Why does the US Mint price so HIGH ?

Discussion in 'Coin Chat' started by Brian Calvert, Jul 3, 2019.

  1. Brian Calvert

    Brian Calvert Active Member

    Really makes me mad that I can go to a dealer locally, buy an Eagle for 3% above Spot, but cant get something at OUR own US mint at a reasonable price. Just ridiculous that an Eagle is $1770.00 right now while Spot is 1400.00
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  3. Brian Calvert

    Brian Calvert Active Member

    Have a 2nd question. If you are looking to price a gold coin quickly online, who do you use ?
    I normally just goog the coin itself. But recently got away from Google, no more for us... Too much into US !
  4. medoraman

    medoraman Supporter! Supporter

    Are proof eagles only 3% above spot? I am asking, since I am guessing you are talking about proofs, since the mint does not sell bullion coins to collectors.

    I usually do not buy direct from the mint either, but just ordered a couple of platinum proofs and the new war in the pacific 5 ounce quarter for my uncle.
  5. Two Dogs

    Two Dogs Well-Known Member

    I think the US Mint is required to sell things with a markup that's enough to cover their costs of production. Then in the aftermarket world prices settle out, often to around the spot price of the metals in the coins. So, yes it is often possible to pay more when buying directly from the Mint than from a coin dealer.
    johnmilton and I_like_Morgans like this.
  6. NSP

    NSP Well-Known Member

    If you have a smartphone, I recommend the Coinflation app made by PCGS. It looks like there is also a Coinflation.com if you’re using a desktop computer.
  7. harley bissell

    harley bissell Well-Known Member

    When I fired GOOGLE I switched to BING. Similar results without their philosophical biases, censorship and news blackouts.
    Two Dogs and Legomaster1 like this.
  8. Collecting Nut

    Collecting Nut Borderline Hoarder

    The Mint must sell at a profit, therefore they must cover all of their production and distribution costs, which are high to begin with. Then add in the markup for their profit. They produce it so they set the price. Sometimes mintage limits are placed on the coin so the lower the mintage the higher the markup to cover the cost per coin. The after market will determine the real value.

    You can add in advertising and packaging costs as well. All costs are passed onto the buyer and once the coin is in the secondary market these costs no longer exist. It really doesn't matter what is minted onto the coin, in the secondary market it's just an ounce, a half ounce, etc. so the price is tied to the spot price.
    I_like_Morgans and Two Dogs like this.
  9. johnmilton

    johnmilton Well-Known Member

    In the cases of the modern commemorative coins, there is a surcharge, which covers the kick-back for the fee the organization that gold a bill through Congress, gets to collect. After the commemorative coins are sold, the secondary market prices the coins at their natural level. That is usually lower than the issue price UNLESS they melt for more.
  10. Robert91791

    Robert91791 Well-Known Member

    Solution, dont buy gold from the mint. Mint sales are in decline and will continue due to high price. I myself have limit what I buy from the mint.
  11. cpm9ball

    cpm9ball CANNOT RE-MEMBER

    This is just an observation, but have you considered that the 3rd party sellers are not buying one or two coins at a time? They are buying hundreds, submitting them for grading and selling the high grades for huge profits. Maybe that is why they can afford to sell the ones that didn't make the grade at lower prices.

    medoraman likes this.
  12. Robert91791

    Robert91791 Well-Known Member

    This is based on their numbers on the Mint quarterly report. As far as 3rd party sellers, that is not my concern as I will not be sucked in that profit scam.
  13. Conder101

    Conder101 Numismatist

    I doubt you are buying proof gold eagles from your dealer at 3% over spot. And the mint doesn't sell business strikes to the general public.

    As for the proofs they sell, as mentioned they have to cover production expenses which are higher for proofs and have to recouped through a smaller number of coins. Plus the proofs are considered "collector" coins and for such coins the mint is allowed to add a percentage over the total costs. That percentage used to be 20%, I don't know if that is still the current mark up, but from the prices listed in the OP it seems about right.
    medoraman likes this.
  14. cpm9ball

    cpm9ball CANNOT RE-MEMBER

    I think you're missing the point I'm trying to make. If 3rd party sellers can make a huge profit on the high grade coins, then they can afford to sell the ones that didn't make the grade at much lower prices just to move them out of their inventory. They've already made their profit on the entire purchase.

  15. Robert91791

    Robert91791 Well-Known Member

    I didn't and I totally understand the profit motive. Its likely to be short lived.
  16. Inspector43

    Inspector43 73 Year Collector Supporter

    The US Mint and the US Postal Service are in business to make money. That's why they come up with so many "manufactured collectables" like the gold dollars, the theme park quarters and the Kennedy half dollars. To keep your collection current you need to either pay the mint a mark up and hold a big inventory or give a dealer a mark up over what the mint wants. The USPS manufactures what is nothing more than wallpaper for the same purpose.
    Robert91791 likes this.
  17. Robert91791

    Robert91791 Well-Known Member

    Part of the money that the US mint makes goes to the Treasury. All buyers from the US Mints are Donors to our US Government.
    Inspector43 likes this.
  18. medoraman

    medoraman Supporter! Supporter

    I agree completely. Many of the third party coin you see for sale are either in 68 or 69 holders, or were cracked out of 68 or 69 holders and put back into mint packaging. Then they sell them as "fresh from the mint", when in reality they are MS70 grading rejects.

    If you buy from the mint, it may grade MS70. Buying it from a third party, its nearly guaranteed NOT to grade 70.
    Robert91791 likes this.
  19. Robert91791

    Robert91791 Well-Known Member

    There are some 3rd party vendors who buys from the US Mint but they have to by $5K worth of coins and all are in bags. They they re-package them all for sale. I tried to buy worth $2K but the minimum re-seller account is $15K purchase.
  20. cpm9ball

    cpm9ball CANNOT RE-MEMBER

    Some 3rd party vendors must buy $5K, but you were told you must buy $15K. They must not like you. Maybe that is why you're PO'ed.

  21. Robert91791

    Robert91791 Well-Known Member

    Correction it was $5K and it was originally $15K. They have change the minimum
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