Queen's Beasts Secondary Market Prices Too High
Back at the end of March when the Royal Mint announced the launch of its 10-coin Queen's Beasts silver and gold bullion series, there was a lot of enthusiasm about the new coins. This had a lot to do with the top-notch artwork of the first issue, which is designed by Jody Clark, who has created some of the best modern British coin designs.
There continues to be a lot of interest in these coins, but I find it troubling that prices for the 2 oz. silver and 1/4 oz. gold pieces have gotten as high as they have.
While the 1 oz. gold continues to be available from many bullion dealers in the U.S. for as little as $38 over spot recently from one company, the quarter-ounce gold, which seems to only be available from some eBay sellers, has sold recently for about $550, or a huge markup of 75% over its gold content value.
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And the silver 2 oz. coins, which have only been available also mainly on eBay and from some non-Americans sellers in Europe and Canada, has sold for as much as $90, though at the moment it can be purchased for $65 on eBay. That is still a 100% mark-up over silver value. The only better prices I have seen were from The Coin Shoppe in Canada (www.thecoinshoppe.ca), which as of this writing was $51.34 plus shipping.
What is strange is that no major U.S. bullion dealer such as APMEX, MCM, etc. is carrying the silver coins, and when I asked some of them, they said they did not plan to carry them.
A-Mark, a wholesale precious metal company, is the Royal Mint's American distributor. What is not clear is to whom A-Mark is selling, or whether they even have the coins, since the eBay sellers and foreign dealers appear to be getting their coins directly from the Royal Mint.
The Royal Mint does sell directly to the public (https://www.royalmintbullion.com/Products/Queens-Beasts), but it is quite daunting to open an account from what I have heard as a lot of documentation is required that some U.S. buyers may not want to provide. In addition, the silver coins sold out of their initial allocation very quickly, and the coins are on order.
This situation has kept prices for the silver coins at what I believe is an artificially-inflated level that does not bode well for buyers, or really for the long-term success of the series. For the first issue buyers seem willing to pay 100% and higher mark-ups, but will they continue to pay this much for 9 mire coins, especially when if you think about it, there is no real upside from these prices unless silver were well over $100 an ounce at some point?
A friend of mine has been considering purchasing directly from the Royal Mint, which provides price breaks for those who purchase a number of tubes, or rolls, at a time, which brings the cost down quite a bit into the mid-to-high-$40-range. But that is not a very practical option for the individual buyer who just wants a coin, or a couple of them.