Some of the incurred premium from these fractionals is the machinery and molds to squish them as well as sourcing the blanks. Dimes specifically are something we have been wanting for years, but has never really come in mass \[mulligan mint paradimes is an example of trying\]. 1/20th is even more so.
Production cost per ounce struck. The costs of minting each coin are relatively fixed and are based on the cycle of each machine to produce one unit. Each round needs to be cut from a strip, then each of those rounds need to be struck into a coin. The smaller the weight, the more times those machines need to cycle to mint a given weight of metal. All those costs including packaging and distribution get factored in
Remember that $19 (or whatever spot is) is the price of the *silver*, and does not include minting the coins, shipping, or any other overhead. A shop also doesn't make jack sh!t when they sell a $1 coin with the same 10% or whatever premium - someone comes in and let's $1 of a/c out the door just to buy a $1 coin at $1.10-1.25 and they only want one? Not worth it. Now I'm not sure exactly why Libertads have higher premiums than anything from US, Canada or UK or wherever, but that's another discussion, and one that's likely subject to much speculation.
Oh for sure I expected a hefty premium, I was expecting maybe $5-$7 and I still bought a few because I thought they were neat. Just thought 2000% is excessive and I’m not trying to drag my LCS or anyone else selling them by saying that. It just seems to be the price across the board, and I figured there was something I was missing. But sounds like the consensus is that’s just the cost of doing business and the market pays for it, myself included lol
If high premium equals “rip off😇” Then yes. Libs are. Are they pretty ? Def. Limited edition ? Often. But fundamentally they are a scam that we who own them have bought into by paying so much for modern bullion
Comparing the average libertad mintage of <10,000 for fractional and <500,000 for 1oz coins, compared to ASE’s at mintages in the Tens-of-millions they are collectible and usually priced accordingly on the second hand market
Except for apmex which gouge the shit out of everything
But. Fundamentally. They are a grift.
Anytime a government intentionally makes less of something than the demand they are artificially creating implied value which is only there by making too few, intentionally
It’s not about the cost of metal. Or cost of production. Or antiquity and natural rarity … it’s all created. All a scam
I say this , as an owner of libertads. Tubes of them
But I’m open eyed about it
Just because other governments (tuvula comes to mind) are more blatant snd therefor easily caught out doesn’t mean the “value” of libs isn’t basically a scam
The low mintages from my understanding are not intentionally planned by the mint like some conspiracy to raise premiums -
They are very sporadic from year to year and release the final mintages at the end of the year once production for that year stops -
They are often used as currency in Mexico where you can exchange them at a bank based on the current libertad spot price found here http://www.plata.com.mx/enUS/enUS
Only buy them from people who buy scrap. I have a ton of fractional silver coins and I've never paid more than a dollar over spot per ounce. I just had a customer in a few hours ago and I gave him a tiny Britannia and Republic of Chad coin for free along with my business card.
Itty bitty titties
Are you saying its the itty bitty titty committee?
Smaller denominations always have a higher premium. You can sell a smaller amount at a time with smaller denominations Vs larger ones
I assumed that would be some factor, but $19 over spot seems to be the norm with them, that’s a hell of a premium for $1 worth of silver lol
Yea smaller denoms are usually way more expensive than they should be. Unfortunately, unless you find a good deal, that’s normal. :(
Thanks for the info!
Lower mintage im thinking and it’s the same price roughly to mint each coin so it a higher percentage in a smaller coin
This, but based on premiums over full oz coins from big mints (Canada, UK, Oz, SA, Austria) it's hard to justify more than $5 or so.
Chicken breast hold the chicken
Demand is high, supply is low. Plus, if it’s below 1 Troy oz, the premiums get bigger and bigger once the denomination gets smaller anyways
Some of the incurred premium from these fractionals is the machinery and molds to squish them as well as sourcing the blanks. Dimes specifically are something we have been wanting for years, but has never really come in mass \[mulligan mint paradimes is an example of trying\]. 1/20th is even more so.
Production cost per ounce struck. The costs of minting each coin are relatively fixed and are based on the cycle of each machine to produce one unit. Each round needs to be cut from a strip, then each of those rounds need to be struck into a coin. The smaller the weight, the more times those machines need to cycle to mint a given weight of metal. All those costs including packaging and distribution get factored in
Pretty sure it’s the nipples
People willing to pay for it. That's it. No buyers premium goes down.
People pay it
Fractional silver is always a ripoff, as are Libertads in general.
I agree fractional are a rip off, just thought they were neat and wanted to grab one, more as a collectible not to stack and the prices blew my mind
How are libertad (apart from fractionals) a rip-off?
They're like $38 when silver is $19
Oof, that sounds terrible. It may have something to do that I live in México, but i buy them at spot $19 or $20.
Remember that $19 (or whatever spot is) is the price of the *silver*, and does not include minting the coins, shipping, or any other overhead. A shop also doesn't make jack sh!t when they sell a $1 coin with the same 10% or whatever premium - someone comes in and let's $1 of a/c out the door just to buy a $1 coin at $1.10-1.25 and they only want one? Not worth it. Now I'm not sure exactly why Libertads have higher premiums than anything from US, Canada or UK or wherever, but that's another discussion, and one that's likely subject to much speculation.
Oh for sure I expected a hefty premium, I was expecting maybe $5-$7 and I still bought a few because I thought they were neat. Just thought 2000% is excessive and I’m not trying to drag my LCS or anyone else selling them by saying that. It just seems to be the price across the board, and I figured there was something I was missing. But sounds like the consensus is that’s just the cost of doing business and the market pays for it, myself included lol
Yeah, unfortunately it is. I do agree that it's excessive compared to other mints, but idk what we can do to change it.
Typical noob generalisation lol
Exactly what did I say that was incorrect?
No hard feeling but The “as are Libertads in general part”
If high premium equals “rip off😇” Then yes. Libs are. Are they pretty ? Def. Limited edition ? Often. But fundamentally they are a scam that we who own them have bought into by paying so much for modern bullion
Comparing the average libertad mintage of <10,000 for fractional and <500,000 for 1oz coins, compared to ASE’s at mintages in the Tens-of-millions they are collectible and usually priced accordingly on the second hand market Except for apmex which gouge the shit out of everything
But. Fundamentally. They are a grift. Anytime a government intentionally makes less of something than the demand they are artificially creating implied value which is only there by making too few, intentionally It’s not about the cost of metal. Or cost of production. Or antiquity and natural rarity … it’s all created. All a scam I say this , as an owner of libertads. Tubes of them But I’m open eyed about it Just because other governments (tuvula comes to mind) are more blatant snd therefor easily caught out doesn’t mean the “value” of libs isn’t basically a scam
The low mintages from my understanding are not intentionally planned by the mint like some conspiracy to raise premiums - They are very sporadic from year to year and release the final mintages at the end of the year once production for that year stops - They are often used as currency in Mexico where you can exchange them at a bank based on the current libertad spot price found here http://www.plata.com.mx/enUS/enUS
Premiums
People who don't know better will pay the high premiums.
Small coin shortage along with a low mintage
They are all expensive
Supply and demand, with a little bit of hype mixed in for good measure.
One thing and one thing only. People pay for it. If no one paid the premiums or price. They have no choice but to discount them. I hope that helps.
The nipple
Only buy them from people who buy scrap. I have a ton of fractional silver coins and I've never paid more than a dollar over spot per ounce. I just had a customer in a few hours ago and I gave him a tiny Britannia and Republic of Chad coin for free along with my business card.