Discussion in 'Bullion Investing' started by Randy Abercrombie, Apr 24, 2022.
Exactly. Quite contrary actually.
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to gold and the economy atleast half.
of course depends when you bought.
March of 2012 gold was $1780.
I haven't checked the prices lately, but BARRONS had the premiums no larger than 5% (about $90 last week). $150 seems VERY steep.
If that's the price for a 2022 or recent-year Eagle, better to buy pre-1933 gold like a common Saint or Liberty. Austrian Crown and Mexican Pesos were also at minimal premiums.
It really bugs me that AGE & ASE carry premiums higher than scarcer numi-coinage.
All I can think of is that sellers know they can charge it from buyers who need them for inclusion in their IRA holdings. If that's the reason the premium is higher, I'd think that the premium is justifiable only if sold by an approved broker into an approved custodial account, and not for AGE & ASE transacted outside those conditions.
I wonder if the scammy "buy these, bury them in your yard, and claim them as an IRA holding" market is large enough to have a significant influence on overall pricing? I hope not, but I wouldn't be surprised.
I have not understood the sustained premium on coins -- especially ASEs -- over the last 3 years.
At first I thought it was related to Covid-19....not a result of increased demand or reduced silver supply (the price was flattish for the most part over 2020-21)...but more logistical and other Covid-related disrutpions. But the premium has stayed.
Now, I'm not a regular buyer of ASEs over time so I wouldn't know where that premium has been over time but I understand it is double or triple at least -- maybe 4x at other times. I believe if silver in the past was $20/oz. buying an ASE direct from the Mint or from your local LCS or a coin show would cost about $25 (give-or-take). ASE buyers, correct me if I am wrong.
I have no idea why the premium persists WITHOUT a rise in silver prices over time.
As an example of prices normalizing, the Logitech WebCam I wanted to buy 2 years ago which normally sold for about $60...and was being price-gouged for about $140 (if you could even find one) when everybody needed to do Zoom videos for home and work......has now come down to about $77 with 1-day delivery.
It's tough enough to find people to annually fund their IRAs.....are there that many people who put in gold and silver coins that they would cause that premium anomaly ?
I tend to doubt it but maybe I'm out of my element here.
My local guy says it’s not so matter a question of price than lack of availability. People apparently want AGEs, and damn the torpedoes with prices.
I don't think this chunk comes out of the people who are trying to be conscientious about saving for retirement. I think it comes out of people who are looking for ways to evade taxes -- as in "report these purchases as IRA contributions, and then let your conscience be your guide when you decide to sell ". And I hope that group isn't large enough to move the market.
If they want them, that's an increase in demand....so underlying silver price should rise as the Mint makes more of them and this moves domestic and global silver price.
Apparently, Economics 101 is taking the day off.
here's some recent historical example ASE purchases of spot + premium for ANY YEAR, BU quality ASEs. I tend to buy from the lowest cost reputable vendor to me listed at that time.
I can't recall but I think as the silver price goes up the higher the premium, if it's going down the lower premium. If flat or there's weather in the sky, someone sneezes, then higher.
this is for purchases of just over $100 of ASEs (not a roll). I used to each month buy $100ish (free shipping for $100 ordered) of ASEs.
providentmetals 10/17/2016 20.54 spot= 17.47 + 3.07 premium
apmex 12/30/2016 spot $16.13 + $4.52 premium
providentmetals 1/4/2017 ASE $18.70 / spot = $16.45 + 2.25 premium
universalcoins 3/14/2017 ASE $20.20 credit / spot $16.99 + 3.01 premium
provident 6/13/2017 $16.85/18.84 + 1.99 premium
provident 1/30/2018 $19.14 / $17.36 spot + 1.78 premium
provident 11/28/2018 spot $14.39 / $16.63 ASE + 2.24 premium
In the last couple years I have not bought BU Any Year ASE/AGEs but only US MINT released silver/gold/platinum stuff (non general ASE/AGEs). But I may start doing it again even though maybe just 1/10th oz AGEs and ASEs.
Gold price is going to go up and down for me I am long term when it comes to
PM,S except for SILVER in the near future thinking about dumping it, just takes
up to much space and how much can it go up anyway, I know iam not going to
buy anymore bullion maybe in the Chinwoo series but that will be about it.
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