This is why they need tampy tamp. The price increases arent really uniform across the board, and the answer to the situation isnt necessarily all that simple. and Jeffrey Christian is a smart guy and he knows this, and his smug and condescending tones to you is to convince you that this supply is available at any price point. 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). The physical silver premium broke below 40% on the evening of 6/16/20. By continuing to browse the site, you agree to our use of cookies. Continue to drain on the right side, and when premiums come down on the left side, get some more shiny here and there. UPDATE 1/30/21 @ 10:15 PM EST: I finally found a dealer selling 20-tube coins Aydin Coins. Although Neumeyer believes that the ties that bind silver to gold need to be broken, the reality is that most of the same factors that shape the price of gold also move silver. What kind of a free market is that?". UPDATE 3/30/21 @ 8:15 PM EST: The Spot silver price declines as the physical price increases. Premiums for gold plans after subsidies are taken into account are expected to go down, while silver premiums after subsidies are accounted for "shouldn't be altered all that much" because the subsidy is adjusted with the cost of the benchmark plans, he said. Let me tell you another part of this, which you do not want to hear. It is also important to note that this dealer does not automatically modify its price with each move in the spot market. To each their own. DBS had lowest cost in quantity until the afternoon of 6/3/20. Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. Are high premiums on silver justified? The commodity is now trying to stabilize at the psychologically important price level of $19 per troy ounce. ), then their products are still worth at least the face value associated with the coin. Silver is, of course, the more volatile of the two precious metals, but nevertheless it often trades in relative tandem with gold. Refining capability. How to prepare against a currency collapse. 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. UPDATE 10/28/20 @ 7:20 PM EST: Physical premium is back above 20%. 4. That is to say, a ratio of 1/10.3. At least this has been the case since I started to closely follow the Ebay market since last Spring. Next lowest cost standard dealer in quantities of over 10, 20-coin tubes is Liberty Coin. All these technologies require silver That's a pretty big (supply) deficit.". Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article. The $3 was seen as the cost to mint the coins. Eventually, gold prices softened and have remained unsettled ever since. there's 82m oz sitting in the COMEX warehouses. Today the premium hit 71.05%. ", Another factor driving Neumeyer's position is his belief that the silver market is in a deficit. By 1/28/21 it was down in the 19% range. 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. 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). 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. There are only two dealers selling in quantities of more than 10, 20-coin Silver Eagle tubes: Hannigan Coin & APMEX. After spending the latter half of the 2010s in the teens, the 2020s have seen silver largely hold above US$20. And then trying to lecture me that theres no shortage. In periods of high demand, premiums for a given silver product are likely to increase. Let me also be clear. To some experts, it explains why the U.S. is experiencing its highest inflation rate since 1982. 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. Some premiums have been much higher than this example lately. Using estimated numbers here. I believe gold kicks in the door, but silver moves faster and further. Meaning as retailers see a flood of interested people over $30, high retail premiums would be the norm to slow the interest in buying. 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. a $3 per coin premium amounts to twenty-one percent. However, premium changes vary by . Silver is also being drained from the paper exchanges and IMHO something is afoot. The price of silver saw a 2022 high point of US$26.38 in May, but has remained under US$25 thus far in 2023. You should by now already have a decent physical stash. Find one who has a solid track record of providing quality precious-metals products to their customers. Under this definition, the British Pound Sterling (), euros (), Japanese yen (), and U.S . A similar twenty-percent premium . Show an investor the value they are getting by buying your product at a lower premium and how buying these bars takes them out of big banks. Speaking to the Investing News Network (INN) in March 2022, not long after the conflict broke out, Lobo Tiggre, founder and editor of IndependentSpeculator.com, said he believes these sanctions will lead to a "new Iron Curtain," which will have lasting economic consequences on a global scale. There are no shortage at the timber level, but refining it into lumber is the bottleneck. (Bronze plans priced below the benchmark Silver plan will also be premium-free, but . This leads to increased buying and selling, and bullion sellers react accordingly. If you have constricted supply and massive demand, on a product that will increase in price and demand as price increases. How much of grandmas silverware and constitutional coinage was melted down in 1980 and 2011? 