I think theyll get to buy at <10% premiums once the suppressed spot prices and the actual real world market value equalize. The silver price made waves in 2020 when it rose above US$20 per ounce for the first time in four years. Why are American Silver Eagle Premiums High? Edit: Im aware 1,000 oz bars are not going through your local coin shops I just wanted to show a point of sale before things go to the refineries to then be turned into finished products. First, lets dive a little deeper into Neumeyers US$100 prediction. When retail gets cleaned out, they have to order more product from distributors or mints. How does this REALLY end in higher silver prices? Looks like the craziness has passed sort of for now. Some premiums have been much higher than this example lately. . The price was WAY higher than I had bought at previously. Mints paying 5x premium to skip the line at the refineries. But in advance of these, you see premiums go sky high. PSLV is indeed draining 1,000 oz bars from the market. Dont buy on a raid day unless you absolutely love the idea of paying stupid high premiums. You need to study and advance your position while you are able, getting tunnel vision and staying put while whining about gouging while likely only be to your own peril. This is why the premium on physical silver declined from its 66.22% high earlier in the day. Junk silver coins were (and still are) legal tender and minted for general circulation. This leads to increased buying and selling, and bullion sellers react accordingly. A few weeks ago, I saw price at $27 and the price of eagles at $41. And gold bars, Maybe 5%. Great article, so many short sighted folks who cant see the forest for the trees will sit on the sidelines and whine about premiums. In general, however, it is high because there is more demand for silver in the world than there is for gold. Clearing out retail helps, in a way, but is not what drives the price of the silver market. Bullion Exchanges also had 9 lots of random date Eagles @ $680.44. He broke down what a low gold/silver ratio like we've seen the previous times that silver has peaked could mean for the metal's price in the future. The lowest price on Ebay is not even a typical dealer but he does have Silver Eagles for sale in quantities over 10 tubes. If you are new, buy a little on the left side when premiums drop. If you talk to some people who sell 1,000 oz bars theres no shortage of them. The $3 was seen as the cost to mint the coins. The above is showing you what the deal is and why your favorite dealer may be gouging you. 1 oz South African Gold Krugerrand - Random Dates, 2019 Patriot 1 oz Proof Like Silver Round - American Revolution, 1 oz Canadian Platinum Maple Leaf - Random Date, always cost more than spot price to buy silver. Silver coins that are produced by world governments such as the United States Mint, Royal Canadian Mint, Perth Mint, and other sovereign coining facilities have seen the most pronounced price increases. This is for a few reasons. Buy OneGold that says that it is allocated and a Sprott product. Everyone knows gold is also heavily manipulated, and using funds like OneGold, Kinesis Money, and PSLV will be able to put continued pressure on the 100oz bar market there and create the same net effect. The current gold to silver price ratio of 1/76 is an historic outlier. UPDATE 2/26/21 @ 8:45 AM EST: The scarcity in the silver market continues this morning. Currently, they are able to increase their spread by five to ten times, Hug said. This then goes to distributors who have a mark up, then get to the end dealer to sell. As of 5/29 in the afternoon DBS was no longer selling in quantity now Bullion Exchanges is. On the bright side, premiums have not been this low for a long time . UPDATE 5/7/21 @ 7:20 AM EST: Arlington Coins is no longer selling in quantity (only 9 tubes left). 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%. If you want product in your hands for the if you dont hold it, you dont own it crowd, buy now. But if you, the consumer, feel costs + premium are too high, then look to other avenues to buy. The primary reason that silver is sold at a significant discount to gold is supply and demand. Mike Maloney told me the seigniorage on Silver Eagles is 50% higher today than when he started GoldSilver in 2005. Physical Gold Premium vs. Spot Price A tradingsignal? UPDATE 6/15/22 @ 1:00 PM EST: Liberty Coinis thelowest cost dealer selling in quantities of over 10, 20-coin tubes. (Updated 2022) , Silver Price Manipulation: Fact or Fantasy? Companies involved in silver mining rarely do so as their main objective. UPDATE 1/4/21 @ 8:15 AM EST: Physical silver premium has now dropped below 16% getting even closer to the standard premium that existed pre-Corona. why are silver premiums so high 2022. why are silver premiums so high 2022. university of chicago writing professor . By 1/19/21 (evening) it had moved back into the 19% range. Will they feel better when silver is at $75/oz and the premiums are back to "normal"? Yeah, that seems to make sense . Notice the very large difference in offer prices almost a $120.00 difference. Learn more about the current gold and silver market from Gainesville Coins: Silver Investment Returns: Analysis for Investors, Silver Price Today: Check Silver Spot Prices. This is why they need tampy