September 1, 2014

US Mint Raises Premiums for American Silver Eagles

Effective October 1, 2010, the United States Mint has increased the premium charged to their network of authorized purchasers for American Silver Eagles from $1.50 to $2.00 per coin. Authorized purchasers were notified of the increase by memo sent yesterday afternoon.

The United States Mint does not sell American Silver Eagle bullion coins directly to the public, but distributes the coins through a network of Authorized Purchasers, who resell the coins to other bullion dealers, coin dealers, and the public, as well as facilitate a two way market.

Authorized purchasers may place orders for a minimum of 25,000 of the ounce one coins, with purchases above the minimum allowed in 500 ounce increments. Coins are packaged in semi-clear plastic tubes with 20 of the one ounce silver coins to a tube. A quantity of 25 tubes (500 coins) are placed within molded plastic shipping container, commonly referred to as a Silver Eagle Monster Box.

The price for American Silver Eagles sold to Authorized Purchasers is determined based on the silver content plus a premium. Under current procedures, the pricing of coins is established on the first business day following the day of order, with the premium now set at $2.00 per coin.

According to statements provided by Michael White of the United States Mint, the reason for the increase was to meet the program’s statutory requirement to operate at no net cost to the taxpayer.

Authorized by Congress in 1985, the American Eagle Silver Bullion Coin Program’s enabling legislation, Public Law 99-61, requires the Secretary to sell the coins to the public at a price equal to the market value of the bullion, plus the cost of minting, marketing and distributing such coins (including labor, materials, dies, use of machinery and promotional and overhead expenses).

The last time the US Mint increased the premium for Silver Eagles was February 9, 2009 when it was increased from $1.40 to $1.50 per coin. Prior to that, premiums were raised on October 14, 2008 from $1.25 per coin to $1.40 per coin.

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Comments

  1. johnie o'neal says:

    AS I WROTE MR. MOY HIMSELF JUST A WEEK AGO: Dear Director Moy,
    This letter regards the Mint’s policy of selling certain coins, primarily Silver and Gold Eagles, Gold Buffalos, and other “special” sets of coins not offered to the public to certain chosen coin dealers rather than the public, a practice that I believe violates the law authorizing the Mint to sell silver eagles. As the Mint itself states on its website:
    “Congressionally authorized American Eagle Bullion coins provide investors with a convenient and cost effective way to add a small amount of physical platinum, gold, or silver to their investment portfolios.
    Aside from the proof version, the United States Mint does not sell American Eagle Bullion coins directly to the public. Instead, the Mint distributes uncirculated Bullion coins through a network of wholesalers, brokerage companies, precious metal firms, coin dealers, and participating banks, a network known as Authorized Purchasers.
    This method provides effective and efficient distribution, which maximizes the availability of the coins in retail markets as well as major investment markets.”
    The latter rationalization frankly is b.s. And does not hold water. The Mint’s policy of first dealing to authorized dealers… Dear Director Moy,
    This letter regards the Mint’s policy of selling certain coins, primarily Silver and Gold Eagles, Gold Buffalos, and other “special” sets of coins not offered to the public to certain chosen coin dealers rather than the public, a practice that I believe violates the law authorizing the Mint to sell silver eagles. As the Mint itself states on its website:
    “Congressionally authorized American Eagle Bullion coins provide investors with a convenient and cost effective way to add a small amount of physical platinum, gold, or silver to their investment portfolios.
    Aside from the proof version, the United States Mint does not sell American Eagle Bullion coins directly to the public. Instead, the Mint distributes uncirculated Bullion coins through a network of wholesalers, brokerage companies, precious metal firms, coin dealers, and participating banks, a network known as Authorized Purchasers.
    This method provides effective and efficient distribution, which maximizes the availability of the coins in retail markets as well as major investment markets.”
    The latter rationalization frankly is b.s. And does not hold water. The Mint’s policy of first dealing to authorized dealers is corrupt. Mr. Moy, you and those others who set Mint policy should be ashamed for violating the law and for allowing the American public to be ripped off by coin dealers, all for a few dollars more. The current despair in the American public over the economy, jobs, and the falling value of the dollar is only magnified by the existence of a policy like this whose sole purpose is to gouge the public of what little money most of them have and to enrich the already rich. The current despair in the American public over the economy, jobs, and the falling value of the dollar is only magnified by the existence of a policy like this whose sole purpose is to gouge the public of what little money most of them have and to enrich the already rich.

