Current Premiums. Silver Specifically

If silver spot is ~$8(57%) more today than it was 40 years ago how would that $1,000 be worth 47% less? I think that math works out to $1,587 and change using your numbers.

Hence why I said it should not be considered an investment.
I consider it a “supplemental savings.” I have my cash savings for the inevitable “emergencies” and then I also like a little extra savings on the side in PMs for any major emergencies. Might as well have that extra savings maintain it’s value on average over a longer period of time.

 

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Duplicate post.

 

I think he's saying that $$$ amount in today's dollars is then worth the lower sum.

Not sure how he cited the dollar as falling 2/3rds -- I presume adjusting for inflation and not against a basket of foreign currencies.

 

So, @GoldFinger1969 , or anyone, help me understand. I'll ask my question this way. Let's say every American, all 330+ million, would go out next week intending to buy 1 oz. of generic physical silver.
What happens? Prices go up, obviously. But do premiums do the work, or does Comex?

 

But why is this so important?

Also a huge majority of the extant ASEs in the world are not under the purview of the Feds for distribution.

I believe it is simply just good old market hype manufacturing its own excessive demand and pricing.

 

Futures contracts on the COMEX can diverge from the spot market -- for a time. But eventually the paper and physical markets have to balance. Otherwise, easy and instant profits can be arbitraged.

I'm not sure if 330 million ounces -- even all at once -- would move the price. It would depend on the elasticity of supply. There could be a TON of supply at $23 or $25 or $30 an ounce. I don't know, nobody knows.

The premiums we cite today are for ASEs, and are above the spot price of bullion. I'm not saying premiums aren't warranted, I AM saying that after years (decades ?) of premiums being 10% or lower to have them still in the 30-40% range after 3 years is nuts.

Again...if the U.S. Mint were a private company, they'd have the DoJ and FTC on them for Sherman Anti-Trust actions.

 

I take it that ASE buyers don't want to pay an extra $9 on a coin that should sell for about $25.

New ones are though, right ? If new ASEs are $9 over spot, then last year's is likely to be too....and going back in time, pretty much all of them will sell for the "market" price.

But the Mint sold more ASEs in the past...there was more demand in 2010-12 when the price was $40/oz. You didn't see a 30% premium tacked on.

You wonder if the Mint is letting them get away with this in exchange for "other services" like promoting all their other promotions and products. Something is fishy.

If I were attending a big coin show anytime soon, I'd be at the U.S. Mint booth and asking them about this. See what they say.

 

I would unload for 35.00 a piece PLUS . and Proofs higher with OGP/COA

 

Those figures are both in nominal dollars, not inflation-adjusted dollars. If you're just trying to preserve nominal dollars, stuff paper money under your mattress.

To match the buying power of $100 in 1983, you'd need $297.99 in today's dollars.

It's totally misleading to look at a simple graph of the price of silver over tens of years. You have to consider inflation.

https://www.macrotrends.net/1470/historical-silver-prices-100-year-chart

Without inflation adjustment:



With inflation adjustment:

Nothing so sophisticated -- I Googled "inflation calculator 1983".

https://www.in2013dollars.com/us/inflation/1983

 

There's a lot of that going around. I got a quadruplicate post yesterday, and I swear I hit the button at most twice.

 

Meh. I see the concern as about as important as the outsized markups for diamonds.

good luck to you on your crusade.

 

Went to get some silver at the LCS yesterday afternoon.
Generics were $3 over spot, sovereigns were $4 over and ASEs were $8.50 over.
90% dimes, quarters and halves were 18x face.
Picked up a couple Libertads, 1983 and 1986, on Monday for $34 each.

Can’t believe anyone is willing to pay $8.50 over spot for eagles.

 

I know that's Crazy Bsowa unless you're the one selling them at that price, I purchased some when I started in 2012 and traded for some. I bought most of them in the twenty-two range except for the one I bought from the MINT. It was a 2019-S Enhanced reverse proof silver eagle FOR 64.95. MINTAGE OF AROUND 30,000 I believe or something like that.

 

Just a question?
A seller can ask what they want, it's ultimately up to the buyer to decide if they spend extra on premium.
Bsowa with silver spot at $21.75 today what led you to buy the libertads at $34?
(Lower mintage?)

I'm looking at an old pour vintage silver bar, would probably pay 2x spot for it if a deal is made.

 

I bought them earlier in the week. I forget what spot was at the time.
I see your point though, $12+ over spot for those.
I just like them more than ASEs and think they’re more collectible. You don’t see them too often at shops.

 

I just don’t view ASEs as something worth a premium. There are so many of them and the design is so old and tired that I view them as generic.

 

I suggest you follow your recommendation, as I did for many years, while dollar cost averaging in select scarce PM coinage for more than 70 years, along with "selling-short" certain commodities/stocks.

I've only lost part of my coinage investment in the Hunt-brothers era, while my cash-cow general real-estate/stocks/bonds/businesses/etc. turned into a government controlled losing-pig, my coinage value increased significantly, and hasn't yet been found by our "leaders".

I'mRich

 

By sovereigns you mean what ?

What were the premiums on Libertads 5 years ago ? Is the ASE premium thing driving up other coins' premiums ?

 

I don’t know what premiums were 5 years ago for anything.
Sovereigns are bullion coins minted by governments, or so that’s what I’ve been told.

 

It's obscene ...someone needs to ask the Mint personnel at the next big coin show why they don't let retail clients buy directly from the Mint and/or open up the number of dealers that they work with.

Fat profits are accruing to the Mint and/or dealers. The same government went after market makers because they determined that $0.06 on a $40 stock was too big of a bid-ask spread.