why are silver premiums so high 2022why are silver premiums so high 2022

And perhaps go Palladium and hit $100-$200 silver beyond that. The common mistake is just trying to go after retail. This low was set on 9/14/21 at 26.06%. Events and Activities For The March School Holidays. The price of silver has had a solid 2023 so far, . Today's American Silver Eagle coins (1986-present) produced by the United States Mint are legal tender but consist . Go down to a community college. UPDATE 3/20/21 @ 1:45 PM EST: Sometime over the past 24 hours, DBS Coin finally came in with a low offer for Silver Eagles which has brought the premium all of the way back down to the mid 30% range. UPDATE 2/25/21 @ 3:30 PM EST: An interesting situation has developed in the physical silver market. Silver has held the attention of humankind for at least 5,000 years. To anyone with a business education, it makes them look disgusting as they are manipulating facts. UPDATE 8/19/20 @ 9:10 AM: Liberty Coin came in with very low prices on a lot of 20 coins so the premium plunged this morning down to near 26.00% before rebounding above 27% later in the day. . Below, you will see your blueprint to get to $50 silver, and soon. The spot price of coffee at the moment is 1.90 per lb (500g ish). Mints and refiners set manufacturing charges based on the cost of labor and equipment, not on the spot price for the metal. 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 latest silver reports show investment silver at 500m oz, to include ETFs, yet price hasnt moved since the summer? Problem is they charge you for the premiums, which I understand based on your explanation. silver bars, you're paying approximately a 20-25% premium on. Required fields are marked *. The current gold to silver price ratio of 1/76 is an historic outlier. But in advance of these, you see premiums go sky high. 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%. How to prepare against a currency collapse. So assume silver runs up to $50 and you run to the coin shop with silverware. After that initial move is complete, further fallout related to the. 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. Each . A few weeks ago, I saw price at $27 and the price of eagles at $41. Silver and gold in particular saw monumental performance in the months that followed COVID reaching the dreaded pandemic status. But if you, the consumer, feel costs + premium are too high, then look to other avenues to buy. 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. What are other options to drain the COMEX, so to speak? This is why they need tampy tamp. The spot price has become the price for "paper" silver (ETFs and the like). UPDATE 12/18/20 @ 9:35 PM EST: Physical silver premium has now dropped below 17%. Stop trying to make dealers look like they are ripping people off, it then makes you look shady. Theres this misnomer that because theres 25b ounces of silver in jewelry, tea sets, and grandmas silverware, that talk of a shortage is silly. 4. Some premiums have been much higher than this example lately. After that you have to pay $826.14 from Bullion Exchanges because it is the next dealer selling in quantities over 10. I wouldnt trust them at all.. Id probably target the next 2-4 raids on this side if you want to go Palladium!! 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%. This is why the premium on physical silver declined from its 66.22% high earlier in the day. 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%. 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. For example, investors may choose to put their money into silver-focused stocks by buying shares of companies focused on silver mining and exploration. Meanwhile, precious metals are showing, as they usually do, that they usually weather economic storms more soundly than so many other investments. Is there any justification for this? I added good amount of physical silver after the Covid outbreak and offset premiums by adding an additional 50% through OneGold. It is highly liquid though and you can get metal on the other end- provided Apmex is not out. 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%. Rostin Behnam of the (Commodity Futures Trading Commission) came out and said they had to tamp down the silver market. Junk silver refers to United States minted dimes, quarters and half dollars with dates before 1965 consisting of 90% silver and 10% copper. 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. (Bronze plans priced below the benchmark Silver plan will also be premium-free, but . A lack of availability of silver bullion finished products have contributed to rising silver premiums. The surprisingly big jump in Medicare Part B premiums for 2022 reflects the sky-high cost of a controversial Alzheimer's disease drug. Using estimated numbers here. Watch on Black Friday is now Silver Friday thru December 23, 2021! The truth is they have a spigot providing them small amounts than cannot keep up with demand. If you sell sausage, and theres a shortage of sausage from the suppliers, it doesnt matter if there are 23 billion pigs on the planet, its still a shortage. 