Quick Question about 2010 Silver Eagles

[still afloat]

Apmex shows $27.01 ea
Local coin Shop is at $31.00
Local bank is $27.25 with only 3 left everything else is sold out not expecting anything soon.

Question is , is the $27.25 a good price / fair price with silver at $23.09 right now.
So a $4.16 preminium on each coin.
Havent bought silver from coin/banks since it was under $8 / oz and back then wasn't worried about mark ups on the silver.

[sirgonzo420]

Where can you buy silver at a bank?

[osoab]

What would the shipping charges add to the price from apmex?

If it was close to the 31, I would cash and carry out of the store.

Pick up the eagles from the bank.

I would guess you would be Canadian?

[still afloat]

actually local bank in Kentucky

[mamboni]

Apmex shows $27.01 ea
Local coin Shop is at $31.00
Local bank is $27.25 with only 3 left everything else is sold out not expecting anything soon.

Question is , is the $27.25 a good price / fair price with silver at $23.09 right now.
So a $4.16 preminium on each coin.
Havent bought silver from coin/banks since it was under $8 / oz and back then wasn't worried about mark ups on the silver.






$4 is a high premium for SAEs based on past pricing, at least in nominal terms. From that standpoint, these prices you quote are not good deals. However, it all depends on what happens in the future. Silver has been rallying and SAEs have done quite well, with the premia increasing nominally yet lower in proportion to the rise in spot silver. BTW, many silberbugs predicted that as silver price exploded higher the premium would collapse, at least in relative terms if not nominal. This was the argument for buying large bars and rounds over SAEs. $4 premium works out to about a 17% premium over spot. So when silver was $14 and 17% premium would put SAEs at $16.38. If memory serves, the retail prices were closer to $17-18. So the bottom line is that as silver increases in spot price the SAE premia are increasing nominally but decreasing proportionately.

Personally, I like SAEs and think they are worth the premium for several reasons that I will not go into here but have been discussed elsewhere. While it is true that if you had bought generic silver instead of SAE, according the the above observations, that you would have realized slightly higher unrealized gains in dollars, there is the often forgotten lower price when selling. That's where I think SAEs best generic silver - at the time you have to sell. The buyer will insist on a higher discount on generic.

If I were you, I would dollar cost average and buy a few SAEs per week and spread the purchaes out over months or years. Trying to time the silver spot market, and taking for granted the availability of SAEs when you are ready to buy, is an exercise in futility ot delusion. Long term you cannot go wrong buying SAEs even at the prices you've quoted. Go for it.

[sirgonzo420]

actually local bank in Kentucky


No shit?

I'm in Kentucky and I've never seen silver for sale in a bank.

Well, one time I got a silver dime when I cashed a paycheck, and I about pissed my pants with excitement.

LOL.

I might have to keep an eye on the banks around here... I'm always looking for a new place to buy metals locally.

[ShortJohnSilver]

Tulving sells for $2.29 per SAE over spot price. Admittedly that is having to buy 500 SAEs, but I think $4 per SAE is too much of a premium.

[still afloat]

Ok , bought the last 3 they had , $81.75 total

Coin store wants 6% tax on top of the $31 each and no tax at the bank.
I assume no tax at bank because they are legal tender and the coin store they are inventory sold for profit so taxable?

[Sparky]

Ok , bought the last 3 they had , $81.75 total

Coin store wants 6% tax on top of the $31 each and no tax at the bank.
I assume no tax at bank because they are legal tender and the coin store they are inventory sold for profit so taxable?



Wow. You done good.

But the whole tax thing is f'd up. It's the same product; why would it only be considered "legal tender" because the bank sold it?

BTW, spread is more important than premium, particularly taking into account what mamboni says about proportionality.

However, putting that aside, the current Apmex spreads are

Eagles $2.39 (9.7% of purchase price)
Prospectors $2.59 (11.1%) <- It's amazing the premium these get, yet I still love 'em!
Buffalo rounds $2.97 (13.0%)

So based on this, the premium on SAE's continue to be "worth it". Maybe that won't be true in the future, but it is right now. BTW, I really respect that Apmex continues to pay back these premiums when they buy back, because not everybody does. I guess that's evidence in the other direction, that the premium is not worth it.

One final aside: Although I have many varieties of rounds, I continue to be prefer the Prospectors. For me, it seems as though they represent some type of "legitimacy" that is usually reserved for only government mints, and I like that for some reason. They're like renegade silver coins. Maybe it's because they were minted for only 5 years, so there's been no new ones off the presses for 25 years now. Prediction: You'll know that silver is reaching bubble stage when Englehard announces the minting of the "New Prospectors"!

[still afloat]

I'm getting in late and learning slow , but am trying to get away from the 40 years of blindly believing everything the gov. does is for the good of the people.
I still find it hard to believe the things that I can now see that I was blind to a year ago + or - .

[Twisted Titan]

Apmex shows $27.01 ea
Local coin Shop is at $31.00
Local bank is $27.25 with only 3 left everything else is sold out not expecting anything soon.

Question is , is the $27.25 a good price / fair price with silver at $23.09 right now.
So a $4.16 preminium on each coin.
Havent bought silver from coin/banks since it was under $8 / oz and back then wasn't worried about mark ups on the silver.






$4 is a high premium for SAEs based on past pricing, at least in nominal terms. From that standpoint, these prices you quote are not good deals. However, it all depends on what happens in the future. Silver has been rallying and SAEs have done quite well, with the premia increasing nominally yet lower in proportion to the rise in spot silver. BTW, many silberbugs predicted that as silver price exploded higher the premium would collapse, at least in relative terms if not nominal. This was the argument for buying large bars and rounds over SAEs. $4 premium works out to about a 17% premium over spot. So when silver was $14 and 17% premium would put SAEs at $16.38. If memory serves, the retail prices were closer to $17-18. So the bottom line is that as silver increases in spot price the SAE premia are increasing nominally but decreasing proportionately.

Personally, I like SAEs and think they are worth the premium for several reasons that I will not go into here but have been discussed elsewhere. While it is true that if you had bought generic silver instead of SAE, according the the above observations, that you would have realized slightly higher unrealized gains in dollars, there is the often forgotten lower price when selling. That's where I think SAEs best generic silver - at the time you have to sell. The buyer will insist on a higher discount on generic.

If I were you, I would dollar cost average and buy a few SAEs per week and spread the purchaes out over months or years. Trying to time the silver spot market, and taking for granted the availability of SAEs when you are ready to buy, is an exercise in futility ot delusion. Long term you cannot go wrong buying SAEs even at the prices you've quoted. Go for it.



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T

[Sparky]

...


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T


Wow. Endorsement hyperinflation.

[milehi]

I was at the shop today before lunch. 2010 SAE's were $26.50 and scruffy SAE's were $23.50 out the door, cash and carry.

[General of Darkness]

Hell you should have said something sooner, I would have sold you 3 for $25 each, plus what ever shipping would be, probably $5 bucks total. So I guess that's fair. But now you're strewed, you've taking the red pill, and will become a silver bug.


Welcome to the club ;)