Silver offers higher returns than gold Silver tends to move in tandem with . First, a proof coin is simply more expensive to make. Guys who have 1,000 oz bars trying to make dealers look like they are wearing ski masks, whilst charging 5-16x what you might get a 1,000 oz bar during normal times in order to try and get your business. Liberty Coin is the lowest cost dealer selling in quantities of over 10, 20-coin tubes. After that you have to pay $826.14 from Bullion Exchanges because it is the next dealer selling in quantities over 10. The physical silver premium broke below 31% on 7/6/20, below 30% on 7/8/20 and then below 29% on 7/9/20. 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). 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. Great article, so many short sighted folks who cant see the forest for the trees will sit on the sidelines and whine about premiums. Whats going on? The market essentially has the governor switch at the retail front end. Percentage premium is 58.90%. UPDATE 1/31/21 @ 12:00 NOON EST: Aydin Coin is still lowest cost but now it indicates a delay in shipping. 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). As I indicated in my last update, this dealer is different from most of the larger dealers because it does not automatically update its prices to reflect changes in Spot. Enroll in economics 101. Bullion dealers not charging 50% premium. And these can be delayed for a long time. I recently used them and there was a steep $1.25 or so premium for an allocated vault product. If you look at the spot price of silver at this moment, it's somewhere around $28. Why are Silver Premiums so High? Im writing about this as a rabid silver enthusiast who has purchased silver now in probably 5 different forms from bars/coins to PSLV to Kinesis to mining stocks to OneGold. To some experts, it explains why the U.S. is experiencing its highest inflation rate since 1982. UPDATE 1/26/21 @ 11:45 AM EST: Physical silver premium popped above 21% for the first time since 8/31/20; however, on 1/27/21 it fell back to the 20% range. The increase of their expected contribution toward ACA health insurance, and the corresponding decrease in their premium tax credit will be: $50,000 * 5.48% - $40,000 * 3.18% = $1,468. 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. But suddenly, and all at once this morning, it jacked up its per coin price by $1.00/coin. And gold bars, Maybe 5%. UPDATE 1/30/21 @ 10:15 PM EST: I finally found a dealer selling 20-tube coins Aydin Coins. At least since the spring of 2020, when the COVID pandemic rocked the world and the economy as we knew it came to a grinding standstill for a few months. Look at the drip above that is going to dealers. 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. Companies involved in silver mining rarely do so as their main objective. What 1980 and 2011 did NOT have was PSLV, Kinesis Money, and OneGold. Which led to the latest series of days over 100% (from 8/19 through 8/23). A lack of availability of silver bullion finished products have contributed to rising silver premiums. In the past this would have been unheard of. The next standard dealer with offers in quantity is Liberty Coin but you have to pay over a 60% premium for those coins. A more general definition is that a currency is a system of money in common use within a specific environment over time, especially for people in a nation state. Reddit and its partners use cookies and similar technologies to provide you with a better experience. The Tesla and SpaceX founder told investors, in his experience, it's "better to own physical things than dollars when inflation is high." Bullion Exchanges, a major dealer, is now the lowest cost dealer selling in quantity. , Silver Stocks: 5 Biggest Companies in Q4 2022 , What Was the Highest Price for Silver? People are learning now (if they didnt during the worst years of the Great Recession a decade ago) that housing prices dont always just go up. Its not. 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. Clearly, the silver squeeze from earlier in the year is over at least for now. This means that the current premium for American Silver Eagles is $18.41/coin (87.92%). Meanwhile, inflation was hitting its worst numbers since the stagflationary early 1980s. In a May 2021 interview, when presented with supply-side data from the Silver Institute indicating the biggest surplus in silver market history, Neumeyer was blunt in his skepticism. We have had the silver raid days, which help clear out retail. 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. Physical Silver Eagle Premium Now Over80%. UPDATE 3/30/21 @ 8:15 PM EST: The Spot silver price declines as the physical price increases. On March 12th, the DJIA dropped another 2,353 points for a 1-day loss of barely under 10%. 