i recall a few years ago ... hearing that dealers had to pay $1.50 over spot per coin for ASEs (that was their wholesale price) recently i heard this dealer premium over spot was going up to $2.00 over spot per coin does anyone know 1. if these numbers are correct? 2. when the bump from $1.50 to $2.00 occurred? It's interesting that i read this increase in premium over spot per coin was done by the US Mint to "Shut off (or curb) physical demand". It also probably makes this a better money making endeavor for the USMint (USGovt) -- something I understand (but dont like of course).
here is one of many links by several blogs and news articles... http://news.coinupdate.com/us-mint-...emiums-how-soon-before-they-do-it-again-0481/ So, yes it is true. I called my local dealer and the next day premiums were up. Look for another increase in physical not too long in the distant future(IMO). The Canadian and Austrian Mint have not followed suit... YET. I now look for CMLs and Phils. I believe Ag has a long way to go as far as spot.
wow ... thanks for that information it's no wonder we have to pay a 12% to 15% premium over spot for current year ASE's from dealers i wonder at what percent premium over spot would demand start to drop off for ASEs? 20%? 25%? it's clear even at 15% they are flying off the shelves.
who knows??? central bank policies across the globe are devaluing FIAT. PMs and Ag in particular are a good hedge against this wealth transfer. One can trade appx. 25 - 28 FRNs for an ASE. IMO we need to look at an ASE going for 50FRNs and look at what premiums do. Even with Ag reaching 30 year highs, continue to purchase for the long term. If you watch the price of PMs you have to also watch the US Dollar index
That`s why I`m cleaning up on older ASE`s. Just today I ALMOST bought the 2006 ASE 3 coin set for $350. (I really like that 06 reverse) They were NGC graded 69s. 4 years ago those same graded ASEs were over $400 easily....now as demand has slightly diminished and collectors are impatiently waiting for the 2010 proofs, the older stuff can be had pretty reasonably now. (at least around my town) I agree that eventually if the premiums keep going up, more people will be dissuaded from getting the newest releases.
It's very easy to understand. The mint raises it's premiums because the law requires the mint to do so. Last year there was a lot written about it, there are certain milestone prices that were established based on the spot price of precious metals. If the spot price increases to a certain level, then the mint has to increase their premium. As long as the spot stays within that certain range - the mint's premium does not change. But if the spot price increases beyond that range, then the mint's premium goes up again. However, if the spot price drops below to the next range down, then the mint's premium also drops. As I said, this is all proscribed by law, the mint doesn't just change their prices arbitrarily.
Yeah, there is a chart. It was posted here numerous times, was published in all the coin mags, and is probably listed right on the mint's web site. But no, I don't have a link or a copy to show you right off.
