05 Proof coins cheaper on eBay than at the mint - why?

JDelage

I'm confused - does the mint sell at a discount to large dealers? Examples:

$50 coin, retails at US Mint for $720
http://cgi.ebay.com/2005-W-50-Gold-Eagle-NGC-Proof-PF69-UC-Ultra-Cameo_W0QQitemZ8345530369QQcategoryZ39483QQssPageNameZWDVWQQrdZ1QQcmdZViewItem
Sold for $691

http://cgi.ebay.com/2005-AMERICAN-EAGLE-50-DOLLAR-GOLD-COIN-NGC-PF67-PROOF_W0QQitemZ8341434950QQcategoryZ39483QQssPageNameZWDVWQQrdZ1QQcmdZViewItem
Sold for $590

$10 coin, retails at US Mint for $190
http://cgi.ebay.com/2005-W-10-Gold-Eagle-NGC-Proof-PF69-UC-Ultra-Cameo_W0QQitemZ8341303930QQcategoryZ39483QQssPageNameZWDVWQQrdZ1QQcmdZViewItem
Sold for $145

Am I missing something here?

Thanks for the help.

JD

AgMe

No reserve.

If memory serves me correctly, everyone except that one co-marketing outfit pays the same price.

Russ

It is not unusual for both GAE's and gold commems to bring less in the aftermarket than original issue price. This is particularly true of proof coins because of the sizable mint markup over gold melt value.

Russ, NCNE

JDelage

Thanks - so the answer is that basically someone took a loss. Interesting. (Of course, that doesn't make those good buys per se... )

JDelage

I wonder what is the incremental cost for the mint to produce proof coins. I.e., if bullion coins cost X% over their gold content (I'd assume this to be a very small number), then how much more does it cost to produce proofs?

JD

lathmach

<< <i>Thanks - so the answer is that basically someone took a loss. Interesting. (Of course, that doesn't make those good buys per se... ) >>



Right.
Buying coins from the mint, can be hazardous to your economic health.

Ray

sinin1

proof sets from the 80's are still selling below cost from mint when issued

coinshow

It can also be because the mint gives 5% off if you spend over $5,000 in an order for some items.