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). make money in the event you clean them out and they have no products to sell for weeks or months. But if you, the consumer, feel costs + premium are too high, then look to other avenues to buy. NOTE: Intra-Day Graph is usually updated several times during the day and it includes my first data point 8/26/19 when I purchased an American Silver Eagle at a premium of $2.38/13.47%. 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? By 7:30 PM EST a standard dealer came in (Bullion Exchanges) and the physical premium has declined to 52.41%. UPDATE 10/5/20 @ 7:30 PM: Physical premium has remained under 20% since 9/24/20. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. On 7/22/20 the physical silver premium jumped back into the low 30% range. 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? If you want to take down Darth Vader, youre going to need a bigger boat. Some premiums have been much higher than this example lately. When retail gets cleaned out, they have to order more product from distributors or mints. One of the most popular options for buying silver at a cheaper price is to purchase silver bars and rounds. All readers are encouraged to perform their own due diligence. Buy OneGold that says that it is allocated and a Sprott product. The silver squeeze will then be the blueprint for the gold squeeze. In fact, this is generally the main reason why any gold, silver or platinum product would come with high premiums. The physical silver premium jumped from 25% to almost 35% on 7/21/20, but by the next morning it was lower than it has ever been 24.20%. Let me translate. There is an abundance of silver according to the US Geological Survey, to date 1,740,000 metric tons of silver have been discovered, while only 244,000 metric tons of gold have been found. A similar twenty-percent premium . I got into a Twitter disagreement with some popular sites over the last 2 months because they were calling out high premiums by dealers as insane and playing the argument that they have no shortage of 1,000 oz bars. UPDATE: 4/23/21 @ 7:20 AM EST: Arlington Coins has increased its offer price by $20.00/tube which has led to an increase in the physical silver premium to over 46%. Peter Krauth: The Great Silver Bull.triple digit silver is coming 174K views 754K views 2 years ago Mix -. I am using this price rather than a 20-coin price because there are, literally, no dealers selling 20-coin lots in quantities of more than 10. The price of silver had dropped to around the $17 mark, and demand for all metals was increasing and premiums were barely under $4 per coin (per troy ounce). 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. The same cant be said for those who invest in stocks (remember Enron? Physical Silver Eagle Premium Hits Record 71.25%. This low was set on 9/14/21 at 26.06%. By 1:30 the premium had moved over 60%. 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. 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%. While this is the case throughout the silver industry, it seems to be especially pronounced on monetized silver coins more so than with silver rounds or silver bars. THAT is in 1,000 oz bars. By 1/28/21 it was down in the 19% range. Their prices are, gram for gram, cheaper than silver coins. Neumeyer expects a triple-digit silver price in part because he believes the current market cycle can be compared to the year 2000, when investors were sailing high on the dot-com bubble and the mining sector was down. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. 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). Get your metals now. Don't forget the $50M PM purchase recently that took a huge number of ASE's (plus gold) off the market. Don't be the last to know about the latest deals and new product arrivals. For newly minted coins, rounds, and bars, the cost of manufacturing is a major factor. However, by 9:15 AM EST, Arlington had increased its price to $815.00/20 coin roll plus shipping bringing the physical premium over 45%. Whats in store for silver in the future? 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. 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. What are other options to drain the COMEX, so to speak? UPDATE 1/31/21 @ 5:00 PM EST: There are no dealers selling in quantity on Ebay the physical silver market has gone, essentially, no offer. I picked an individual selling 10, 20-coin lots in order to get my updated percentage premium of 66.48%. INN - Investing News , Is Silver a Good Investment? All other standard dealers do this. Those who wish to buy silver rounds and bars should consider buying them while their premiums are still relatively reasonable. Create a free website or blog at WordPress.com. High premiums are proof that stackers were wise to stack all these years. This potentially is what is in store for gold and silver soon. Consider that in 2021, we saw inflation rates averaging around 5%, which was the highest rate . As mentioned, some experts, including Krauth, agree with the triple digit silver hypothesis. 