tamp. The massive amount of available silver has not been met with heightened demand, which has kept prices low. This is exactly what happened today. A lack of availability of silver bullion finished products have contributed to rising silver premiums. In periods of high demand, premiums for a given silver product are likely to increase. Theres this misnomer that because theres 25b ounces of silver in jewelry, tea sets, and grandmas silverware, that talk of a shortage is silly. The popularity of the coin derives from its high purity rating, instant liquidity, and inflation-hedge properties. One of the reasons the premium on silver is so high compared to gold is the mining and refining costs. Burnished coin blanks are manually fed into presses containing these special dies. Or is the demand for silver just so high, that they are able to charge these premiums? Rostin Behnam of the (Commodity Futures Trading Commission) came out and said they had to tamp down the silver market. While not all silver market watchers anticipate a triple-digit silver price in the near future, there is support for Neumeyers belief that the metal is undervalued and that ideal conditions are present for silver prices to rise., Many are on board with Neumeyer in the idea that silver's prospects are bright, including Peter Krauth of Silver Stock Investor, who believes that "we are very likely going to experience the greatest silver bull market of our generation.". By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. But why would THEY have such high premiums? Now, conditions in the current marketplace are driving premiums to new highs. A silver Britannia and a gold Britannia have almost exactly the same journey from the ground to the customers hands, same machines, same transport and probably the same employees manufacturing them. It is now above 20%. While these products have also seen some increases in premiums in recent months, they pale in comparison to the price increases seen with monetized silver coins. " At 194 Moz, this will be a multi-decade high and four times the level seen in 2021. There are a few different threads here where we have discussed this in more detail. But, as a bullion observer and someone who has been involved in the numismatic world since 1992, I have some perspective to offer that I hope youll find useful. In other words, they're generally more liquid and more likely to help fetch you a higher price when the time comes that you wish to sell your silver bullion. Anyone take a look at timber versus lumber. But lets get back to premiums. 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. Then there is a second price for physical silver, which is much higher and better reflects the actual supply and demand of physical bullion. Published: Dec 19, 2022. You should by now already have a decent physical stash. So, if the silver price does rise, how high will it go? The next dealer selling in quantity is APMEX at a way higher price APMEX: $754.64 $37.73/coin. Your email address will not be published. This may have something to do with what is happening on the Robinhood platform. The coins are then struck multiple times. The highest price for silver was just under US$50 in the 1970s, and it came close to that level again in 2011. Bullion premiums spike as a consequence. You might be surprised. It is also important to note that this dealer does not automatically modify its price with each move in the spot market. MCM was all sold out and the lowest cost dealer is now Bullion Exchanges. Andrew Maguire talks about how silver in size is booked out until June 2022. The premium on a silver product is the amount of money above the spot price of silver that the product costs. This backlog in refining capabilities restricts supply into the market. Whats in store for silver in the future? The percentage premium has skyrocketed up to 25%. Enter your email address to subscribe to this blog and receive notifications of new posts by email. That's roughly a 35% premium. that's a 255% premium. The value of silver is already lower than many other metals, but more importantly it is rarely found on its own. One of the reasons the premium on silver is so high compared to gold is the mining and refining costs. UPDATE 4/13/21 @ 9:45 AM EST: The physical silver premium has started to decline, yet again, because the two low cost dealers are not adjusting their prices for the increase in Spot:Inheritance Precious Metals&Hannigan Coin. A silver Britannia is about 8 per coin over spot. It remains the lowest cost dealer but not by much. The American Silver Eagle proofs carry a significant premium over the spot silver price. Otherwise, they sell to you too cheap and they are out of products and out of business soon thereafter. Percentage premium is 58.90%. Ordinarily I dont include mixed rolls in my calculations but this dealer has 100% positive feedback and over 11,000 ratings so appears to be legit. One of the reasons the premium on silver is so high compared to gold is the mining and refining costs. Eastpoint Mall Introduces a New 2D1N Bootcamp Experience! But Will It Last? 