Are we witnessing death of premium?

[XC SkaterMember]

Things are weird in Europe now. My favorite dealer, usually by far the best priced, has raised premiums on 2013 10oz and kilo coins by some 4%.

Everywhere I look, I see older Perth mint stuff going for really low prices. Dragons in any size except kilo’s are cheaper than equivalent Snakes.
I am suspecting it’s a cashflow and demand/supply things with wholesalers. They had to sell cheap, order new stock, pay more for that, and come up with the cash. So, the stock you still have on sale to make more cash to buy more at what seems to be a dip?

Before, I had anticipated death of premium in a triple digit silver scenario. Where grams became important, and imprint irrelevant. I am seeeing half ounce dragons, capsuled, just over €14.  Just weird. Rabbit kilo, just a percent over the very cheapest I can find. Tiger, barely more. Some offer 10oz 2012 Kooka’s cheaper than 2013.
Is this happening in the America’s and Australia as well?
Also, interestingly, hardly ANY private classifieds ads for 999 silver. Like it doesn’t exist. I am not sure whether people are still buying like a week ago, or maybe waiting for an even deeper dip.
The drop in premium especially on the <=5oz capsuled stuff (overpriced anyway IMO) seems to scare only a tiny amount of individually owned Dragons to the marketplace. No-one trying to unload Maple Leafs from odd years or a small stack of Philharmonikers. Yet, they’ve been sold in millions over the past years. Is every stacker THAT convinced?
I’d love to see up-to-date sales figures from the main mints. How they are coping.

Thanks for your thoughts,

XC Skater

[MammothMember]

XC Skater, On Wednesday my LCS – who had been out of Silver Dollars for a week – sold me three for $3 above the Spot value of just over $22.  In the past he has always sold these at Spot.  Probably he bought them at $22/ea or higher.

 

As to your comment about private classified ads drying up, it could be that most sellers also bought at a higher price and are simply not willing to sell at a loss.  Can you blame them?

 

You mention Perth Mint’s chinese coins.  Just speaking for myself, in a SHTF situation, I would be very suspicious of chinese or chinese-themed coins as being counterfeits.  I have much more confidence in pre-1965 ‘Junk’ Silver US coins.  Also – not racist but I do not understand why both Australia and Canada kiss up to the chinese by honoring them on their coins.

[XC SkaterMember]

Mammoth, I am buying kilo coins from Perth as I trust them over bars (counterfeit happens), and yes, price.

I don’t know how Chinese these coins are, apart from using the calendar. It’s it like an Israel and Jewish relationship?

And if you don’t know why the Lunar series is modelled after something Chinese, it seems the Western world seems fine stacking this product. Those buying might be less racist still There are options to get Koala’s and Kookaburrra’s in most of the same sizes, but people still like the imagery of the Lunars, AND pay premium for some of them.
For SHTF, I have my local 60′s silver currency and a spread of coins from neighboring countries. Marks, Francs (Be,Fr,Ch), Lire, Schillings, Shilling, Peseta. It’s not a lot of foreign ounces, but nice to have and look at, a bit of a collection. Dead kings and queens most of them, but still make for decent viewing pleasure. Beats having half a paper ounce in a digital account. I passionately hope to die old with this junk collection, in tact. Not looking forward to SHTF. Not the silver in the world can guarantee you safe passage. And even then, if a loved one is lost, what did the silver help you, really? Problem right now with silver: you need a lot of it. For bribes, gold may be better until silver normalizes. A 3 gram gold coin in stead of a 5-ounce silver coin/bar, quite a difference.

Regarding counterfeit. What about a huge copper bar with silver core?

[RocketsRedGlareMember]

I haven’t personally noticed any changes in premiums. The LCSs I visit are still charging between 1 & 2 $ per oz. I avoid government coins except the old 90% stuff and the premiums on those haven’t changed.

[XC SkaterMember]

Americans seem obcessed about their junk coin silver…

I mean collectors’ premium on bullion here.

I am talking about Perth Mint and Canadian Mint past issues, that typically appreciate relative to the paper price, over the year, and often even the first year they are out-dated. I sold some 2012 Cougars at 10% higher premium recently. Might have sold Elephants similarly also.

I am seeing much-wanted (usually relaly high premium) Dragon half ounce coins being discounted to belowe the (current issue) Snake ones.

[MaryBMember]

Collector bullion is to high priced, hard to make a return on investment. When I can buy 90% junk under spot I can make money.

[MammothMember]

XC Skater said… “And even then, if a loved one is lost, what did the silver help you, really?”

=  =  =  =  =  =  =  =

Yesterday morning one of my cats died.  It was Ink –  the big, gray & black-striped tabby who liked to sit on my lap whenever I was sitting at the computer.  He seemed fine an hour earlier, but then when I walked back into the living room after preparing breakfast I found him just lying on the floor with his eyes & mouth open, and not breathing.  It must’ve been very sudden, so I do not think that he suffered.
 
Yesterday was difficult.  I decided not to ‘sugar-coat’ things, and my 6-year old is better off because of her father’s adhering to reality.  But she talked nonstop, and asked many questions which I tried my best to answer.
 
I dug the grave in a spot next to the pond, but waited until late afternoon – just before dark – before burying Ink. I must admit one reason I left him there in his box all day, wrapped inside my daughter’s little baby-blanket, was because I had this hope that he would awaken.  But of course that did not happen.
-  -  -  -  -
No amount of Silver will bring back my cat, who blessed my home for fifteen years.
There’s a lesson in there, somewhere…

[Author]

Posts