Earlier this week, the U.S. Mint increased the premium of the 1 ounce American Silver Eagle coin. Will this increase in premium also increase the value of Silver Eagles that were minted in prior years? If so, your holdings of this coin just increased without the price of Silver going up.
The U.S. Mint has increased the premium charged for American Silver Eagle bullion coins from $1.50 to $2.00 per coin due to higher production costs.
The Mint does not sell American Silver Eagles directly to the public, but distributes the coins through a network of Authorized Purchasers, who resell the coins to other bullion dealers, coin dealers, and the public.
The price for American Silver Eagles sold to Authorized Purchasers is determined based on silver content plus a premium.
The last time the Mint increased the premium for Silver Eagles was February 2009 when it was increased from $1.40 to $1.50 per coin. Prior to that, premiums were raised in October 2008 from $1.25 per coin to $1.40 per coin.
The U.S. Mint's American Eagle series of bullion coins has become very popular over the past few years. Sales of the American Silver Eagle increased 191% between 2007 and last year.