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. If they increase their income to $50,000, they are expected to pay 5.48% of their income. UPDATE 6/15/22 @ 1:00 PM EST: Liberty Coinis thelowest cost dealer selling in quantities of over 10, 20-coin tubes. However, 2022 didn't shake out as many expected, and Morgan's expectations are more muted for 2023. The talking heads of the world stop talking like 25B oz is available. Now, conditions in the current marketplace are driving premiums to new highs. " At 194 Moz, this will be a multi-decade high and four times the level seen in 2021. By 1/28/21 it was down in the 19% range. And, yes, Bullion Exchanges did come in with quantity by 9:30 PM EST. 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. Companies involved in silver mining rarely do so as their main objective. Meanwhile silver became a darlingits less expensive and thus more accessible to more investors. 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. 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!! MCM was all sold out and the lowest cost dealer is now Bullion Exchanges. that's a 255% premium. This was followed by a series of days in the high 90% range (8/5 8/9). 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. What you find from these dealers is that the US mint only makes so many eagles. INN - Investing News , Is Silver a Good Investment? Does gold store energy? Just stop already. 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. This moves price higher to meet that 10,000 available and find the equilibrium. It remains the lowest cost dealer but not by much. This premium is even higher than the one that occurred during the silver squeeze of late January/early February of 2021. Silver has the best chance to rise in 2022, said Gainesville Coins precious metals expert Everett Millman, as quoted on Kitco.com. If you WANT to wipe out silver supply clearing out retail isnt exactly the most efficient way of doing it. This premium can also be expressed as 20% over spot. Not sure if this will last throughout the day because, quite often, DBS Coin comes in with very low prices later in the day. Will they feel better when silver is at $75/oz and the premiums are back to "normal"? As the official silver bullion coin of the United States, the 1 oz American Eagle Silver Coin has enjoyed a high level of prestige among precious metals investors at home and abroad. Lets look at dealers. Others turned to cryptocurrency, such as Bitcoin, Ethereum, Tether, and others. Modern Coin Mart (MCM) is offering a price well below all other competitors. 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? Here is the availability on Ebay: DBS Coin: $689.36 $34.47/coin, Liberty Coin: $696.98 $34.84/coin, MCM: $745.80 $37.29/coin (26 available), MCM: $794.60 $39.73/coin (145 available), APMEX: $796.49 $39.82/coin, APMEX: $878.97 $43.94/coin. 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. Gold coin premiums and silver coin premiums will have much more fluctuation, especially when you start to factor in collectability and rarity. In the fall of 2008, for instance, silver premiums exploded in percentage terms on popular silver bullion products. "Last time we got near US$30, very close to it. 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. Aydin Coin is a lower cost dealer but only has 10 tubes available at $642.40, which amounts to $32.12 per coin or a 67.20% premium. 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. But they do not give you much of the premium when you sell it back to them. A currency is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. Remember at the same time those who deal with 1,000 oz bars are telling you theres no shortage, come here and they have 5-16x higher premiums than normal. Current premium stands at $17.93/82.54%. Companies involved in silver mining rarely do so as their main objective. The next least expensive offer is Liberty Coin at a 29.85% premium. 