When silver price recently rose above $17 a troy ounce, I could understand why the premium went up but when silver spot dropping all the way back to around $16, premium on most 90% US silver coins did not drop. Right now, silver spot is around 17.06, making the melt of $1 face of 90% US silver coins (halves, quarters and dimes) has about 12.28 of silver (melt value), yet I had repeatedly seen on eBay a dollar face value of 90% US silver got bid up to $14 - $18. More suprisingly, for even circulated 1964 Kenndedy halves, people bid it up to over $15 for each face (two of them). What exactly is going on here? I have never seen anything like this before, not even in the late 70s and early 80s when silver reached $50 an ounce. Thoughts?
From $17 "all the way" back to $16... and you were expecting what? As for using ebay as your standard, don't... fools abound.
My understanding is, from eavesdropping at coin shows, that 90% is getting harder to source. Previous buyers at $3 or $4 higher have no inclination to take their loss at the present time; less supply, more premium. On the other hand, as close as I can calculate, premium for ASE's has dropped somewhat, especially when Apmex engineers a "deal" with eBay, including free shipping (and probably lower selling commissions). Two pawn shops I frequent report practically no buys from the public in the past month, but plenty of pawn activity for other items, especially gold jewelry and musical instruments.
As doug5353 alluded to, lower supply is the main reason. Especially on comparison to "late 70s and early 80s". 90% silver coins have become scarce. Therefore they have numismatic value which makes their value less dependent on melt value. On a very short term basis, the dealer trying to retain profit margins also plays a role in price buoyancy.
Jwt708 - no doubt eBay's higher; the Seller has to figure in postage as well as eBay's and PayPal's cut. But if you live way out in the boonies, with no coin shops or coin shows, you have no choice. I prefer coin shows, where one or two dealers may be short of money, and there's plenty of head-to-head competition for your cash. The only silver I've bought on eBay was Apmex's occasional super-super deal on Eagles, and that's not really 90% price range, but I like to diversify a little.
Sometimes changes in spot lead the 90% market price . . . other times, changes in demand for 90% lead changes in the spot price. Consequently, you may expect the premium to vary, and should never expect the premium to always be fixed in a narrow range.
I feel your pain, there is no LCS near me at all. Seems in the UK online is the preferred way of conducting business. Rarely did I find junk silver close to spot on eBay and always did best at my former LCS.
I have been buying Walking Liberty Half Dollars on eBay for awhile now, but lately it seems people are bidding almost double of which on average I have been buying at $8.00 each W/free shipping
When I lived in Germany, I never missed a coin show at any of the nearby U.S. military bases, which generally had coin clubs too. Any U.S. bases remaining in the U.K. (Lakenheath, Mildenhall?) could be a source for you, annual shows, club meetings, etc.
I'm stationed at Mildenhall but live in Lakenheath. Never heard of any coin clubs here...maybe I'm not looking hard enough.
Call both NCO clubs - they know everything! Or start a joint club, one or the other probably has free space for meetings. Also, get yourself some BU Kennedy 50c (not silver), they still make great trading stock (I'm told) at flea markets, pawn shops, church bazaars, etc. I used to do that with cartons of Marlboros from the PX, but they cracked down on possession of untaxed cigarettes.
I've gotten good deals on silver dimes. You have to watch for a dealer who puts a bunch up for cheap and combines shipping. It's slow but every now and then you get a good haul for less than silver. But you seriously have to get lucky. I also do the same with some world silver, obviously aussie silver. I know how much they go for and have gotten quite a few for less then melt.
Aussie silver is grossly underpriced, as virtually everything silver except seriously worn or mutilated has numismatic value, plus there's VERY few stackers in Australia; they are all optimists. I belong to one of the biggest stamp blogs in the world (there) and 5% of the action is coins, thanks to a tolerant Administrator.
I wouldn't put too much stock on the price of 90% on eBay. If I was in the market to buy I would check here first: https://comparesilverprices.com