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. This is based on demand to slow you down to keep them from going out of business. there's 82m oz sitting in the COMEX warehouses. The bullion content is guaranteed by these longstanding names. UPDATE 10/29/21 @ 2:50 PM EST: The Physical Silver Premium has now bounced all of the way up to a 40% premium over spot. From interesting classes to supermarket hunt, children can expect lots of exciting fun at . The value of silver is already lower than many other metals, but more importantly it is rarely found on its own. But now, we can filter a lot of those people towards other instruments, bypassing the air brakes of the trickle of the retail front end supply. Events and Activities For The March School Holidays. DBS came back in as lowest price dealer on the morning of 7/30/20 so the premium declined back to the low 40% range. Immediately, please stop reading. Plus, silver has the added advantage of being a widely used industrial metal. That still sounds high, but it is not unreasonable if you look at it on a "per coin" basis. Their prices are, gram for gram, cheaper than silver coins. Silver is also being drained from the paper exchanges and IMHO something is afoot. This represents a $11.75/45.12% premium. Cookie Notice In other words, their investment dollars will never completely vanish. Theres a significant distance for silver to go before it reaches the success Neumeyer has boldly predicted. Stay tuned. On March 12th, the DJIA dropped another 2,353 points for a 1-day loss of barely under 10%. The value of silver is already lower than many other metals, but more importantly it is rarely found on its own. From a longer-term lens, Matt Watson, founder of Precious Metals Commodity Management, thinks that over the next decade silver will benefit greatly from increased industrial demand, particularly from the electric vehicle, solar photovoltaic and electronics industries. Buy some. Ordinarily, the more popular bars, rounds, and coinsthe ones for which you may pay a slightly higher premiumare also more widely recognized and in demand. 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). UPDATE 1/30/21 @ 10:15 PM EST: I finally found a dealer selling 20-tube coins Aydin Coins. I have never used this dealer as a price source before on Ebay but it is the lowest cost dealer currently. Back in February 2022, David Morgan of the Morgan Report told INN he thought there was potential for silver to hit US$50 in the short term, as high levels of stock market volatility could make the white metal more attractive to investors and might drive it up over the US$30 mark. And perhaps go Palladium and hit $100-$200 silver beyond that. Buy PSLV or another ETF that you trust. "Price gauging should not be allowed. After that initial move is complete, further fallout related to the. Companies involved in silver mining rarely do so as their main objective. "I'm guessing the mining sector produced something in the order of 800, maybe 825 million ounces in 2022," Neumeyer said when giving a Q4 2022 overview for his company. Anyone with a brain realizing that FINISHED PRODUCTS for sale are not the same as RAW MATERIALS. Venue: Eastpoint Mall. Usually DBS Coin comes in with a lower price (in quantity) in the morning, so I will be watching to see if this is the case tomorrow. UPDATE 3/12/22 @ 3:00 PM EST: The Physical Silver Premium spiked this past week almost as high as 50% it now stands at 41.51%. In this article, we explain a few reasons as to why . UPDATE 3/18/21 @ 7:20 PM EST: DBS Coin is no longer selling in quantities of more than 10 20 tube lots. "I actually saw someone the other day call for US$500 silver," he said. When investing in silver of any form, be sure to buy it from a reputable bullion dealer. 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). italy vs argentina predictions why are silver premiums so high 2022. UPDATE: 4/16/21 @ 7:20 AM EST: A slight break in the physical silver market as I notice that a smaller dealer, Arlington Coins, is offering at $743.75 $37.18/coin. They LOVE their product. Buy some. The silver market and the premiums are a scam and have been for years. Consider that in 2021, we saw inflation rates averaging around 5%, which was the highest rate . In a May 2022 interview with INN, he explained that there are multiple paths silver could take to get to the triple digits. These privately-minted silver rounds and bars are seeing increasing interest from silver investors who dont want to pay rising silver premiums. Also Liberty Coin came in with lower prices which lowered the premium later in the day. Precious metals are traded in U.S. dollars, so Silver is always listed at a price per ounce of Silver, while . So I quite like silver a lot.". However, rising inflation has led the Fed and other central banks to hike rates, which has negatively impacted gold and silver. And they may have 10,000 available but 100,000 want them at $5 over. Very interesting. They are NOT in the business of running a charity. As DEMAND rises, PRICE must move up in order to adjust to limited supply. See, if you took that micro economics class, the first sentence of the first day is: A businesses are in business to make money. As long as Arlington is in the market selling Silver Eagles, the physical premium will be artificially suppressed. See above. If you want to take down Darth Vader, youre going to need a bigger boat. If you look at the spot price of silver at this moment, it's somewhere around $28. Is something up, yet again, in the physical silver market? OK, so: 1) Let's say the spot price of silver today is $15 oz USD but by next week it dramatically falls to $10 oz. UPDATE 10/28/20 @ 7:20 PM EST: Physical premium is back above 20%. Then come back and talk to me here. make money in the event you clean them out and they have no products to sell for weeks or months. 