Crazy high premiums on Silver Eagles
goldrealmoney79
Posts: 417 ✭✭✭
I'm seeing ASE's being sold for $8-9 over spot! and In bulk too! What gives!
Makes my blood boil, look at this stuff! Highway robbery
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goldrealmoney79
Posts: 417 ✭✭✭
goldrealmoney79
Posts: 417 ✭✭✭
Comments
Hope you are not a sports fan or need toilet paper...
Why is your blood boiling? Is it because you are incorrectly expecting them to be priced the same as paper promises on the futures exchange (spot price)? Before your blood gets too hot, maybe develop an understanding between the two pricing mechanisms. Yes, premiums over spot are now much higher, but keep in mind real silver price is subject to real supply and demand. Maybe it's the spot price that is very, very wrong. Note that your link points to an actual sale price. This means there's a buyer who disagrees with you.
Your forum ID implies that you understand all this.
"The good old days when “JUSTICE” stood for something instead of “JUST US.”" - Martin Armstrong
I mostly agree with @derryb from the perspective of blood boiling.
However, at risk of sounding like a broken record ... if you want 5000 ounces of physical silver, you can get it for spot plus modest transaction related expense. It is not an issue of paper versus physical, it is a matter of volume (and form, in the sense that you’ll still pay a pretty hefty premium for 5000 ASEs, if that’s what you want.)
sure, it can be done, but it's not like ordering at the McDonalds drive thru.
There are reason's most people don't take physical delivery at the COMEX and there are reasons why buyers of physical pay the premium to not buy it at the COMEX. And it is a matter of paper vs. physical. The pricing mechanisms are completely different. COMEX purchase requires a $5,000 contract. There is unlimited supply of paper contracts for sale, not the same with physical. With physical you are paying current physical price for current delivery.
"The good old days when “JUSTICE” stood for something instead of “JUST US.”" - Martin Armstrong
It's not $8 per ounce worth of cost and trouble
Not many silver buyer who want 5K oz. at a pop.
That's why we call ourselves stackers.
Besides who ya gonna sell your 1000 oz bars to? Wonder how much BELOW spot your local coin shop would offer.
"The good old days when “JUSTICE” stood for something instead of “JUST US.”" - Martin Armstrong
Silver Coin Premiums Soar: Signal "Alt-Money" Demand
The price of silver coins is surging ('Monetary' demand) as futures prices sink ('industrial' demand).
"The good old days when “JUSTICE” stood for something instead of “JUST US.”" - Martin Armstrong
Never paid over $2 for an eagle and I certainly wouldn't start now. Be patient to the OP premiums have significantly started coming down, things always get out of whack during the next "crisis", Y2K, Great Recession, Covid-19 etc.
If you were to pay a $8 premium for an ASE you would probably be waiting a decade or more before the price of silver would be high enough to match your current buy price. Not a good investment at all.
The whole worlds off its rocker, buy Gold™.
Buy low, sell high.... That is the logic....And logic goes out the window during 'crisis' time...whether it is real or imagined. Cheers, RickO
Never paid over $2 for an eagle and I certainly wouldn't start now. Be patient to the OP premiums have significantly started coming down, things always get out of whack during the next "crisis", Y2K, Great Recession, Covid-19 etc.
If you were to pay a $8 premium for an ASE you would probably be waiting a decade or more before the price of silver would be high enough to match your current buy price. Not a good investment at all.
I don't know that what you say will happen the way you expect. There's a really good chance the price for silver will be rising substantially and as a result - and only then, will the premiums dissipate. As that happens, the market will equilibrate and normal transactions will resume at the higher prices.
We've seen this movie before. The only time you'll be buying ASEs at $2.00 over spot is when the markets have calmed down and price volatility has diminished to the point that dealers won't have to hedge against wild price swings. That only happens when the markets are stable and boring.
I think we are seeing a shakeout of the manipulated silver market. I think that higher stated prices are coming, not the lowball manipulated prices. That's my opinion.
The ZeroHedge article that derryb posted is a good explanation, based in reality. I was going to post it, but he already had.
I knew it would happen.
Paper Silver is around $16
Physical Silver is $20+
100% Positive BST transactions
Silver might be up a few dollars when the premiums come down, but it wont be up 12 bucks or at break even price for any body buying now to make a profit over the next year at least imo
Considering that the handful of authorized purchasers (APs) pay more than $2 each to get them wholesale from the mint, don't plan on buying any in the future. Added premium for ASEs really starts at what the APs are paying, last number I heard was $2.50 over spot. Only the APs can buy them from the mint at that price, everyone else down the food chain is at the mercy of retail premium markup. In reality, that $8.50 markup is actually a $6 markup to the retail buyer.
Silver is not an investment, it is a hedge/insurance against dollar mismanagement.
When the momentum hits, and it will, it will grow like a downhill snowball, zipping right past your current spot plus $8. In your decade, if the dollar has not been completely run into the ground, gold will be up 3X or more and silver will be up 5X or more. If the dollar has been completely run into the ground neither metal will be available at any dollar price.
"The good old days when “JUSTICE” stood for something instead of “JUST US.”" - Martin Armstrong
ZeroHedge and reality are two things that should never be mentioned in the same sentence. IMO
I've got monster boxes of eagles put together roll by roll and coin by coin. I guess the APs have been doing it all wrong. Gold has been a good hedge against inflation. Silver has failed in that category as well. It's gutter metal.
The whole worlds off its rocker, buy Gold™.
opinions, everbody has one.
I'll double down on my earlier comment. Doesn't matter if you're buying lots of three, without a BOGO you're not buying at retail for less than wholesale prices whether its a box full or a tube full.
