Do any dealers or master dealers buy at wholesale from US Mint?
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Does the US Mint give price breaks in bulkfor US Mint products to any dealers or master dealers (distributors)?
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and then get something like a 5% discount.
Ken
I think the reason for the complicated system was because their first program was for proof sets and was open to anyone. It provided a significant savings. Proof sets were $13 at the time but if you bought 100,000 sets they were $9. One dealer bought a million sets, wholesaled them in smaller lots to other dealers, and everyone was selling current sets that the mint was selling for $13, for $11.
<< <i>Does the US Mint give price breaks in bulkfor US Mint products to any dealers or master dealers (distributors)? >>
What are "master dealers"? Is that anything like "power sellers"?
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"Paper money eventually returns to its intrinsic value---zero."----Voltaire
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a discount to bust the sets up. Some products like the silver proof sets will have
a 25% attrition rate the first year because of this activity. There is a growing market
for supplying the coins which keep sets up to date. This primarily involves the states
coins, Kennedys, and cents but dealers want all the coins for retail (and to make sets).
The only current program is for BU ASE.
I am aware of no such program other than the standard distribution channels of this coin, which is the same for ASE, AGE and the APE.
morris <><
** I would take a shack on the Rock over a castle in the sand !! **
Don't take life so seriously...nobody gets out alive.
ALL VALLEY COIN AND JEWELRY
28480 B OLD TOWN FRONT ST
TEMECULA, CA 92590
(951) 757-0334
www.allvalleycoinandjewelry.com
The United States Mint does not sell its bullion coins directly to the public. Instead, the United States Mint distributes the coins in bulk, through a network of official distributors called Authorized Purchasers who, in turn, sell them to secondary retailers.
To become a United States Mint Authorized Purchaser, your firm must meet the following financial and professional criteria, which must be attested to by an internationally accepted accounting firm.
Be an experienced and established market-maker in gold/platinum and/or silver bullion coins.
Provide a liquid two-way market for the coins.
Be audited annually by an internationally-accepted accounted firm.
Have an established broad base of retail customer base in which to distribute the coins.
Have a tangible net worth of $50 million for Gold and Platinum Eagles, and $5 million for Silver Eagles. This requirement may be met using letter of credit.
Have sold over 100,000 ounces of gold bullion coins over any twelve-month period since 1990. (This criterion is for becoming a United States Mint Authorized Purchaser of gold bullion.)
From the US Mint Website
The United States Mint currently sells American Eagle Silver Bullion Coins to 11 Authorized Purchasers worldwide. The Silver Eagle Authorized Purchasers in the United States are: A-Mark Precious Metals in Los Angeles, SCB/Mocatta Bullion in New York, Jack Hunt Coin Brokers in New York, Salomon Smith Barney in New York, Prudential Securities, Inc. (New York), The Gold Center (Illinois) and HSBC Bank in New York, with sales domestically and abroad.
The international Silver Eagle Authorized Purchasers are Commerzbank International (Luxembourg), Deutsche Bank A.G. (Germany), Union Bank of Switzerland (Zurich) and Hang Seng Bank (Hong Kong).
<< <i> am aware of no such program other than the standard distribution channels of this coin, which is the same for ASE, AGE and the APE
The United States Mint does not sell its bullion coins directly to the public. Instead, the United States Mint distributes the coins in bulk, through a network of official distributors called Authorized Purchasers who, in turn, sell them to secondary retailers.
To become a United States Mint Authorized Purchaser, your firm must meet the following financial and professional criteria, which must be attested to by an internationally accepted accounting firm.
Be an experienced and established market-maker in gold/platinum and/or silver bullion coins.
Provide a liquid two-way market for the coins.
Be audited annually by an internationally-accepted accounted firm.
Have an established broad base of retail customer base in which to distribute the coins.
Have a tangible net worth of $50 million for Gold and Platinum Eagles, and $5 million for Silver Eagles. This requirement may be met using letter of credit.
Have sold over 100,000 ounces of gold bullion coins over any twelve-month period since 1990. (This criterion is for becoming a United States Mint Authorized Purchaser of gold bullion.)
