Interesting gold prices
bsshog40
Posts: 3,907 ✭✭✭✭✭
So I was watching tv and of course commercials. The old US Money Reserve commercial came on and curiosity got to me to check their gold prices. Now all I looked at was bullion gold. So I wanted to compare their prices of a 1 oz gold Eagle to the us mints price. So why would these be soo different? I just looked at both just before I posted this. First is us mint price and second is us money reserve.
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My Original Song Written to my late wife-"Plus other original music by me"
https://youtube.com/playlist?list=PL8A11CC8CC6093D80
https://n1m.com/bobbysmith1
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Comments
They are different coins. The first (U.S. Mint) is a proof coin, the second (U.S. Money Reserve) is bullion.
Reference
This year, the Mint will release three versions of the 1.0 oz. AGE - bullion, 'uncirculated/burnished', and proof.
The Mint does not sell bullion coins directly to the public.
Reference
Edited to add references, and additional information.
Oh, I didn't even pay attention to that. So I guess a proof finish is worth at least $500? Lol
So looking at your edit, the mints Uncir is still $500 more. Still doesn't make sense to me how both can be priced soo different.
My Original Song Written to my late wife-"Plus other original music by me"
https://youtube.com/playlist?list=PL8A11CC8CC6093D80
https://n1m.com/bobbysmith1
The U.S. Mint always charges an extremely high manufacturing premium for their Proof version of the current year American Eagle gold coins.
By contrast, they sell the one ounce Uncirculated version in bulk (500 piece lots of the current year coins) at a 3% premium over spot to licensed distributors who then sell them to private dealers in 20 coin rolls for a small markup over that, and those dealers sell singles or multiples to the public at a small markup over that. Typical retail for a current year coin is usually under 5% over spot, though that can go up if a dealer has to make a special purchase to get a current year coin for a customer who wants it for a new baby or an anniversary or whatever.
Previous year coins (and eventually every current year coin is a previous year coin) can often be bought from dealers for around 3% over spot, but again this varies with supply and demand.
(All pricing mentioned here assumes cash or check. Credit card companies charge merchants a percentage of the transaction, and on such low margin merchandise the dealers have to pass that charge along to the customer lest they lose money on the sale.)
I would love to get a set of these coins, but the price of bullion scares me. I guess I should bought when it was $1,700.