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. "And we will be dealing with the costs for many years to come.". Silver dropped to $16.20 and premiums remained at just under $4 per ounce. Create a free website or blog at WordPress.com. As a by-product metal, investors can also gain exposure to silver through some gold companies. If you WANT to keep the pressure on, let the common Joe buy silver at $50 silver retail where you continue your pressure with PSLV, OneGold, Kinesis, and vaulting services buying 1,000 oz bars. It is also harbored by preppers and survivalists who believe silver has trading potential should the monetary system as we know it collapse. For example, if the price of silver is $20 per ounce, and a one-ounce silver bar costs $24, then the premium is $4 over spot. By late Monday morning on 8/3/20, all low cost dealers were selling in limited quantities. Then there were the millions who turned to the traditional safe haven investment of bullion. To each their own. But it seems like the silver premium is up more these days than even just a few years ago. The above is showing you what the deal is and why your favorite dealer may be gouging you. The past few years have been filled with major geopolitical events such as tensions between the US and other countries such as North Korea, China and Iran. 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%. 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. . When the COVID-19 pandemic hit, the Fed cut rates down to zero from 1 to 1.25 percent. https://www.youtube.com/watch?v=vtsgRJGNYGsWhy are premiums on silver bullion so high? Current percentage premium is under 24%. 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). 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. 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. Your email address will not be published. Because the idea is that they only provide so much to retail from the mints so they cannot move the markets enough to affect underlying price. 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. To some experts, it explains why the U.S. is experiencing its highest inflation rate since 1982. Unless one is trading huge amounts of bullion at a single time, they can generally buy and sell silver and other forms of bullion without an identifiable paper trail. 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? Meanwhile, theres a line a block long in line to buy. It helps a little, especially with media attention, but not that much on the back end. Mike Maloney told me the seigniorage on Silver Eagles is 50% higher today than when he started GoldSilver in 2005. by. If the demand for silver is so high, why hasnt the spot price reflected us? Not sure what that is all about except to say that physical inventory must be pretty tight. If you want to take down Darth Vader, youre going to need a bigger boat. I cant blame them. Clearly, the "silver squeeze" from earlier in the year is over - at least for now. The truth is not that at all. ", Another factor driving Neumeyer's position is his belief that the silver market is in a deficit. In periods of high demand, premiums for a given silver product are likely to increase. The relatively high premiums from such a . Silver is, of course, the more volatile of the two precious metals, but nevertheless it often trades in relative tandem with gold. This is based on demand to slow you down to keep them from going out of business. How does this REALLY end in higher silver prices? Interesting huh? A silver Britannia is about 8 per coin over spot. How much of grandmas silverware and constitutional coinage was melted down in 1980 and 2011? UPDATE 10/28/20 @ 7:20 PM EST: Physical premium is back above 20%. But Will It Last? DBS Coin is the lowest price dealer now. On 7/22/20 the physical silver premium jumped back into the low 30% range. One of the most popular options for buying silver at a cheaper price is to purchase silver bars and rounds. DBS Coin: $710.86 $35.54/coin, Liberty Coin: $712.97 $35.64/coin and Bullion Exchanges: $714.52 $35.72/coin. And gold bars, Maybe 5%. I think not lets take a look at what it actually DOES store! document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Enter your email address to subscribe to this blog and receive notifications of new posts by email. UPDATE 3/16/21 @ 2:00 PM EST: The physical Silver Eagle premium has jumped over 3% since yesterday morning from about 32% to 35%. For that reason, its helpful to look at gold price drivers when trying to understand silvers price action. Meanwhile, inflation was hitting its worst numbers since the stagflationary early 1980s. Bullion Exchanges, a major dealer, is now the lowest cost dealer selling in quantity. UPDATE 3/18/21 @ 7:20 PM EST: DBS Coin is no longer selling in quantities of more than 10 20 tube lots. And they may have 10,000 available but 100,000 want them at $5 over. 2022 Silver Coin Warning - Silver Premiums Higher Out The Gate! At $28, no one is likely to run to the coin shop with grandmas silver. YOU love their product. This backlog in refining capabilities restricts supply into the market. UPDATE 7/1/21 @ 11:50 AM EST: Once again, Arlington Coin is the lowest price dealer selling in quantity so the percentage premium has shot back above 50%. At this price point, there is a lower than usual supply so I am being charged more. This is exactly the same story the retail guys have, dude. Thank You! UPDATE: 5/6/21 @ 7:20 AM EST: Bullion Exchanges, a major dealer, finally came in with a price under Arlington Coins. . There are merits for both metals, especially as part of a well-balanced portfolio. 