American Silver Eagles (Mintages vs Market Value)

I don't understand why these coins -- and others -- command rich premiums over so long a period of time. A few weeks or a month or two, I get.

But you would think that such high premiums would fade over time....OR...the price of silver would rise.

No ??

 

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Bullion ASE's continue to hold value over their intrinsic value. It appears that they have gained collector interest as the price over spot is at least $12 for most of them. Here is the latest mintage versus original cost versus current value.

 

My 2024 ASE Bullion coin.

 

It looks like those prices include premiums
and the price of silver has gone up as well
at my LCS premiums are close to $17 where as a generic silver round is $2-$3
a much better value in my opinion.

 

Silver Eagle newbie question. Are the Proofs valued more or the same here?

 

Sal, that’s a loaded question. If you ask someone like me, a silver eagle is worth spot value period. I don’t care how much you dress it up….. But my view is antiquated as the markets seem full of ASE’s in fancy packaging bringing premiums.

 

Bullion ASEs continue to hold value over their intrinsic value. They continue to have collector interest as the price over spot is at least $6 for most of them. Furthermore, silver is up 22% in 2024, a stacker's dream! Here are the latest mintages versus original costs versus current market values.

 

Definitely a premium, and some of them ARE nice and IMO are worth paying a premium for 1 or 2 coins.

But regular purchases ? No, if I like the Proof or Reverse Proof or Enhanced Finish or Ultra High Relief Commemorative....I buy 1 (or 2) but that's it. And I'm not a silver stacker or bullion collectors....but I don't want to pay $60-$120 for something that has $25 worth of silver and which can be made more of any year.

The real big premiums seem to be on some of the 5-ouncers, like the Apollo and Saint-Gaudens Commemoratives. $150 or so worth of silver....asking prices of $500-$1,000 !!!

 

Phil, you don't include the 1995-W in your inventory ?

 

It is not in this thread as it is annual ASE bullion coins only. It is included in the ASE Collector Coins thread.

 

Thanks...do you have any summary or key points you could make for those of us who don't study the series or the data as close as you ? Any long-term or recent trends that stick out ?

 

I'm only a collector of ASE's and certainly no expert. I'm also quite into spreadsheets and like to trend various things versus time. I collect coins because I like the hobby and not because I expect to make money. I'm averaging about 2% per annum on my coin collection over the past 40 years versus nearly 8% in my other investments, which are heavy into US equities. As you can see from another thread of mine, you won't get rich stacking silver. It hasn't even kept up with inflation since 1980 unless you happen to dip your foot into the market at the precious right moment (like 2000). It is also much easier to sell stocks and bonds than to sell physical coins. I lightly dabbled in silver ETF's for a few years but it turned out to be a dud. I moved into US equities and recovered nicely. In summary, buy ASE's for the fun of it and not to get rich. Otherwise, it won't be a fun ride.

 

If silver spot is ~ $30....then basically all of these with the exception of the 1986 (1st Year of issuance) are all trading about 20-25% above spot, right ?

Was it appreciably lower pre-Covid or maybe 10-12 years ago ?

Also, could the rising premium be part of that liquidity issue that has persisted with silver for at least 5-6 years ? You used to be able to buy new or recent ASEs for ~$4 over spot....it's been $10-$12 for most of the 2020's.

To me, it's not about these being good or bad investments....they pretty much track the silver spot price plus a premium which has doubled and then some the last 5 years or so.

Am I wrong ?