Silver Price Increases at the US Mint

19Lyds

Come July 9, due to the increase in the price of Silver, the US Mint is raising the prices on all numismatic silver coins and medals!

While they are certainly free to charge whatever they want, I find their prices absolutely outrageous!
They are even raising the prices on Silver Coins which were produced in 2019?

Silver Proof Sets will now cost $150. American Eagles will now cost between $91 and $95 with the Uncirculated W coin only being $4 cheaper than the proof?

Needless to say, given the poor quality of the low profiled junk they've been producing, I'll cancel all subscriptions since there simply is zero upside.

smuglr

So who was given the heads up and was able to order the 2019 S enhanced reverse proof ASE before it went dark?

HATTRICK

That’s a back door secret I will never tell. 😁

DCW

At 3xs melt, I'm not exactly sure who their target audience is.
But it's not this guy.

Cougar1978

Haven’t bought from mint in ages - sometimes offered USM stuff at shows. As bullion has been increasing not surprised by usm move considering the demand for their stuff. I track gold, silver prices plus Pcgs indexes. In an up market segment players target those who will pay the money.

Pilot123

The percentage gain in the price of silver in the last 15 years, is nowhere near the price percentage increase at the mint. There must be a large overhead cost increase outside of the commodity. Like wages, healthcare, and machinery costs. Inflation defined.

NJCoin

@Pilot123 said:
The percentage gain in the price of silver in the last 15 years, is nowhere near the price percentage increase at the mint. There must be a large overhead cost increase outside of the commodity. Like wages, healthcare, and machinery costs. Inflation defined.

On thing has nothing to do with the other. The Mint has been aggressively increasing prices over the last few years. Before inflation accelerated, and without regard to the price of silver, that bounced around between $12 and $49 from 2010 through today.

It's got nothing to do with wages, benefits, machinery, etc. It's what the market will bear.

They were previously selling a lot of products far below secondary market values, creating lucrative flipping opportunities. The pendulum has now swung the other way, to the point where nothing they offer sells out. This will only become even more pronounced with the latest increase.

That said, nothing in your post explains why a $35 proof set needs to cost $150 if the clad planchets are replaced with 100% silver ones containing ~$50 worth of silver. Wages, healthcare, machinery, etc. cost exactly the same whether the coins being stuck are made of silver or copper-nickel.

Whatever profit plus overhead the Mint needs to capture is already built into the $35 price. Add in $50 worth of silver, and anything above $85 or so is nothing more than obscene, excessive additional profit. In another context, done by another entity, it would be considered price gouging.

If people are willing to accept it, that's what free markets are all about. But, increasingly, people are bound to say "no mas," and that will likely serve to end the issuance of silver proof sets, since there will certainly be some level of demand below which it won't be worth the Mint's while to offer them. A $115 delta above the clad set when silver is going for around $30 per ounce will probably push demand down close to that point. JMHO.

tincup

Mint it... and they will come. Keep buying at those high prices, and the prices will continue to rise.

tincup

I think the last thing I might have ordered from the Mint was a Boys Town $5 gold, then decided enough was enough. Prices way too high for mediocre quality, ugh designs. JMO.

OPA

Good grief:

Armed Forces 2.5 Ounce Silver Medal
Current Price…………….….$175
Price Effective July 9……….$225

I'm still waiting for the final one to be released: US SPACE FORCE, to complete my collection.

https://www.coinnews.net/2024/07/02/u-s-mint-announces-silver-product-price-hikes-morgan-and-peace-dollars-included/

HATTRICK

It’s a miracle !! My addiction to silver coins has been cured by outrageous US Mint prices. 😂

Rodentman

I've collected silver proof sets and have from 1956 - 2024 but that's it.

WCC

@NJCoin said:

If people are willing to accept it, that's what free markets are all about. But, increasingly, people are bound to say "no mas," and that will likely serve to end the issuance of silver proof sets, since there will certainly be some level of demand below which it won't be worth the Mint's while to offer them. A $115 delta above the clad set when silver is going for around $30 per ounce will probably push demand down close to that point. JMHO.

My opinion too, to your entire post but adding commentary to this part.

Longer term, I expect prices for these sets to approach melt or "junk" silver. (Seem to be somewhat above for proof quarters offered by the roll but not much.) Only a much higher spot price will likely allow buyers to even break even, measured in nominal (not "real") dollars.

Maybe if there is huge future melting it will be somewhat different, but by huge, I mean most of it.

This link has mintages through 2022: https://proofsetguide.com/proof-set-mintage/

If it's accurate, mintages the last few years aren't even close to low, even after a 70%+ decline. Going by comments on coin forums, it's predominantly (if not almost entirely) bought as a secondary or "side collection", not a primary interest It's also my inference its substantially bought out of rote habit too, not because the buyer really likes it that much.

IMO, even with proportionately noticeably lower mintages, it would still be overpriced at this issue price, or near it.

I hold the same opinion for the clad sets.

MsMorrisine

@WCC said:

Longer term, I expect prices for these sets to approach melt or "junk" silver. (Seem to be somewhat above for proof quarters offered by the roll but not much.)

>

are you aware of the thread on the pm forum about a dealer selling modern 90% proofs?

WCC

@MsMorrisine said:

@WCC said:

Longer term, I expect prices for these sets to approach melt or "junk" silver. (Seem to be somewhat above for proof quarters offered by the roll but not much.)

>

are you aware of the thread on the pm forum about a dealer selling modern 90% proofs?

