Free Money!

Discussion in 'Bullion Investing' started by yakpoo, Aug 7, 2011.

  1. yakpoo

    yakpoo Member

  2. Avatar

    Guest User Guest



    to hide this ad.
  3. bradarv90

    bradarv90 Member

    I just saw that, we are just a little under three dollars from breaking even. You are so smart.
     
  4. yakpoo

    yakpoo Member

    Aw, shucks :eek:

    Free Money, BABY!!! :cheers:
     
  5. BullionBully

    BullionBully New Member

    Whooohoo! Things are looking better as the year ends. I should have been greedy and ordered more. Oh well, 5 of each is good enough.
     
  6. yakpoo

    yakpoo Member

    It looks like gold and silver are inching their way higher in Asia. Sales of the 2010 Silver Proof sets were suspended on Friday. If silver continues to rise this week, sales of the 2011 Silver Proof set could be suspended, as well.

    The last price increase for a Silver Proof set was when the 2010 sets increased from $56.95/set to $64.95/set...and $8 increase. It'll be interesting to see if the Mint raises prices the same dollar amount or as a percentage. An $8 increase would bring the price for the 2010 sets to $72.95/set. A percentage could raise the price to $74.95/set.

    Imagine...you could have bought these same 2010 Silver Proof sets for a mere $56.95/set just six (6) months ago. :rolleyes:

    If silver continues to strengthen and they do a similar suspension/price increase for the 2011 sets later in the week, the new price could be close to $80/set. I just ordered twenty (20) more 2011 sets at $67.95/set in anticipation of a price hike. :thumb:

    Why? ...because it's FREE MONEY!!! :hail:


    [TABLE="align: center"]

    [TD="align: center"][/TD]
    [TD="align: center"]www.kitco.com[/TD]
    [TD="colspan: 5, align: center"]The World Spot Price - Asia/Europe/NY markets[/TD]
    [TD="align: right"][​IMG][/TD]

    [TD="align: center"][/TD]
    [TD="colspan: 7, align: center"]SPOT MARKET IS OPEN
    ( closes in 20 hrs. 57 mins.)
    [/TD]
    [TR="bgcolor: #F3F3E4"]
    [TD="width: 16, bgcolor: #000000, align: center"][/TD]
    [TD="width: 80, bgcolor: #CCCC99, align: center"]Metals[/TD]
    [TD="width: 80, bgcolor: #CCCC99, align: center"]Date[/TD]
    [TD="width: 80, bgcolor: #CCCC99, align: center"]Time (EST)[/TD]
    [TD="width: 68, bgcolor: #CCCC99, align: center"]Bid[/TD]
    [TD="width: 68, bgcolor: #CCCC99, align: center"]Ask[/TD]
    [TD="width: 146, bgcolor: #CCCC99, colspan: 2, align: center"]Change from NY Close[/TD]
    [/TR]
    [TR="bgcolor: #F3F3E4"]
    [TD="width: 16, bgcolor: #000000, align: center"][​IMG][/TD]
    [TD="width: 80, bgcolor: #F3F3E4, align: left"] GOLD[/TD]
    [TD="width: 80, align: center"]08/21/2011[/TD]
    [TD="width: 80, align: center"]20:18[/TD]
    [TD="width: 68, align: center"]1876.90[/TD]
    [TD="width: 68, align: center"]1877.90[/TD]
    [TD="width: 73, align: center"]+23.80[/TD]
    [TD="width: 73, align: center"]+1.28%[/TD]
    [/TR]
    [TR="bgcolor: #F3F3E4"]
    [TD="width: 16, bgcolor: #000000, align: center"][​IMG][/TD]
    [TD="width: 80, align: left"] SILVER[/TD]
    [TD="width: 80, align: center"]08/21/2011[/TD]
    [TD="width: 80, align: center"]20:18[/TD]
    [TD="width: 68, align: center"]43.60[/TD]
    [TD="width: 68, align: center"]43.73[/TD]
    [TD="width: 73, align: center"]+0.70[/TD]
    [TD="width: 73, align: center"]+1.63%[/TD]
    [/TR]
    [TR="bgcolor: #F3F3E4"]
    [TD="width: 16, bgcolor: #000000, align: center"][​IMG][/TD]
    [TD="width: 80, align: left"] PLATINUM[/TD]
    [TD="width: 80, align: center"]08/21/2011[/TD]
    [TD="width: 80, align: center"]20:18[/TD]
    [TD="width: 68, align: center"]1886.00[/TD]
    [TD="width: 68, align: center"]1894.00[/TD]
    [TD="width: 73, align: center"]+13.00[/TD]
    [TD="width: 73, align: center"]+0.69%[/TD]
    [/TR]
    [TR="bgcolor: #F3F3E4"]
    [TD="width: 16, bgcolor: #000000, align: center"][​IMG][/TD]
    [TD="width: 80, align: left"] PALLADIUM[/TD]
    [TD="width: 80, align: center"]08/21/2011[/TD]
    [TD="width: 80, align: center"]20:18[/TD]
    [TD="width: 68, align: center"]749.00[/TD]
    [TD="width: 68, align: center"]756.00[/TD]
    [TD="width: 73, align: center"]-2.00[/TD]
    [TD="width: 73, align: center"]-0.27%[/TD]
    [/TR]
    [/TABLE]
     
