Expert: PAPAJACK - 11/9/2006

Question
I bought 10 rolls of American eagles when spot was 12.58 and paid 1.40 over, Which is about 11.2% i think? Is this bad? Also have you ever heard of California Numismatic Investments co.?Do you know where i can get a better deal?Thank you
Brian
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some guys are calling them bullion and others numastic, i have one place thats selling them for 1.40 over spot, and as high as 2.50 over spot at another!, my math is no good! What does this mean?
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What can someone expect to pay over spot for these? While I'm at it how much over spot for bullion?
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Hello Brian,  

I currently see the US Silver Eagle being sold for 15% over spot for individual coins.
Other bullion bars having no artwork or numismatic value sell at a lower premium fro 5% to 9% is common.

However when you sell these items as bullion they usually get spot or a bit less known as the melt value. Since it costs more to melt the metal down for melting.

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Thank You and Good Luck

PapaJack

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Hello Brian,   

This retailing price can be confusing. The government does not sell to coin collectors. They sell to banks that in turn sell them to different dealers at different prices. Since they all have to make a profit there is no set retail price but a maximum one should pay over the spot price.
If a dealer bought them last year they paid $8 to $9 dollars. IF they bought them this year they paid $11 to $13 each.

Also the numismatic aspect would be the grading scale. If you are looking for the perfect Mint State 69 or 70 coin you will have to pay multiples of what is normal. But if you only want them for the silver content (as silver bullion) buy them as cheap as you can.
There are also the rare issues and proof specimens that sell at very high prices to collectors.

Please remember to go to the experts site to rate this answer. And check the nomination box on the rating page below any comments you may have.

Thank You and Good Luck

PapaJack

Answer
Hello Brian,   

The price seems to be the going rate. Most dealers I spoke to are selling single coins for 13 to $15 each. So your price isn't bad. Also buying silver bullion as the American Eagle it will not have to be assayed when you sell it.
I usually look through the ads in a coins weekly like numismatic news or CoinWorld for the lowest price and shipping.
I have not heard of California Numismatic Investments. But there are many of these companies both reputable and others just trying their hand at the market.
Glad if I was able to help.

Please remember to go to the experts site to rate this answer. And check the nomination box on the rating page below any comments you may have.

Thank You and Good Luck

PapaJack