Does the Year for Silver and Gold American Eagles Matter?

Discussion in 'Metal Futures' started by DrPepper, Nov 20, 2009.

  1. When I have purchased rolls of Silver American Eagles in the past, the coin dealer gave me rolls from the 80's and 90's. He said that coins from the current year were in higher demand and sold at a premium. I kind of felt like he was getting rid of some old rolls that no one else wanted. Since no one spends silver coins, I was also a little surprised that they were in unsealed rolls that he would open and handle. It seems like uncirculated coins would be more valuable. Does it matter what year Silver and Gold American Eagles are from and whether they are uncirculated or not?
     
  2. Hi DrPepper, I am not an expert in the field, but from my understanding there is almost no difference in the value of uncirculated vs circulated "handled" coins unless there is visible wear or damage of the actual coin.

    The real difference is b/w proofs and uncirculated which goes through a different minting process all together.

    And yes there is a premium on current year coins, but we are talking about pennies on the dollar. Coin dealers obviously will exploit that into a larger spread which is not the true market difference.

    I normally buy all my coins through Bullion Direct.. But there are obviously a million coin dealers. I would suggest you at least fool around with their site to get an idea of the price differences.
     
  3. Thanks for the reply--your response was helpful. I have compared the prices of the online bullion dealers with several coin shops in my area and have found a local shop with competitive prices. I don't buy a lot of bullion, but when I do, I like to pay with cash so no one has a record of my purchases. I think it is unlikely that gold will be outlawed again, but I believe that the appreciation will be taxed in the future. I think the government will go after people with gold if the price continues to rise, just as they have with people from the US with assets in Swiss Banks.
     
  4. jprad

    jprad

    That, and the disadvantaged capital gains tax on gold is exactly why I don't bother with it.

    Oh, and the fact that you can't eat or drink it if you're in a real pinch...
     
  5. If you're in the kind of pinch where you need gold, it's because nobody wants your paper money (presumably). In which case, you'll be eating and drinking much more with gold.
     
  6. Numismatic value, that's about it. Certain years are more rare than others depending on # minted. Certified & slabbed coins are more valuable to collectors, as their condition is preserved. I have bought & flipped certified Eagles, so there is a market out there for it. Personally, I only see bullion value in them, but I can appreciate the collectors who actually value pristine condition.

    I don't know why the dealer did that as the older years have more numismatic value than the current. More Eagles are minted now than before and they are relatively easy to get.
     
  7. I asked the coin dealer over the weekend why he charges 20 cents more per coin for 2009 one ounce Silver American Eagles. He said that they put together rolls of Silver Eagles from prior years themselves from loose coins and it is possible that the coins may have some wear. However, the 2009 rolls come right out of the box of coins they buy from the mint. Therefore, the 2009s are definitely uncirculated, hence the slight premium.
     
  8. I don't think that dealer knows what he is doing. Older Eagles carry a larger premium than current.

    Take a look at:
    http://www.apmex.com/Category/160/Silver_American_Eagles_Uncirculated_2009__Prior.aspx

    While all of the years are BU condition, Eagles do not circulate hence do not undergo the regular wear & tear that coins do. It's not common to find worn down or damaged Eagles, as most collectors just put them in a safe place.

    I don't know if he is charging a rip-off premium, but if I were you I would try to clean out his 80s and 90s Eagles, assuming they are decent condition. I don't know if you have the funds, but offer him anywhere from spot to $1 over spot and take his older Eagles inventory.