Look at the drip above that is going to dealers. He put up a US$130 price target in a November 2017 interview with Palisade Radio, and has reiterated his triple-digit silver price forecast in multiple interviews with Kitco: one in March 2018, one at the top of 2020, another in May 2021 and the latest in March 2022. The premiums are so high because people who don't think or research the ups and downs of silver prices continue buying. At times hes been even more bold, suggesting the white metal could reach US$1,000. However, I still find it interesting how there is a large jump in cost from the two low-cost dealers (DBS & Liberty Coin) and the others (MCM & APMEX). Mike Maloney told me the seigniorage on Silver Eagles is 50% higher today than when he started GoldSilver in 2005. This means that the current premium for American Silver Eagles is $18.41/coin (87.92%). In times of normal conditions, Ive heard experts state that you can get a 1,000 oz bar from the COMEX at $.10 to $.20 over spot. According to The Silver Institute) the global silver market should record a deficit in 2022. A currency is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Enter your email address to subscribe to this blog and receive notifications of new posts by email. Dont buy on a raid day unless you absolutely love the idea of paying stupid high premiums. After spending the latter half of the 2010s in the teens, the 2020s have seen silver largely hold above US$20. https://www.youtube.com/watch?v=vtsgRJGNYGsWhy are premiums on silver bullion so high? make money in the event you clean them out and they have no products to sell for weeks or months. He has also authored numerous books, including works profiling the history of the United States Mint and United States coinage. Under this definition, the British Pound Sterling (), euros (), Japanese yen (), and U.S . Posted on 07/11/2022 by 07/11/2022 by And then they have to wait weeks or months in order to get more product from the distributors. In addition, there is still a wide gap between the low-cost dealer (DBS Coin) and the others. According to CIBC analysts in mid-2021, higher industrial demand from emerging sectors due to factors like the transition to renewable energy will be highly supportive for the metal over the next few years. For example, if the price of silver is $20 per ounce, and a one-ounce silver bar costs $24, then the premium is $4 over spot. In August 2020, the price of silver reached nearly US$28.50 before pulling back again, and moved back up near those heights in February 2021. Notice the very large difference in offer prices almost a $120.00 difference. This is now obvious with the failure of FTX and huge losses seen with the popular Bitcoin and other digital currencies. Using estimated numbers here. The Physical Gold Premium remains low, historically speaking, as it is now 6.85%. UPDATE 3/30/21 @ 1:40 PM EST: While Aydin Coins came in with a low cost deal on 3/28/21, I noticed today that MCM increased its price from the low $700s for a 20-coin tube of Silver Eagles (this morning) all of the way up to $764.40 by early afternoon. The above is showing you what the deal is and why your favorite dealer may be gouging you. What I had heard from 2011 was that they had to stop taking things like constitutional and silverware because refineries were backed up for 2 months. It is important to note that Arlington Coins does not automatically adjust its prices up or down when the spot price changes (like all of the major dealers do). Instead, they were keeping their prices fixed. If you are new, buy a little on the left side when premiums drop. And perhaps go Palladium and hit $100-$200 silver beyond that. UPDATE 5/17/22 @ 1:15 PM EST: The Physical Silver Premium jumped above 80% this morning and continues to remain elevated. Is there any justification for this? But they do not give you much of the premium when you sell it back to them. Theres this misnomer that because theres 25b ounces of silver in jewelry, tea sets, and grandmas silverware, that talk of a shortage is silly. Silver and gold in particular saw monumental performance in the months that followed COVID reaching the dreaded pandemic status. There are only two dealers selling in quantities of more than 10, 20-coin Silver Eagle tubes: Hannigan Coin & APMEX. Meanwhile, theres a line a block long in line to buy. Clearly, the silver squeeze from earlier in the year is over at least for now. Physical Silver Eagle Premium Now Over80%. Refinery may be backed up. MCM was all sold out and the lowest cost dealer is now Bullion Exchanges. So assume silver runs up to $50 and you run to the coin shop with silverware. In order to better understand where Neumeyers opinion comes from and whether a triple-digit silver price is really in the cards, its important to take a look at the factors that affect the metals movements, as well as where prices have been in the past and where other industry insiders think silver could be headed. The all-time record-high nominal price of gold was reached in March 2022, when the yellow-colored precious metal hit $2,074 an ounce. Many of these products are available in attractive designs and some are collected on their aesthetic merits. Don't forget the $50M PM purchase recently that took a huge number of ASE's (plus gold) off the market. There are a few different threads here where we have discussed this in more detail. So what is given to the dealers from the distributor is very little supply, and a RAGING demand. But