US Mint hiking prices on 15 silver products
kiyote
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I apologize if this was already posted but I searched the first two pages and didn’t see anything.
https://www.coinworld.com/news/us-coins/united-states-mint-increases-prices-on-15-silver-products
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Thanks for posting. I had not seen this. Good news for sellers or Bad news for buyers?
They'll have to raise the prices even higher, as I'm sure the sale of these products will fall .
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Appears with these large price increases in silver and especially the bronze medals, the mint wishes to phase these products out as few collectors will pay these obscene increases on these. I know I won't!
Uncirculated I assume refers to the burnished eagle? So they aren't raising the price of the regular bullion eagle?
Maybe that's the plan....reduce production and make more cash on what you do sell. Percentage wise it probably makes sense. Later resale of these by present buyers will be at a loss...
Oh yeah, a 41% price increase is gonna help sales....not! What are they doing? Peace
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I was wondering if they have depleted their low cost silver stock and buying at the new prices. Still do not think that justifies the huge increase. Cheers, RickO
Wow, is this ever going to hurt sales as others have said. I would also guess that if they raise the price of the proof set (or WHEN they do) by 40% or so that the sales may well drop well over that 40%. If they drop 60%, will that not be a relative loss? Whose study did they go by?
I know when I fill out questionnaires that I have always pushed back against this.
Also, I would guess that this will ultimately dictate that they follow in the trail of the Canadians, and that we will get many more low volume "exotic" crap similar to the recent baseball commems. Yikes!
Well, just Love coins, period.
Well I complained about the raise in prices last year but if these new numbers are true for next year, I definitely will be shutting down my mint products. The prices on the Eagles went up where I was buying two and had to change to one. Now they're getting where I can't afford one. I've also collected the silver proof sets and the Prez silver medals. Looks like those will be shut down also. I'm tired of financing all their stupid ideas!
I just put all my Subs as inactive! Except for two which is Uncirc Set and Proof set. I just shut down all my silver products. I'm finally done!
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I was planning on buying the 2020 limited edition silver proof set but $201 is too rich for my blood. I’ll maybe buy it on the secondary market when the price is reasonable. The price increases on the regular silver proof sets is astonishing, just astonishing.
These price hikes will hit sales hard. A price hike to cover minting costs is OK but some of these stretch the limit.
"Selective Buying" will be my new guide line. I will be cutting back on US Mint products to only my most important collecting interests.
I got thinking , with prices going up and collectors not buying ,would this lead to items having low mintages and in some cases very low mintages ? Would prices on the secondary market come down or stay up due to low mintages ?
That sort of happened with the 1999 silver proof set but they have already made and sold so many... it might happen for future sets but will there be enough interest on the secondary market?
"Low mintage" will be a temporary and maybe meaningless thing. since it is totally price driven ..next year there will be lower mintages....etc.....
Opinion...
Final nail in the coffin on moderns for me.... i love silver eagles, but that mark up is too high. Guess i will wisely put my money in robinhood instead..
Paper money eventually returns to its intrinsic value. Zero. Voltaire. Ebay coinbowlllc
In order for the United States Mint to cover rising costs, meet its fiduciary responsibility to operate at no net cost to taxpayers, and return money to the Treasury General Fund, re-setting silver prices is necessary.”
Here ya go.
not a profit, not a loss.
I don't see a problem.
Just curious, What happens to the hundreds of coins currently listed on eBay presale at thin margins. The $9 bump on ASE proof puts them in an immediate hole....
I collect and don’t flip so an extra $9 a few times a year is no big deal.
Have any price increased been announced for gold products yet?
Gold prices increased before the American Gold Eagles were launched. The Mint also has a weekly grid for Gold, Platinum and Palladium.
There is no grid pricing for Silver...
Well, if it was a marketing ploy to increase short term sales, it might be working. The price increase prompted me to pull the trigger on the American Liberty 2019 High Relief 2 1/2 oz Silver Medal. I put one in my bag this morning and went out for a walk. When I went to check out after the walk, I was greeted by this:
The numismatic side of the Mint had a Net Loss in FY2018 and FY2019.
The Mint hasn’t announced it yet, however, it will have a Net Loss in FY2020 for the numismatic side of business. The 15 price increases announced were for 15 Silver items. The Mint doesn’t recognize seigniorage on Silver products.
The transfer to the General Fund is 100% seigniorage since there was No Profit in 2019...
Maybe good news for flippers if that's what you mean but not otherwise. I don't believe that collectors really like US Mint products that much where they will miss it if priced out or choose to buy something else.
I previously looked at this list and find the prices ridiculous. I think it matters less now since the internet enables any collector to circumvent the communication limitations when Mint products represented much of what could be bought.
This my opinion also, particularly for coins which don't have a high preference except at nominal prices. Even with much lower mintages, these "low" mintages will still make it more common than over 99% of all coins ever struck in anything close to equivalent quality.
Almost certainly not. I'm guessing the mintage will still be over 200,000 as opposed to 361,000 in 2018 to my recollection. That's not low for coins which actually have a low preference.
Anecdotally, I never read (either on coin forums or in the numismatic press) of a large collector base collecting proof sets as their primary interest. It may be "large" since the US collector base is much larger than elsewhere or other collectibles but seems most buyers collect it as a sideline collection or out of habit on automatic pilot.