  2. Scott says:

    Holy crap, can anyone else see the demise of the dollar coming at us like a speeding train? The full faith and backing of the United States government. Thats all our money is based on. Guess what, people are loosing faith.

  3. Joe Renaud says:

    That last part where it shows from the end of 2008 to almost the same period now in 2010 is more than a 50% increase in premiums in just the last two years! Is that inflation I smell?

  4. Bill Powell says:

    For well over 26 months the U.S. mint has not issued any Silver Eagles to the public. In proof nor uncirculated forms, but only as a special collectible with each of the dollar coins offered in 2008 as part of the set. The cost of this set was $37.95 which included an uncirculated 2008 American Eagle silver dollar, the four presidential dollars and a sacagawea dollar (about $14.00 worth of metal at the time). The mint still offers the commemorative silver ounce coins in uncirculated and proof forms, but with greatly inflated prices ranging from mid forty dollar range up to around fifty dollars per coin. This dumbfounds me that certain chosen agents can purchase bullion silver eagles for $2.00 a coin. The going rate per ounce for silver is hovering around $21.00. Anyone with assests that was also an approved agent to buy silver eagles from the the mint could indeed have an advantage over any other investor. I am anxiosly awaiting the continuation of the ‘Silver Eagle’ line of coins through the U.S. Mint and would think they could easily unload their ounce silver coins to most anyone for $10.00 or more and still have trouble keeping enough silver blanks in stock. The smart investor who holds the actual silver coin will hang on to this precious metal and be assured of his continued wealth.

    I also don’t understand how the mint can work as a not profiteering industry and sell $20 worth of metal to the public for $40 to $50 dollars and turn around and sell the same amount of silver to approved buyers for $1.50 and thankfully now $2.00.

  5. Trevor Marshall says:

    Forget silver eagles. Get a group of friends together and buy a Crimex (er I mean comex) contract of 5000 ounces. You will only pay the ridiculous paper price for silver. You are legally entitled to then insist on delivery.
    The US is simply trying to stop the public from getting their hands on physical silver and cutting out the corrupt fraudster bankers.
    Dont let them win. Get real silver and blow this paper chase game apart.

  6. Tim says:

    Bill Powell, you are amazingly dense. They aren’t selling silver for $2, they are selling it for “$2 over spot”.

    Ugh…

  7. johnie o'neal says:

    SOME OF THESE COMMENTS RECOGNIZE THE RAPE OF THE PUBLIC SECTOR THAT THE MINT IS COMPELLED BY LAW TO SUPPLY WIR=TH SILVER EAGLES, BUT CHOOSES WHENEVER POSSIBLE TO SELL THEM TO SELECT DEALERS WHO MUST HAVE SO MUCH CAPITAL THAT NONE OF US CITIZENS COULD QUALIFY.
    I THINK A CLASS ACTION LAWSUIT SHOULD BE INSTITUTED AGAINST THE U.S. MINT FOR THESE STATUTORY VIOLATIONS. ALTHOUGH I AM A RETIRED ATTORNEY, I WOULD WORK TO DO LEGAL RESEARCH, FIND OTHER CLASS MEMBERS, AND WOULD LOVE TO BE THE NAMED PLAINTIFF AGAINST THE U.S. MINT. I HAVE WRITTEN THEM LETTERS AND BEEN BLOWN OFF WITH INANE RESPONSES THAT ADMIT THE MINT KNOWS IT IS VIOLATING THE LAW AND DOES NOT CARE. PLEASE. SOMEONE WITH A CLASS ACTION LAW FIRM CONTACT ME AT 5021 E. 4TH ST., TULSA, OK 74112, 918-836-4568 AND LET’S STOP THIS NONSENSE.
    JOHNIE ONEAL

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