Will 2013 ASEs retain their premium?

ajaan

At my local coin show, 2013 Silver Eagles are selling for $39 each while other earlier Eagles can be bought for $37 each. Do you think the 2013 coins will keep their premium and become one of the better dates in the series? or will they eventually sell for the same amount as the common date coins?

fishcooker

No.

OPA

<< <i>No. >>

Wingsrule

Same thing happens every year when the new issues come out.

johnny9434

it happens every year then settles back down.

derryb

2013's currently have the lowest ASE premium of all being sold by APMEX. Look for it to rise to catch up with the others. Physical metal premiums have very slowly risen since 2006, don't look for them to decline; expect them to continue slowly rising as long as the bull market is intact. When the metal eventually peaks and there is a mad rush to get out of it then you will see premiums decline. As we all know, spot price is determined by the paper markets. As long as the counterparty risk involved with paper metals increases, premiums over spot price for physical metal will increase. I personally do not think they are near where they will be once the curtain is pulled fully open on paper risk. When you look at how much paper metal has been sold and realize there is no where near the metal to cover it you will realize thatreal metal continues to be "on sale" because of such low premiums.

The true supression of physical metal prices takes place by convincing market participants that physical price should be determined by the market price of "paper promises" that exist in many multiples of the metal they supposedly represent. The increasing premiums over spot represent the growing distrust of the metal pricing system as well as the paper used to determine price. Once this barrier is overcome (and it will be) prices of real metal will exceed your wildest dreams. Rapidly increasing paper metal counterparty risk is what currently keeps a lid on real metal prices. Like dollars, the more paper metal promises created out of thin air, the less value those promises hold. Even in the face of this fact, demand for metal has still driven higher paper prices over the last decade.

ajaan

Thanks, I'll keep anyway from the 2013s for now.

cohodk

Nothing like being 25% underwater from the get go. This is comical. And people complain about the CFTC and JPM. Lunacy.

derryb

<< <i>Nothing like being 25% underwater from the get go. This is comical. And people complain about the CFTC and JPM. Lunacy. >>


I find this to be comical, but then again I'm easily entertained.

cohodk

<< <i>

<< <i>Nothing like being 25% underwater from the get go. This is comical. And people complain about the CFTC and JPM. Lunacy. >>


I find this to be comical, but then again I'm easily entertained. >>



I love it also. I saw so much of this in the internet boom and housing boom. This is why JPM and GS are so successful.

CaptHenway

They are going to be making them for another 48 weeks or so. Do the math.

silverman68

<< <i>They are going to be making them for another 48 weeks or so. Do the math. >>



Exactly! There will be 40 million produced so why pay a big premium now since they will be valued the same as any other ASE in a month. This is like paying a big premium on these so called rare silver bars but in the end its still 1 ounce of silver.

derryb

Actually, 2013 ASEs have a lower premium

bronco2078

Do people actually look forward to new ASE's knowing they will be making 30 million or more?

derryb

<< <i>Do people actually look forward to new ASE's knowing they will be making 30 million or more? >>


Only the collectors who usually only buy one. To most everyone else price is more important than date.

cohodk

<< <i>Actually, 2013 ASEs have a lower premium >>




Do people pay shipping in top of those outrageous premiums?

thatboyaintright

I'm one of the suckers whom paid $36 for a 2013 ASE at a coin show today. I'm soothing my pain by repeating to myself that its 20% better quality than the 2012 ASE I bought last year.

derryb

Came across the premiums that the US Mint charges it's handful of authorized bullion coin purchasers, who then make the coins available in the market place. This is initial premiums on new coins that grows every time the coins change hands before they get to you and I. This info is currently posted on their site, but may be outdated since it does not mention ATB silver five ouncers.

From the US Mint website:

The United States Mint charges a modest premium 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 $2.00 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.

fivecents

<< <i>Same thing happens every year when the new issues come out. >>

Yup...

OPA

<< <i>

<< <i>Same thing happens every year when the new issues come out. >>

Yup... >>



And this year was no different. Except the Mint didn't anticipate a 30% initial demand increase from the Authorized Purchasers who are now awash in silver eagles. It wouldn't be a surprise to see premiums fall, just to get rid of their stash while the price of silver continues to be under pressure.

Timbuk3

Nope !!!

AcesCracked

Scored a roll of 2013's today at a local show for 680. Fresh out of a monster box. he had to be taking a loss thinking it will go much lower. made my day though........

nibanny

Premiums are shrinking a bit already. Apmex had a special for as low as $2.59.
You can buy a roll at Provident Metals for $667 shipped now.
Still too much for me, I will buy silver again when I can pay <$30.