I was looking a several eBay auctions for several different half ounce silver bullion coins and some are selling for almost as much as a one ounce Silver Eagle. Why? There seems to be plenty on eBay so supply, doesn't seem to be a problem, so why are folks paying a big premium for the half ounce when for a few dollars more they can get a once coin? Thanks
Maybe because they can only buy the "once" coin once. Seriously...I had no idea that anyone sold half ounce silver bullion coins. Do you have any links to some examples?
Because they are gambling. Usually the half ounce coins end up having a lower mintage than the ounce coins do so people are often willing to pay more for them because they believe that at some point in the future the half ounce coins will be worth more.
There are many things about bullion buying I'll never understand but this points to two more. One is the OP question and the other is why it was posted in the World/Ancients section when CT has a Bullion Investing section where people who buy bullion might see it. I have considerable faith that Doug the Administrator gave a correct answer so maybe it was not an error after all. Do CT administrators have the option of moving misplaced posts to the correct section? Is this one?
Not to mention the fact they are such cute little buggers. Seriously, though, I agree with the mintage reason. Look, for example, at the 2006 half-ounce Canada Timber Wolf and the 2011 1-ounce Canada Timber Wolf. The former has a mintage of 100,000; the latter is 1,000,000 and the price differential between the 2 is not that great.
Reminds me of the tiny 1-5 gram silver coins. I have NEVER been able to find them for anywhere close to spot.
It could go either way. But since the OP is asking about 1/2 ounce silver coins and comparing them to ASEs I thought it logical that he was asking about coins like those minted in Australia or China, or many of the other countries. This his questions fits in this section of the forum. By the same token it would also fit in the Bullion section. But saying that discussing modern world silver coins does not belong in the World and Ancient section would be like saying discussing ASEs does not belong in the US Coins section. No doubt there are some who would say that. But there are many others who would not say it. I stand among the latter group.
Speculative buying people have witnessed huge run up in prices for perth mint coins like deadly and dangerous set and pretty much anything issued by chinese mint. So now there are many people gambling and grabbing up limited silver coin issues by perth and chinese mint.
I placed this question in this forum because I was looking at the 1/2 ounce Australian Lunar and Koala coins. I believe that these coins are selling at a premium based on Numismatic value rather than Bullion so this seemed to be the appropriate place to discuss them. I have seen a 1/2 ounce Koala sell for $43+ . I understand full well that all buyers and sellers on eBay are not necessarily informed and knowledgeable, but I have seen several auctions where bullion coins are selling at surprising premiums. The premium on the 1/2 ounce vs the 1 ounce of the same coin is also surprising.
Don't let ebay be your guide for bullion. The coin you mentioned in the 2012 1/2-ounce version can readily be had for $22.00, plus shipping, currently from online dealers. For some reason, non-generic silver bullion often sells for exaggerated prices on ebay, whether it be Pandas, Koalas, Kookaburras, Libertads, etc. I don't know why; maybe lack of information and experience, maybe interest in bullion is growing significantly, maybe people don't want to do some research, etc.I think the non-current-year price differential has a lot to do with mintage, as some have already mentioned above.
It is all about supply and demand in ebay even if coin BV is low there is lot of people who want to grab these coins and often you end up with bidding wars. I love seeing some of robo bidding that happens in last few seconds of item close that jacks the price way up.
They are selling at inflated prices because some of the people on ebay are stupid enough to pay that much. Not for any other reason. As stated you can readily buy the coins at fair value from dealers just about anywhere.
I've seen those in dealer junk bins and melt bins for pretty close to spot. Who really buys those, I wonder?