US Treasury Mint production of “ASE” (American Silver Eagle) falls despite soaring premium—especially since former Mint Director Ryder’s resignation; now roughly half of former production
Analyst points out re ASE there are two premiums: Mint premium and dealer premium, so—as few individuals can buy directly from Mint—a typical buyer pays a total market premium that reflects both these factors.
At the time of this writing, eBay lists several dealers offering ASEs (not 2023 dates) at about $32/coin. As today’s commodity price of silver is about $25/oz, this would mean a total (final or market) of $7/coin premium, 28%. (Most of these eBay listings claim “last one” or diminishing availability, suggesting they may not honor the listed price. Also, there are a number of listings of lower prices stating that the source is in PRC, but claiming the items are genuine. One can only wonder about that.)
For the sake of comparison, $1000 face in US circulated silver coins not including “silver dollar” or “commemorative” coins (all US Mint date prior to 1965) now commands approximately $22,000 in US currency according to WSJ daily listed cash prices. As it takes $1.39 in these to contain 1 troy ounce of fine silver, the price per troy ounce silver contained in circulated US silver coins is now approximately $30.60 in US currency, reflecting a market premium of 22.4%. These premiums of course do not reflect sales tax(s)/shipping costs added at the dealer’s store or place of business.
At the time of this writing, eBay lists several dealers offering ASEs (not 2023 dates) at about $32/coin. As today’s commodity price of silver is about $25/oz, this would mean a total (final or market) of $7/coin premium, 28%. (Most of these eBay listings claim “last one” or diminishing availability, suggesting they may not honor the listed price. Also, there are a number of listings of lower prices stating that the source is in PRC, but claiming the items are genuine. One can only wonder about that.)
For the sake of comparison, $1000 face in US circulated silver coins not including “silver dollar” or “commemorative” coins (all US Mint date prior to 1965) now commands approximately $22,000 in US currency according to WSJ daily listed cash prices. As it takes $1.39 in these to contain 1 troy ounce of fine silver, the price per troy ounce silver contained in circulated US silver coins is now approximately $30.60 in US currency, reflecting a market premium of 22.4%. These premiums of course do not reflect sales tax(s)/shipping costs added at the dealer’s store or place of business.
Can anyone remember the "coin shortage" during the plandemic?? I never fully understood their reasoning for that one either.
I'm just waiting until they run out of paper or ink and won't print bills....
Sign of the coming downfall...
What's interesting to me about this situation is that the author of the linked article seems to think the US Mint is under legal obligation to satisfy demand. The way I read the Silver Eagle authorizing Act is that production is left to the Mint Director's discretion, and that the new Mint Director (since Ryder) just decided to reduce production--maybe because new Mint (Treasury Dept. under Yellen/Buythem) policy is not to disrupt the market in such a way as to put pressure on market supply of silver.