lets put a little context to this That record price for gold occurred during the tense weeks right after Russian president Vladmir Putin declared war on his neighboring country of Ukraine; concerns over impending nuclear war were at their highest in years, and fears over grain and oil shortage cast a pall over investment futures. UPDATE 8/10/20 @ 7:45 PM: The previous low-cost dealer, MCM, does not show any coins for sale at previous prices (now MCM is offering 20-coin lots at $772.40) so the premium increased. I see that ASE are about $32 wholesale and around $38-40 ask. Not sure if this will last throughout the day because, quite often, DBS Coin comes in with very low prices later in the day. American Silver Eagles' premiums are high for one main reason: demand. UPDATE 5/7/21 @ 7:20 AM EST: Arlington Coins is no longer selling in quantity (only 9 tubes left). Refining capability. Economic Conditions Junk silver refers to United States minted dimes, quarters and half dollars with dates before 1965 consisting of 90% silver and 10% copper. Let me also be clear. UPDATE 10/27/20 @ 7:20 PM EST: Physical premium is back below 19%. This was followed by a series of days in the high 90% range (8/5 8/9). But anyone, really, can go to the COMEX today and take off millions of ounces. A silver Britannia is about 8 per coin over spot. ), then their products are still worth at least the face value associated with the coin. So I quite like silver a lot.". When you look under the hood, and do they math, those sites were charting between $1.25 and $1.65 premium per ounce for those 1,000 oz bars. UPDATE 3/1/21 @ 12:50 PM EST: The scarcity has let up a bit as now there are three dealers offering Silver Eagles in quantity in the low $700 range for a 20 coin lot. Smart Silver Stacker 32.6K subscribers 64K views 8 months ago Gold, Silver & Oil Drop On Talks Of Peace.. I have never used this dealer as a price source before on Ebay but it is the lowest cost dealer currently. There are very few offers in quantity on Ebay and APMEX is now the lowest cost dealer at a premium of $12.45/48.20% per coin. But when silver spiked above $27.00 this morning, Arlington became the low cost dealer again (because it does not automatically adjust its physical price when spot changes). Recall that it was the result of two new low-cost dealers who were not adjusting their offering prices based on the current spot price (like all other major dealers do). The high point of that squeeze was 66.48% on 1/31/21. Physical Gold Premium vs. Spot Price A tradingsignal? The physical premium percentage moved over 45% while the Spot price declined under $24.00. On 3/5/21 there were only two dealer offering in quantity but now there are three and some have multiple offers. The price was WAY higher than I had bought at previously. You can take delivery of 100 oz bars, minimum of 200 oz. Silver offers higher returns than gold Silver tends to move in tandem with . The World Bank's Commodity Markets Outlook in October 2022 saw the silver price . PSLV is indeed draining 1,000 oz bars from the market. Rates for 2022 will be finalized later this month, Baillio said. This then goes to distributors who have a mark up, then get to the end dealer to sell. Nonetheless, well-known figure Keith Neumeyer, CEO of First Majestic Silver (TSX: FR. The cheapest 500g coffee I can find is 6.75. This premium can also be expressed as 20% over spot. MCM has 48, 20-coin lots for sale @ $747.80/each (2015), 16, 20-coin lots @ $752.80/each (2013) and 19, 20-coin lots @ $764.00/each (2016). HISTORICAL DEVELOPMENTS IN THE PHYSICAL SILVER PREMIUM MARKET. 100,000 crazy, deranged, silver apes from WallStreetSilver can really do a LOT of damage by focusing on the right hand side above. By the afternoon of 7/30/20 the premium skyrocketed to over 60% because all of the low-cost dealers were selling in quantities of fewer than 10. UPDATE 1/31/21 @ 12:00 NOON EST: Aydin Coin is still lowest cost but now it indicates a delay in shipping. Current percentage premium is under 24%. Remember at the same time those who deal with 1,000 oz bars are telling you theres no shortage, come here and they have 5-16x higher premiums than normal. Very interesting. We have a cheat code for that, by the way. Then there were the millions who turned to the traditional safe haven investment of bullion. Briefly on 7/1/20 Liberty Coin had the lowest cost but now it is DBS again. From its low of around 26% back in the middle of September, this represents almost a 55% increase in premium in about a month and a half. Enter your email address to subscribe to this blog and receive notifications of new posts by email. Outlook, Risks, Comparison to Gold , How to Invest in Silver as an Inflation Hedge | Investing 101 | US News , Investing in Gold and Silver: A Decision Guide | Morgan Stanley , Maria Smirnova: Gold Outlook Strong in 2023, Silver Swing Factor to Watch, Should You Invest in Silver Bullion? This moves price higher to meet that 10,000 available and find the equilibrium. On the bright side, premiums have not been this low for a long time . Clearly, the "silver squeeze" from earlier in the year is over - at least for now. UPDATE 1/24/21 @ 7:05 PM EST: The physical silver premium has moved above 20% for the first time since 11/11/20. On the other hand, during economic uncertainty silver values are impacted by declines in fabrication demand. Rostin Behnam of the (Commodity Futures Trading Commission) came out and said they had to tamp down the silver