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Prices can't last for silver 5-ounce set

Why them and not me?

That’s a pretty standard question being directed my way by collectors who were not able to enjoy a windfall profit on the 5-ounce silver 2010 America the Beautiful set.

Mint rules restricting the price that nine Authorized Purchasers could charge for the 33,000 sets and limiting sales to one set per household, theoretically means that 33,000 individuals out of the millions of collectors and investors out there had a gift of about $1,800 if current prices hold.

What do I mean?

Well the AP’s can/could charge only around $975 for the set.

Buyers could turn those sets around online for approximately $2,800.

Graded sets have been reported to bring over $6,000.

As angry as those numbers make those who were shut out feel, they also provide evidence that might make them calm down simply because these prices can’t last.
If all 33,000 sets were sold for $975, that means it takes $32,175,000 to buy them all.

If they all sold for $2,800 online that would bring the total dollars required to buy them to $92,400,000.

If they all could sell for what some of the graded sets are bringing, let’s use the $6,000, figure, that means it would take $198,000,000 to buy them all.

Obviously, not all sets can sell for those figures. The simple fact of 33,000 sellers eventually trying to get those prices and a hoped-for profit in the secondary market will bring the prices down.

In comparison, the recent sales by the Mint of 856,356 proof 2010 silver American Eagles generated sales of just under $40 million.

That pretty well defines the long-term limit of this market and explains why as soon as the lucky 33,000 original buyers get their sets they will try to sell them as fast as they can.

There are no collectors out there for these sets, just speculators.

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3 Responses to Prices can't last for silver 5-ounce set

  1. Mark says:

    Those people will be lucky to get $200 per coin or $975 per set unless the silver prices gets above $35.

  2. SilverCoin says:

    Since when do we add five silver bullion coin prices together and compare them to the price of 1 proof silver coin?

    That is not a real comparison, sorry.

    If we take your 1 ounce total amount for 1 coin and multiply it by 5 coins we get $200 million.

    $200 million by 33,000 sets is $6060 per set. That is 5 coins to 5 coins.

    A better comparison is bullion sales to bullion sales, the 2010 bullion silver eagle did about 810 million dollars in sales, some of that could shift to the bullion ATB coins. if 100 million shifts, that is about 111,000 sets per year.
    The gold buffalo bullion coin did 200,000 coins at say $1000 per coin or $200 million dollars in sales.

    The 5 ounce coins at half that is also 111,000 sets.

    Sales should increase for 2011 ATB 5oz, not decrease. With a sales increase the 2010 will be left with a much lower mintage and much higher value per coin.

    Anyway we will see, for you to be right sales will have to decrease under 33,000 next year. I doubt that happens, the mint will sell all they can produce at bullion prices.

  3. Gary says:

    I had was thinking of buying a set of the new 5oz silver coins when I went to the recent FUN convention. But, with the very high mark up over silver content I passed on the opportunity. I will just wait a few years to when the price will likely go down and buy at that time. In the mean time the U S Mint has to find a better distribution system for these coins.

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