How is the numismatic premium affected as spot increases? At present with a spot around $40 you can pick up a premium coin for around $50. A $10 mark up, or 25%. 1) If I bought a premium coin 10 years ago when spot was $5 how much would a similar coin have cost? 2) Theoretically if spot hits $500, what do we expect to be paying for the premium coin? 3) At what point does spot negatively affect the numismatic value because they are unobtainable as a collector piece as silver is given a heavier investment focus?
PerthMint has gold coins at a $90 premium atm. 5% by my calculations. So the premium is much higher as a number but signicantly smaller as a percentage. I'd guess at $500, the premium would be somewhere inbetween 5 and 25%, lets assume 10%. So $550 would be my guess.
I always believed, Naively of course, that the premium was there to pay for the costs of production and storage and design etc. As such would only rise as those costs rose. However if that was the case the premiums would be similar for gold and silver and cupronickel coins. The premiums on cupro nickel are ridiculous though. I can understand that the premiums on new coins would rise but if you bought a coin ten years ago and paid a $5 premium it would be interesting to know whether you could now charge a $10 premium or whether the premium would stay around the same. I think the idea is to charge as much as you can and if no one around here will buy it at that price you just sell 80-90% of your silver overseas!
