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Why the price difference?

VetterVetter Posts: 850 ✭✭✭✭✭
in Precious Metals
Why does a 1oz PAMP sealed silver bar command a higher premium over a 1oz Silver Eagle coin?
They both are a high quality item and have the same amount of silver.
So why is a PAMP going for $65+ and an ASE only going for around $50?
You would think they are both equal in liquidity right?
Neither is rare and both easy to get.
Any thoughts?
BTW I don’t have I don’t have any sealed PAMPs, but do have ASEs.
Members I have done business with:
Silverman68, jfoot13, GAB, ricman, Smittys, scrapman1077, RyGuy, Connecticoin, Meltdown, VikingDude, Peaceman, Patches and more.

Comments

  • CiccioCiccio Posts: 1,405 ✭
    You are pretty much right but it's the market that makes the price.

    Just for curiosity I did a search on eBay.

    "1 oz Silver Pamp" = 44 results (+25 using ounce instead of oz)
    "American Silver Eagle" = 4556 results (excluding proof)

    I don't know if Pamp resets the serial nbrs every once in a while, though, they have just 6 digits available (so 999,999 bars).
    The US Mint produced them in less than one week in January! image
  • OPAOPA Posts: 17,119 ✭✭✭✭✭
    The only place you can get a PAMP below retail is on eBay.....If you try to buy them directly from the only US distributor the cost is $76 per 1oz bar + handling fee + shipping.
    Supply & Demand

    PAMP US Distributor

    Click on Silver
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • stuckonnightsstuckonnights Posts: 26
    Why does a 1oz PAMP sealed silver bar command a higher premium over a 1oz Silver Eagle coin?

    Why does a silver eagle command a higher premium than a common 1 oz. round from Silvertowne?
    They are both .999 silver. I am buying generic rounds for close to spot just about anywhere.
    It all seems to carry some premium, so why pay more when it is really all the same?
    Kind of like paying more for designer clothing I guess.
  • derrybderryb Posts: 36,793 ✭✭✭✭✭


    << <i>It all seems to carry some premium, so why pay more when it is really all the same? >>


    Premiums on some items such as ASEs increase as the spot price increases. Resell at higher price and higher premium is why buyers pay the premium now. Today's ebay seller of an ASE at $43 plus $6 premium only paid a $1 premium when he purchased the ASE for under $15. Smart sellers are making money on the metal and the premium.

    "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

  • stuckonnightsstuckonnights Posts: 26
    << It all seems to carry some premium, so why pay more when it is really all the same? >>



    Premiums on some items such as ASEs increase as the spot price increases. Resell at higher price and higher premium is why buyers pay the premium now. Today's ebay seller of an ASE at $43 plus $6 premium only paid a $1 premium when he purchased the ASE for under $15. Smart sellers are making money on the metal and the premium

    Makes absolutely no sense looking at it from a long tem holding point of view. Sorry.
  • derrybderryb Posts: 36,793 ✭✭✭✭✭


    << <i>Premiums on some items such as ASEs increase as the spot price increases. Resell at higher price and higher premium is why buyers pay the premium now. Today's ebay seller of an ASE at $43 plus $6 premium only paid a $1 premium when he purchased the ASE for under $15. Smart sellers are making money on the metal and the premium.
    Makes absolutely no sense looking at it from a long tem holding point of view. Sorry. >>


    Makes sence to those that were smart enough to buy ASEs at a small premium when they could have bought generic rounds at a smaller premium. The increase in premiums on the ASEs is now providing a higher return per ounce sold than it would have on the generics. No reason why the premium spread should not continue for the long term holders.

    While the fact that buyers will pay more premium for certain forms of metal might make absolutely no sense it does not eliminate it from being a fact.

    "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

  • stuckonnightsstuckonnights Posts: 26
    No reason why the premium spread should not continue for the long term holders.

    Assumption. the demise of many.
  • derrybderryb Posts: 36,793 ✭✭✭✭✭


    << <i> No reason why the premium spread should not continue for the long term holders.

    Assumption. the demise of many. >>


    EGR - Eagle to Generic Ratio. Past performance indicates a continuing spread between the two. You can call it assumption, I'll call it trend.

    "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

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