As Silver Rises, Proof Silver Eagle Premium Drops

For the year to date, silver is now up over $10 per ounce with a percentage increase of more than 60%. Much of the gain has come over the course of the last three months, leading up to the release of the eagerly awaited 2010 Proof Silver Eagle.

When the US Mint first announced the availability of the 2010 Proof Silver Eagle, they specified a price of $45.95. The recent rise in the price of silver works out well for collectors planning to buy the coins, as the premium above metal value has dropped.

Back when the announcement was made on October 4, the market price of silver was $22.03 per ounce. With the product price established at $45.95, this resulted in a premium of $23.92 or 108.58% above silver value.

Today, the price of silver rose to $27.76 per ounce. This makes for a premium of $18.19 per coin, or 65.53% above silver value.

For comparison, the 2008 Proof Silver Eagle went on sale priced at $31.95 when silver was $15.38 per ounce. This calculates to a premium of $16.57 or 107.74%. Therefore, on an absolute basis the premium for this year's offering is still higher, however, on a percentage basis, the premium is much lower.

Between now and the start of sales for the Proof Silver Eagle on November 19, the price of silver will continue to fluctuate, perhaps shrinking the premium even further.

This is all provided that the product price remains $45.95 when sales begin. This is the price currently listed on the US Mint's preliminary product page as well as the original press release. Pricing for US Mint products is officially established through publication within the Federal Register. I haven't seen any pricing notification for the 2010 Proof Silver Eagle yet. Let's hope we're not in for any surprises.

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