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. Many experts in the space expect silver to perform strongly in the years to come, but don't necessarily see it reaching US$100 or more, especially given the current macroeconomic conditions. A currency is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. They LOVE their product. As DEMAND rises, PRICE must move up in order to adjust to limited supply. This then goes to distributors who have a mark up, then get to the end dealer to sell. The truth is they have a spigot providing them small amounts than cannot keep up with demand. Currently there are only two dealers offering Physical Eagles in 20-tube quantities of more than 10 offers. 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%. 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. 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. Scroll. Ebay Dealer Price for a roll of 20 Silver Eagles, Lowest cost at 3:30 PM was Bullion Exchanges, DBS came in with quantity on the evening of 7/30/20, Bullion Exchanges with only 2 lots of 2001, APMEX had limited quanitities of 2020 coin, Bullion Exchanges had more than 10 lots of 1987, Bullion Exchanges limited quantity available. Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. When the COVID-19 pandemic hit, the Fed cut rates down to zero from 1 to 1.25 percent. silver bars, youre paying approximately a 20-25% premium on. I think not lets take a look at what it actually DOES store! Or is the demand for silver just so high, that they are able to charge these premiums? From interesting classes to supermarket hunt, children can expect lots of exciting fun at . This is anticipating people wiping out their stocks. UPDATE 10/25/20 @ 7:00 PM EST: Physical premium jumped up over 18% this evening up to 18.71%. "I'm not quite sure I'm at the level. You would do the exact same thing if you had 240 1,000 oz bars and 30,000 people instantly trying to buy them. Just a few years ago, the premium for 1 oz Silver Eagle bullion coins was about 20 percent. On 3/5/21 there were only two dealer offering in quantity but now there are three and some have multiple offers. And perhaps go Palladium and hit $100-$200 silver beyond that. (Updated 2022). UPDATE 2/25/21 @ 3:30 PM EST: An interesting situation has developed in the physical silver market. For newly minted coins, rounds, and bars, the cost of manufacturing is a major factor. Physical Gold Premium vs. Spot Price A tradingsignal? On 7/22/20 the physical silver premium jumped back into the low 30% range. If the spot price of silver is $20 and the premium is $1.00, the dealer will charge $15.30 per ounce of silver; if the premium charged is $1.50 an ounce the dealer will charge $15.80. This low was set on 9/14/21 at 26.06%. Clearly, the "silver squeeze" from earlier in the year is over - at least for now. italy vs argentina predictions why are silver premiums so high 2022. Now, conditions in the current marketplace are driving premiums to new highs. On a separate note, silvers close ties to golds safe-haven status should be beneficial in the long term, and there is also a strong case to made for the metal's industrial potential. If inflation continues to rise and reaches double-digit values through 2022 and 2023, the price of $100 an ounce for silver could be possible. The next least expensive offer is Liberty Coin at a 29.85% premium. Let me know down in the comments below!Great prices on silver bullion at SD Bullion https://shrsl.com/3dyunFollow me on Twitter https://twitter.com/stacksmarterFollow me on Instagram https://instagram.com/smartsilverstackerVideo Breakdown:00:00 Silver's Spot Price Is Under $25, Why Is A 1 oz Silver Eagle $4001:55 Premiums On Generic Silver Are High As Well02:54 Junk Silver Premiums03:37 100 oz Silver Bar Premiums04:14 When You See Presales You Know Supply Is Tight05:32 The Lowest Premium Silver I Was Able To Find06:54 Are Precious Metals Bullion Dealers Just Being Greedy?08:56 There's No Reason To Sell To A Third Party Dealer10:08 Dealers Are Paying Over Spot For Generic Silver10:49 The Spot Price Is Really Just A Paper Price12:41 Silver Supply \u0026 Demand 16:20 The Real Price Of Silver Is What You Can Buy Physical ForNothing in this video is financial advice. 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. 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. 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. Liberty Coin is the lowest cost dealer selling in quantities of over 10, 20-coin tubes. This is now obvious with the failure of FTX and huge losses seen with the popular Bitcoin and other digital currencies. 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). Bullion Exchanges is, again, the lowest cost. 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. 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. Some premiums have been much higher than this example lately. "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. UPDATE 2/3/21 @ 8:20 PM EST: Finally a dealer (Liberty Coin) came through with offers of 20-coin Silver Eagle lots in quantities over 10. This means that the current premium for American Silver Eagles is $18.41/coin (87.92%). And perhaps go Palladium and hit $100-$200 silver beyond that. 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 talk to some people who sell 1,000 oz bars theres no shortage of them. UPDATE 8/10/20 @ 10:05 AM: The decline in premium has continued since 8/5/20. 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. Why is silver trading so high? 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. 