Silver Eagle pricing. I don't understand.

Probably somewhere between spot+$5-$10, depending on the particular need of a given dealer at a given time.

If I had some ASEs purchased between ~2018-2020 I'd be trying to sell into this crazy market for cash and/or conversion to AGEs.

 

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Thanks guys, this information puts things into perspective for me. I also appreciate the patience... Like I said, I'm a newbie to this space and have no pre-existing frame of reference for formulating the questions.

Given the state of things, I'm really liking the idea of swapping cash for metals to hold for the long term (15 yrs or so). I think the most important lesson that I'm taking away from this is that, when I do decide to pull the trigger, I should avoid premiums to the extent possible. I'm leaning toward a pile of Kilo or 10 ounce bars.

 

Personally I hate bars. They're much easier to fake, the bigger they are the harder they are to sell, and if theres no premium buying there wont be selling either

I should have added too that the $2.35 a coin premium is for a minimum order of 25,000 ounces that doesnt include transportation costs

 

Advice from a 44 yr old father of three teens, try to save and buy real estate with or without real property on it. More bullion can be made...not so much with real estate. Real estate is one of the best long term hold values and wealth builders over time.

 

I am trying to do that as we write trade wants 66 ASE for 2022 krug or maple 1 OUNCER.

 

I don't mind minimizing the role of premiums. If things go well (spot price increases significantly) then the affect of premiums when selling would be minimized anyway ..... Or no?

I'm planning to buy from one of the online suppliers, so I'm hoping that the concern about it being "fake" should be eliminated.

All the people in the resources that I've been referencing for educational purposes call themselves "Stackers". My plan is to identify the bottom and buy a boatload all at once, so I guess I'd be more of a "Kerplunkster"!

This has actually been my plan for a while. My brother and I save up and combine cash for use as down-payments on real estate, we've managed to purchase 1 house and 1 commercial building through our LLC to this point.

I've been saving diligently since the start of the pandemic, and throughout the upturn in real estate prices, so I'm sitting on a pretty good pile of cash (for me anyway). This will be really nice if the housing bubble ends up bursting again (lot of down payments), however, the inflation rate in the meantime is making me a little antsy!

I figure that, if I convert to silver now, then I can always convert back to cash if opportunities arise. If that is not the case, then holding silver should at least provide some protection in case things REALLY get bad.

And, let's be honest, numbers on a bank statement aren't very exciting.... But a big pile of precious metals would be pretty cool

Also, with the cash gone, I won't have to continuously fight off the urge to go hog-wild on Roman coin auctions!

 

we've answered these questions ....
for instance

#1 SPOT + $2.35 Per coin but 25,000 ounces minimum purchase




#2
see link and image below
YOU BUY @ $38.19 - $39.78 Each (top line of 1 to 19 qty)
you immediately ask them to buy it back at $29.29 (bottom left)
Spot = $19.28

American Eagle 1 oz Silver Coin Random Year - Provident Metals™



with SPOT currently at $19.28

 

Yep, those were the numbers I was going to try to find. (APMEX used to publish their buy-back prices, but not any more.)

So, yeah, almost exactly 100% premium when they're selling ASEs -- but they're buying them back at a >50% premium. Their spread is not the reason for ridiculous premiums; the premiums are ridiculous all around.

 

Silver is just not anymore price efficient to buy in coin form. Bars are an excellent choice. Don't listen to the naysayers. There's probably more fake silver coins out there than there are fake bars. Knowledge is the key. Invest in a good scale, a ruler and calipers, and a Sigma Pro machine. With that right there you have all the equipment you'll ever need to test either gold or silver in any form factor.

Kilo bars are a heck of a deal. If you shop around you can find them these days for around $3 premium per ounce, which is still inflated, but nowhere as ridiculous as individual coins right now. When things calm down, you'll probably be able to find kilo bars with only a $2 premium per ounce.

