Will the Mint charge more to APs for the regular bullion ASEs?
Baylor8670
Posts: 230 ✭✭✭
Yesterday, the Mint increased its prices on the West Point uncirculated ASEs and the proof coins to $169 & $173, respectively.
For those of you who have more experience dealing with the Mint than I do, do you expect that the price for regular ASEs sold to APs will also increase? If so, by how much?
I can't imagine that these will be continue to sold for around $90 to APMEX et al when the West Point price on the web page is $169 but I've been wrong before.
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Interesting point, after all they are still a Mint product. Will have to wait and see.
"Regular" bullion ASEs are priced at spot plus a percentage premium on the day that it is sold. That's not changing, because bullion is not a numismatic item, no matter how much telemarketers try to make it one by sticking it in slabs with special labels. Its price needs to be close to spot, otherwise its primary reason for being ceases to exist, and it will be replaced by other world bullion.
The prices briefly converged before the repricing, as spot rose above $80, but things are back to normal now. The West Point collector version is designed to sell for around double bullion, given that bullion is made in the millions while West Point is made in the tens of thousands. Totally different product, made for totally different audiences, although they look very similar at first glance.
Actually ASE's are currently sold to the AP's at $3.05 per coin over spot. There is not a "percentage" premium on gutter metal:
https://www.usmint.gov/coins-precious-metal-coins/becoming-an-authorized-bullion-purchaser/?srsltid=AfmBOorDCU8Nr7eTcFovL7QO_tDzxUxzuUCJjfrws7DLROsZ1nTuCQXz
Premiums and Minimums
Prices for American Eagles are based on the prevailing price of gold, silver, platinum, or palladium plus a modest premium to cover minting, distribution, and marketing costs. Prices change on a daily basis, as the gold, silver, platinum and palladium markets fluctuate.
American Eagle Silver Bullion
United States Mint Authorized Purchasers are charged the LBMA Silver Price plus a $3.05 per coin premium.
Minimum ordering requirement: 25,000 ounces
American Eagle Gold Bullion
United States Mint Authorized Purchasers are charged the LBMA PM Gold Price plus a percentage premium as follows:
1-ounce: 3%
1/2-ounce: 5%
1/4-ounce: 7%
1/10-ounce: 9%
Minimum ordering requirement: 1,000 ounces
American Eagle Platinum Bullion
United States Mint Authorized Purchasers are charged the LBMA PM Platinum Price plus $65 per coin.
Minimum ordering requirement: 100 ounces.
American Eagle Palladium Bullion
United States Mint Authorized Purchasers are charged the LBMA PM Palladium Price plus a 6.25% premium.
Minimum ordering requirement: 100 ounces.
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Retiring at 55, what day is today?
I did not realize that! I'm sure at some point that will be adjusted as spot and product costs continue to rise, if it has not yet already, but the idea remains the same. Bullion is not meant to sell for a significant premium over spot, because it's supposed to facilitate an investment in silver. Not numismatic coins.
You're confusing the bullion coins with the collector coins. The bullion coins have a constantly fluctuating price as silver moves. They pay a fixed premium to bullion value. There was no need to change pricing for the APs for bullion coins.
All comments reflect the opinion of the author, even when irrefutably accurate.
The NB/AB's pay a 5% Premium above the published price for the "W" ASE's, etc in order to get them before the public gets them, up to a certain time, on a certain date.
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No, I did not confuse the two.
When I see the Mint increase the price of the collector ASEs by $78, I had to wonder if the pricing scheme for the bullion coins might also change.
I'm not saying it will but these are unprecedented moves in the price of silver that make it difficult to know what to expect from the Mint. It is very possible that the pricing of the bullion coins won't change but having an $80 difference between the two sticks out like a sore thumb.
I know right click and "inspect", then how to find the text you are looking for? Thanks.
You are confusing their pricing scheme. Bullion coins are priced relative to spot constantly. There is no need for a global repricing. They did not cost $91 last year. Those are only the burnished collector coins. When silver was $50, the bullion coins were around $53 not $91. Last week, when silver was $92, the bullion was about $95 but $91.
Now, maybe they'll go to a $5 premium at some point. But there is no relationship between the pricing of the bullion coins and the pricing of the collector coins.
So, if this makes you feel any better(worse), if silver drops to $50, the ASEs will cost Apmex $53 but the proof ASE will still be $170.
All comments reflect the opinion of the author, even when irrefutably accurate.