Required fields are marked *. Looks like the craziness has passed sort of for now. $50 silver, coin dealer, gold, refinery, silver, silversqueeze. Refining capability. In an extreme scenario, we could see inflation take the reigns and bring silver prices over the $100 mark. Is Silver Already Worth $40 - Why Are Premiums On Physical Bullion So High? Current percentage premium is 44.63%. Im also aware as supply is unlocked, its possible the refineries and others are hedging what they just bought to protect from downside price moves. 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). The premium now stands at 32.19%. Theres a LOT of money to go around. 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. They can be physically held, traded person to person, and are virtually anonymous. But the next lowest cost dealer (MCM) is offering at a price way above $826.40. UPDATE @ 9:10 AM EST: Sure enough, DBS Coin came in as the lowest cost dealer $673.38/$33.67 per coin. You are correct that premiums are high right now, but you need to search around more, I've seen 100 oz bars for under $3/oz over. But by 9:40 PM EST the premium had jumped back above 60%. In California's new state-run health insurance market, Kaiser Permanente will cost you. The spot price of coffee at the moment is 1.90 per lb (500g ish). Join us today for FREE! The above is showing you what the deal is and why your favorite dealer may be gouging you. What are other options to drain the COMEX, so to speak? If youre a bullion investor who is dejected by the climbing price of silver premiums right now, there are solutions that will make it more affordable to invest in silver. The common mistake is just trying to go after retail. We will see how long it lasts. Real estate is rapidly cooling off and cryptocurrency is proving its not the failsafe juggernaut many thought it was. The next least expensive offer is Liberty Coin at a 29.85% premium. If you look at the spot price of silver at this moment, its somewhere around $28. Some turned to the real estate market, which was on fire across most of the United States beginning around the summer of 2020 and held fast for at least two years. And they may have 10,000 available but 100,000 want them at $5 over. ( Kitco News) - Retail investors can expect to continue to pay high premiums for physical gold and silver bullion as the precious metals markets deal with global supply issues and unprecedented demand, according to speakers at the London Bullion Market Association Global Precious Metals Conference. Problem is, the rabid demand will outstrip available product coming in that can be sent to retail. It remains the lowest cost dealer but not by much. The latest silver reports show investment silver at 500m oz, to include ETFs, yet price hasnt moved since the summer? Those who wish to buy silver rounds and bars should consider buying them while their premiums are still relatively reasonable. Are high premiums on silver justified? Now time to light the fuse of the powderkeg. In order to glean a better understanding of the precious metals chances of trading around the US$100 range, its important to examine the elements that could push it to that level or pull it further away. 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. Below, you will see your blueprint to get to $50 silver, and soon. Now, conditions in the current marketplace are driving premiums to new highs. The percentage premium based on this dealer is now 29.57%. Joshua McMorrow-Hernandez is a journalist, editor, and blogger who has won multiple awards from the Numismatic Literary Guild. and our The lowest price on Ebay is not even a typical dealer but he does have Silver Eagles for sale in quantities over 10 tubes. There was a very large surge in premium on the afternoon of 7/29/20 (to 47.20%) because the low cost dealers only had 10 or fewer 20-coin lots for sale. High premiums are proof that stackers were wise to stack all these years. Continue to drain on the right side, and when premiums come down on the left side, get some more shiny here and there. Additionally, the monetized value of these coins means that even if, in a worst-case scenario, silver prices were to plummet to near zero (who says that cant happen? Sure, it has pretty much always cost more than spot price to buy silver in the retail market. According to The Silver Institute) the global silver market should record a deficit in 2022. So by the way I figure if real first quality ASE are $40 then the GSR is $2000/40 or 50 to 1. Usually physical follows spot, but when there's a divergence in demand for physical and demand for paper, the premiums will change accordingly. The truth is they have a spigot providing them small amounts than cannot keep up with demand. silver bars, youre paying approximately