APMEX Want’s To Buy Your Gold and Silver

Well I am now more bullish on gold and silver.  Just got an email from APMEX asking to buy my gold and silver American Eagles.  They are paying 3.00 OVER spot on Silver and 38.00 OVER spot on gold.  Given this is one of the largest dealers in the US it should tell you something.   They are currently selling silver at like 5 dollars OVER spot as well.

Here is part of the email

“APMEX Wants To Buy Your U.S. Mint Products!

Dear Jack,

Due to the recent incredible demand for Gold and Silver bullion products, APMEX would like to offer you an exclusive opportunity to LOCK IN YOUR PRICES and sell us some of your U.S. Mint collection. This is a limited time offer and it is first come, first served until we have secured enough U.S. Mint bullion products to meet our current demand!

“We Want These Products:

We will pay you $38.00 over the current spot price of Gold for your Gold American Eagles. ANY year, ANY quantity!

We will pay you $3.00 over the current spot price of Silver for your Silver American Eagles. ANY year, ANY quantity!

We will pay you $1,250.00 for your 2010 America The Beautiful 5 oz. Silver coin sets. “

To me this is one of those small but significant signals that many big financial analysts miss.  The key here if you have ever sold gold or silver is you usually get right about spot price.  Be it eagles or generic rounds or what ever, each class has a spot price.

Generally spot is what dealers pay and some level over spot is what they sell at.  Silver is currently at about 45 and some change so 3 over spot represents a 6% premium on Silver Eagles.  That is not even close to out of line when you are buying from a dealer but it isn’t very common when selling to a dealer.

The conclusion is simple, APMEX one of the largest metal dealers in the U.S. believes that now is the time to buy even if you have to pay a little more.

Does this mean I am converting all my cash to silver or gold?  No and I am not saying you should either, given I hold significant metal reserves already I won’t buy much if any but it does tell us something about the current outlook.   I also think if you are currently buying an ounce or two a month it may make these recent highs a bit easier to handle.

FWIW – I have NO RELATIONSHIP or affiliation with APMEX.  They are just one place I have purchased metal from in the past and I am on their mailing list.  I have tried, UNSUCCESSFULLY to get some sort of discount or shipping deal from them from the MSB but they have never responded.

17 Responses to APMEX Want’s To Buy Your Gold and Silver

  1. apmex pays a flat $40 per sale to affiliates (via commission junction) and i think higher on volume. You could give $20 back on shipping and keep $20, or work something out.

    i have met their affiliate team and they were pretty nice and im sure you would be able to work some deal out. if you need a contact i can email you.

  2. Shannon Moore

    Well, that was the final nail in my “sell” coffin.

  3. So, I’ve been buying ‘miscellaneous’ (non-U.S. Mint) .999 silver rounds and bars. Have I made a mistake not purchasing Silver Eagles to this point?

  4. Hippiesteader

    @Mike

    I don’t think you’ve made a mistake, but it is a good idea to diversify your silver (and gold holdings). Some legal tender should be mixed in with your rounds. There are advantages to having each.

    I keep Eagles, rounds, 90% junk, and %40 junk as well. Although I tend to just collect the %40ers until I can sell them off and buy %90ers with the proceeds.

    As with all things, a little diversification is a good idea.

  5. Got the same email, and I interpret it the same way. A big dealer like this offering great prices for folks who want to sell is a strong signal about where they think metals are going.

    Silver is down quite a bit today as everyone is anxiously awaiting the news conference from The Bernank. I see no way in hell he can seriously begin tightening, so this seems like a great dip to pick up some more silver.

  6. I have a different take. They are paying you a premium because coin demand is so high they can charge even a higher premium to sell. It may not be a commentary on the value/price of the metal as much as the supply / demand signals for the coins. I think its a “sell” signal because it shows the exubertant public demand for silver and gold coins may be outstriping the immediate supply. This is similar to a rush on a particular stock. It often marks a peak and a time to sell if you want to monetize your gains.
    A better idea is to offer to sell your coins on eBay at a price higher than APMEX is offeering and then you can keep all of the gains.

  7. I just inherited my parents’ sterling silver flatware, after their recent deaths. While I am thankful for their gifts, I have absolutely NO idea what to do with a multi-serving box of silver flatware. I am sure it must be worth SOMEthing since it is sterling and heavier than the hubs of hades, but WHAT it is worth and WHO I sell it to…thats where I’m clueless. Any ideas?

  8. @Ann – assuming it is truly sterling, put it on a scale, take the weight, multiply by 0.925, and multiply by the spot price of silver. That’s about what you should expect to get.

    @Randy – I see your point about it being these particular coins. Maybe they have some insider information that the US Mint plans to suspend production? I disagree with your assessment that it’s a sell signal though, and keep in mind that if you sell on eBay, eBay/PayPal is going to take 10-12% off the top at least.

