With gold and silver bullion, the premium is for smaller amounts. There is a higher premium for a 1/10oz gold coin than there is a one ounce coin. Same goes for silver bullion. However with US silver coins, the opposite is true. Silver dollars have typically been bringing $30 a pop. This is what my bullion dealer friend sells them for, this is what they tend to average on eBay, and other auctions. So with a silver melt (as of now) being only $24.57, why do people pay over a $5 premium for them? Why not buy smaller silver coins, that don't carry such premiums.
Why do people spend $600 on an iPad when it cost Apple less than $100 to make? Same goes for Nike shoes, why spend $100 on a pair of shoes that cost Nike less than $10 to produce?
Detecto, two different things happening. One, for gold the small denominations are preferred by many who cannot afford a $20 double eagle, therefor premiums are higher. For silver, most can afford any size, but collectors have always loved silver dollars. Could be because of the mystique, could be the connection to the old west, or it could just be that many collectors are just old and a silver dollar is the only coin they don't need to put their glasses on to appreciate. Either way, the two things have nothing to do with the other. Chris
First off, he's obviously talking common junk Morgans, as he's referring to bullion, not key date pieces. And, the reason there is a premium is simple. That dealer bought it more than likely from another dealer who bought it just under spot. He sold it to the present dealer at just over spot. The current dealer has to make a profit so he sells it for a bit more. If everyone sold coins at spot nobody would be in business long. It's the same premise with any goods bought and sold. As for Apple, they're just money hoggs. Guy
My dealer sells junk Morgan/Peace dollars for melt. He doesn't often have but a couple. I buy whatever he has when I stop in. These are all common date and in very low good condition at best. He has me spoiled as I have yet to be in another shop that sells at melt. Usually in the $27-30 range. Slightly better if buying 10+.
Because junk silver dollars are easier to sell - more people want them. And because a silver dollar contains a tiny bit more silver than - 2 halves, 4 quarters, or 10 dimes.