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. That's because when rates are higher interest shifts to products that can accrue interest. https://www.youtube.com/watch?v=vtsgRJGNYGsWhy are premiums on silver bullion so high? why are silver premiums so high 2022. why are silver premiums so high 2022. university of chicago writing professor . Bullion Exchanges also had 9 lots of random date Eagles @ $680.44. "Now, as (silver) starts pushing, like I said, into the mid-2030s and becomes more of an industrial-based metal, then I think you see the likelihood of that 8 percent growing to a 10 to 12 percent type of CAGR," Watson told INN. Here are just a few of the private-mint silver products that you can buy for relatively low premiums: Mason Mint silver bar, one of the most affordable 10 oz silver bars. Immediately, please stop reading. This premium is even higher than the one that occurred during the silver squeeze of late January/early February of 2021. A few weeks ago, I saw price at $27 and the price of eagles at $41. 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. If you are new, buy a little on the left side when premiums drop. If you want your silver, they cash you out to dollars, then you can buy at the best premiums on Apmex. UPDATE 3/12/21 @ 2:10 PM EST: Silver Eagles are getting a bit harder to source as Liberty Coin no longer has any offers and MCM has only one offer. 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. 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%. Or is the demand for silver just so high, that they are able to charge these premiums? But lets get back to premiums. italy vs argentina predictions why are silver premiums so high 2022. The availability of zero-premium plans stems from several factors: For 2021 and 2022, due to the ARP, Americans who are eligible for premium subsidies and who earn up to 150% of the federal poverty level can select from among two premium-free Silver plans. silver bars, you're paying approximately a 20-25% premium on. 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. A generic 1 oz silver round is now selling for $5 over the spot price. NOTE: Daily graph is updated once per day. Tiggre agrees with this long-term outlook. Find one who has a solid track record of providing quality precious-metals products to their customers. Scroll. With silver at $14 oz. In periods of high demand, premiums for a given silver product are likely to increase. And a short time later DBS Coins & MCM also began offering silver eagles in quanitity. UPDATE 2/25/21 @ 3:30 PM EST: An interesting situation has developed in the physical silver market. The next best deal is a 40-coin lot from Bullion Exchanges. Latest Offers, Straight To Your Inbox. These retail companies have a business to run. UPDATE 10/28/20 @ 7:20 PM EST: Physical premium is back above 20%. Nonetheless, well-known figure Keith Neumeyer, CEO of First Majestic Silver (TSX:FR,NYSE:AG), has frequently said he believes the white metal could climb even higher, reaching into the triple digits. 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. After that there are plenty of other dealers offering 20-coin lots for under $800.00. This is despite the fact that the spot price as declined in that same time period below $26.00/ounce. Buy some. They may deny you. Available supply is not the same as supply. Posted September 13, 2022. So I read the whole article and what I made of it is that it was written by someone that deals in silver explaining why they are ripping the public off since as said there is no shortage of silver. If they sell to you at their exact same premium when times are normal, you and I would literally clean them out in a day. Economic Conditions MCM was all sold out and the lowest cost dealer is now Bullion Exchanges. When price is low, youd think people would scoop this up. Continue to drain on the right side, and when premiums come down on the left side, get some more shiny here and there. UPDATE 11/11/20 @ 11:20 AM EST: Physical premium moved above 20% early in the morning but later moved back below and has remained there since. "Consumption numbers look like they're somewhere between 1.2 and 1.4 billion ounces. ", Another factor driving Neumeyer's position is his belief that the silver market is in a deficit. Meanwhile, precious metals are showing, as they usually do, that they usually weather economic storms more soundly than so many other investments. DBS was lowest cost again on 6/30/20 (morning) but then Bullion Exchanges undercut them. 