Posted: 6/10/2012 5:02:13 AM |
Are we getting our money's worth?
The last time I could afford to purchase a monster green box was in 1998, costing me a whole $3,300 with the Dealer's mark-up and shipping. Those of us who have been around for a while remember Spot Silver prices vs. US Mint pricing before the start of the 2006 inflation.
In 2000, with silver still at under $5/oz, an OGP proof silver eagle sold for $24. Factor in about $2 per unit in production costs and the Mint saw a 350% return. Then again, production totals were usually only just 50 to 75,000 units. At the same spot price, the MS eagles (with dealer markup) cost $120 per roll!
On June 6, 2005, Spot silver was at $7.50/oz, and a 2005 NGC MS-69 ASE cost $49, a PF69 - $75
On June 6, 2012, Spot silver is at $29.50/oz, that same coin still priced at $49 and $75.
Today's dynamics are much different; Bullion Silver price is at 4 times that of 2005, yet the coin market has failed to keep up with that pricing multiple (Thank God). Therefore, Is it worth it to buy an OGP silver eagle from the Mint, and send the coins to be certified? It was then - It ain't Now, except for the special set issues! For just a couple of bucks more, we can pick up a MS or Pf-70 silver eagle from the dealers. As an example, would you pay $200 for a 2005 MS-69 ASE? Of course the exception to those ratios comes into play with the Special Issues like the 2006, 2011, and 2012 Anniversary Sets. We've all seen how these Sets and individual Set coins have increased in value dramatically.
I've read complaints about the disparity of the Spot Meetal vs. Mint price ratio, It is, what it is!
In 2011 there were 10 silver eagle issues, including varieties. As Silver Eagle Collectors, we "suck it up" and pay the price, for the sake of keeping our sets up to date. Many of us felt the strain on our wallet. It would obviously be easier and less costly if the US Mint limited these issues to the production of just the bullion Mint State and the Proof coins each year as before, with an occasional special issue eagle coin. Recently my frustration peaked when the Mint announced the possibility of continuing the trend by possibly issuing multi-coin ASE sets, and a Reverse Proof issue annually! As much as we all enjoy our sets, Is More better- or ultimately is it just More?
I'd like to see the US Mint put a new face on the silver eagles altogether, as they've done with the Gold and Platinum issues, at least for the special issues. How about a "D" Denver Mint Silver Eagle, that would make things interesting.
Regarding the latest (SF Mint 75th) Set, at $75 per coin, with a Reverse Proof, Don't think -- Just Buy It!
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