Right now you can buy two Kilo bars for $1460 (It's over 64 ounces, I'll just round it up to 65), or 38 American silver eagles for the same price. If that doesn't make it obvious which one you should be buying (the one that will get you an additional 27 ounces for the same money), then I don't know what will.

 

APMEX: $18.94 premium on American Silver Eagles when silver is $18.91 spot price. We have officially exceeded 100% premiums.

My guess is with the inflation data as bad as it was today there will be pressure on Silver to go down to $17 an ounce. Will in turn make these dealers who are paying these absurd premiums want to hike premiums even higher to make up for any losses on silver they bought at higher prices.

Unless people say enough is enough and I'm not going to buy any more of these overpriced coins, we could be seeing premiums of over 120% on ASEs when the feds hike interest rates by one basis point in a few weeks.

Even American gold coins are getting ridiculous, however, locally I'm finding excellent low premiums on gold krugerrands, Perth Mint kangaroos, and britannias and sovereigns, whenever I've come across them in local shops. Even online these coins still have decent premiums despite the madness with American gold and silver products.

If this keeps up I have a feeling pretty soon my gold collection is going to be filled with a lot of Sovereigns, as those are pretty abundant in just about any coin shop.

 

Silver just fell out of bed and gold fell from top bunk. metals tanking, crypto stocks tanking. The big R(recession) LOOMS. Of course, I BUY AT THE PEAK. Or is it an opportunity to buy more? It has been hovering around high 18's though. Only if they would sell at those prices.

 

I collected the modern commemorative gold coins for years. Except for a couple of exceptions, like the Smithsonian set, I bought them all for well under the mint’s issue prices. With the increase in the price of gold, and it’s been like this well before the last run up, I have far less than melt into almost the entire run. That’s also all they are worth these days.

Dealers have been buying these coins for melt or less for quite a while. It makes more sense to me to buy these coins, which mostly $5 gold pieces, than the American Gold Eagles, which carry big premiums.

 

Don't get ahead of yourself.

 

Are you saying that there is a structural increase in DEMAND that is leading to the permanent premium boost ?

Also...were the $1 premiums when silver was mid-single digits and thus a decent percentage of the purchase price ? If so, then $4 on a $25 coin isn't as bad a boost percentage-wise.

 

What is strange is that the bid-ask spreads for gold builion coins (at least at my LCS) are pretty reasonable. Maybe 4-5% on a less-liquid coin.

With more people able to buy and probably buying ASEs, you'd think the bid-ask spreads would be narrower.

 

The mint premiums have nothing to do with the price of silver. Gold the mint premium is a percentage of spot, silver is a set premium. Silver could be 1 cent and its still a $2.35 per coin plus transportation costs of 20k(+) ounces for the direct mint buyers

 

APMEX TODAY, 10/14/2022 AT 12:52PM

SPOT PRICE: $18.45
SINGLE SILVER EAGLE PRICE (WITH WIRE PAYMENT) $37.44

102.97% PREMIUM

In my opinion most dealers will increase premiums or hold back coins/bars until prices rebound. I've seen in some online retailers bars all of the sudden not be available, and a few hours later when silver rallies they are back.Just personal observations, not hard data, so do your own research.

 

Yes, I've notice and taken advantage of the fact that premiums on foreign gold have for the most part stayed reasonable. Very little premium on sovereigns, old European gold, or even some modern bullion like Perth Mint and Britannia. However, the local dealers and online dealers have pumped up premiums on the American Gold Eagles and Buffaloes...nowhere near the crazy levels as the silver eagle of course, but enough to make me pass on them and buy foreign gold instead.

 

You can always look at pre-1933 U.S. Gold like Saints.

 

I figure that they have a certain amount of overhead per transaction - salesperson time, CC transaction fees, and so forth - and that that's reflected in the pricing.

Of course, if you're buying $10000 worth of silver vs. $10000 worth of gold in a batch, that's a wash (except for the pain and suffering of the employee who has to lift, ring, and bag $10000 worth of silver). Storage space fees? Covering their inevitable losses from discovering fake stuff after it's bought? I dunno.