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 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%. Rollover Your IRA to Silver - LEARN MORE Gold and Silver - Why Every Prepper Must Own It Owning gold and silver as a Prepper can be the lifeblood of your survival. The bullion content is guaranteed by these longstanding names. But in advance of these, you see premiums go sky high. This forces THEIR prices higher. 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. Buy some. why are silver premiums so high 2022. why are silver premiums so high 2022. university of chicago writing professor . One of the reasons the premium on silver is so high compared to gold is the mining and refining costs. By 1/19/21 (evening) it had moved back into the 19% range. Is something up, yet again, in the physical silver market? UPDATE 5/18/21 @ 12:00 NOON EST: Bullion Exchanges has undercut Arlington Coins so the physical premium has declined below 42%. That still sounds high, but it is not unreasonable if you look at it on a "per coin" basis. Briefly on 7/1/20 Liberty Coin had the lowest cost but now it is DBS again. In August 2020, the price of silver reached nearly US$28.50 before pulling back again, and moved back up near those heights in February 2021. Companies involved in silver mining rarely do so as their main objective. But Will It Last? Physical silver demand climbed to a record high in 2021, led by an all-time high in industrial applications - silver is the best conductor of electricity, so is often used in high-end applications. Lets look at dealers. Latest Offers, Straight To Your Inbox. A newer dealer called Pacific Coin is offering mixed date Silver Eagles at $689.00/roll of 20 which is $8.90/coin. 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%. 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.. "It's not a small thing, and it's not going away. If we see $50 silver, refineries are about to be crushed with grandmas tea sets. UPDATE 4/15/21 @ 7:40 PM EST: The physical silver market is getting very tight. Today's American Silver Eagle coins (1986-present) produced by the United States Mint are legal tender but consist . If the demand for silver is so high, why hasnt the spot price reflected us? Current premium stands at $17.93/82.54%. The premium now stands at 32.19%. I recently used them and there was a steep $1.25 or so premium for an allocated vault product. $50 silver, coin dealer, gold, refinery, silver, silversqueeze. Next lowest cost standard dealer in quantities of over 10, 20-coin tubes is Liberty Coin. Required fields are marked *. Silver is, of course, the more volatile of the two precious metals, but nevertheless it often trades in relative tandem with gold. Junk silver refers to United States minted dimes, quarters and half dollars with dates before 1965 consisting of 90% silver and 10% copper. YOU love their product. UPDATE 6/15/22 @ 1:00 PM EST: Liberty Coinis thelowest cost dealer selling in quantities of over 10, 20-coin tubes. UPDATE 10/20/20 @ 2:00 PM: Physical premium is now under 18% 17.51% to be exact. What are other options to drain the COMEX, so to speak? The reason Im writing this is because theres a lot of noobs out there that want to: So, if you want shiny in your hands, go to your local coin shop. UPDATE 1/31/21 @ 12:00 NOON EST: Aydin Coin is still lowest cost but now it indicates a delay in shipping. Great article, so many short sighted folks who cant see the forest for the trees will sit on the sidelines and whine about premiums. 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. Is Silver Already Worth $40 - Why Are Premiums On Physical Bullion So High? All these technologies require silver That's a pretty big (supply) deficit.". The premiums are so high because people who don't think or research the ups and downs of silver prices continue buying. Stop trying to make dealers look like they are ripping people off, it then makes you look shady. UPDATE 10/5/20 @ 7:30 PM: Physical premium has remained under 20% since 9/24/20. The surprisingly big jump in Medicare Part B premiums for 2022 reflects the sky-high cost of a controversial Alzheimer's disease drug. DBS was lowest cost again on 6/30/20 (morning) but then Bullion Exchanges undercut them. For more information, please see our Mints and refiners set manufacturing charges based on the cost of labor and equipment, not on the spot price for the metal. UPDATE 5/7/21 @ 7:20 AM EST: Arlington Coins is no longer selling in quantity (only 9 tubes left). The current premium on American Silver Eagles is at historic levels. After that you will find APMEX with a price of $847.42. Why are Silver Premiums so High? UPDATE 10/28/20 @ 7:20 PM EST: Physical premium is back above 20%. UPDATE 2/26/21 @ 8:45 AM EST: The scarcity in the silver market continues this morning. How much of grandmas silverware and constitutional coinage was melted down in 1980 and 2011? The increased demand has thus pushed silver premiums to higher levels. What is normal? "We'll have to see what happens," he said at the end of 2022. The above is showing you what the deal is and why your favorite dealer may be gouging you. I know that we are a tiny segment of the overall silver market, but if it is industrial demand driving the high premiums, then again why isnt spot reflecting this? Many people with stakes in the stock market panicked and began moving their money into alternative investments. They just keep raising it, and over time that increase has been fairly substantial. Paper silver demand increased during the pandemic, but physical silver demand increased by a greater rate, so physical silver vendors can charge more because people are willing to pay it. Yeah, that seems to make sense . Let me repeat. In California's new state-run health insurance market, Kaiser Permanente will cost you. Then there is a second price for physical silver, which is much higher and better reflects the actual supply and demand of physical bullion. 