Mint now charging a HUGE premium on Gold

Coinsponge · October 22, 2008 3:56AM

So the margin is now from $400 to $500/oz over melt. I want to know how they (Feds) can complain about Exxon pricing when they are the reining champs of overpricing.

derryb · October 22, 2008 4:33AM

So am I, spot price is history.

roadrunner · October 22, 2008 4:38AM

If you want to play, you gotta pay. Just wait until pricing for the high relief 1 ouncers comes out.

roadrunner

Coinsponge · October 22, 2008 4:40AM

<< If you want to play, you gotta pay. Just wait until pricing for the high relief 1 ouncers comes out.

roadrunner >>

I understand but I just thought a little tounge lashing was in order.

maibockaddict · October 22, 2008 5:15AM

There is very little supply of physical gold. Spot prices mean nothing right now, that said, if you are selling, don't get screwed by dealers quoting spot!!!!

aficionado · October 22, 2008 5:18AM

<< If you want to play, you gotta pay. Just wait until pricing for the high relief 1 ouncers comes out.

roadrunner >>

What ?

The price is going to be inline with the price of gold. There's not going to be any 'special' mark up.

maibockaddict · October 22, 2008 5:28AM

<< 

<< If you want to play, you gotta pay. Just wait until pricing for the high relief 1 ouncers comes out.

roadrunner >>

What ?

The price is going to be inline with the price of gold. There's not going to be any 'special' mark up. >>

There are HUGE premiums being paid for what used to be called "bullion", common date Saints and Libs. I have seen that actual modern bullion coins have big premiums attached to them as well. Way way more demand than supply. Sounds like the mint wants a piece of the action and people are buying it.

BECOKA · October 22, 2008 6:00AM

Well, not sure what you are saying is exactly fair. They buy the gold at a certain price and create a consumer product. Are you asking them to sell for a loss because the market for the material they use on their consumer product now cost less?

Coinsponge · October 22, 2008 6:09AM

<< 

<< 

<< If you want to play, you gotta pay. Just wait until pricing for the high relief 1 ouncers comes out.

roadrunner >>

What ?

The price is going to be inline with the price of gold. There's not going to be any 'special' mark up. >>

There are HUGE premiums being paid for what used to be called "bullion", common date Saints and Libs. I have seen that actual modern bullion coins have big premiums attached to them as well. Way way more demand than supply. Sounds like the mint wants a piece of the action and people are buying it. >>

Way more demand? Look at the mint direct sales of gold. They are puny.

BAJJERFAN · October 22, 2008 6:51AM

<< Well, not sure what you are saying is exactly fair. They buy the gold at a certain price and create a consumer product. Are you asking them to sell for a loss because the market for the material they use on their consumer product now cost less? >>

What he said. I'd hazard a guess that they didn't buy it anywhere near current spot.

maibockaddict · October 22, 2008 6:59AM

<< 

<< Well, not sure what you are saying is exactly fair. They buy the gold at a certain price and create a consumer product. Are you asking them to sell for a loss because the market for the material they use on their consumer product now cost less? >>

What he said. I'd hazard a guess that they didn't buy it anywhere near current spot. >>

That is a great point. If that is government gold, and the government sells it at a loss, then isn't it our tax dollars making up the difference if they were to lose money on the sale?

Coinsponge · October 22, 2008 9:52AM

I think that if the mint was willing to take a small loss by keeping the price closer to spot then they would free up bad inventory and get back to selling which could make up for the earlier loss as long as they did not buy too much gold up front in a falling market. If they want to hold their inventory untill gold is $1000/oz then they may be holding them for awhile. Of course on the flip side the outrageous margins virtually assure low population numbers for the few who can stomach the cost.

Mint now charging a HUGE premium on Gold

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