Lowest Markup: Gold Eagles or Silver Eagles?

gold eagle, silver eagle, silver eagle gold eagle comparedQ: Which has the lowest markup, Gold Eagles or Silver Eagles?

A: While silver is sometimes argued to be the safest investment in general and gold the most aggressive form of investment in general, let’s compare the Silver Eagle with the Gold Eagle, in particular, to determine how each coin is priced.

Silver Eagles
The most common silver bullion coin is the American Silver Eagle. Let’s say the current spot price is $35, for the sake of this example. The production and minting costs for Silver Eagles average about $2.50 per coin, and the dealer profit is $1.50 to $2 per coin, depending on the number of coins being purchased. In this case, we have $35 + $2.50 + $1.50. This means the ask price would be $39. Not a bad markup.

Conversely, the price you can expect if you were to sell those coins to a dealer like My Gold Advisor would be spot plus about $1 to $1.50 per Silver Eagle. Therefore, you’d receive about $36 to $36.50.

Gold Eagles
Gold Eagles are similar, but have even smaller margins in most cases. Let’s say the spot price for gold is $1,800 per ounce. The mint and production premium is about 3.5%, and a fair dealer markup is about 3% for one or two coins (larger amounts would generally result in a lower markup by the dealer). Therefore, a fair price to pay would be $1,800 + $63 + $56, or $1,919 per coin.

The price you can expect to receive to sell Gold Eagles to a dealer like My Gold Advisor would be the spot price plus 1% to 2% per Eagle, or $1,818 to $1,836.