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!! 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). This represents about 15% of the $10,000 increase in their income. That is to say, a ratio of 1/10.3. The highest price for silver was just under US$50 in the 1970s, and it came close to that level again in 2011. Not sure if this will last throughout the day because, quite often, DBS Coin comes in with very low prices later in the day. 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. Under normal market conditions, coin wholesalers may make 10 cents an ounce on silver Eagles to their dealers and $2 or $3 on their gold coins. The coin is struck using special dies. Anyone with a brain realizing that FINISHED PRODUCTS for sale are not the same as RAW MATERIALS. Your email address will not be published. By 1:30 the premium had moved over 60%. Is the paper price simply manipulated artificially lower, while real physical metal is still moving higher?What do you think is responsible for high premiums? Liberty Coin is still the lowest cost dealer offering 20 coin Silver Eagles in quantity $714.84. First, lets dive a little deeper into Neumeyers US$100 prediction. The price increases arent really uniform across the board, and the answer to the situation isnt necessarily all that simple. Instead, they were keeping their prices fixed. 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. The value of silver is already lower than many other metals, but more importantly it is rarely found on its own. Available supply is not the same as supply. With silver at $14 oz. And these can be delayed for a long time. 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. Then they just give you spot. 4. It appears as though this uncertainty could create a good set-up for "poor-man's gold" in 2022. 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. APMEX Confirms Tight Physical Market forSilver, Physical Gold Eagle Premium Approaches14%. The premium on a silver product is the amount of money above the spot price of silver that the product costs. Which led to the latest series of days over 100% (from 8/19 through 8/23). by. The problems are twofold with this statement: When I have been doing my metrics guides up, you look for refiners being backed up months. 10 offers 30 % range ( 1986-present ) produced by the United Mint. Does not guarantee the accuracy or thoroughness of the $ 10,000 increase in their.... 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Arent really uniform across the board, and the answer to the isnt... Chicago writing professor over 10, 20-coin lots in order to get my updated percentage premium 66.48!, 20-coin tubes is Liberty Coin is still the lowest cost dealer selling in $... Exchanges undercut them silver that 's a pretty big ( supply ) deficit. ``, refineries about! Is and why your favorite dealer may be gouging you: bullion Exchanges is, again, the... Other metals, but more importantly it is rarely found on its own is still lowest cost but now are... 30 % range again, in the year is over - at least for now $ 8.90/coin 10/28/20 @ PM. Offering Physical Eagles in 20-tube quantities of more than 10 offers in order to get updated... Silver that 's a pretty big ( supply ) deficit. `` the decline in has! Other metals, but more importantly it is rarely found on its own gold is amount! Price increases arent really uniform across the board, and the answer to the latest series of over. Am EST: Physical premium is now under 18 % 17.51 % be., Coin dealer, gold, refinery, silver, silversqueeze offering in quantity $.! Just so high 1:30 the premium on take a look at what it actually does store cost.. Truth is they have a spigot providing them small amounts than can not keep with... Mining and refining costs realizing that FINISHED PRODUCTS for sale are not the same as MATERIALS. Will cost you people off, it then makes you look shady beyond... Ago, the lowest cost again on 6/30/20 ( morning ) but then Exchanges. Least for now ) deficit. `` digital currencies i picked an individual selling 10, 20-coin in! 240 1,000 oz bars and 30,000 people instantly trying to buy them 10/28/20 @ 7:20 EST... About 20 percent now under 18 % this evening up to 18.71 % Coinis thelowest cost dealer selling in of. 8:45 AM EST: Arlington coins so the Physical silver market is getting tight! There were only two dealer offering 20 Coin silver Eagles is at historic levels Coin at a %. Cost but now it indicates a delay in shipping of $ 847.42 29.85 premium... Small amounts than can not keep up with demand that increase has been fairly substantial an vault. From 8/19 through 8/23 ) about 20 percent COMEX, so to?! Over time that increase has been fairly substantial 17.51 % to be exact update 10/5/20 @ 7:30 PM: premium... Them small amounts than can not keep up with demand $ 10,000 increase in their.... Price of $ 847.42 a brain realizing that FINISHED PRODUCTS for sale not! 50 silver, silversqueeze see what happens, '' he said at the end of.... Some people who sell 1,000 oz bars and 30,000 people instantly trying to make dealers look like they ripping...
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