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2005 Silver Eagles

dlimb2dlimb2 Posts: 3,449
in U.S. Coin Forum
Anyone think these might be a low mintage...since it is the 20th year of production.

Comments

  • DeadhorseDeadhorse Posts: 3,720 ✭
    No.

    These things are a huge money maker for the US Mint. A horrible way to store bullion, but a great way for the Mint to show a profit.

    As long as there are suckers, errr, buyers there will be millions of these things churned out.
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
  • fishcookerfishcooker Posts: 3,446 ✭✭

    What's horrible about storing them?
  • mhammermanmhammerman Posts: 3,769 ✭✭✭
    Well, they haze over pretty bad but they are big and pretty, like the morgans.
  • ychangeychange Posts: 95
    the fact that removes them from being as viable as other silver bullion is the steep premium to spot price.

    which would you rather put away as a hoarder, a single 100oz. bar at .20-.30 over spot, or 100 eagles at premiums over a buck each.

    a few are fine, a roll or two is fine, a dated collection if it floats your boat, but i don't think they are where the bulk of any man's silver hoard should be stored.

    peace
    imageimage
  • dlimb2dlimb2 Posts: 3,449
    Deadhorse, as long as the mintage is low, I don't care that the mint makes money on it...they have to make money to stay in business...and as long as I can keep buying coins with a low mintage from them...it keep me happy....Modern or Not!!! I do with that they would keep the quality of the coins consistant though!
  • Steve27Steve27 Posts: 13,274 ✭✭✭
    "These things are a huge money maker for the US Mint."

    According to DeepCoin, who works for the mint, the mint state coins are sold for a small premium over bullion price. The secondary sellers make the big mark-up. However, they do make a lot of money on the proofs.
    "It's far easier to fight for principles, than to live up to them." Adlai Stevenson
  • TheNumishTheNumish Posts: 1,628 ✭✭
    The mint sells them to their distributors for $1.25 over the London Silver Spot. London silver is usually 2-3 cents over New York.

    I think the mintage this year is going to be pretty high.
  • Conder101Conder101 Posts: 10,536 ✭


    << <i>The mint sells them to their distributors for $1.25 over the London Silver Spot. >>


    Yep, and so to detrmine their profit you have remember that since they have a one dollar face value the mint has to account for that as well, so that leave them with a 25 cent gross profit per coin. Profitable but nothing fabulous.
  • DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>

    << <i>The mint sells them to their distributors for $1.25 over the London Silver Spot. >>


    Yep, and so to detrmine their profit you have remember that since they have a one dollar face value the mint has to account for that as well, so that leave them with a 25 cent gross profit per coin. Profitable but nothing fabulous. >>



    I'm not sure I follow this logic.

    The mint buys in huge quantities, so they are getting it right at spot, and they sell based on spot prices so the profit may be much greater right there.

    Even so, assuming that spot remained constant, I still see it as a $1.25 profit. They aren't destroying one dollar in currency or coinage to replace with these as is done with paper money.

    Correct me if my logic is off somewhere here.

    From a bullion standpoint, they are a terrible way to invest one's money. That was my original point to begin with.
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
  • Conder101Conder101 Posts: 10,536 ✭
    It has to do with government accounting. When they stike the coin they "created" a dollar. In order to pass out the dollar it has to be paid that dollar face value just like when the Fed buys coins or paper money.
  • ScarsdaleCoinScarsdaleCoin Posts: 5,223 ✭✭✭✭✭
    dont know ....but if you are in Westchester NY area...come to the Westchester Coin Club meeting on Wed night 2/16 we are selling them for only $8 each image
    Jon Lerner - Scarsdale Coin - www.CoinHelp.com

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