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Silver Eagle Premiums on eBay..noticed something..odd.

Hi Folks -

Looking to increase my stack, given the dip during the past week. Was looking a bit ago at recently closed Silver Eagle rolls on eBay and noticed a number of folks paying $8-10 over spot per coin! Just checked APMEX, and they aren't under that by much. I suspect with their credit card premium, you'd get very close to that.

Can anyone explain what's going on here?

Do Silver Eagles really pack that much of a "premium" punch, or am I totally missing something here? image

Thanks in advance. You all have been such an outstanding resource for me in learning more about coins and PM investing!

-Craig

Comments

  • Volatility.

    The premiums encompass the much greater current probability of wider future moves.
  • You also have to consider the 10% eBay bucks promotion right now.
    BST reference: wondercoin, cone10, fivecents, jmdm1194, goldman86
  • CraigLCraigL Posts: 91 ✭✭
    Great points, both of you. From the homework I did, it looked like more "generic" rounds (in similar 20-count quantities) fell in price further than then the Eagles did.

    I suppose this may be a case for buying Eagles and Maples vs, say, Buffalo rounds.

    Thank you for the responses!

    -Craig
  • BAJJERFANBAJJERFAN Posts: 31,097 ✭✭✭✭✭


    << <i>You also have to consider the 10% eBay bucks promotion right now. >>



    Does eBay pick up the tab for that or does the seller?
    theknowitalltroll;
  • BAJJERFANBAJJERFAN Posts: 31,097 ✭✭✭✭✭


    << <i>Hi Folks -

    Looking to increase my stack, given the dip during the past week. Was looking a bit ago at recently closed Silver Eagle rolls on eBay and noticed a number of folks paying $8-10 over spot per coin! Just checked APMEX, and they aren't under that by much. I suspect with their credit card premium, you'd get very close to that.

    Can anyone explain what's going on here?

    Do Silver Eagles really pack that much of a "premium" punch, or am I totally missing something here? image

    Thanks in advance. You all have been such an outstanding resource for me in learning more about coins and PM investing!

    -Craig >>



    I would think that those prices are tied to what the sellers have in them. Do you think someone who bought [and wrote a check] at $43 is going to just take current spot which is about $35.
    theknowitalltroll;
  • CraigLCraigL Posts: 91 ✭✭
    Probably not, but the opposite side must be considered as well -- why would people be paying so much over?

    It's a two-way street. Buyers have to be willing to click that 'Bid' or 'Buy-it-Now' button.....

    -Craig
  • BAJJERFANBAJJERFAN Posts: 31,097 ✭✭✭✭✭


    << <i>Probably not, but the opposite side must be considered as well -- why would people be paying so much over?

    It's a two-way street. Buyers have to be willing to click that 'Bid' or 'Buy-it-Now' button.....

    -Craig >>



    Who do you know that is selling 2 or 3 ASEs for $37 each?
    theknowitalltroll;
  • CraigLCraigL Posts: 91 ✭✭
    No. Well, maybe if you checked Craigslist you could find some locals just trying to get out if their cost basis was in the 40s or something image

    Like I said, I was just curious on the reason for folks paying such a high % premium vs. current spot.

    Will be interesting to watch closing auctions over the next few days to see if any changes develop. Thanks for your responses.

    -Craig


  • << <i>

    << <i>You also have to consider the 10% eBay bucks promotion right now. >>



    Does eBay pick up the tab for that or does the seller? >>



    The seller's fee stays the same.

    It is a promotion run by eBay and Microsoft, so I think they pay for it.
    BST reference: wondercoin, cone10, fivecents, jmdm1194, goldman86
  • BAJJERFANBAJJERFAN Posts: 31,097 ✭✭✭✭✭


    << <i>No. Well, maybe if you checked Craigslist you could find some locals just trying to get out if their cost basis was in the 40s or something image

    Like I said, I was just curious on the reason for folks paying such a high % premium vs. current spot.

    Will be interesting to watch closing auctions over the next few days to see if any changes develop. Thanks for your responses.

    -Craig >>



    I think it is simply a matter of sellers who are selling at a price that will afford them a profit or at least a break even. It might be a matter of buyers willing to pay the asking price as opposed to competitive bidding being used to run up the prices, but then again I have not seen the particular listings to which you are referring.
    theknowitalltroll;
  • Ebay sellers are like gas stations. They are very slow to adjust prices on the downturn, however very fast to adjust prices on the upturn.
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