Does anyone have any ideas on why the spread is so high on American Silver Eagles? After all it's just a bullion coin and is not scarce. What I've seen is about 14% over spot when buying 5 rolls (100 coins). 5 rolls retail = $2,552 silver content = $2,237 spread = $315 (14%)
the mint charges a premium over spot to its authorized purchasers, used to be $1.50 each as of last week I think it went up to $2 so there is $150-$200. So if a dealer bought 2010 ase for $1.50-$2.00 over spot and sold for $3.15 over spot I think that is a pretty decent price. also it seems alot of bullion dealers buy price from the public is either right at spot or sometimes slightly above spot.
For enlightenment, read the currently active thread: Why don't the mint just sell bullion silver eagles directly to the public?
hear hear...you are correct..eagles are "just bullion" and are not scarce...you are correct about the % spread...i have paid anywhere from 12.5% to 15% over spot for eagles when buying 100 or more coins.
i bought over 500 silver eagles in Oct/Nov 2009 for around $19.90 each at the time there was a 19% spread on those ... ouch i would have bought more but thought gold was better as it had a much lower spread (around 5%) and was easier to fit in my safe deposit box
