Silver Eagle pricing. I don't understand.

But people were buying before....LOTS....when silver was $25 and $30 and even $45/oz.

Didn't see the same % premium then, right ? This premium thing seems to have hit right after Covid, no ?

 

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After Covid? I recall silver dropping to $12 about March, 2020. That would have been the very beginning of the nonsense.

 

Well silver has to spike and then drop for the premiums to start. Its not really that they keep pushing the price up, its more that they just havent adjusted it down since its still selling perfectly fine. If people just stopped buying for a month or a couple weeks you would see premiums drop real fast

 

Charging a big premium at that time was not a surprise since you figure the price will bounce back. Nobody wants to sell into a crash.

If you can't raise the price with a premium surcharge, then you just hold the coins and sell them for $25 or $30 instead of $16 or whatever.

 

These are prices being charged by dealers who work with the Mint 1-on-1 ?

So they're probably buying at spot plus a sub-$1 premium ?

 

Theres only 10 authorized dealers for silver bullion in the USA, and 2 in Germany. So no not really. They dont set the market anyways and everyone and auctions are all getting the same prices.

https://catalog.usmint.gov/coin-programs/bullion-authorized-purchasers.html

$2.35 an ounce premium with a minimum order of 25000 ounces for silver.

https://www.usmint.gov/news/consumer-alerts/business-guidelines/authorized-purchaser-program

 

I and many others paid more than $30 ($34+) for our Ag Eagles, where sites as this had individuals predicting price increases in the future.

I thought individuals were insane in their beliefs about Silver coinage, but seeing the pricing for an "abused" 1889cc Morgan was the Coup De Grace.

I could purchase the same grade date beautiful Double Eagle having a tenth of mintage and half the price.

I never looked at U.S. Silver coins again, when I could save a little longer, and purchase beautiful Gold coins.

Why don't I sell my Silver Eagles for less than half their cost?

What would you do?

 

That's what I said numerous posts ago.....

 

What would I do?
I've already explained that I didn't, and won't pay those prices. The fact that you and others have paid those prices means now you pay the piper too.

Selling at a loss as the consumer is very much a foregone conclusion when you paid the exorbitant premiums. Selling at a loss as a dealer means you're not going to be in business very long.

 

That's just a hair over a 36% gross margin on sales, or the third line down on their income statement. It's more than fair for a coin retailer of this size. That 36% has to cover their operating costs and gross profit margin. Anything under a 40% gross margin on sales for a retailer of this size with their expected "overhead" is good for the consumer selling into them. The point is they're not just dropping those numbers out of a hat but going off their income statement, like they're supposed to.

 

Thank you. You are one smart horse. Not many know how to figure gross margin.
That's my world but never thought silver dealers worked off it. Your post helped me understand.

 

I just had to say it when I saw what your nerves were going through with some of these answers, lol. But you're welcome, Larry. I knew for sure you'd understand it. Sometimes things just don't "click" for us at the times we need them to.

 

Pocket Change for an initial purchase.
Sign me up

anyone have any really deep pockets ?

 

Really deep wont even qualify. Youd have to spend the next 5 or so years establishing yourself as a major market maker for silver with references before even getting to the do you have enough money part of the process to qualify. Theres a reason there's only 10 of them and 12 of them world wide.

https://www.usmint.gov/wordpress/wp-content/uploads/2022/01/AP-Criteria-Silver-Bullion.pdf

 

ahhh ... i'll start a company anew then .. called "Silver Shisters"

 

Ooh! Ooh! Can I get in on the IPO?

 

Premiums are nearing 100% on ASEs. I have to hand it to dealers, they've managed to push it way beyond the 75% premiums in 2008. Problem is that when the inevitable collapse comes there's going to be a lot of pissed off people who bought ASEs for 100% premium and they can't get that back if they sell any time in the foreseeable future. This premium madness has reached levels beyond anything the people at the Home Shopping Network's coin shows could have conjured up.

 

That's just stupid money and I refuse to buy any. I haven't bought a decent price roll of ASE's since 2016........

 

yup, I haven't bought ASEs since the premiums popped up.
I keep track of spot/price (premium) and haven't bought any ASEs since 2019.

... waiting for them to crash ...

 

And they will. I just don't know when