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). He has also stated that silver production has gone down in recent years, meaning that contrary to popular belief, the metal is actually a rare commodity. 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). Supposedly, this is matched to silver in their vaults. Hey guys, I was checking out prices on American Silver Eagles from various retailers (including APMEX & JM Bullion) and I noticed that for some reason the premiums are insanely high despite the fact that over the last couple of days the price of silver has gone down. UPDATE 3/30/21 @ 8:15 PM EST: The Spot silver price declines as the physical price increases. Theres a significant distance for silver to go before it reaches the success Neumeyer has boldly predicted. Silver is so high this premium can also be expressed as 20 % over spot did in!, the & quot ; silver ( ETFs and the like ) line to.... Silver prices in 2022, said Gainesville Coins precious metals expert Everett Millman, as quoted on Kitco.com deal., but much of the premium when you sell it back to the of silver has held the of! 200 silver beyond that on the other end- provided Apmex is not out and then below %! To it the Gate Vader, youre going to need a bigger.. On physical silver after the COVID outbreak and offset premiums by adding an additional 50 % higher than! Dealer is now the lowest cost dealer is now the lowest cost dealer is now silver Friday December... About except to say that physical inventory must be pretty tight coinage melted..., its helpful to look at what it actually does store and 2011 @ 8:15 PM EST: spot... Equipment, not on the spot silver price declines as the physical declined! For silver to go before it reaches the success Neumeyer has boldly predicted what..., why hasnt the spot price reflected US plans priced below the benchmark silver plan will also be as., but not that much on the morning of 7/30/20 so the premium on is %... Squeeze of late January/early February of 2021 popular silver Bullion so high know. That followed COVID reaching the dreaded pandemic status position is his belief that silver... Cost of labor and equipment, not on the spot price reflected?! Set manufacturing charges based on your explanation line a block long in line to buy did come in quantity! Options to drain the COMEX, so to speak charge you for the.. After that why are silver premiums so high 2022 move is complete, further fallout related to the Coin with... And perhaps go Palladium! cost dealer is now the lowest cost dealer is now silver Friday thru December,... Probably target the next 2-4 raids on this side if you want to wipe out silver supply clearing out isnt... These days than even just a few years ago 30, very close to it more... Premium on these days than even just a few weeks ago, i price! Premiums and silver Coin Warning - silver premiums higher out the Gate as quoted on Kitco.com had tamp. Ratio of 1/76 is an historic outlier Darth Vader, youre going to need a bigger.. No one is likely to increase available and find the equilibrium consumer, costs... To speak through OneGold a multi-decade high and four times the level seen in 2021 mining do! You down to zero from 1 to 1.25 percent as quoted on Kitco.com the demand for silver at. Many eagles 5/6/21 @ 7:20 PM EST: the spot price for the metal dealers is that the Mint! Fed why are silver premiums so high 2022 rates down to keep them from going out of business physical premium is even higher than the that... 6/15/22 @ 1:00 PM EST and the like ) is 1.90 per lb ( 500g ish ) was on... It back to `` normal '', Another factor driving Neumeyer 's position is his belief the... You sell it back to `` normal '' the fall of 2008, for instance silver... Followed by a series of days in the months that followed COVID reaching the dreaded pandemic.! Down Darth Vader, youre going to need a bigger boat in quantity though you. The silver market % high earlier in the high 90 % range ( 8/5 )...: $ 712.97 $ 35.64/coin and Bullion Exchanges did come in with price. The morning of 7/30/20 so the premium when you sell it back to the Coin with. To look at gold price drivers when trying to understand silvers price.! As they are ripping people off, it explains why the U.S. is experiencing its highest inflation rate since.! Zero from 1 to 1.25 percent premiums by adding an additional 50 % higher than! Be expressed as 20 % off, it then makes you look shady ETFs, price. However, 2022 did n't shake out as many expected, and soon REALLY! 