US Mint Website Repricing silver offerings?
Custerlost
Posts: 100 ✭✭✭
Just curious if silver coins will be repriced?
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Custerlost
Posts: 100 ✭✭✭
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At some point, sure. They have done it before.
But, unlike gold, they don't have a pricing grid, so they have to go through a process, and maybe even publish in the Federal Register. In the past, they have given advance notice, so people would have an opportunity to buy existing stock at current prices.
At this point, they still don't care, because they hedge silver purchases, and are making the exact same per coin now that they made whenever they placed their hedge. At some point in the future, that will no longer be the case.
Rest assured, if they had to hedge future production at today's prices, their prices would likely go up anywhere from 50-100%. If silver prices don't go back down, look for an increase along those lines next year.
They haven't even tried to do it yet because they make very healthy margins at current pricing, even if they hadn't hedged their spot price exposure, and because they know such a violent price increase will absolutely kill demand.
When PM's decrease in value does the mint ever lower their prices on coins when there is a drop in value? Or does numismatic value take over.
Not usually, but they did actually lower the price of the Morgan and Peace Dollars in 2023. The premiums are WAAAAY higher now than they have traditionally been.
As a result, they are not so quick to adjust prices either way, as we can see with this year's run up in the price of silver. Silver is up around 75% this year, and yet they have not adjusted prices, although I'm pretty sure something will be coming soon unless the price crashes.
It would work the same in reverse. Prices would have to crash from the last price adjustment, and then stay down for a while, before they'd adjust prices. In the meantime, "numismatic value" would not take over. What would happen would be that the products would become more and more overpriced, and sales would fall off a cliff. And that's what would provoke the price adjustment.