Can anyone (who isn't making a profit on the status quo) explain to me why we can't just buy our own government's coins (Gold and Silver Eagles) from our own government? (I don't mean high-priced proof and uncirculated coins for collections; just regular AGEs and ASEs.) After all, the Treasury sells far more complex instruments (bonds, notes, etc) without any problems. Why should US citizens be subjected to dealers' scams, ploys, and erratic premiums when buying something that their own tax dollars are paying for? Congress started the Eagle coins "to provide investors with a convenient and cost-effective way to add a small amount of physical platinum, gold, or silver to their investment portfolios." But the dealer-only monopoly that the US Mint leaves in place significantly thwarts that motive. Is the coin dealer lobby so strong that they can preserve this costly cartel? Has anyone seriously tried to change this situation?
Probably a matter of not wanting to deal with many, many small orders and the quirks of each individual purchasing. Better to just sell high volume to a few dealers and let them deal with the people. Welcome to Cointalk!
The mint made 30 million silver eagles last year. Do you realize what kind of infrastructure is required to process that much physical product? The mint stumbles over the amount of product they have to deal with now. These are not electronic transactions like bonds. By selling large numbers of eagles to a small number of dealers they are basically out sourcing nearly all the storage, packaging, accounting and distribution to those dealers. All the logistics are done more efficiently than the mint ever could. Buying from the mint directly would almost certainly result in a higher price over spot than you pay now.
I'm sure you're right, and yet, over the past few years the US Treasury has found an efficient way to deal with many small accounts for Treasury notes and bonds.
Look at all the practically fraudulent solicitations popping up everywhere to sell AGE and ASE to the unsuspecting public at ridiculous premiums. Even the legit dealers charge premiums that are all over the map, completely irrational pricing based solely on incomplete information among naive buyers. I just hate to see my government use my tax money to conspire with a small, unregulated business cartel to rip off the unsuspecting public. Try asking -- as lost people on this forum often do -- "Where should I buy ASE and AGE?" Notice the ridiculous range of answers, misleading suggestions, and shrugged shoulders. The "dealer model" clearly is not working for most American buyers because there's STILL no coherent list of dealers that allows quick and reliable comparisons of final costs.
But we pay these "folks" already, having them actually perform a function and work for a living may be revolutionary, but realistic - ooops, I said that outloud?
People by from a dealer (or in some cases are dealers themselves I'm sure) then they apply some gimmick like colorization to the coin, take out a full page add and then fleece the unsuspecting public. Get rid of the dealers and people will buy direct from the mint then apply some gimmick like colorization to the coin, take out a full page add and then fleece the unsuspecting public. The problem here has nothing to do with the distribution method. It is a problem with misleading advertising and a gullible public whose financial acumen is lacking. The problem that allows the bullion scammers to exist is the exact same problem that allows the Nigerian phone scammers to, and the infomercial widget sellers, and the cold call phone guys and it is the same reason my inbox is filled with spam. Everyone will occasionally make unwise choices with their money and other people will seek them out to take advantage. Changing the distribution method would not fix that. I have not seen anything like that on this forum. There is a list of dealers that do such a thing, it is the phone book.
I have often wondered the same thing. My thought was to have U.S. bullion coins distributed through the banking system. The treasury would distribute them to the banks as they do all other coins. The banks could then sell the bullion directly to the public at a small mark up to make it worth their time.
If we're brainstorming alternatives to the current system, how about selling them through post office branches? I believe there's precedent from other countries.
Yeah, it would make just too much good sense for the US Mint items to be sold through the Post Office. I guess that is why they don't do it.
At one time you could buy from the Post Office. I remember people buying the 1984 olympic coins from the Post Office.
Obviously you must be thinking of some other forum. I've never noticed any of what you describe here on this forum......
Funny how the events of the last week or so and the 5-month high rise in gold prices has spawned quite a number of new members in the forums. Just look how the bullion investing threads have lit up this weekend. If a new member with so few posts to this forum is speaking about this forum given the earlier comment, they certainly have no clue about the plethora of valid information, not dis-information, that this forum contains. These CT forums do more to correct the wrongs and misguided advice and point those with questions in the right direction than many other shootin' galleries. :thumb: New members should stick around for a while and read a lot more, use the search function to dig up old threads and look for what I'm talking about. CT is a good place for info and finding the informed.:secret:
This reminds me of "The Wise Old Owl" poem. A wise old owl lived in an oak The more he saw the less he spoke The less he spoke the more he heard. Why can't we all be like that wise old bird?
Nor will there ever be such a list. Prices, spreads and terms change daily. This forum is just one way that the information is shared. The dealer model works fine for those who understand it. Even those who don't understand it can usually get a reasonable deal by contacting 3 dealers for prices and terms. It isn't much different from any other commercial transaction.
