Please explain the deal on purchasing Silver Eagles?

Rhack

Okay, I see loads of dealers advertising silver eagles, the best price around $12.50 to 12.75 a pop. How much do the dealers typically pay for these? Where do they go to purchase them? Seems to me since they are minted as bullion coins, at some point in the supply chain they should be close to bullion cost. Why doesn't the mint sell the non-proof coins directly to the public? Inquiring minds want to know.

Thanks.

aficionado

Well you already said where they get them. Like everything else you have to find the best deal over spot, everyone is entitled to some profit. The more you buy the better the deal. If they were smart enough to buy 100 boxes in January, then they are making a killing, so would have you. The question is, what will the price be in April and May????

It looks easy after the fact, but even the dealers had to put up the cash and take the risk.

I don't know why they don't sell to the public, but concidering what we pay for anything from the mint, we are probably better off. Besides, the best websites change there price per coin as the price changes during the day, there's no way the Mint could handle such volitility and volume.

JMHO.

Good Luck.

DaveG

The Mint sells uncirculated Eagles (gold and silver) to a group of authorized dealers (I believe their minimum net worth is $50 million). As aficionado said, the Mint isn't equipped to handle the volatility and volume (and doesn't want to take the volatility risk).

The Mint sells uncirculated silver eagles to their authorized dealers at a small premium to spot (and they sell to other dealers at a slightly larger premium to spot), so, at this moment, $12.50 to $12.75 is very good.

AgMe

All posts are very good; a short way I use to price a SAE is spot + $1 (USD)... everyone at some point had to pay this "handling fee", so it gets carried through.

On a side note, I would not be surprised if the price of the SAE's diverged from spot in time, while the intent was bullion, they are being collected as coins.

~g

TheRaven

Some of them like the 96 have already done this.....

aficionado

<< <i>
On a side note, I would not be surprised if the price of the SAE's diverged from spot in time, while the intent was bullion, they are being collected as coins.

~g >>



I agree, that's why I bought the Eagle instead of just silver bars. Given the choice, I think most people would choose a 1 oz Eagle coin instead of a 1oz silver bar. Ofcourse if you look through them and are lucky enough to pull an MS70, that's all the better.

mnmcoin

The way I understand it the Mint deals directly with four or five very large "authorized" dealers and sells to them and only them at something like 3.75% above spot. Those dealers deal with another tier of dealers that buy a certain amount and that is where the primary markup begins. I buy mine (usually a box at a time) from one of these dealers and I usually pay around $1.55 or $1.65 above spot. Then I usually put them out individually for $2.50 above spot and discount on 5 or more to about $2 or $2.25 over spot.

morris <><

BECOKA

<< <i>The Mint sells uncirculated Eagles (gold and silver) to a group of authorized dealers (I believe their minimum net worth is $50 million). As aficionado said, the Mint isn't equipped to handle the volatility and volume (and doesn't want to take the volatility risk).

The Mint sells uncirculated silver eagles to their authorized dealers at a small premium to spot (and they sell to other dealers at a slightly larger premium to spot), so, at this moment, $12.50 to $12.75 is very good. >>



Actually the mint will sell to just about anyone, the only thing is you need a minimum purchase and you need to provide your own armored car to pick it up. Also the minimum purchase very substantial so it is usually left to a few major brokers. Those brokers sell larger quantities, usually several thousand to smaller dealers and finally they offer to you in smaller quantities. There is a lot of cost with all of the above and that is why you pay 2 or 3 dollars over spot.

Hope that helps.