge-Tailed Eagles sold at huge premiums when I bought most of them beause silver was under $20/oz. PF-70 and PF-69's that I paid a 150-250% premium now have a 50-100% premium, though I see ASKING prices that are triple or more the price of silver.

 

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I been buying my bullion in local auctions here of late. I picked up a sizable batch of silver dollars barely below spot but once you factor in the shipping and auctioneers fees they come out a hair over spot. Not sure what the brick and mortar shops are getting right now.

 

My LCS sells most silver products to me at least..LOL at $2 over spot with no tax in the state of Nevada, so I consider that a pretty good deal, buys at $3 but by percentage GOLD is much higher.

 

I've been hearing stories about a lot of collectors selling their slabs and collectibles so that they can buy bullion. I'm not sure if that is the case, but that is what I am hearing.

 

Testing the sellers' Market a little bit Saturday by selling (2 Indian heads and 5 AGE 1/10 ounces of gold, 20 Ase, 80 franks, 3 rolls of quarters. a box of mixed silver at my Late father-in-law estate auction, Railroad items also I should have totals by Sunday Oh Yeah Auctioneer gets 15% on personal items and 6% on real estate it changed a little from first told us.

 

Seems like the opposite of a good move. Sell bullion during a spike, buy premium coins while the premiums are compressed.

When silver spiked back in 2011, I spent some of my time and money looking for lots sold as bulk silver that contained better coins. I didn't always succeed; sometimes the stuff just isn't out there, and sometimes I thought I'd found a treasure but it turned out to be just more trash. But I did manage to flip some of the stuff for a profit even after the silver bubble popped.

Even before 2011, people were talking about all the really good stuff that went into the furnaces during the 1979-1980 spike. I'm not seeing anything to make me think this time is different. I wish I could be in a position to search some of those batches heading off to refineries.

 

People say that, but most of the time what happened, (in my opinion and what I saw), was that the coins DID go into silver junk bags, but the bags simply traded hands as bags. Think about it, a certified bag of $1000 FV coins is just as efficient as a silver bar and a whole lot cheaper to produce than refining it.

I am with you though. My go to was to buy bags put together when silver was high but after it had come down. I found lots of good stuff in the 1980s and 1990's from bags assembled 1979-1981.

Myself, I simply tend to wait out these spikes. It will come down eventually, (maybe to a new higher normal but still). When people say "its different this time" it usually isn't.

@-jeffB feels like we are writing like its 2011 all over again doesn't it?

 

Good to hear, but not surprised. Premiums have always compressed when pm spikes. If people wish to wager pm prices will remain where they are or higher a smart play is to buy better stuff right now, and when people adjust to the new price level the premiums will return. However, the danger is that pm will drop. Even if pm drops, though, I would say buying better stuff in high pm markets give you more "cushion" if it drops due to premium coming back later.

 

I built sets of commemorative dollars and silver eagles, all from the US mint. I quit these sets about 6 or 8 years ago. For many years the value of these were much less than I paid. It's nice to see the increase.
At the same time it's not easy to sell a bunch of these in mint packaging. Too much of it already out there.