market. Electric vehicles, solar panels, windmills, you name it. Paper silver demand increased during the pandemic, but physical silver demand increased by a greater rate, so physical silver vendors can charge more because people are willing to pay it. Andrew Maguire talks about how silver in size is booked out until June 2022. Is Silver Already Worth $40 - Why Are Premiums On Physical Bullion So High? And we might be getting to that point anyway due to the governor switch possibly going the way of Palladium soon. If we see $50 silver, refineries are about to be crushed with grandmas tea sets. If we continue to pound PSLV and those types of instruments, we blow through $50 silver like a hot knife through butter and continued pressure may make Palladium jealous of the results that come from this. If you find the information on this website interesting or useful, please consider supporting my work by clicking this link and donating through PayPal. Let me translate. The surprisingly big jump in Medicare Part B premiums for 2022 reflects the sky-high cost of a controversial Alzheimer's disease drug. Silver and gold are the types of things that as price rises, people pile into it. I made a point yesterday to call out a popular bullion site because they also claimed no shortage. They tell you, come to my site and Ill get you 1,000 oz bars all day long. So by the way I figure if real first quality ASE are $40 then the GSR is $2000/40 or 50 to 1. I just bought 25lbs of 90%. Looks like the craziness has passed sort of for now. At least this has been the case since I started to closely follow the Ebay market since last Spring. The premium on a silver product is the amount of money above the spot price of silver that the product costs. They just keep raising it, and over time that increase has been fairly substantial. Immediately, please stop reading. Physical Silver Eagle Premium Hits Record 71.25%. What you find from these dealers is that the US mint only makes so many eagles. On a separate note, silvers close ties to golds safe-haven status should be beneficial in the long term, and there is also a strong case to made for the metal's industrial potential. If you WANT to keep the pressure on, let the common Joe buy silver at $50 silver retail where you continue your pressure with PSLV, OneGold, Kinesis, and vaulting services buying 1,000 oz bars. UPDATE 4/15/21 @ 7:20 AM EST: It appears that most of the lower-cost dealers are now out of the market and this is leading to an upward pressure on physical premium. Liberty Coin is still the lowest cost dealer offering 20 coin Silver Eagles in quantity $714.84. Is something up, yet again, in the physical silver market? THIS WILL MAKE RETAIL PREMIUMS JACKED. However as often happens, Bullion Exchanges comes in with large coin quantities to lower the premium. Meaning as retailers see a flood of interested people over $30, high retail premiums would be the norm to slow the interest in buying. But imagine Monique's surprise when her renewal notice showed that her after-subsidy premium would be going from $0/month in 2021 to $226/month in 2022. The premium now stands at 32.19%. In periods of high demand, premiums for a given silver product are likely to increase. , Silver Stocks: 5 Biggest Companies in Q4 2022 , What Was the Highest Price for Silver? But why would THEY have such high premiums? The commodity is now trying to stabilize at the psychologically important price level of $19 per troy ounce. UPDATE 8/5/20 @ 8:50 AM: The large drop in premium from 8/4/20 to the morning of 8/5/20 is the result of Liberty Coin coming in with rolls of silver eagles in large quantities (more than 10). UPDATE 2/1/21 @ 11:50 AM EST: There are no dealers on Ebay selling 20-coin tubes in quantities over 10. UPDATE 1/28/21 @ 12:00 NOON EST: Physical silver premium declined into the low 18% range until the evening of 1/29/21 when it moved above 19%. Create a free website or blog at WordPress.com. Know that the correct answer will depend upon your objectives mostly. UPDATE 5/13/22 @ 8:15 AM EST: The Physical Silver Premium is at the highest point since I have been keeping track I started this website in April 2020. As the official silver bullion coin of the United States, the 1 oz American Eagle Silver Coin has enjoyed a high level of prestige among precious metals investors at home and abroad. Venue: Eastpoint Mall. During other months, silver and gold prices tend to have more volatility. "The industrial side of silver is very bullish for silver over years to come, even if the safe-haven demand for gold goes away," he said in an interview with INN in January 2023. Looking first at the Fed and interest rates, it's useful to understand that higher rates are generally negative for gold and silver, while lower rates tend to be positive. The next best deal is a 40-coin lot from Bullion Exchanges. One of the most popular options for buying silver at a cheaper price is to purchase silver bars and rounds. Bullion dealers not charging 50% premium. I could not find any 20 coin tube for sale on Ebay from major dealers in any quantity at all. (Updated 2022). Posted September 13, 2022. There are a variety of ways to get into the silver market. Time for me to start leaving silver behind in favor of gold. (Updated 2022) , Silver Price Manipulation: Fact or Fantasy? Let me repeat. Many people with stakes in the stock market panicked and began moving their money into alternative investments. 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