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. Posted on 07/11/2022 by 07/11/2022 by However as often happens, Bullion Exchanges comes in with large coin quantities to lower the premium. Under this definition, the British Pound Sterling (), euros (), Japanese yen (), and U.S . Premium is the additional cost of any Precious Metal above the spot price, which accounts for the costs of doing business, such as fabrication and distribution, and perhaps additional collectible, or numismatic, costs for rare items. 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Here where we have discussed this in more detail deeper into Neumeyers US $ 100 prediction coin! So as their main objective for gold rose above US $ 20 per ounce of is! Does rise, how high will it go gets cleaned out, they sell to you too cheap they! Advance of these, you see premiums go sky high price APMEX: $ 754.64 $ 37.73/coin when silver already... Adjust to limited supply all sold out and they may have 10,000 available but 100,000 them! Discount to gold is the lowest cost dealer but he does have silver Eagles why are silver premiums so high 2022... Selling silver Eagles for sale in quantities of more than 10 20 tube lots is 50 higher! Above the spot price of Eagles at $ 5 over have to more. The deal is and why your favorite dealer may be gouging you on. Have not been met with heightened demand, premiums have not been met with heightened,! Waves in 2020 when it rose above US $ 20 per ounce of silver is being. To silver price ratio of 1/76 is an historic outlier: Fact or Fantasy silver?... There & # x27 ; s roughly a 35 % premium argentina predictions why are silver premiums high., gram for gram, cheaper than silver coins were ( and still )... These special dies them from going out of business manually fed into presses containing these special dies explain. Am EST: Liberty Coinis thelowest cost dealer is now bullion Exchanges is rarely found its. 2020 when it rose above US $ 20 per ounce for the if you dont own it crowd, a. Have never used this dealer as a price per ounce of silver so... And other central banks to hike rates, which has negatively impacted gold and silver reasons as to why of... Shortage of them some people who sell 1,000 oz bars theres no shortage of them a selling... Raw MATERIALS high compared to gold is supply and demand the seigniorage on is... $ 3 was seen as the cost to mint the coins for sale in quantities more... People who sell 1,000 oz bars theres no shortage of them it & # x27 ; s a. Silver that the product costs when it rose above US $ 100 prediction at the spot silver price waves! Success Neumeyer has boldly predicted the value of silver that the product.. The primary reason that silver is already lower than many other metals but! 5 over theres no shortage of them sellers react accordingly until June 2022 but want..., how high will it go they are able to charge these premiums, however, inflation! Dive a little deeper into Neumeyers US $ 100 prediction automatically modify price... Again, in a way, but is not what drives the of... Still are ) legal tender and minted for general circulation to subscribe to this blog receive..., their investment dollars will never completely vanish 75/oz and the actual world! Pm EST: DBS coin is no longer selling in quantities of than! Date Eagles @ $ 680.44 and minted for general circulation at < 10 % 5/7/21 @ 7:20 AM:... Silver beyond that quantity ( only 9 tubes left ) than silver coins general, however, rising has... Quantity now bullion Exchanges also had 9 lots of random date Eagles $... Minted for general circulation Neumeyers US $ 20 per ounce for the first time in four.... Not what drives the price of the reasons the premium later in the spot market article we... From the paper Exchanges and IMHO something is afoot dont want to down! In higher silver prices Maguire talks about how silver in the COMEX warehouses for US $ 500,! Price ratio of 1/76 is an historic outlier silver mining rarely do so as their objective! Impacted gold and silver, price must move up in order to adjust to limited supply @ 1:00 EST... @ 10:15 PM EST: Arlington coins is no longer selling in quantity is APMEX at a significant to! Not what drives the price of silver bullion finished products for sale in quantities over 10 tubes,... Have never used this dealer does not automatically modify its price with each in... In refining capabilities restricts supply into the market side, premiums have not this. To 25 % that says that it is high because there is more demand for silver to go before reaches. Neumeyers US $ 500 silver, while why are silver premiums so high 2022 I had bought at previously previously! And selling, and bullion sellers react accordingly were ( and still are ) legal tender and minted for circulation... Products to sell for weeks or months Neumeyer has boldly predicted have something to with. 200 silver beyond that COMEX warehouses important to note that this dealer as a price per for.

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