  7. woodsman

    woodsman New Member

    i thought we were going to be able to buy them until january? does this mean i cant get the 2010 silver set anymore?
     
  8. Kasia

    Kasia Got my learning hat on

    Had bought a set of 2011 a couple months ago, I think it was 64.00 then, and went back and bought a 2010 at same place- with silver prices up it was 80.00 but I bought it. Then store owner or worker kind of insulted me (IMO) so I went to a different coin shop and got the 2011 there for 73.00 and found 2nd coin shop was about 8-10 percent under the other ones's prices on coins and other items, and they were much nicer people, too. So - learned a valuable lesson... trust your instincts about how you feel about a coin shop and make sure you go to more than one so you have something to compare to. Anyways, glad to get the 2 other sets, hope I can get in in the future with the sale. BTW, on my first 2011 set I had one coin with a yucky nick or something in it and on one of the quarters the field as it meets the rim actually "shows" a beading effect (higher power resolution).
     
  9. BullionBully

    BullionBully New Member

    Might have to put in another order for more 11s tomorrow if the mint doesn't suspend them.
     
  10. Kasia

    Kasia Got my learning hat on

    Well, I'm all for taking a chance at times. Just ordered 3 sets from the mint, so my average cost will be about 70 or so per set for 2011.
     
  11. yakpoo

    yakpoo Member

    The "short answer" is you probably will be able to buy them from the Mint, but maybe not at the same price...but nothing is for certain either way...here's why.

    1. We don't know how many 2010 sets were produced. They can only be minted during the year inscribed on the coins so no more can be made. That means they could sell out at any time. However, as long as supplies last, they "should" remain on sale until 31Dec2011...but there's no guarantee.

    2. So, why are sales suspended? The price of the silver (1.33866 troy ounces plus the face value of the non-silver coins...$5.06) is approaching the $64.95 sales price. When this happens, the Mint increases their prices to keep up. Any price increase has to be published in the Federal Register...a process which can take 3-4 weeks to complete. When Silver shot up in April, the Mint suspended sales of both the 2010 and 2011 Silver Proof sets pending a price increase. However, during the two (2) weeks sales were suspended, the price of silver dropped back down so the Mint simply lifted the suspension without raising prices.

    3. So, if silver came back down in price before why won't it again? It might, but I doubt it. The increase in silver this time has been much more gradual and hasn't kept up with gold. That's probably because so many people got "burned" last time; they're scared to get back into silver. However, as gold continues to climb, we should see money start to trickle back into silver.

    My personal opinion (just my opinion...not fact) is that silver will continue to gently rise and both the 2010 and 2011 sets will be repriced to about $74.95/77.95 per set, respectively. Sales will resume after about three (3) weeks and we'll have roughly 15 more weeks to buy the products before they go off-sale on 31Dec2011 (although, I wouldn't be surprised to see the 2011 sets stay on sale until the 2012 sets go on sale...around the end of January).

    Low sales, higher prices, product suspensions, and a fixed sellout date (31Dec2011...for the 2010 sets, anyway) all suggest that the 2010 (and possibly the 2011) sets will have very low mintages. Again, this is just speculation...no guarantees.
     
  12. yakpoo

    yakpoo Member

    It's a good thing you changed shops. Some "numismatists" can really cop an attitude. If you paid $64 for 2011 Silver Proof set you got a really good deal because they sell from the US Mint for $67.95/set. The 2010 sets sell for a bit less at $64.95/set...both sets have the same amount of coins and silver.

    You should be really pleased with the coins you get in any of these sets. If you get a set with substandard coins, I would return it.
     