No, I don't read that forum often. I've only checked eBay intermittently. I don't remember exact prices but whatever I saw either sat there or sold for modest premiums.

jmlanzaf

@WCC said:

@NJCoin said:

If people are willing to accept it, that's what free markets are all about. But, increasingly, people are bound to say "no mas," and that will likely serve to end the issuance of silver proof sets, since there will certainly be some level of demand below which it won't be worth the Mint's while to offer them. A $115 delta above the clad set when silver is going for around $30 per ounce will probably push demand down close to that point. JMHO.

My opinion too, to your entire post but adding commentary to this part.

Longer term, I expect prices for these sets to approach melt or "junk" silver. (Seem to be somewhat above for proof quarters offered by the roll but not much.) Only a much higher spot price will likely allow buyers to even break even, measured in nominal (not "real") dollars.

Maybe if there is huge future melting it will be somewhat different, but by huge, I mean most of it.

This link has mintages through 2022: https://proofsetguide.com/proof-set-mintage/

If it's accurate, mintages the last few years aren't even close to low, even after a 70%+ decline. Going by comments on coin forums, it's predominantly (if not almost entirely) bought as a secondary or "side collection", not a primary interest It's also my inference its substantially bought out of rote habit too, not because the buyer really likes it that much.

IMO, even with proportionately noticeably lower mintages, it would still be overpriced at this issue price, or near it.

I hold the same opinion for the clad sets.

I think that's more about who is on coin forums. If you buy a lot of estates, you will see many collections that are predominantly Mint issues and circulation Whitman albums.

WCC

@jmlanzaf said:

@WCC said:

@NJCoin said:

If people are willing to accept it, that's what free markets are all about. But, increasingly, people are bound to say "no mas," and that will likely serve to end the issuance of silver proof sets, since there will certainly be some level of demand below which it won't be worth the Mint's while to offer them. A $115 delta above the clad set when silver is going for around $30 per ounce will probably push demand down close to that point. JMHO.

My opinion too, to your entire post but adding commentary to this part.

Longer term, I expect prices for these sets to approach melt or "junk" silver. (Seem to be somewhat above for proof quarters offered by the roll but not much.) Only a much higher spot price will likely allow buyers to even break even, measured in nominal (not "real") dollars.

Maybe if there is huge future melting it will be somewhat different, but by huge, I mean most of it.

This link has mintages through 2022: https://proofsetguide.com/proof-set-mintage/

If it's accurate, mintages the last few years aren't even close to low, even after a 70%+ decline. Going by comments on coin forums, it's predominantly (if not almost entirely) bought as a secondary or "side collection", not a primary interest It's also my inference its substantially bought out of rote habit too, not because the buyer really likes it that much.

IMO, even with proportionately noticeably lower mintages, it would still be overpriced at this issue price, or near it.

I hold the same opinion for the clad sets.

I think that's more about who is on coin forums. If you buy a lot of estates, you will see many collections that are predominantly Mint issues and circulation Whitman albums.

Yes, I understand your point and I believe you.

Of those who collect proof sets, how many buy most years prior to when they started collecting?

I don't know, but I doubt a high proportion of low budget collectors (which is most) go back very far. That's what is required to maintain current preference in the future. My assumption is that a lower and lower proportion do over time.

I admit it's an inference, not fact.

Coin Finder

I believe this will lead to lower sales and thus lower mintages...

MS66

@HATTRICK said:
It’s a miracle !! My addiction to silver coins has been cured by outrageous US Mint prices. 😂

If only! My own addiction continues apace, only I no longer have the U.S. mint among my suppliers.

Definitely agree with the remark upthread that this was more a marketing decision than anything else.

I hope they're making good money. None of it will be mine.

telephoto1

Silver goes up a buck, they raise dollars by $15. Seems logical. I'm tired of being basically an unpaid salesman for the mint. They're gradually going to price themselves out of the market on some of these things. I'm hearing a LOT of complaints and we've scaled back our purchases as a result. I'm not participating in the Morgan/Peace issues any further and am telling folks who want them to go to the USM site directly. We make no significant money on their products anyway; it's more of a service to the few who wish to buy locally (but even that is thinning due to the price increases)... and they're pulling increasingly more collector money out of the vintage coin market to boot...so why exactly should I keep stocking this stuff?

NJCoin

@telephoto1 said:
Silver goes up a buck, they raise dollars by $15. Seems logical. I'm tired of being basically an unpaid salesman for the mint. They're gradually going to price themselves out of the market on some of these things. I'm hearing a LOT of complaints and we've scaled back our purchases as a result. I'm not participating in the Morgan/Peace issues any further and am telling folks who want them to go to the USM site directly. We make no significant money on their products anyway; it's more of a service to the few who wish to buy locally (but even that is thinning due to the price increases)... and they're pulling increasingly more collector money out of the vintage coin market to boot...so why exactly should I keep stocking this stuff?

Agreed. But, to be fair, silver did not go up a buck. It went up around $10 from last year's low, and a solid $6 from last year's high.

I agree that the premiums on numismatic products are unjustifiable, but they are being consistent in what they are doing with respect to the pricing -- taking the bulk of the upside for itself, and leaving little to nothing for you, and especially for flippers. The days of buying something from the Mint for $50 that you could immediately resell for $150+ are over. And, as a taxpayer, that's fine with me. I only wish other parts of the federal, state and local government were so market savvy.

goldbuffalo

$100 an oz is to much for me. Before you could justify a 69 or keeping it raw, as saying, well it is an ounce of silver. I don’t think that holds anymore, if you don’t have a 70 you lost money.

if you buy a couple uncirculated and a couple proofs, of a piece dollar and a Morgan dollar and a commemorative dollar and American Eagle you’ll be in for $1000 in silver.

McDonald’s did the same, they can make more money per item, but you’re gonna sell less, people will lose interest and move on, you have to strike the balance. I think they went too much on this, if silver was $50, sure, but not $30.