All information provided for educational and entertainment purposes only. A currency is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. Then there were the millions who turned to the traditional safe haven investment of bullion. Go to your favorite online dealer. After spending the latter half of the 2010s in the teens, the 2020s have seen silver largely hold above US$20. Physical Silver Eagle Premium Hits Record 71.25%. Anyone with a brain realizing that FINISHED PRODUCTS for sale are not the same as RAW MATERIALS. There are no shortage at the timber level, but refining it into lumber is the bottleneck. Which led to the latest series of days over 100% (from 8/19 through 8/23). What kind of a free market is that?". Their prices are, gram for gram, cheaper than silver coins. Is there any justification for this? 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). Nate, I want $50 silver, but how do I do this with $41 silver Eagles? 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. Silver is, of course, the more volatile of the two precious metals, but nevertheless it often trades in relative tandem with gold. DBS Coin is the lowest cost dealer selling in quantities of over 10, 20-coin tubes. Also Liberty Coin came in with lower prices which lowered the premium later in the day. As of 5/29 in the afternoon DBS was no longer selling in quantity now Bullion Exchanges is. DBS was lowest cost again on 6/30/20 (morning) but then Bullion Exchanges undercut them. . This low was set on 9/14/21 at 26.06%. The supply cannot keep up with demand due to refining constraints. This represents about 15% of the $10,000 increase in their income. On the bright side, premiums have not been this low for a long time . They just keep raising it, and over time that increase has been fairly substantial. 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. A lack of availability of silver bullion finished products have contributed to rising silver premiums. This premium can also be expressed as 20% over spot. Enroll in economics 101. And then they have to wait weeks or months in order to get more product from the distributors. HISTORICAL DEVELOPMENTS IN THE PHYSICAL SILVER PREMIUM MARKET. Silver coinage, or monetized silver, provides further benefits, including its backing by governments and its numismatic collectability. This may have something to do with what is happening on the Robinhood platform. Notice the very large difference in offer prices almost a $120.00 difference. Meaning as retailers see a flood of interested people over $30, high retail premiums would be the norm to slow the interest in buying. "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. 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). If they do not have this, silver and gold would literally go parabolic inside of a few weeks. Instead, they were keeping their prices fixed. Let me tell you another part of this, which you do not want to hear. The next dealer selling in quantity is APMEX at a way higher price APMEX: $754.64 $37.73/coin. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. First, lets dive a little deeper into Neumeyers US$100 prediction. On 6/8/20 DBS again had the lowest cost until 6/15/20 when Bullion Exchanges took the lead. Back in March of 2020 this BS started with the high premiums and they will continue onward until people say, NO, I'm not paying ridiculous prices for silver anymore!! 1. Cookie Notice Some events will likely shake investor confidence in early 2022, causing precious metals to move 15% to 25% higher initially. The price was WAY higher than I had bought at previously. 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). Meanwhile, precious metals are showing, as they usually do, that they usually weather economic storms more soundly than so many other investments. By late Monday morning on 8/3/20, all low cost dealers were selling in limited quantities. This is the best solution if you want to put some serious money into silver, yet down the road have the optionality to take delivery of your silver if you arent a 6 figure investor in silver. There are also silver exchange-traded funds that give broad exposure to silver companies and the metal itself, while more experienced traders may be interested in silver futures. Some premiums have been much higher than this example lately. They LOVE their product. When retail gets cleaned out, they have to order more product from distributors or mints. 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. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. Silver Forecasts predicts that sustainable global silver demand will hit an eight-year high of 1.025 billion ounces by 2021 alone, driven by increased investment in industry, jewelry, manufacturing and physical demand. UPDATE 2/1/21 @ 11:50 AM EST: There are no dealers on Ebay selling 20-coin tubes in quantities over 10. To anyone with a business education, it makes them look disgusting as they are manipulating facts. 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.". Support them. But key shortcomings . 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. 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. 2) Average annual demand for physical silver is about $1,000,000,000 USD (aka one billion . The current premium has declined to 44.02%. After that initial move is complete, further fallout related to the. Clearly, the "silver squeeze" from earlier in the year is over - at least for now. 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. The best price is MCM: $736.40 $36.82/coin (105 available). Then they just give you spot. Yet Apmex is selling a silver eagle at $38? UPDATE 4/9/21 @ 9:15 AM EST: The brief decline in the physical silver price earlier in the week has ended. In other words, their investment dollars will never completely vanish. So, in the next few months and years, silver price will increase. Many people with stakes in the stock market panicked and began moving their money into alternative investments. $50 silver, coin dealer, gold, refinery, silver, silversqueeze. If you listen to the dealers, they tell you the supplies they get from the mints to sell Eagles and Kangaroos is very constrained. No one would pay you $50 an ounce for this because by the time they melted it down and sold it, it could be $35 per ounce. See, if you took that micro economics class, the first sentence of the first day is: A businesses are in business to make money. UPDATE 4/15/21 @ 7:40 PM EST: The physical silver market is getting very tight. As DEMAND rises, PRICE must move up in order to adjust to limited supply. In fact, in order for the precious metal to jump to the US$100 mark, its price would have to increase from its current value by more than 350 percent. 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. The surprisingly big jump in Medicare Part B premiums for 2022 reflects the sky-high cost of a controversial Alzheimer's disease drug. The silver squeeze will then be the blueprint for the gold squeeze. The coin is struck using special dies. Don't forget the $50M PM purchase recently that took a huge number of ASE's (plus gold) off the market. It appears as though this uncertainty could create a good set-up for "poor-man's gold" in 2022. Then come back and talk to me here. I do NOT work in the silver bullion industry. Problem is, the rabid demand will outstrip available product coming in that can be sent to retail. Now, conditions in the current marketplace are driving premiums to new highs. Refinery may be backed up. And of course, for those who prefer a more tangible investment, purchasing physical silver bullion in bar and coin form is also an option. UPDATE 1/31/21 @ 12:00 NOON EST: Aydin Coin is still lowest cost but now it indicates a delay in shipping. Lets look at silvers recent history. Let me also be clear. and our Latest Offers, Straight To Your Inbox. Join us today for FREE! On the morning of 7/31/20 DBS was back below 9 lots so the premium, once again, jumped above 60% that is until Bullion Exchanges started selling in quantity later in the day. Ultimately, investors enjoy the built-in protections that mint-coined bullion offers. To some experts, it explains why the U.S. is experiencing its highest inflation rate since 1982. 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%. You can take delivery of 100 oz bars, minimum of 200 oz. 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. ), then their products are still worth at least the face value associated with the coin. But if you go into these markets and listen to the people who are telling you bullion dealers are gouging you due to fake shortage are selling you a product they perhaps marked up 5-16x on premiums. 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. "Price gauging should not be allowed. You should by now already have a decent physical stash. The value of silver is already lower than many other metals, but more importantly it is rarely found on its own. 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