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Re: As the price of precioius metals go up, does the % of the premium for 1/10 and 1/20 coins go down?
This is a GREAT question! At a gold price of say, $500, expect to pay about $54 for a 1/10th AGE, or an 8% premium. At $900 gold, and the same 8%, a 1/10th AGE should cost about $97. What if gold hits $1800? Would a 1/10 AGE sell for $194? I doubt it. As the spot price goes higher, I would expect the premium to drop very… -
As the price of precioius metals go up, does the % of the premium for 1/10 and 1/20 coins go down?
Has the high premium usually associated with these small coins remained the same or has the increase in the price of metals eaten into that premium at all? -
Re: As the price of precioius metals go up, does the % of the premium for 1/10 and 1/20 coins go down?
<< <i>None of our suppliers have cut their markups as gold has increased. For example, MTB charges us 40% over melt on a 1/20 oz. Australian Lunar coin. When gold bottomed out at around $250. the coin melted at $12.50 and we paid $5 over melt. Now, at $900 gold, the coin melts at $45 and we pay $18 over melt. I don't think… -
Re: As the price of precioius metals go up, does the % of the premium for 1/10 and 1/20 coins go down?
Thanks, that was my question. I was particularly wondering about the 1/10's and the 1/20's as they seem to carry the biggest premiums. -
Re: As the price of precioius metals go up, does the % of the premium for 1/10 and 1/20 coins go down?
None of our suppliers have cut their markups as gold has increased. For example, MTB charges us 40% over melt on a 1/20 oz. Australian Lunar coin. When gold bottomed out at around $250. the coin melted at $12.50 and we paid $5 over melt. Now, at $900 gold, the coin melts at $45 and we pay $18 over melt. I don't think we… -
Re: As the price of precioius metals go up, does the % of the premium for 1/10 and 1/20 coins go down?
the question you asked was about rising metals prices affecting premium.....I think it's clear it shrinks the premium( as a% pf price) no matter what denomination. -
Re: As the price of precioius metals go up, does the % of the premium for 1/10 and 1/20 coins go down?
Interesting. -
Re: As the price of precioius metals go up, does the % of the premium for 1/10 and 1/20 coins go down?
I'd imagine the dollar amount of the premium stays close to fixed or rises slightly, but not in proportion to the rise in the bullion value. Thus the percentage could fall even if the absolute dollar amount of the premium rises slightly. -
Re: As the price of precioius metals go up, does the % of the premium for 1/10 and 1/20 coins go down?
The premium usually tends to increase across the spread with lesser than full oz. coins. The smaller the denomination, the greater the spread as a rule. -
Re: As the price of precioius metals go up, does the % of the premium for 1/10 and 1/20 coins go down?
The holding costs of owning the gold have gone up considerably, but the manufacturing costs have not gone up nearly as much. The Mints charge the higher premiums because they can. However, the customers no longer buy the coins because the premiums are too high.
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