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. Is there any justification for this? Then they just give you spot. You would do the exact same thing if you had 240 1,000 oz bars and 30,000 people instantly trying to buy them. When investing in silver of any form, be sure to buy it from a reputable bullion dealer. Not sure what that is all about except to say that physical inventory must be pretty tight. Premiums for ACA Marketplace benchmark silver plans are increasing on average across the U.S. in 2023 after four years of slight declines. Buy OneGold that says that it is allocated and a Sprott product. If you WANT to wipe out silver supply clearing out retail isnt exactly the most efficient way of doing it. The massive amount of available silver has not been met with heightened demand, which has kept prices low. However as often happens, Bullion Exchanges comes in with large coin quantities to lower the premium. 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? The silver market and the premiums are a scam and have been for years. 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. 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%. . Theres a significant distance for silver to go before it reaches the success Neumeyer has boldly predicted. The value of silver is already lower than many other metals, but more importantly it is rarely found on its own. It was only a matter of months each time. If you find the information on this website interesting or useful, please consider supporting my work by clicking this link and donating through PayPal. The price of silver has had a solid 2023 so far, . A generic 1 oz silver round is now selling for $5 over the spot price. And they know it. "I'm not quite sure I'm at the level. Why are Silver Premiums so High? lowest cost dealer selling in quantities of over 10, 20-coin tubes. 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. One of the reasons the premium on silver is so high compared to gold is the mining and refining costs. ), and even real estate (its not easy selling homes in a depressed markettry it, youll see). During other months, silver and gold prices tend to have more volatility. These silver products all come from name-brand minting and refinery companies. 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. They LOVE their product. At $28, no one is likely to run to the coin shop with grandmas silver. Here is the breakdown of availability for 20-coin silver lots from Ebay at 7:55 PM on 8/3/20: The large drop in premium from 8/4/20 to the morning of 8/5/20 is the result of. The next standard dealer with offers in quantity is Liberty Coin but you have to pay over a 60% premium for those coins. That's roughly a 35% premium. 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. If we take the statistics of the BIS published on 11/17/2021, the ratio of gold / silver derivatives is 1/8.4. I just bought 25lbs of 90%. Mike Maloney told me the seigniorage on Silver Eagles is 50% higher today than when he started GoldSilver in 2005. So assume silver runs up to $50 and you run to the coin shop with silverware. Silver bullion premiums can and have fluctuated wildly during financial crisis scenarios and over calm periods. And gold bars, Maybe 5%. Or is the demand for silver just so high, that they are able to charge these premiums? This is getting close to the standard premium that existed before the Corona Virus Pandemic Scare of early 2020. 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. 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. A few weeks ago, I saw price at $27 and the price of eagles at $41. Your trusted source for investing success, Could the Silver Price Really Hit US$100 per Ounce? 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. It has not been this high since the Summer of 2021. This premium is even higher than the one that occurred during the silver squeeze of late January/early February of 2021. Create a free website or blog at WordPress.com. Then, on 1/18/21, it plunged under 17% early before returning back above 18% by the evening. I mean, except for an unlikely scenario, it seems to me that this is a paradigm shift; it's a one-way transition," he said. Which led to the latest series of days over 100% (from 8/19 through 8/23). But suddenly, and all at once this morning, it jacked up its per coin price by $1.00/coin. But Im cautiously enthused because, you know, I thought it would have happened sooner than it currently is happening., In his August 2022 with Wall Street Silver, he reiterated his support for triple-digit silver and said he's fortunately not alone in this optimistic view in fact, he's been surpassed in that optimism. Ever since a dealer selling 20-tube coins Aydin coins any company mentioned this... Charge these premiums price increases arent really uniform why are silver premiums so high 2022 the U.S. is experiencing its highest inflation since. 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