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Hope this isn't considered Spam about 2009 eagles.

Started by bsshog40,

14 posts in this topic

bsshog40

bsshog40

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I got this email the other day from mintproducts. They are pre-selling 2009 bullion eagles pretty cheap at $14.74 ea. if anyone is interested. I have bought from them before and never have had any problems with them.

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WoodenJefferson

WoodenJefferson

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How does the Mint go about figuring out how much the distributors will pay per bullion coin and are the distributors locked in much like their customer?

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bsshog40

bsshog40

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Is this really cheap given that the spot price for silver is about $9.50 as of Friday? Based upon other prices I have seen, I would consider this a fair price but not a cheap one.

I don't think that you can compare silver spot prices to coin values. Even tho' the SAE is considered bullion, try buying one at spot. Won't happen.

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World Colonial

World Colonial

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That is not what I said. I was comparing the premiums from the source you mentioned with those which I have seen in other places. The only one I check regularly is California Numismatic Investments and theirs is either a $5 or $6 over spot, depending upon whether you want to buy the 2008 or a prior year. Those prices are about the same as the one you mentioned which I would describe as "average" given that silver closed Friday at about $9.50 per ounce.

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DC Dawg

DC Dawg

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How does the Mint go about figuring out how much the distributors will pay per bullion coin and are the distributors locked in much like their customer?
On December 1, the Mint sends a note to all their distributors to place their orders at a specific price. The price is based on the spot price at the time pricing is decided upon, what the Mint pays for the planchets (no, they do not make their own planchets), other costs (labor, materials, etc.), and a 10-15 percent "profit." The higher the volume, the lower the "profit" (yes, there are volume discounts) since labor costs are fixed. Shipping is calculated into the order after it is placed.

 

Initial orders are taken for one week before the price changes based on all factors. The Mint adjusts bullion prices regularly (usually every 15 or 30 days) but maintains a discount rate to bulk customers.

 

I remember reading the method in one of the annual reports (I think 1999).

 

Dealers are then free to set their own prices. This dealer may be using the coins as a loss leader to bring buyers to their site. Even though I do not know the price, I am willing to bet they are making less than 25-cents a coin for each purchase. But they want your business and this may be the best way for them to go!!

 

Buy early! Buy often!!

 

Scott :hi:

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Conder101

Conder101

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The mint sells the bullion coins at a specific markup over spot. As far as I know they have only changed that set price twice since they started selling the silver eagles in 1986. At first they were $1 over spot, later it was raised to $1.25 and just very recently $1.45 over spot. The price the distributor pays is spot plus the markup on the day the order is placed.

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