I do not understand these prices

I just looked at a posting of new items by an online dealer. They have posted some silver American Eagles and to me, the prices are nuts. 1986 MS-70 $825 (mintage 5.3 million), 1987 MS-70 $750 (mintage 11.4 million) and 1992 MS-70 $1,475 (mintage 5.5 million). What am I missing? Is there a rational explanation for why a coin with an ounce of silver should so expensive. I'm just curious.

 

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In my opinion you’re not missing a thing.

 

Before I continue let me say I agree these prices are nuts. I'm only going cite one coin here because I think the rest will be similar.
Let's take a look at the 1986 ASE. In 1986 the mint didn't produce 5M+ MS70 ASE's. There are ap. 2103 PCGS MS 70's and 4518 NGC MS 70's. Total population of 1986 MS70 ASE's = 6,621. A huge difference. Both figures come from the respective grader's web site's.
From the Greysheet price guide sine January of this year the range of PCGS/NGC sold at auction is $610 - $1140. It seems special hand signed labels go for more.
Coins graded MS70 by ANACS seem to go for substantially less. $288 -$340.
The retail Greysheet price for MS70 is $1000, wholesale $800. Is your dealer giving you a bargain?
Is this supply and demand? Maybe. Is this collectors trying to put together a set of MS70 only ASE's? Could be. Is this people with more money than brains? That's not a nice thing to say. A combination of all of the above? I'll let you decide.

Happy collecting!

 

And of course that doesn't include the auction house's buyer's fee. Even at just a 15% fee level (which is lower than the major auction houses charge) the "$610 - $1140" rises to "$701 - $1311".

Tip-top grade quality has already commanded a healthy premium. And that's unlikely to change.

 

1986 MS-70 for $825 is a decent deal. CDNs are $800 to $1,100, so a graded one is a nice one to inspect, unless it's SGS.
1987 MS-70 for $750 is a little overpriced. CDNs are $500 to 650.

1992 MS-70 for $1,475 is overpriced; CDNs are $900 to 1150.

They are all rare dates in MS70, but they are also coins many overpay for.

 

The easy answer to part of the question is why would you buy a ANACS graded
coin in the first place, investment value would be allot less as seen above
I only collect PCGS only there more money but its a good investment if thats the way you want to go.

 

I'm not convinced about the "good investment". Thats a lot of money to pay for a label. And what was the question anyway? I didn't ask one...

 

was responding to the OP.S question about ANACS holder being so cheap in comparison, your late night coin shows use this service that should tell you something right there

 

Late night coin shows also "use" PCGS and NGC.

 

most of the time its ANACS though, iam sure they have some time of deal they got going

 

Oh ok. I did not read where the OP mentioned ANACS or any other grading service.

 

you mentioned them by name in your rebuttal post,,,no ?

 

I definitely agree with you on not getting an ANACS for something like a ASE . I just don’t see the investment in any ASE , buy them if you like them but not as an investment . Even MS-70s aren’t rare . If the market goes down that 70 doesn’t mean much . IMO !

 

Good answer!
I also would not pay that much for a 70 graded Eagle but the market has said they do bring a significant premium. There is a base of collectors, including those that compete in the registry, who create enough demand for the 70 ASEs to bring the high prices.

 

You are most likely right that the people that do registry sets are setting the highest prices .