On purchases of 1-20 ase - six months ago you could buy Silver American Eagles for $2.50 over spot, then the Mint raised their premium and the retail premium went to $3 over spot. Over the last six months I have suggested that several friends invest in silver. I guess they finally looked into doing it (after a 70% run up!). The "normal" premium over spot appears to have increased along with the spot price. What is the current "fair" premium over spot to pay for American Silver Eagles in quantities of 1-20? The Mint produced over 6 million ASE last month so there shouldn't be a lack of supply. What's going on?
Depending on the distributor , a fair margin price is $1.90 -$2.50 AMPEX is higher than that. Way to much in my estimation.
Coinman, thanks for your reply, but where do see $1.90 - $2.50 premium on 1-20 ase's?? I see nearly double the premium that you mention: Golden Eagle $37.16 = $4.49 AMPEX $37.05 = $4.38 Gainsville $36.92 = $4.25 Mint Products $ 37.30 = $4.63 Plus a wide variety of additional shipping costs. Since the US Mint charges their 7 Primary Distributors $2.00 over spot, the retail price must be greater than $2.00 so that the primary distributor and the retail merchant can make a profit and cover their shipping expenses. Is $4.25 - $4.50 the new norm?
You have to do some shopping around , but there are bullion dealers out there that have reduced over spot prices. I understand your concern though. I refuse to pay that and than $12.00 for S H plus tax. IT's crazy .
Dave, Check out these prices: http://www.providentmetals.com/2011-american-silver-eagle-brilliant-uncirculated.html TC
2010 silver quarter proof set is $2.75 over spot ( 0.9 oz silver ). So round $3.00 over spot in 1 oz.
I thought premiums were determined as a percentage of the price of silver, rather than a set dollar amount.
That is correct, for the most part . Depending upon the " Bullion " Distributor, premiums paid can vary slightly .
