silver coin question

[cake]

Why wouldn’t a guy just buy the cheaper one?  For example: A 2022 1 oz American Silver Eagle Coin BU is $37.85 and a 2022 1 oz Silver Maple Leaf Coin is $28.75.  Both are on the same site (SD Bullion), same spot price.  What would you do?  

Thanks.

[Lr103]

I probably would just buy the less expensive one, but there are plenty of people who seem to be willing to pay a big premium for Eagles, so they are pricing to the market. 

The premiums are on both sides of the trade as well.:.I was recently emailed a promotion from APMEX offering to buy silver Eagles for $10 over spot. 
 

[Pete]

A bullion coin has 2 prices - scrap meaning spot or thereabouts for the raw metal and market price - what punters are prepared to pay.
I recall the days when you could purchase Eagles at a few dollars over spot making them amongst the cheapest bullion silver around.
Not sure what has changed in the USA, perhaps lower mintages or panic switching from fiat to metal as retaining value.
Paying a premium is risking that the interest will not wane but I suspect prices will fall so look for the cheapest silver at the moment.

[Britannia47]

10 hours ago, cake said:

Why wouldn’t a guy just buy the cheaper one?  For example: A 2022 1 oz American Silver Eagle Coin BU is $37.85 and a 2022 1 oz Silver Maple Leaf Coin is $28.75.  Both are on the same site (SD Bullion), same spot price.  What would you do?  

Thanks.

Why not buy both? !!😁

 

 

[RacerCool]

If someone is a collector then the more expensive coin might be the one they're looking for.  Otherwise if you're just looking for silver then you might likely buy the cheaper coin.

Or maybe you hate Canadians so then you'll avoid the Maple leaf.

[sixgun]

There is the metal value which is the same and the coin value which is obviously higher for the ASE.
There have been shortages in production from the US Mint. This puts a premium on ASE's. 
That premium might evaporate in the future - it might get bigger. Who knows? 
My guess is that the relative premium will fall over time. The ASE has a 31% premium over the price of a Maple. If silver goes to $50 will that premium hold?
If silver went to $50 and the Maple was $60, would the ASE for 2022 be $78.60?
If you got the Maple you could potentially buy more silver.

[cake]

On 31/12/2022 at 12:51, RacerCool said:

If someone is a collector then the more expensive coin might be the one they're looking for.  Otherwise if you're just looking for silver then you might likely buy the cheaper coin.

Or maybe you hate Canadians so then you'll avoid the Maple leaf.

Thanks Racer.  Some people are collectors.

[cake]

On 31/12/2022 at 16:29, sixgun said:

There is the metal value which is the same and the coin value which is obviously higher for the ASE.
There have been shortages in production from the US Mint. This puts a premium on ASE's. 
That premium might evaporate in the future - it might get bigger. Who knows? 
My guess is that the relative premium will fall over time. The ASE has a 31% premium over the price of a Maple. If silver goes to $50 will that premium hold?
If silver went to $50 and the Maple was $60, would the ASE for 2022 be $78.60?
If you got the Maple you could potentially buy more silver.

Thanks sixgun.  I'm starting to understand.  I just got into gold & silver and it won't really sink in until I sell some.

"We live in a time when intelligent people are being silenced so that stupid people won’t be offended".  So true.  Are we ever going to stand up for what we believe?

[cake]

On 31/12/2022 at 08:29, Britannia47 said:

Why not buy both? !!😁

 

 

Do you ever care about the mint the coins were made at?  Is the LBMA list important?

[cake]

Does anyone care about the mint the coins were made at when buying or selling?  Is the LBMA list important?

Thanks.

[Britannia47]

Probably not, to be honest, certainly not to the extent of checking the LBMA list. All the RM does is ensure it’s  gold is responsibly sourced. As for buying/selling on TSF also probably not. If it’s an issue of ethics etc then it becomes a personal choice. I see no difference between the Royal Canadian Mint and West Point and have bought from both. I’m sure other members will also buy from mints world-wide if it’s the right coin.

Just buy what you like and and can afford regardless.