Since 1986, the U.S. has struck silver eagle bullion coins. These coins have become wildly popular among investors and collectors alike. In 2011, the mint released a special edition five-piece collector's set. A limit of 100,000 pieces was set, and the mint sold out within hours of its release. Orders were not taken before 9 a.m. (PST), and they were sold out by 1 p.m. the day of release.
Mint officials are now fielding complaints about the sales of these sets. With the antiquated sales system the mint has, many had trouble getting through to place an order. Online and phone sales were both overwhelmed by the response to this offering of eagles. Some are complaining that they could not get through, and others are just complaining that many of the sets were bought by others for resale.
The mint had released a 2006 set this way with a mintage of 250,000. This set sold out within a few days. After the set sold out at the release price of about $100, the price of those sets skyrocketed to about $600. Now they are back down to about $400, but still a tremendous boost to one's investment. Because of this, many were buying the 2011 set just so that they could make a quick profit.
With the 2011 set having a smaller mintage, the anticipation was already there. Sets were released at $299, or about $,1500 per box of five, the limit per household. Within weeks the unopened boxes of five were trading upwards of $4,500 per box, or $900 per set. As this is written, the prices have fallen a little, but seem to be rising back again. In 2006 the same thing was seen. Sets released at $100 went to $300, fell to $200, then shot up to $600. With that same logic, these sets could easily be worth upwards of $2,000 each, and there are far fewer sets.
A few of the complaints were that these sets were now being resold. The mint has a double-edged sword with this complaint. Most who are saying this would not be doing so had they been able to get "their" sets. If the mint does not set a limit, they will sell out in seconds, not hours, but even if the limit is one per household, the complaint is the same. Striking to demand does not bode well for their sales. If a limit is known, then some will buy for speculation or investment. If no limit is set, then investors and speculators will shy away, as millions could be made - thus, little or no increase in the future price. Ultimately, the mint is creating its own rarities by limiting strike and thus boosting its own sales.
Silver eagles are widely collected, and when a limited release is made, the price reflects just how popular these coins are. The secondary market is now the place to buy one of these sets, but it may still prove to be a great buy for the long term.
• Allen Rowe is the owner of Northern Nevada Coin in Carson City.
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