Home› Precious Metals

Nearly $7 Spread on Spot Price and Selling Price Of U. S. Eagles

PipestonePetePipestonePete Posts: 1,937 ✭✭✭✭✭
in Precious Metals
What is the cause of this large price spread? Are Eagles still a value when the premium is this large over the spot price?

Comments

  • cinman14cinman14 Posts: 2,489 ✭
    supply verses demand.... With a little ignorance mixed in... Yes there is a chance the premium will be there when you sell.

    Unless the spot price stays in the mid 12's or lower for a few more months. Then you may see some premium vanish..

    Unless you sell on Ebay with 5.95 shipping......image
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Good point. I would expect to see much of that premium vanish if silver reaches $20 again. With current high premiums I'd probably be a buyer of 90% silver but not the 1 oz. rounds, ASE's, 100oz bars, etc.

    A friend of mine indicated that one B&M shop he talks to is not offering silver as a rule to his customers. Rather he is hoarding it on his own account. No shortages of orders either.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • coynclectercoynclecter Posts: 2,111
    What is the cause of this large price spread? Are Eagles still a value when the premium is this large over the spot price?


    Simple, do you want to buy silver or a promise to deliver that they can cancel or worse, just close thier doors with your money. The price on COMEX is artificially manipulated as you can tell by what people are paying for bullion. At some point all the silver will be bled out of COMEX and they will default. Then the $13 silver contract will be cancelled due to " force majeure" as they did to the Platinum contracts in Russia last year. If silver goes up 50% in the next 30 days expect most "advanced sales" to be worthless.

    I sold some spot eagles on Ebay last week at 19 each. Anything around that rate on Ebay is SOLD. I have as much confidence in COMEX as I had in WAMU, Lehman etc.

    Don't buy the lie, buy the bullion.

  • dac076dac076 Posts: 817 ✭
    Another possibility (esp. with regard to Ebay sales) is that Eagles are recognizable to the general public as a way to buy silver. The average Joe isn't going to be buying bags of 90%, even though it's a much better deal.
  • BigRedBigRed Posts: 716
    just went to the cincinnati show at sharonville convention center and what 90% silver that was thier was 11 times face for dimes , quarters and halfs. The Morgans were $17 for common VF,s. and the silver eagles were $17to $19. The art stuff was $16. I may be sorry but I can't bring myself to pay that much over melt.
  • TexastTexast Posts: 1,899 ✭✭✭✭
    I was happy to buy 11 silver eagles a few weeks ago at a local pawn shop (all they had) for $12.50, (no tax) spot was $11.04, now I'm reluctant to even sell on ebay even at $20, I still feel silver will go over $25 with the apparent shortage of safe places to put money right now. With the credit crunch growing deeper I have to believe that the upcoming holiday retail sales will be very low causing a second wave of losses on the stock market.

    Anyone for $40.00 silver in January?
    On BS&T Now: Nothing.
    Fighting the Fight for 11 Years with the big "C" - Never Ever Give Up!
    Member PCGS Open Forum board 2002 - 2006 (closed end of 2006) Current board since 2006 Successful trades with many members, over the past two decades, never a bad deal.
  • jmski52jmski52 Posts: 22,851 ✭✭✭✭✭
    This reminds me of the things I heard about Russia when I was growing up. Meat was the same price as in the West, but there was none for sale.

    Call it tinfoil hat time if you want, but is the government turning retail precious metals trade into a gray market?
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Reminds me of CDN pricing at times...say for Liberty Seated better dates. CDN can be low by a factor of 3X, yet in the market, that's what some of those coins trade at. Yet there you have the king of market price guides telling you a coin is worth $200 when the physical or real market is $600-$800.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • OPAOPA Posts: 17,121 ✭✭✭✭✭


    << <i>I was happy to buy 11 silver eagles a few weeks ago at a local pawn shop (all they had) for $12.50, (no tax) spot was $11.04, now I'm reluctant to even sell on ebay even at $20, I still feel silver will go over $25 with the apparent shortage of safe places to put money right now. With the credit crunch growing deeper I have to believe that the upcoming holiday retail sales will be very low causing a second wave of losses on the stock market.