  13. Kasia

    Kasia Got my learning hat on

    What does the mint do with the silver proof sets it mints but doesn't sell in the alloted time?
     
  14. yakpoo

    yakpoo Member

    They're destroyed...which means the Mint has to "eat" the costs. That was the main reason (as I understand it) that the mint changed their production schedule for Proof Sets from August-to-August to January-to-January. Originally, the Mint didn't want to release their annual sets until all the individual coins had been released. Since the release of the dollar coins were staggered throughout the year, they waited until August to release the Annual sets.

    However, this creates problems. The Mint wants to keep the annual sets on sale for an entire year, but they can only produce coins (by law) during the year inscribed on the coins. That means the Mint has to project their likely sales and produce enough sets to meet demand before the end of the year. that can get very expensive if their projects are off.

    There were many early sellouts this year of the First Spouse coins produced near the end of 2010...for the same reason. It was costing the Mint a lot of money to destroy unsold coins so they produced less at the end of the year...and they sold out early. That's why I was saying there could be an early 2010 Silver Proof set sellout...if they made a similarly low projection of future sales.

    Regardless of how many they produced, sales of the 2010 Silver Proof sets seem to be very low (currently less than 500/week). Rising prices and a weak economy may keep final sales numbers under 600,000...even without an early sellout. Final sales of the 2011 Silver Proof set could be even lower.
     
  15. Kasia

    Kasia Got my learning hat on

    Thanks, may do that.
     
  16. Kasia

    Kasia Got my learning hat on

    There are some people saying that because of China's stance in solar energy production and other things, that silver may (at some point) go over 100/oz. Not right away, of course, but barring China imploding on itself, it uses silver in many things, and it is getting to be one of the manufacturing capitols of the world.
     
  17. BullionBully

    BullionBully New Member

    Taking into consideration what yakpoo has said and his sales report, I'm going to have to jump the gun and order another 10 sets of the 2011s while it's cheap and hasn't been pulled for repricing.

    According to my calculations, if it makes any sense, the 2011s should be pulled for repricing when silver hits around $44-$45. After all the break-even point is $46.98 and then factor that came into play was that the 2010s were pulled after silver had ran up to about $40.5X-41 mark. I'm not sure what the closing spot price on silver was on 8/19/11 but I'm sure it was around $40.5X-41, with that in mind, it was a little over $3 bucks to break-even for the 2010s. I believe the 2011s were not pulled yet because spot pricing wasn't high enough to justify pulling them and last Friday's closing was at $42.90. Now with spot silver at $43.78, the time is right for the US Mint to pull them for repricing. It's about $3.22 away from breaking even. I would suggest ordering a few sets in preparation for a price rise. Wish I followed stuff like this from the US Mint earlier, I would have picked up a few ASE proofs right before they pulled them.
     
  18. fatima

    fatima Junior Member

    If your objective is the bullion price of silver in these proof sets, it's been demonstrated that in most cases, the Silver Quarter Proof Set is a better buy.
     
  19. yakpoo

    yakpoo Member

    Very true...you don't have all the non-silver coins to buy. The only reason I buy the Silver Proof set is because of the Silver Kennedy Half Dollar and the Silver Roosevelt Dime...you can't get them anywhere else! If I could buy the set without the dollar coins, I would do it.
     
  20. yakpoo

    yakpoo Member

    Well, this week turned out to be fairly interesting. The 2010 Silver Proof set sales continue to be "soft", but they were only on sale through last Friday before sales were suspended in preparation for a price increase. With PM prices rising, it looked like sales of the 2011 sets might be similarly suspended for the same reason...until today!

    I don't know if the rare East Coast EARTHQUAKE!!! caused the drastic drop in PM prices or if it was the other way around, but both events were pretty impressive. Silver dropped nearly $2/Oz today...taking pressure off the Mint to suspend 2011 Silver Proof set sales. Apparently, a lot of people didn't want to take a chance so sales of the 2011 sets shot up (20 of them are mine!).

    2010 Silver Proof set: 373 (previous week: 395)
    2011 Silver Proof set: 3714 (previous week: 2643)

    I suspect the 2011 sales will be pretty good this coming week if they remain on sale and silver prices firm up.
     
  21. BullionBully

    BullionBully New Member

    Trust me when I say I wished I was paying more attention before they had suspended the sales on the 2010s. I bought 10 sets of the 2011s in anticipation of the suspension on them.
     
Draft saved Draft deleted

Share This Page