US Mint Is Not Raising Prices on Most Silver Eagles (But Market Forces May)
Money Metals Exchange has seen a large surge in demand for silver American Eagle coins in recent days.
The word on the street was that a hefty $13 price increase was coming, and many wanted to get their coins before prices rose.
The news of a price increase isn’t wrong. It’s just that it won’t directly impact anyone except those people buying high-priced coins in specialty packaging directly from the U.S. Mint.
The Mint is not currently raising prices on the bullion strike version sold to wholesalers.
The uncirculated silver Eagles that bullion investors buy by the millions are not included among the coins subject to the current round of price increases.
Rather it is the price for this item (see image) that is going from $54 to $67 tomorrow.
Almost nobody but amateur collectors and gift givers are (or should be) buying this particular item.
Money Metals already offers the same coin minus the fancy packaging and “W” mint mark for about $25 less than the current Mint-direct price. Regular, uncirculated Eagles will be an even bigger bargain after the price increase goes through.
So called “modern rarities,” like the ones the U.S. Mint sells online, are rarely a good bet as an investment. If you were to try to sell such an item, dealers will not pay anywhere near the sort of premium that unsuspecting buyers pay the U.S. Mint when the coins are first purchased. The Mint makes too many for them to be truly rare.
Investors should buy regular silver Eagles – and premiums today are lower than a month ago.
The timing may also be good because the U.S. Mint will stop production of the 2020 date coin soon and begin the changeover in their tooling for production of the 2021 date coins. Supplies of the silver Eagle can get scarce in December and early January.
It also looks like a good time to be buying silver in general. Demand for silver coins, rounds, and bars has risen dramatically this year, and it may go even higher.
Election uncertainty, economic fallout related to COVID, and massive money printing and borrowing create a perfect storm driving safe-haven buyers into physical gold and silver.