Why are PMs from the US Mint so much more expensive than PMs from foreign countries?

Discussion in 'Bullion Investing' started by Gam3rBlake, Apr 10, 2021.

  1. Gam3rBlake

    Gam3rBlake Well-Known Member

    I noticed on APMEX, JM Bullion, and other bullion dealers the price of American minted coins always seems to be much higher than the bullion coins of other countries.

    Here is an example:

    A 1 oz .9999 fine Australian Gold Kangaroo is $125 cheaper than a 1 oz .9999 fine American Gold Buffalo even though they are both 1 oz of .9999 fine gold.

    Is there a reason for this? As far as I can tell they are exactly the same but with different pictures. But the gold itself is the same right?

    Can anyone explain why bullion from the US Mint is so much more expensive?

    Thanks!






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  3. furryfrog02

    furryfrog02 Well-Known Member

    Because 'Murica.
     
    YoloBagels likes this.
  4. JayAg47

    JayAg47 Well-Known Member

    More demand I guess!
     
  5. furryfrog02

    furryfrog02 Well-Known Member

    Honestly, I think it has to do with America being, for lack of a better term, the "Gold Standard".
     
    tibor likes this.
  6. potty dollar 1878

    potty dollar 1878 Well-Known Member

    I can care less to me gold is gold silver is silver its the metal not the design for bullion.The buffalo is just a more popular and more wanted coin design i guess which means higher demands and premiums.
     
    furryfrog02 likes this.
  7. furryfrog02

    furryfrog02 Well-Known Member

    I don't disagree with you. Just saying what I see the rest of the world seeing.
    I recall my time in Ethiopia when trying to exchange some of my money for birr. The lady wouldn't accept any of my Djboutian money and would only take my US bills without any creases or folds. Why? Because only the US bills that were crisp were actually worth the money.
    Probably a little different when it comes to bullion...but I think it's still the same vein. People trust America and the product they put out more than what other country's government's countries put out.
    If that makes any sense...It's late and I've had a long day :)
     
    potty dollar 1878 likes this.
  8. FryDaddyJr

    FryDaddyJr Junior Member

    compare it to a maple
     
  9. Gam3rBlake

    Gam3rBlake Well-Known Member

    Yeah but currency is a lot different than bullion.

    Currency relies on having faith in the stability of the nation that issues it.

    Bullion is bullion. Gold is gold. It doesn’t matter how stable the nation that issues the gold is. The gold is in the coin and it’s the same as all other gold.

    As far as “people trust America” believe me I want that to be the reason. I’m a proud American.

    But...let’s be real: Does anyone seriously doubt the quality of Canadian or Australian bullion? I doubt it.

    If we were comparing Chinese bullion to American bullion it would absolutely make sense since China is known to mint underweight bullion but Canada & Australia are both highly regarded & trusted.

    In fact I did testing that showed Australia puts more bullion into their coins than any other nation.

    The average 1 oz Australian Silver Kookaburra weighed 31.5 grams compared to 31.2 grams for the 1 oz American Silver Eagle.
     
    furryfrog02 likes this.
  10. furryfrog02

    furryfrog02 Well-Known Member

    But would you trust Chinese gold over US gold?
    We've all seen Chinese "bullion" coins that end up being plated and what-not.
     
  11. Gam3rBlake

    Gam3rBlake Well-Known Member

    No I wouldn’t. That’s why I said it would be different if it was Chinese Gold.

    But I seriously doubt countries like Canada & Australia are cutting corners. Both countries are known to be extremely trustworthy and to make high quality coins & bullion.

    As I said the Australian bullion I tested had more extra bullion than any other country I tested.

    Their 1 oz silver Kookaburras averaged 31.5 grams which is a nice extra 0.4 grams of silver per 1 oz coin.
     
    furryfrog02 likes this.
  12. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    The more someone wants something the higher demand, a good example
    ASE,S vs Silver rounds you will pay much more for the ASE even though
    were still talking about 1 OZ of Silver.
     
  13. WoodyWW

    WoodyWW Junior Member

    My question would be: if you took the 1 oz. Australian Gold Kangaroo, & the Gold Buffalo into a good LCS, would the dealer likely pay $125 more for the Gold Buffalo? Also I haven't checked the prices of pre 1933 US gold coins lately......what are the premiums on those like (for common date, nice condition coins)?
     
  14. Gam3rBlake

    Gam3rBlake Well-Known Member

    I doubt they would pay $125 over spot for it. Although they will offer some premium for AGEs & Buffalos compared to spot for everything else.

    Vermillion Enterprises in Spring Hills, Florida for example pays Spot + $55 for BU American Gold Eagles and Spot + $2 for BU American Silver Eagles.

    But in the end I think it's smarter to go with things like the Gold Kangaroos. I'd rather save $125 when I buy than get a $55 premium when I sell.

    Gold is gold. If you melted a 1oz Gold Kangaroo and 1oz Gold Buffalo you would have the exact same amount of gold and that's what people buy them for usually. The gold. Not the design.

    As for pre-1933 US gold coins you can get like an MS62 $20 St. Gaudens Double Eagle for about $250 over spot. The smaller denominations like $10 Gold Eagles and $5 Half Eagles and such have much higher premiums though. Especially the Indian Head ones.

    I paid $845 for an MS63 common date 1932 $10 Indian Head Gold Eagle back in 2015 and now they're selling for about $1,200 on the same site.
     
  15. FryDaddyJr

    FryDaddyJr Junior Member

    you can get a 20 dollar double eagle liberty head for very little over spot. Gold Kangaroos would be a bad choice. Just get Maples
     
    Last edited: Apr 11, 2021
  16. Gam3rBlake

    Gam3rBlake Well-Known Member

    Usually the ones you can get for very little over spot wouldn't be considered "nice condition" though. Nor would they be graded most likely.

    Sure you can get an XF common date Double Eagle for a little over spot but if you want a nice one it'll be a few hundred over spot.
     
  17. FryDaddyJr

    FryDaddyJr Junior Member


    They're in good shape for their age and you're supposed to be buying it for bullion
     
  18. Gam3rBlake

    Gam3rBlake Well-Known Member

    But in his post he asked about Double Eagles in “nice condition”. I assumed he meant Mint State or high end AU.

    I apologize if I misunderstood.

    Personally I view them as more than just bullion since they do have history and I would gladly trade a 1 oz American Gold Eagle for a 0.9675 oz Double Eagle even though it has 3.25% less bullion.

    One of these days I’d like to pickup a nice MS 62 St. Gaudens and an MS 62 Liberty Head Double Eagle.

    After that I’ll pick up some platinum and be happy for a long while.
     
  19. FryDaddyJr

    FryDaddyJr Junior Member

    I have a few St Gaudens but it's true you can get a 20 dollar Liberty cheaper. Platinum is a good idea
     
    Gam3rBlake likes this.
  20. Gam3rBlake

    Gam3rBlake Well-Known Member

    Yeah I feel like gold and silver are a bit overpriced right now and platinum seems to be priced about right.
     
  21. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    Always like the up and comer, Platinum is still good 1/10 OZ under $200 !
     
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