a 20-25% premium on. Events and Activities For The March School Holidays. Liberty Coin is still the lowest cost dealer offering 20 coin Silver Eagles in quantity $714.84. Great article, so many short sighted folks who cant see the forest for the trees will sit on the sidelines and whine about premiums. Los Angeles Times, June 12, 2013. By 1/28/21 it was down in the 19% range. During other months, silver and gold prices tend to have more volatility. The American Silver Eagle proofs carry a significant premium over the spot silver price. "Once silver gets above US$33 and it stays there for three or four days or better yet, even two or three weeks there's not much holding it back to hit US$50 again," he said at the time. Often retail priced new around $2.50 oz USD to often time many more US dollars over the fluctuating silver spot price (depending on silver bullion market conditions), the 1 oz American Silver Eagle coin is often the most expensive of all the high volume minted and sold government-guaranteed silver bullion coins being sold in the world.. The value of silver is already lower than many other metals, but more importantly it is rarely found on its own. Yet Apmex is selling a silver eagle at $38? Latest Offers, Straight To Your Inbox. Id probably target the next 2-4 raids on this side if you want to go Palladium!! The massive amount of available silver has not been met with heightened demand, which has kept prices low. Buy some. Unless one is trading huge amounts of bullion at a single time, they can generally buy and sell silver and other forms of bullion without an identifiable paper trail. UPDATE 2/1/21 @ 11:50 AM EST: There are no dealers on Ebay selling 20-coin tubes in quantities over 10. Whats in store for silver in the future? The silver market and the premiums are a scam and have been for years. Full-price premiums in Nebraska are increasing by more than the national average for 2022, with an average increase of a little less than 9%. lowest cost dealer selling in quantities of over 10, 20-coin tubes. During the backwardation of September 2015, silver was trading . Assume theres 900m ounces sold of silver per year. The talking heads of the world stop talking like 25B oz is available. April 27, 2022 10:33AM. Does gold store energy? Stay tuned. THAT is in 1,000 oz bars. This potentially is what is in store for gold and silver soon. Published: Dec 19, 2022. I cant blame them. The US mint then slaps like a $2-3 premium on from THEM. Neumeyer has voiced this opinion often, most recently discussing it in an August 2022 interview with Wall Street Silver. Using estimated numbers here. Your email address will not be published. In short silver premiums have increased due to a recent combination of higher Silver Bullion Demand & lower Silver Bullion Supplies. By 1:30 the premium had moved over 60%. That hedging in itself is potentially shorting on the COMEX and creating the downward price pressure they are trying to protect against. He pointed out that subtracting net investments in silver exchange-traded products leaves the market in a deficit, and also questioned the methodology behind the institutes recycling data given that most recycled silver metal comes from privately owned smelters and refineries that typically dont make those figures public. Current percentage premium is under 24%. Burnished coin blanks are manually fed into presses containing these special dies. As seen on the table which depicts the supply/demand situation in the last 10 years, it becomes clear that 2022 will be year with an epic physical market shortage. Essentially, there are now two prices for silver. Currently AMPEX has come in as the lowest cost dealer and the percentage premium has declined to 36.65%. fretboard, Feb 10, 2021. And then trying to lecture me that theres no shortage. "Consumption numbers look like they're somewhere between 1.2 and 1.4 billion ounces. In a May 2022 interview with INN, he explained that there are multiple paths silver could take to get to the triple digits. You might be surprised. Otherwise, they sell to you too cheap and they are out of products and out of business soon thereafter. Sit through the first lecture. UPDATE 3/19/21 @ 7:45 AM EST: DBS Coin did not come in this morning with any offers (they have no coins available) so the physical silver premium remains elevated. This is why they need tampy tamp. The coins are then struck multiple times. Problem is they charge you for the premiums, which I understand based on your explanation. Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. THIS WILL MAKE RETAIL PREMIUMS JACKED. And perhaps go Palladium and hit $100-$200 silver beyond that. Consider whats happening over the last several months, though. He thinks its only a matter of time before the market corrects, like it did in 2001 and 2002, and commodities see a big rebound in pricing. If you listen to the dealers, they tell you the supplies they get from the mints to sell Eagles and Kangaroos is very constrained. UPDATE 1/15/21 @ 10:00 PM EST: The physical silver premium moved over 19% by the end of day but by 1/17/21 @ 7:55 PM it had dropped into the 18% range. UPDATE 1/30/21 @ 9:45 PM EST: Something is certainly going on. But anyone, really, can go to the COMEX today and take off millions of ounces. And when you look at the price they are selling for, you are still looking at a $31 an ounce, or about a 14% premium. 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. Stuntman, Arganto, dikefalos and 1 other. 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. Posted September 13, 2022. The premiums are so high because people who don't think or research the ups and downs of silver prices continue buying. As many analysts point out, silver has been known to outperform its sister metal gold during times of economic prosperity and expansion. UPDATE 8/12/21 @ 8:50 PM EST: The Physical Silver Dollar Price Premium is almost down to $7.00/coin and the percentage premium is about 30%. And, it is NOT their duty to give you a price that makes YOU happy, but one that sustains their continued operations. The next dealer selling in quantity is APMEX at a way higher price APMEX: $754.64 $37.73/coin. And perhaps go Palladium and hit $100-$200 silver beyond that. In February 2023, the Fed raised rates by just 25 basis points, the smallest hike since March 2022, as Chair Jerome Powell said the process of disinflation has begun. Privacy Policy. The primary reason that silver is sold at a significant discount to gold is supply and demand. 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? As a report from the CPM Group notes, it can be seen that silver in fact almost always (but not always) out-performs gold during a gold bull market.. And gold bars, Maybe 5%. 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. The BIG problem which you are not grasping is that the underlying silver market is NOT going to move price points by you clearing out retail. I think these numbers are made up, he said. To each their own. So now their shelves are empty what are they supposed to sell you? 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. UPDATE 6/23/21 @ 12:30 PM EST: The physical silver premium has been above 50% since 6/20/21 because Arlington Coin was the lowest cost dealer (this individual/company does not modify its prices to reflect the spot market on a regular basis like all other dealers do). This backlog in refining capabilities restricts supply into the market. DBS had lowest cost in quantity until the afternoon of 6/3/20. One can argue that why are the premiums so high on gold. With silver at $14 oz. Meanwhile, theres a line a block long in line to buy. Junk silver coins were (and still are) legal tender and minted for general circulation. Kinesis I have several articles about them, but you can buy KAG and mint silver there which has them going out and draining silver from the market and putting into their vaults. UPDATE 6/15/22 @ 1:00 PM EST: Liberty Coinis thelowest cost dealer selling in quantities of over 10, 20-coin tubes. Are you keeping an eye on silver premiums these days? What a nightmare to go through it. Premiums for ACA Marketplace benchmark silver plans are increasing on average across the U.S. in 2023 after four years of slight declines. On the morning of 6/1/20 the premium went below 45% but then jumped back up in the evening because Bullion Exchanges was no longer selling in quantities more than 10. Meanwhile silver became a darlingits less expensive and thus more accessible to more investors. UPDATE 4/15/21 @ 7:40 PM EST: The physical silver market is getting very tight. I see that ASE are about $32 wholesale and around $38-40 ask. All readers are encouraged to perform their own due diligence. These types of things tell me theres a lack of supply at the finished goods segment of this but price point is also something you need to take into consideration. The Physical Gold Premium, on the other hand, still remains quite low at 6.75%. Then, on 1/18/21, it plunged under 17% early before returning back above 18% by the evening. 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. by. If you have constricted supply and massive demand, on a product that will increase in price and demand as price increases. In the fall of 2008, for instance, silver premiums exploded in percentage terms on popular silver bullion products. Not sure if this will last throughout the day because, quite often, DBS Coin comes in with very low prices later in the day. This represents a $11.75/45.12% premium. 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