The thing about owning gold and silver is that most of the people who invest in these also normally go for higher profit that they can reap thanks to the spot prices being high. However, what if someone tells that you can actually gain additional profit on specific coins when you are selling them.
There are a number of reasons as to how that is possible. Mainly because when the demand is shooting high, the dealers are looking for more coins, and at the same time, they are offering higher prices in order to make sure that the sellers are attracted. Additionally, if you are looking at the sovereign mint coins, they are going to be more expensive than the local ones, but the good thing is that they will well for higher on the spot.
The Secret of Super Silver
For anyone who has been in the precious metals market for some time, it is safe to say that they know that the premiums on these coins, especially the ones that are made out of silver has increased. This is something that just keeps on creasing, especially when you are looking at the American Silver Eagle.
The simplest reason behind that is the US Mint. For anyone who does not know, when you are purchasing bullion, you are normally met with three different types of charges.
The first one is the surcharge on US mint, the second one is the fee that goes to the purchaser, and the last one is something that the dealer takes as a commission.
The silver blanks are bought by US Mint, turned into the Eagle coin we are so aware of, and then sold to the Authorized Purchaser. The sale is done above the spot price, this is done in order to make that the manufacturing cost of the coin is covered.
The Authorized Purchasers then send the coins to the dealers who specialize in bullion and take some fee for themselves as well. The main reason why the prices are coming up is that the seigniorage cost that is charged by the US Mint is increasing over the past couple of years
The prices are actually 50 percent higher as compared to what they were a decade ago. I know it might not sound like a lot but we are talking about precious metals here, and the cost is certainly higher than you might think once the number adds up.
From this, we can learn that when it comes to silver coins, the fact that you can make more profit than you initially signed up for is certainly there. However, the thing that you must know about this is that you have to be careful when going this route. You really do not want to go ahead and sell at a lower price, and you really do not have to try and be over smart because this market is a complicated one, and losing money is easy.