Silver Eagle Demand Up, 1994 Proof Issue Leads Way|
September 04, 2013
Gold dropped over 8 percent since the last monthly column, silver nearly 12 percent and platinum almost 8 percent. This is after a rebound of several percentage points from recent lows.
Silver is especially cheap in relation to gold at over 64-to-1 and demand is nearly insatiable for silver American Eagles and small silver bars/rounds. For silver American Eagles, one must put up the money now and wait well over a month for delivery. For immediate delivery the premium can be double or more the historic norm.
U.S. 90 percent silver coin is also maintaining a strong premium with special emphasis on half dollars, which is simply a matter of popularity. One should remember that five silver dimes or two silver quarters have the same silver content when refined. So don’t chase popular premiums if you are seeking a good silver investment.
The silver American Eagle market has quickly evolved into an array of premium items over the last two months. The lead item is the 1994 proof issue at $150, but many ordinary bullion issues now command premiums in excess of $10. In fact, all the issues prior to 2000 have at least a $10 premium at this point. The 1986 has a premium of $20, which is even more significant when you realize that it is double its intrinsic silver value.
The more common proof issues are currently in a market lull, but I suspect in the fall they will again pick up as retirement portfolio demand picks up.
Meanwhile the proof issues from 1993-1999 maintain good premiums over the more common issues. I suspect the 2013 proof issue could become a sleeper as sales may be lower than normal with the Mint price remaining at $57.95, which is near 2.5 times its bullion value.
The 1921 trio of Walking Liberty half dollars in Very Fine-20 to About Uncirculated-50 are up and in strong demand. The 1923-S along with the 1928-S issue are also on the move in the same grades. All scarce date three-cent issues are up in most circulated grades, along with those of the Shield nickel. Better date two-cent pieces are also up in circulated grades.
In the Barber half dollar series there has been de-hoarding of the 1913-1915-P issues in About Good-3 to Very Good-10, but just the opposite is true for mint-state grades, which are all increasing. There is weakness in the five key Lincoln cents, which show declines in circulated grades. These are joined by the two San Francisco issues of the Indian Head cent series.
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