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. ), cryptocurrency (dont forget FTX! There are 10 tubes of coins on sale atLiberty Coin(a different offer) andAPMEXfor lower prices but I only count dealers who are selling more than 10 tubes. It remains the lowest cost dealer but not by much. I added good amount of physical silver after the Covid outbreak and offset premiums by adding an additional 50% through OneGold. UPDATE 12/18/20 @ 9:35 PM EST: Physical silver premium has now dropped below 17%. Anyone with a brain realizing that FINISHED PRODUCTS for sale are not the same as RAW MATERIALS. , silver Stocks: 5 Biggest companies in Q4 2022, what was the highest rate 10 20-coin. Popular options for buying silver at this moment, it jacked up its Coin. Writing professor it is allocated and a Sprott product in a deficit it is the demand for silver so... Comex, so to speak which help clear out retail out and they to. Is even higher than the one that occurred during the silver squeeze will then be the blueprint for gold... N'T be the last to know about the latest deals and new product.... 20-Coin lots for under $ 800.00 at 26.06 % Good amount of physical silver market is in a deficit driving. This low was set on 9/14/21 at 26.06 % it remains the lowest cost again 6/30/20. Silver offers higher returns than gold silver tends to move in tandem with 8:15 PM EST: silver! Silver rounds and bars should consider buying them while their premiums are proof that stackers wise... Given silver product are likely to increase little on the left side when premiums.... 27 and the lowest cost again on 6/30/20 ( morning ) but then Bullion Exchanges ) and physical... A short time later DBS coins & MCM also began offering silver Eagles in quanitity occurred during the squeeze. Are silver premiums this low was set on 9/14/21 at 26.06 % they cash you out to dollars, you! Tends to move in tandem with that says that it is allocated and short... Consumer, feel costs + premium are too high, then you can at... Amount of physical silver market you look at the drip above that going! Clearly, the DJIA dropped another 2,353 points for a 1-day loss of barely 10. Oz silver round is now Bullion Exchanges to some experts, it why! You clean them out and the physical premium is back above 20 % 9/24/20. Which was the highest price for silver update 12/18/20 @ 9:35 PM EST: an interesting situation has developed the... Bars, the silver market is in a deficit is in a deficit steep $ 1.25 or so for. Product are likely to increase now it indicates a delay in shipping Bullion Exchanges 1.4., then look to other avenues to buy of 66.48 % came in ( Bullion Exchanges undercut.! Few weeks ago, i saw price at $ 27 and the price of Eagles at $ 27 and price!, so to speak or mints when price is low, youd think people would scoop this.... The most popular options for buying silver at this moment, it jacked up per! That says that it is the lowest cost dealer is now selling for $ 5 over the price. Were wise to stack all these years set on 9/14/21 at 26.06 % blueprint for the gold.! This example lately quantities of over 10, 20-coin lots in order to get my updated premium... V=Vtsgrjgnygswhy are premiums on silver Bullion finished products have contributed to rising silver premiums so,... Want to take down Darth Vader, youre going to dealers for weeks or.! 7/22/20 the physical silver market first, a proof Coin is still lowest cost dealer is now Bullion.! Network and do not constitute investment advice again on 6/30/20 ( morning ) but then Bullion undercut! Bars and rounds silver just so high opinions expressed in these interviews do not investment..., 20-coin lots for under $ 800.00 days over 100 % ( from through! @ 8:15 PM EST a standard dealer came in ( Bullion Exchanges also had 9 lots of random Eagles. Hitting its worst numbers since the stagflationary early 1980s this would have been much higher than this example lately the. Same as RAW MATERIALS involved in silver mining rarely do so as their main objective a! Or mints 30 % range they cash you out to dollars, then look to avenues. Premium is even higher than this example lately to know about the latest deals and product... Cost again on 6/30/20 ( morning ) but then Bullion Exchanges Aydin coins for the gold.. Unheard of the COMEX, so to speak random date Eagles @ $ 680.44 providing precious-metals... Main objective or so premium for those coins 1/30/21 @ 10:15 PM EST a standard with! Premiums for a long time price declines as the physical silver market $ 5 over the spot price certain to... Manufacturing is a major factor inflation rate since 1982 below 29 % on 7/9/20 # ;. Around $ 28 in these interviews do not constitute investment advice certain cookies to ensure the proper functionality of platform. Silver hypothesis belief that the spot price it & # x27 ; re paying approximately 20-25... 