    Interesting site I wanted to share:
    http://www.measuringworth.com/calculators/uscompare/
    put in $1000 from 1800 to 1912, then compare those numbers with results with $1000 from 1913 to 2010

    Very compelling picture of the destruction the Fed has unleashed on our currency.

  9. I was at the local shop and they mentioned that they had an incredible influx of gold and silver lately, but not many buyers.

    I would agree that APMEX probably has buyers lined up who pay above that and not much supply. I have never seen any major player pay that premium though. Ebay yes, legit shop, no.

  10. Matt redmond

    I can buy silver eagles all day long at 2.49 over spot. Arbitrage opportunity?

  11. Reverend Jim

    There’s a shortage because of the inability of the US Mint to meet public demand for gold and silver bullion products.

    It’s a supply and demand thing. As we all know, when supply is down and demand is up, the price climbs. Basic economics.

    APMEX is trying to cover demand right now and the US mint can’t cover it. As these pieces go up in price, the others should follow.

  12. I’d have to agree with Randy. This appears (to me) to be an attempt from APMEX to meet their sales demand. They’re willing to offer the premiums because they plan and likely have the immediate sales to balance the purchases. About a month ago, my order of 90% and Eagles was on hold for nearly 4 weeks, due to supply issues. Looks like they have more demand than their immediate supply. Everyone remember basic high school economics? :P

  13. @David So what? That doesn’t mean metals are moving downward. In fact it means the opposite – there is incredible demand that cannot be met by current supply. If you guys want to freak out and take that as a sell signal, by all means do it. I just don’t see it.

    I just listened to another long winded interview by Puplava of noted deflationist Nicole Foss. I think she’s smart, and I know Puplava has a tendency to be kind to his interviewees even if he knows they are full of shit… and I’m sorry to say, but deflationists are cooked. The jury is all but in. And come June, when they announce QE3, QE2.5, or stealth continue QE2, it will become apparent. The Bernank would rather you need a wheelbarrow full of FRNs to get bread than admit that no one has any money. Currently, the Bernank is the most powerful man in the world. NBC pretends all this crap about the royal wedding… the real show is tomorrow when His Highness ‘Chrome Dome I’ speaks.

  14. @metaforge
    Yep, which is pretty much precisely what I state in the majority of my post. I should have clarified I didn’t agree with the supposed “sell” position. I’m generally on board with Jack, and a long holder. Mainly as an inflation check, but if they happen to improve in value beyond inflation, the more the better. IMO, silver is likely to continue upwards, though not as quickly as recently. The mining tech and worldwide supply just doesn’t appear to match up to the ever increasing demand, industrial or otherwise.

  15. Modern Survival

    I have two why questions for those who say it is simple supply and demand.

    1. Why is there a shortage?

    2. Why is whatever answer you gave to number one the case?

    Of course it is about supply and demand, that is the entire point. Of course it is more acute with Eagles. But why? Not cause the mint is short, WHY is the mint short. Also why are eagles in the biggest demand (um tax advantage anyone). Always ask why, find an answer and ask why at least one more time.

    Again I am not saying this is a huge buy signal, just that it shows that APMEX has no concerns for the immediate short term about a plunge (say 30 days).

    My full thoughts on bubble vs. bull run continuing on Monday’s show.

  16. Last time I looked, the premium on bulk 90% silver coins was “Spot MINUS $1 X .715″ for $1000 face bags (minimum one bag)
    -and-
    “$1.80 per coin over spot” for Silver Canadian Mapleleafs (minimum 500 in box, sealed)

    So as I see it, someone has a real need to gather up those 1 oz. coins. They will even trade 90% for 1 oz. coins at a 36.25 ounce of silver advantage per 500 coin box to the seller.
    Noone does that without reason. Obvously there are (or there will soon be) buyers for the coin.

    Dealers naturally want the profit.

    My take?
    Hand onto coins. Wait for dips, get more…
    … and smile all the way to the hidey-hole.

  17. If you are an aggressive investor or a trader, the best advice is given by the son of legendary trader Bert Seligman, sell a trading position of 1/3 early into strength and buy it back late into weakness, holding onto the core position of 66% for the duration of the longer term trend. Jim has said many times that if you use this methodology, your gold position will pay for itself.

    If you are an investor, buy a position late into weakness and add on dips, holding the position for the duration of the larger trend.

    Here are some great resources for those interested in some veteran advice on trading, investing and gold:

    Jim Sinclair’s Blog
    http://www.jsmineset.com/

    Reminisces of a Stock Operator (Bert Seligman associate, Jesse Livermore’s book)
    http://www.trading-naked.com/library/jesse_livermore.pdf

    How to Trade In Stocks (Jesse Livermore’s 1940 book)
    http://www.scribd.com/doc/487508/Jesse-Livermore-How-To-Trade-In-Stocks-Original-1940-Edition

    I would also suggest buying bullion via the Nucleo Exchange on Bullion Direct. You can buy and sell your coins easily through their Nucleo trading platform and there is only a 1% commission:

    http://www.bulliondirect.com/