Gold And Silver Coin Premiums- How Low Can They Go?

Over the past five years, I have written several articles about the premiums associated with purchasing gold and silver coins. Recent developments appear to confirm a pattern that I suggested previously. Even so, they are somewhat shocking. If you are a stacker, pay close attention; particularly if you have a fondness for Silver Eagles.

A RECAP

In early 2020, at the FOMO peak associated with Covid, economic shutdown, and market collapse, the price of silver had dropped below $15 oz.  The premium on Silver Eagle coins approached 100%. That brought the total coin purchase price closer to $30, twice the spot price of silver at the time.

The price of silver rose quickly from those lows, but the coin premium remained stubbornly on the high side. On some occasions when the silver price dropped significantly and attracted buyers, the Silver Eagle coin premium rose more than enough to offset the drop in the silver price.

In other words, someone might pay more per coin at a lower silver price because of the higher premium.

In my article Silver Coin Premiums - Another Collapse? (August 2022), I said...

"...buying pre-1965 US silver coins at 40-50% premiums right now is that they seem like a bargain compared to buying freshly-minted US Silver Eagles at a 70% premium. (Shouldn't it be the other way around?)" 

Gold Eagle coin premiums were on the high side, too; although lower than Silver Eagles. Quite a few gold investors paid higher premiums for numismatic coins. More often than not, the numismatic value was not there.

THE GOOD/BAD NEWS 

The good news is that premiums for both gold and silver coins have, indeed, collapsed (see The Amazing Collapse of Silver Coin Premiums May 2024). The bad news depends on how much you paid when you purchased your coins.

Here are the latest quotes based on today's closing market prices for gold at $3338 oz and silver at $38 oz...

Gold -

Newly minted (2025) 1 oz. American Gold Eagle - $3470 per coin (premium over spot gold is 4%; back-dated coins are cheaper at 1% premium over spot).

$20 Liberty 1 oz./$20 St Gaudens 1 oz. (VF-XF) - $3391 per coin (premium over spot gold is 1.5%).

Silver - 

Newly minted (2025) 1 oz. American Silver Eagle - $43 per coin (premium over spot silver is 13%; back-dated coins are cheaper at 7-8% premium over spot).

Pre-1921 Morgan Silver Dollar (XF) - $42 per coin (premium over silver content of .7734 is 28%)

90% Junk silver coins/quarters - spot price or small discount (-.25)

SUMMARY 

The collapse in gold and silver coin premiums is a big negative for those who faithfully purchased at lower prices and paid extremely high premiums. In most cases,  the potential profits from a rising silver price have been eroded by the ridiculously high premiums paid which have subsequently disappeared.

This is particularly true for Silver Eagles and junk silver coins. Gold Eagle coin premiuns, to a lesser extent, have been offensively high at times, as well; especially those associated with fractional Gold Eagle coins and numismatics.

Now that the tide has turned, the trend will probably continue for awhile. Junk silver coins traded at a 20% discount to their silver content after the 1980 price peak. Premiums for early 20th century gold ($20 Liberty and St Gaudens) and silver (Morgan and Peace dollars) disappeared.

Something similar could happen again, especially if bullion prices were to decline. (also see The USD Is Worthless - Gold Is At $100k!)

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