Sparky
18th January 2011, 11:31 AM
Now that the silver market has taken off and there is a wider distribution on minted numbers, the premiums for holding certain dated Eagles has started to take shape. This has not gotten much attention in our discussions of "which silver to buy". The argument for simply getting the most ounces for your money is not so obvious when these date premiums are factored in.
Taking a look at Apmex, the premium for buying recent-dated Eagles is about $4.25 and the premium for selling is about $1.75, so the current spread is about $2.50, or 8.6%.
For comparison, 90% coins ($50 face minimum) cost $0.63 above spot, and can be sold back at about $1.80 below spot, for a spread of $2.43, or 8.3%.
However, if you purchased Eagles before the date premium pricing took hold, the "numismatic" portion made it a better deal than 90% coins. In many cases, the date premiums have entirely paid for most or all of the initial spread you paid upon purchase! (This, of course, presumes that these premiums are paid to you on the sell side, equivalent to the buy side. This may not yet be the case. Anyone tried to sell an older Eagle lately?) Now, many may argue that ultimately this premium will go away when TSHTF. Maybe so. But until such time, paying the premium for Eagles has been paying off.
Here is the premium shown on the buy side (Apmex) above and beyond the premium for buying recent issue Eagles:
2001: +$1
1999: +$2
2000: +$2
1998: +$4
1997: +$7
1996: +$36
1995: +$8
1994: +$3
1993: +$1
1992: +$1
1991: none
1990: +$1
1989: +$2
1988: +$%
1987: +$1
1986: +$7
Taking a look at Apmex, the premium for buying recent-dated Eagles is about $4.25 and the premium for selling is about $1.75, so the current spread is about $2.50, or 8.6%.
For comparison, 90% coins ($50 face minimum) cost $0.63 above spot, and can be sold back at about $1.80 below spot, for a spread of $2.43, or 8.3%.
However, if you purchased Eagles before the date premium pricing took hold, the "numismatic" portion made it a better deal than 90% coins. In many cases, the date premiums have entirely paid for most or all of the initial spread you paid upon purchase! (This, of course, presumes that these premiums are paid to you on the sell side, equivalent to the buy side. This may not yet be the case. Anyone tried to sell an older Eagle lately?) Now, many may argue that ultimately this premium will go away when TSHTF. Maybe so. But until such time, paying the premium for Eagles has been paying off.
Here is the premium shown on the buy side (Apmex) above and beyond the premium for buying recent issue Eagles:
2001: +$1
1999: +$2
2000: +$2
1998: +$4
1997: +$7
1996: +$36
1995: +$8
1994: +$3
1993: +$1
1992: +$1
1991: none
1990: +$1
1989: +$2
1988: +$%
1987: +$1
1986: +$7