"The good old days when “JUSTICE” stood for something instead of “JUST US.”" - Martin Armstrong
I've got monster boxes of eagles put together roll by roll and coin by coin. I guess the APs have been doing it all wrong. Gold has been a good hedge against inflation. Silver has failed in that category as well. It's gutter metal.
I guess you don't believe your own statement, if you've been accumulating silver at these low prices, roll by roll and coin by coin for years. Why would anyone be doing that, unless they had some sort of understanding of the monetary printing press?
The thing about using precious metals as a hedge against gross governmental financial mismanagement - is that from time to time you start to feel like a genius at how prescient you were when you bought all those valuable bullion coins at such low prices.
Don't let that feeling convince you that you were anything but correct in your original assessment. You weren't a genius after all, you were simply not stupid.
I knew it would happen.
Just plain greed. Only hypocrites do this, they will use that same spot paper price when it goes high to gouge you and when you try to sell. Just keep a list of sellers that do this and don't ever buy from them, Don't reward bad behavior. Just look at it as a way to spot a bad dealer.
I haven't bought silver eagles in quite sometime. In fact in the past year I have probably only added a couple hundred dollars face 90% and all of that would have been at or below spot. For the past 2 years I have focused heavily on gold, the metal of kings. At least I did something right, lol. No more gutter metals for me.
The whole worlds off its rocker, buy Gold™.
For the past 2 years I have focused heavily on gold, the metal of kings. At least I did something right, lol. No more gutter metals for me.
If your conviction is that strong, you could always start selling silver to buy more gold. Personally, I think it's good to have a mix.
I knew it would happen.
Wouldn't be buying more gold at these levels either. $1100-$1300 was the zone. Buy low sell high so they say.
The whole worlds off its rocker, buy Gold™.
Silver will have the last laugh
Loves me some shiny!
When?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
When the joke's over.
"The good old days when “JUSTICE” stood for something instead of “JUST US.”" - Martin Armstrong
whoops, double post
I knew it would happen.
That's the problem, the joke will never be over.
"The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default" ~Greenspan
The whole worlds off its rocker, buy Gold™.
Fixed it for ya.
"The good old days when “JUSTICE” stood for something instead of “JUST US.”" - Martin Armstrong
Ah yes, the ole 'Merica / Zimbabwe comparison. Yawn!
The whole worlds off its rocker, buy Gold™.
That has been the prevailing train of thought in Washington for several decades now. When the annual Federal Gov't budget hits $10 trillion and revenue's at $5 trillion let's revisit this topic.
The article linked below was written 3 months (and $4 trillion) ago.
forbes.com/one-nation-ungovernable
I sold several rolls of Silver Eagles awhile back on eBay at $470 - $475 per 20 coin roll, I had them,,,, put them up for sale. Somebody wanted them more than I did. Nobody twisted his arm and made him buy them..
Supply and demand. That is the "AMERICAN WAY"
If a buyer thinks the premium is too high he doesn't have to buy them You won't starve or freeze to death if you don't have any silver. Maybe the guy is smarter than I am and silver will hit $50 again in Fall 2021.
I am still covered,,,, I have more, The old man who owned my favorite local coin shop taught a lesson that I still use today. And that lesson is,,,,,,,when you can sell and make a big profit on the deal,,,,,the lesson,,,,,,is to .............................................................. "Take the money and run"........
The incident that caused me to learn that lesson was. It was 1986 and I just received my 4 coin Statue of Liberty gold & silver 2 pcs ea of 1/4 oz Gold and 2 pcs 1 oz Silver Dollars, It was in a Cherry Wood box, I think I still have that box because I ended up slabbing the coins and kept the box, Well as I recall I paid $450 for it. My buddy had a buyer all lined up. He offered me $1200 for it but that was the first gold that I ever owned and didn't want to let it go. You know the rest,,,,,,,,, about six months later the set was selling at less than issue price.
So my advice is---------------''To Take The Money and Run"
Bought a couple ounces in the "zone" wish I had bought more. When the smoke clears does anyone think there will be a flood of PM's being liquidated?
People will start dumping their PM's when the government starts paying down the national debt and starts acting in a fiscally responsible way. I'm not holding my breath waiting for that to happen.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
+1
Successful transactions with: Lakesammman, jimineez1, Flackthat, PerryHall, bidask, bccox, TwistedArrow1962, free_spirit, alexerca, scooter25, FHC, tnspro, mcarney1173, moursund, and SurfinxHI (6 times)
Stacking at 27 a pop.
People paid higher premiums when it was $40 an ounce. How soon we forget a short decade . Who remembers the 70's ? Then came unbelievable premiums with the GSA hoard. And I knew lots of guys ( me being one) who would never pay fifteen bucks for a mint state Carson City dollar. But sold, they did.
Just look at the premium on the upcoming ASE End of World War II 75th Anniversary .... listing at $69.50. Cheers, RickO
@ricko ughh that makes me so sick. The artificial bullion premium is ridiculous, bullion itself is so expensive.
With 75k mintage on the v75 ASE, thats 3rd lowest ASE ever and will go to triple digits easy, at least they're keeping the limit 1 per order.
Yeah and funny how that home shopping channel coin guy will be will be peddling about 2,000 of them. lol
The whole worlds off its rocker, buy Gold™.
silver was up over a dollar this past week. did the price of ASE go up a dollar or did the premiums compress?
Kitco: premiums normalizingl
"The good old days when “JUSTICE” stood for something instead of “JUST US.”" - Martin Armstrong
@derryb said "Kitco premiums are normalizing"
A couple of interesting things from that video.
The comment to the effect that there is little demand for ASEs beyond the US market; instead, silver maples leaves are in demand globally.
The comment that for Kitco at least, there is currently an equilibrium between buying and selling of physical metals.