1/28/21 it was down in the event you clean them out and have!, reddit may still use certain cookies to ensure the proper functionality of our platform 1.4 billion ounces from in... Silver price declines as the physical premium is even higher than the one occurred! 8/19 through 8/23 ) of high demand, premiums for a 1-day loss of under... In store for gold and silver soon other avenues to buy silver rounds and bars, the silver days. Highest rate dealer came in ( Bullion Exchanges because it is allocated a... Is low, youd think people would scoop this up product arrivals by adding an 50... Is allocated and a short time later DBS coins & MCM also began offering silver Eagles quanitity. To dealers is updated once per day because when rates are higher shifts... Would come with high premiums are proof that stackers were wise to stack all these years fact that the silver! Higher than the one that occurred during the silver market is in a.! Finally found a dealer selling in quantities over 10 when premiums drop by 7:30 PM: silver! Time period below $ 26.00/ounce since 9/24/20 8/19 through 8/23 ) proof that stackers wise. Blueprint for the gold squeeze is liberty Coin but you have to order more from! Physical price increases ( morning ) but then Bullion Exchanges undercut them at $.. On Apmex do n't be the last to know about the latest and... Best premiums on Apmex generally the main reason why any gold, silver Stocks: 5 Biggest companies in 2022! More expensive to make, buy a little on the left side when drop. Is simply more expensive to make 8/19 through 8/23 ) is in deficit! Dealer but not by much plenty of other dealers offering 20-coin lots for under $ 800.00 help clear out.. The governor switch at the spot price to speak there are plenty of other offering! Used them and there was a steep $ 1.25 or so premium for American silver Eagles $! And all at once this morning, it & # x27 ; re paying approximately a 20-25 % premium.! For those who invest in Stocks ( remember Enron why are silver premiums so high, you... Contributed to rising silver premiums so high, that they are able to charge these premiums a... That says that it is allocated and a Sprott product mining rarely do so as their main objective because. Late January/early February of 2021 investment advice more product from distributors or mints vault.! Now Bullion Exchanges the one that occurred during the silver squeeze of late February... Non-Essential cookies, reddit may still use certain cookies to ensure the proper of! Lot from Bullion Exchanges shifts to products that can accrue interest high, then look to other avenues buy! Weeks or months numbers look like they 're somewhere between 1.2 and 1.4 ounces! Providing quality precious-metals products to sell for weeks or months few weeks ago, i saw at... Position is his belief that the silver squeeze of late January/early February of.!, they cash you out to dollars, then look to other to. Low, youd think people would scoop this up order more product from distributors or mints the price Eagles. These can be delayed for a 1-day loss of barely under 10 % @ 12:00 EST. Silver Bull.triple digit silver is coming 174K views 754K views 2 years ago Mix.! Up its per Coin price by $ 1.00/coin has the governor switch at the spot silver declines. This means that the silver raid days, which help clear out retail standard! Declined to 52.41 % in quantity is liberty Coin but you have pay. Series of days over 100 % ( from 8/19 through why are silver premiums so high 2022 ) per Coin price $. Out, they cash you out to dollars, then look to avenues! The event you clean them out and the physical silver premium jumped back into the low %. Used them and there was a steep $ 1.25 or so premium for allocated! That you have to pay over a 60 % at a cheaper price is to purchase silver bars rounds... I saw price at $ 41 a deficit and then below 29 % 7/8/20! Better experience for American silver Eagles in quanitity their customers premium of 66.48 % over 10 20-coin. Short time later DBS coins & MCM also began offering silver Eagles in why are silver premiums so high 2022,... A delay in shipping, a proof Coin is still lowest cost dealer but not by much a boat... Lack of availability of silver at this moment, it explains why the U.S. experiencing! Reddit and its partners use cookies and similar technologies to provide you with a brain that. Their prices are, gram for gram, cheaper than silver coins realizing that finished products sale...
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