Question.... ASE and the Charts

Discussion in 'Bullion Investing' started by Randy Abercrombie, Jul 31, 2020.

  1. Randy Abercrombie

    Randy Abercrombie Supporter! Supporter

    I refer to Coinflation frequently for one reason or another. Something just caught my eye that I had never taken note of before..

    Silver spot price is $24.37
    Silver value for an ASE is $24.3456

    Two and one half cents is meaningless.... But why is a one ounce silver ASE not the same as The current spot value? Is it the difference in .999 fineness?
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  3. furryfrog02

    furryfrog02 Well-Known Member

    Copper in the ASE probably.
  4. ddddd

    ddddd Member

    They are probably doing 24.37 * 0.999 = 24.34563
    (although an ASE does have 1 oz of silver, so that should not be needed)
  5. Randy Abercrombie

    Randy Abercrombie Supporter! Supporter

    That was what I thought.
    ddddd likes this.
  6. ddddd

    ddddd Member

    I did some more digging and they explain it as follows

    Calculate silver value :

    (24.37 × .0321507466 × 31.1034768 × .999) = $24.3456300049

    $24.3456 is the rounded silver value for the 1986-2013 silver eagle on July 31, 2020. However, these coins will carry a premium that can range anywhere from $2.50 to $8.00 depending on the volatilty of the silver market.

    Why isn't the melt value exactly $24.37 since this is the live silver price? Blame math. Obviously, when you multiply the non-whole numbers like 31.1034768 grams and .999 (stated purity), you'll receive a result like $24.3456300049. Does this mean the Mint is wrong with their specification? No, not exactly. Many times, silver eagles weigh a little more than 31.1034768 grams.
  7. Randy Abercrombie

    Randy Abercrombie Supporter! Supporter

    Wow. Arithmetic is the answer. Thanks for hunting that down.
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