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Could this be true? Silver Eagles on the wholesale level

SilverEagles92SilverEagles92 Posts: 6,787 ✭
in Precious Metals
I went to the B&M today, and the dealer was talking to another customer about silver eagles. A lady walked in, probably Christmas Shopping, and bought an '08 Silver Eagle for $20. When she left, the customer asked why the silver eagle was so much, when silver is below $10? the dealer said that he has to pay $15 each for silver eagles on the wholesale level.

Dealers, do they really cost that much wholesale?
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Comments

  • jdimmickjdimmick Posts: 9,667 ✭✭✭✭✭
    Not the 08's, but today at the show several dealers had them priced at 15.00 each, and they did not sell. I lowered mine to 14.00 and it seemed to be the magic number.
  • cinman14cinman14 Posts: 2,489 ✭
    I read something earlier this week that they are raising the price to 1.40 over spot..

    This is from the Mint's site.

    American Eagle Bullion Coins

    Congressionally authorized, American Eagle Bullion Coins are minted by the United States Mint. They are intended to provide investors with a convenient and cost-effective way to invest in precious metals. Since their launch, American Eagles have become the world's number one bullion coin investment products.

    Prices for American Eagles are based on the prevailing price of platinum, gold, and silver, plus a modest premium. Prices may change on a daily basis, as the platinum, gold, and silver markets fluctuate. 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.)
    Premiums and Minimums
    The United States Mint charges a modest preminum above the current market price of platinum, gold, and silver to cover minting, distribution and marketing costs.

    For the Silver Eagle, we charge the United States Mint's Authorized Purchasers the price of silver plus $1.25 per coin premium. Minimum ordering requirement is 25,000 coins.
    For the Gold Eagles, we charge 3%, 5%, 7% and 9% premiums for the one, one-half, one-quarter and one-tenth ounce coins respectively. Minimum ordering requirements are 1000 ounces.
    For the Platinum Eagles, we charge 4%, 6%, 10% and 15% premiums for the one, one-half, one-quarter and one-tenth ounces coins respectively. Minimum ordering requirements are 1000 ounces.
    For further information, call the United States Mint Bullion Program at (202) 354-6829. Or write:

    United States Mint
    Sales and Marketing
    ATTN: Bullion Program
    801 9th Street, NW
  • halfhunterhalfhunter Posts: 2,770 ✭✭✭
    HERE is the updated Mint bullion coin site reflecting the price Increase.

    Regards,

    John
    Need the following OBW rolls to complete my 46-64 Roosevelt roll set:
    1947-P & D; 1948-D; 1949-P & S; 1950-D & S; and 1952-S.
    Any help locating any of these OBW rolls would be gratefully appreciated!
  • GreeniejrGreeniejr Posts: 1,321 ✭✭✭


    << <i>I went to the B&M today, and the dealer was talking to another customer about silver eagles. A lady walked in, probably Christmas Shopping, and bought an '08 Silver Eagle for $20. When she left, the customer asked why the silver eagle was so much, when silver is below $10? the dealer said that he has to pay $15 each for silver eagles on the wholesale level.

    Dealers, do they really cost that much wholesale? >>



    Depending on the size of the dealer and their supply chains it very well might. If you order directly from one of the big bullion houses (the main distributors) they would cost just under 14 basis 10 and change silver. This is for 08s with many older dates at a much higher premium. Because of the limited supplies being produced by the mint, this has allowed the distributors to make larger profits. After years of making nothing they have the right to make a few bucks. Depending on which distributor, some are being much more fair than others.
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