I noticed the announcement by the Mint that the 2010 Proof Gold coins go on sale on Oct.7, so naturally I began to consider what I want / could afford to put in my shopping cart. I'm guessing that Gold will be over $1300/oz by Oct. 7 based on recent price action so i went to the Mint's pricing matrix for Proof Eagles @ $1300 - $1349 range. The 1/10 oz coin on the chart should sell for $180.50 each, which is a premium of $480 (36.2%) over the Matrix's average Spot price of $1325. Silly question but is a Proof Eagle really "worth a 36% premium? That's a lot of Appreciation to front load, causing a long wait for breakeven. By comparison the American Silver Eagle Bullion coin is priced at Spot +$1.50 = 7.5% to manufacture and stamp the coin so the Gold Eagle proofs are priced with almost a 29% premium of the Silver Eagle Bullion coins. These percentages may have been fair and reasonable when Gold was $500/oz but are they still reasonable at $1325/oz? :hail: Is this a standard premium charged by most Mints around the world? Shouldn't the premiums be a flat $ amount and not a percentage? Thanks Here is my math: Mint sales price = $180.50 x10 = equivalent price / oz. of $1805. Matrix @ $1300-$1349 = average Spot price of $1,325 Mints premium is sales price /oz - Matrix Aver. $1,805 - $1325 = $480 premium Premium % = $480 / $1,325 =36.2%
I don't know if I can answer your question with a satisfying answer, but I can say that there is a lot of "what ifs" presented. First we don't know what will happen with gold come the October sales date. Personally, I don't believe gold will jump over $1300/oz, but I have been wrong before. I think eventually it will, but not by then....but it is on fire now so who knows. Second, the price guide that the us mint presents are for the collector versions of the American Eagle coins (W) mintmarks. So naturally, there would be premium over spot vs. their bullion counterparts. Using the ASE as an example, this is why you can typically pick one up from a dealer at or around $22 +/- $2 vs. $4x.00 something dollars for the proof version. The production costs may ultimately be the same for all the coins in question, but there are many other factors that make up the price cost than just cost of materials and production. Lastly, if you are looking to purchase gold/silver for an investment then I would definitely stick with the bullion coins because you will get a much better deal than the collector coins from the us mint. But if you want a nice proof coin, then you are stuck with the mint's prices. In last weeks Coin World, they printed a response in the letter to the editor section that was released from the mint as a response on how they can justify charging so much for their items. In a nut shell, the response was that they look at trying to recoup their overall costs of the product with a slight premium since they do not use tax payers dollars for their expenses, and as most businesses do, try to break even. As a collector, it is frustrating to see these costs go up yearly to rediculous amounts, but as a business person I do understand why they have to do it. I also believe that a 25-35% profit margin is/has been typical for the us mint products. It may fluctuate year to year, but I have just come to expect that over the past 25 years that I have been dealing with the mint. This is why I always give little hip hip hoorays when the price dips down then goes back up. I usually buy during these times if I can because this is as close as you are going to get to a "SALE" when it come to the us mint. Just my two cents. Good luck.
The 2010-W Proof AGE mintages are pre-determined to be: • 64k 1 oz. (25k single coins / 39k in the 4-coin sets) • 54k 1/2 oz. (15k single coins / 39k in the 4-coin sets) • 55k 1/4 oz. (16k single coins / 39k in the 4-coin sets) • 66k 1/10 oz. (27k single coins / 39k in the 4-coin sets) • 39k 4-coin sets
Does anyone think these will skyrocket since they aren't making very many and they didn't make them last year? I am thinking of buying a couple just in case.