From the US Mint Website
The United States Mint currently sells American Eagle Silver Bullion Coins to 11 Authorized Purchasers worldwide. The Silver Eagle Authorized Purchasers in the United States are: A-Mark Precious Metals in Los Angeles, SCB/Mocatta Bullion in New York, Jack Hunt Coin Brokers in New York, Salomon Smith Barney in New York, Prudential Securities, Inc. (New York), The Gold Center (Illinois) and HSBC Bank in New York, with sales domestically and abroad.
The international Silver Eagle Authorized Purchasers are Commerzbank International (Luxembourg), Deutsche Bank A.G. (Germany), Union Bank of Switzerland (Zurich) and Hang Seng Bank (Hong Kong). >>
Thanks for typing the distribution process for me, I didn't feel like typing it out.
It is also important to note, that most people can't deal directly with one of the seven US distributors either. They have to go down a little further on the chain.
morris <><
** I would take a shack on the Rock over a castle in the sand !! **
Don't take life so seriously...nobody gets out alive.
ALL VALLEY COIN AND JEWELRY
28480 B OLD TOWN FRONT ST
TEMECULA, CA 92590
(951) 757-0334
www.allvalleycoinandjewelry.com
CSN is offering the 2023 Peace Dollar Proof for $79.95 the Mint issue price was $80.00. Doubt hey are seliingat their cost.
The discount bulk buyers get is pitiful. They are likely losing money at $79.95 when costs are considered unless they charge significant shipping and handling.
That is outdated, from a 2002 presser. https://www.usmint.gov/news/press-releases/20020807-mint-announces-new-authorized-purchaser-of-american-eagle-silver-bullion-coins
A CoinWorld article from 2018 said twelve. https://www.usmint.gov/news/press-releases/20020807-mint-announces-new-authorized-purchaser-of-american-eagle-silver-bullion-coins
I believe this has the current AP requirements: https://www.usmint.gov/news/consumer-alerts/business-guidelines/authorized-purchaser-program
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Old Thread Alert
Here is an overview of the "numismatic bulk purchase program", complete with "discount tiers". The 2023 Proof Peace was available as a bulk item (i.e., 23XL040).
Edited to Add (From section #3 of the "NUMISMATIC BULK PURCHASE APPLICATION AND AGREEMENT"):
Source: https://catalog.usmint.gov/on/demandware.static/-/Sites-USM-Library/default/dwf3d711ea/images/PDFs/bulk-purchase-agreement-form-v2.pdf
That's what a meant by pitiful. Imagine being a high volume customer and getting a 5% discount! I'd give you a 5% discount just to be able to combine shipments. smh...
Yeah, but it's close. Demand was clearly not what they were expecting, and they are apparently just looking to get rid of them. After all, they are still not sold out at the Mint!
Their business model is not selling anything at anything close to their cost. Really doesn't matter whether their cost was $70, $80, etc.
A dealer like CSN selling anything at Mint issue price, other than proof sets 30 years later when they don't do anything, means the coins are dogs that they want to liquidate. Assuming that's the case, why would it be unbelievable for them to be selling at their cost?
What's the alternative? Melt them, or tie up capital sitting on them indefinitely? They could never wholesale them out at their cost, this much after release, when they are still available from the Mint.
Even so, no need to throw a fundraiser for them. My guess would be these are the returns from what they sent in for PR 70 minimum grades, and they just want to get rid of them. They still made a ton of money, given what they sold the coins in slabs for.
The APs like APMEX might buy 125,000 at whatever the current premium over spot is. They have the mint drop ship them to PCGS for one.
Remember the pic of the PCGS receiving room that had at least 125,000 2014 ASEs in monster boxes on pallets.
A NOV-2023 CW article summarized the premiums paid by, and the minimums imposed on, the 'authorized purchasers' of bullion:
Source: https://www.coinworld.com/news/precious-metals/u-s-bullion-coins-sales-in-2023-mixed-in-latest-report
For ASEs it used to be $2 over, but I know that they raised it, but I didn't bother to check. I know it would be hard for the average dude to make any money trying to flip them.