Why don't the mint just sell bullion silver eagles directly to the public?

Why do they need the middle man? Is there a law that says they have to sell them to large bullion dealers? Even if they made it that you had to buy them by the roll if they had the same $2.00 premium they would sell a ton..

 

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Because the Mint sells the bullion coins in bulk and smaller/individual investors don't buy in such quantities that the Mint sells this inventory. Overhead would also drive up the prices and the mint does not have the faculty nor the mission to be this scale of retailer.

American Eagle Bullion Coins

 

But who is to stop these "retailers" from getting greedy? should these dealers be allowed to raise there premiums and still paying close to the same mark up from the mint? just look at APMEX making a big deal about a "huge" rise in premiums when the mint only raised its prices by 50 cents, something tells me AMPEX is planing to raise premiums by more then 50 cents. I think that if the mints going to stay doing things this way that they should make it a condition to buy form them that these retailers must have there premiums tied directly at a certain % of the U.S mint mark up.

 

The retail bullion dealers know their market (customers) and they do research and planning to determine pricing, but when people stop buying they will be forced to pull back or make fewer/no sales, or to pull back to remain competitive in response to other dealers lowering their premiums. Apmex are one of the more high cost premium service oriented online dealers, who are joining the chanting to buy PMs which we hear in the media and headlines everyday right now.

 

If one company gets too greedy, business will drop and another will take their place. The law says that the companies must stay competitive with foreign bullion offerings and have at least 10 million a year in sales. This is so they have the ability to play the buy/sell game no matter which way the price is going.
And those companies are commercial money making companies, so they will play the normal games. You aren't buying ASE owned by the mint, you are buying ASE owned by them.

 

In a true free market that would be the case, but the mint selects a select few dealers to sell to and these dealers can raise there prices to the moon if they wanted... you cant just go elsewhere since they have a monopoly.

 

It sounds like you are not buying for PM bullion, as much as collecting specific US bullion. If the US generic is too high, then go Canadian, or Mexican, or any other reliable bullion supplying country. 999 gold or silver is .999 gold or silver. For investing, it shouldn't matter outside of personal preferences which country's bullion you collect. If you insist on only one specific product, you will be at the hands of the suppliers of that. IMO.

Jim

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Manufacturers set the price retailers use all the time, when the playstation 3 first came out there was a bottleneck in supply and the retalers probebly could of got twice as much for them but they had to stick with the retail price set by the manufacturers, If the mint cant make the amount of Eagles needed to reach demand in a bottleneck the mint should not let the retailers set the price. If the mint wants to raise premums during high demand thats up to them but retailers should have to stick to a set retail price even if the means they sell out quick.

 

I understand there is an overhead cost with pm's but seriously... why doesn't the mint just open it's own "apmex" I mean how does apmex keep the doors open if it costs too much to sell...you know darn well they are always making profit hand over fist in any economic time... it's just simply pay less then what you sell for and keep the margin between them big enough to support yourself...supposedly the mint is making ASE's for the public as a favor or whatever...but really it's just allowing it selected few distributors rich off any collector or bullion person...

 

Not to interupt the thread or anything but where can you get a graded NGC 2010 American Eagle (want one for personal reasons) cheapest?

 

The government is not a business, it makes these coins as a service to the public to meet public demand and it sells to distributes to distribute them to the public for a slight markup. When these company's start to disconnect from the slight markup, the mint is no longer meeting public demand for Eagles by selling to them and heck you could say that the mint using distributes at all is a violation of the law that directs the mint to produce them to meet public demand since they are not actually selling them to the public.

 

Your right. They already have the online catalog to distribute them and even if they were only willing to sell them by the monster box it would still benefit collectors and investors.

 

A Seemingly Wonderful Entrepreneurial Opportunity

I believe this is probably a fantastic opportunity for one as yourself who knows exactly how to improve the "system", where you and your knowledgeable buddies, with a minor? investment could be one of the distributors to become "rich off any collector or bullion person", "always making profit hand over fist in any economic time".

There currently is an extremely competitive ASE distributor who sells the mint product at virtually his cost (<15% margin) with free shipping.

All you need to purchase is 500 coins. A minimal investment relative to the Mint requirement of millions in annual sales.

Go Warren Go!! :thumb:

 

They do what they do because they can. They are sucking the blood of America. Until ?

 

Let's Eliminate The Middle Man

I agree that we should eliminate the "middle man", since those posting here must be concerned only about the good of the country, because there are comparable products available at ~half the premium.

As stated, then the government "must have there premiums tied directly at a certain % of the U.S mint mark up". It only seems reasonable that while the government is replacing private enterprise, it should also impose a "mark-up" that would ensure a profit to compensate for other "loss leader" services. A 25% mark-up above the reported ACTUAL mint cost, would allow all citizens to share in recovery of our great free enterprise system, while allowing funds for expanding government employment to implement this great program.

I suggest the government mandate that all individuals in this country acquire the ASE product as required in the 2011 National Recovery Act. The purchase requirement would be fairly based on Gross income.

Federal taxpayers would need to pay an additional "tax" of one ASE for every $10000, or portion thereof gross amount reported. Each ASE would arrive with a certificate which would need to be carried and shown by all when paying for items at any checkout register.

Absence of an ASE possession certificate would result in an additional purchase charge, and a form provided with the receipt for filing to acquire the ASE.

For the seeming majority who don't pay net federal taxes, the same proportional amount would be subtracted from government assistance payments (e.g. Social Security, Disability, Schooling grants, etc.).

It seems reasonable that all individuals enjoying the benefits of our wonderful society should share in our recovery, and be an owner of something intrinsic, having gain potential for their future.

I trust that the majority of those in this thread wanting to eliminate free enterprise will support this action to eliminate price gouging by greedy business people, returning absolute control to our government.

Please contact your government representatives, asking their support in passing this government control legislation.

Let's all support the elimination of free enterprise and individual choice, while increasing expanded government control. :thumb:

 

Mo money, mo money, mo money!!!

 

After spending a Trillion dollars in 18 months I do not think this government has the best intention for the people of the Mint program. We are borrowing 3 billion DOLLARS a day.
Putting this money in the general fund does nothing for the mint program.
Make it stand alone on the merits of what it does. Make coinage first and try to make a reasonable profit second.
The government spends money by law, it does not make money except with a press.