    Anyone for $40.00 silver in January? >>



    Yup ... I'll bet you a cup of Java it's not gonna happen. Worldwide Economic slowdown will take care of that. Also, there is more silver in the world that could be melted, than "Carter has Liver Pills."
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • CnitasCnitas Posts: 373
    I was just in my local B&M yesterday. They had tons of silver, but they wanted $27 for a SAE.
    They wanted $32 for proofs.

    ...no thanks.
    Mark Piersall
    Random Collector
    www.marksmedals.com
  • MoneyLAMoneyLA Posts: 1,825 ✭
    some dealers are complaining of a shortage of silver eagles and morgans and peace dollars... hence the higher premium.
    Cheers, Alan Mendelson
    www.AlanBestBuys.com
    www.VegasBestBuys.com
  • BochimanBochiman Posts: 25,381 ✭✭✭✭✭


    << <i>some dealers are complaining of a shortage of silver eagles and morgans and peace dollars... hence the higher premium. >>




    Funny thing is that many complain about it, charge the premium, but they won't buy for close to it...they want to buy for around spot and sell for the large premium on it.

    I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment

  • DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>Funny thing is that many complain about it, charge the premium, but they won't buy for close to it...they want to buy for around spot and sell for the large premium on it. >>



    I suppose it all depends on the shops or your location.

    Down here B&M shops are paying well above spot for any type of silver, several dollars above spot in fact.
    "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
  • phantom1701phantom1701 Posts: 129
    Just keep in mind that the COMEX contracts can be settled for cash, so it's not like physical silver needs to change hands. If the person calls on the contract and there is no silver to fill it, they just pay them a cash settlement fee that is agreed upon by both parties.
  • cohodkcohodk Posts: 19,129 ✭✭✭✭✭

    Derryb......ASE premiums were higher then, than now.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • blitzdudeblitzdude Posts: 5,897 ✭✭✭✭✭

    LOL let's not let facts get in the way.

    The whole worlds off its rocker, buy Gold™.

  • DrBusterDrBuster Posts: 5,379 ✭✭✭✭✭

    why did you bump a 14 yr old thread? smh

  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    edited January 9, 2022 4:17PM

    The OP does not tell us that. It tells us that premiums were "nearly $7." They are well over $10 for that ASE the OP talks about.

    Like the puppet says "let's not let facts get in the way."

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • blitzdudeblitzdude Posts: 5,897 ✭✭✭✭✭

    @derryb said:
    The OP does not tell us that. It tells us that premiums were "nearly $7." They are well over $10 for that ASE the OP talks about.

    Like the puppet says "let's not let facts get in the way."

    Puppets??? Thanks for bringing me back to 1986. RGDS!!!!

    "Obey your, Master, Master, Master of puppets, I'm pulling your strings, Twisting your mind and smashing your dreams?" Happy New Year!!!

    The whole worlds off its rocker, buy Gold™.

  • cohodkcohodk Posts: 19,129 ✭✭✭✭✭

    @derryb said:
    The OP does not tell us that. It tells us that premiums were "nearly $7." They are well over $10 for that ASE the OP talks about.

    Like the puppet says "let's not let facts get in the way."

    Read the rest of the thread. You will see prices being paid for ASEs at the time. You can then research the spot price of silver at the time. A simple exercise in mathematics will show premiums for ASEs were higher on a percentage basis then, than today.

    All of which is a moot point though as premiums on ASEs have no bearing on overall demand for silver nor do they predict silver prices.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • taxmadtaxmad Posts: 978 ✭✭✭✭

    @DrBuster said:
    why did you bump a 14 yr old thread? smh

    Because they aren’t at a bunny-boiling level of obsession yet…

  • TwoSides2aCoinTwoSides2aCoin Posts: 44,293 ✭✭✭✭✭

    Called A-Mark for the 2022 eagles. $8 over spot. My regular dealer is spot +$8.25
    Nothing new under the sun.

  • CoinlearnerCoinlearner Posts: 2,485 ✭✭✭✭

    Before the latest silver run-up ,I've bought eagles $2-4 over spot the last 10 years, local B&M and on-line. My opinion it should settle back to those premiums after a time.

Sign In or Register to comment.