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How much premium must a new issue carry before it is no longer "bullion"?

jmski52jmski52 Posts: 22,825 ✭✭✭✭✭
The upcoming 5 oz. Bullion Silver "Quarters" are being sold via the Mint's bullion distributors, but a recent article mentioned that they will likely be sold at premiums that are comparable to the collector bullion coins, i.e. - the proof AGEs, ASEs and Plats.

Those coins are usually sold at premiums of at least 30% over face. By comparison, the standard bullion ASEs and AGEs are normally sold at a small markup over face, usually at markups between 3% to 15% over face, depending on the size and quantity.

If the definition of "bullion" and the definition of a "rare coin" ever becomes an issue - for instance, in the (hopefully) unlikely event that the government puts restrictions on precious metal ownership - where do you think that the line should be drawn between "bullion" and "rare coins"?

Will the premium influence your buying decision, and to what extent?
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Comments

  • DrBusterDrBuster Posts: 5,378 ✭✭✭✭✭
    The premium is in play for me. I want them all, but if these are ridiculous premium-wise I will be doing selective buys when I don't have other purchases in line. IF they stick to under $3/oz premium, $15 over spot max, that's as high as I would go to try to make the full run/set.

    Folks start putting these over that and I'll opportune-buy them.
  • CiccioCiccio Posts: 1,405
    I am thinking to buy one, whenever I will find an interesting design.
    I wouldn't pay more than $3/oz premium as DrBuster said.
    I have the feeling that they will go for, at least, $5 over spot. At that point, they will become numismatics items and not just "bullion".
    The Libertad are a way better. JMHO
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Nice link mhammerman, I was not aware of those 2 additional 1954 and 1969 rulings on "rare" gold coins and gold confiscation.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
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