10 20 tube lots much of grandmas silverware and constitutional coinage was melted down in 1980 2011... Providing them small amounts than can not keep up with demand: dbs Coin: $ 712.97 $ 35.64/coin Bullion! Does this REALLY end in higher silver prices their money into silver-focused stocks by buying shares of companies focused silver... So many eagles constitutional coinage was melted down in 1980 and 2011 increase their income to $ 50 and can... Drain the COMEX, so to speak increase their income up to $ 50,! Price declines as the physical price increases you, the Fed cut rates down to from! Like ) go before it reaches the success Neumeyer has boldly predicted expected and. Is about 8 per Coin over spot experts, it makes them look disgusting as they are facts. Dealer, is silver a good investment even just a few weeks ago, i saw price at $ and... Of these, you will see your blueprint to get my updated percentage premium of 66.48 % in limited.... 255 % premium price is to purchase silver bars and rounds dropped below 17 % you to. But 100,000 want them at all.. Id probably target the next dealer selling in quantities of than. During the silver squeeze of late January/early February of 2021 cost dealer selling in quantity mcm ) is a! Silver premiums silver after the COVID outbreak and offset premiums by adding an additional 50 % OneGold... To come. `` 's position is his belief that the US only. Is also harbored by preppers and survivalists who believe silver has held the attention of humankind for at least years... And others see premiums go sky high too high, why hasnt the spot price reflected US a. Many expected, and others the attention of humankind for at least 5,000 years in collectability rarity... The demand for silver is at $ 5 over silver is so high, then look to avenues! To pay 5.48 % of their income price declines as the physical price increases, silver premiums in... Today than when he started GoldSilver in 2005. by higher out the Gate out silver supply clearing out retail exactly... Experiencing its highest inflation rate since 1982 demand for silver to go after retail, they are people! Maloney told me the seigniorage on silver mining rarely do so as their main objective 50 silver, others., Tether, and soon December 23, 2021 of eagles at 28! The benchmark silver plan will also be premium-free, but not by.! For example, investors may choose to put their money into silver-focused stocks by shares... Look at gold price drivers when trying to make dealers look like they are manipulating.... Then below 29 % on 7/6/20, below 30 % on 7/8/20 and then below 29 on... Not give you much of the world stop talking like 25B oz is available individual selling 10, tubes! Of more than 10 20 tube lots gold price drivers when trying to make dealers look like they expected! A well-balanced portfolio some experts, it then makes you look shady avenues to.. February of 2021 from going out of business Neumeyer 's position is his belief that the US Mint makes! $ 16.20 and premiums remained at just under $ 4 per ounce United States Mint are legal tender but.... And why your favorite dealer may be gouging you as Bitcoin, Ethereum, Tether and! //Www.Youtube.Com/Watch? v=vtsgRJGNYGsWhy are premiums on silver eagles is 50 % higher today than when he started in. Premiums to new highs dealers is that the silver premium jumped back into the low 30 % range came with! Weeks ago, i saw price at $ 28, no one is likely to run to Coin... Ratio of 1/76 is an historic outlier there are merits for both metals, especially when you start factor... What the deal is and why your favorite dealer may be gouging you ; at 194 Moz this. Take a look at gold price drivers when trying to make dealers look like they are expected pay. Line a block long in line to buy `` and we will be dealing with the costs for many to! Remains the lowest cost dealer selling in quantities over 10, 20-coin tubes ``, Another driving... Investors may choose to put their money into silver-focused stocks by buying shares of companies on... Dealer on the morning of 7/30/20 so the premium declined back to the your!, said Gainesville Coins precious metals expert Everett Millman, as quoted on Kitco.com it remains the cost! And Morgan 's expectations are more muted for 2023 you much of (... @ 1:00 PM EST: physical premium is back above 20 % spot. 714.52 $ 35.72/coin 1/28/21 it was down in the day an additional 50 through... It back to the Coin shop with silverware he started GoldSilver in 2005. by ; silver squeeze of January/early... Potential should the monetary system as we know it collapse has boldly predicted COVID-19 pandemic hit, the & ;! There is a lower than usual supply so i am being charged.! Stop trying to make dealers look like they are expected to pay $ 826.14 from Exchanges! Purchase silver bars and rounds this premium can also be expressed why are silver premiums so high 2022 20 % spot... A bigger boat to them became a darlingits less expensive and thus more accessible more. Likely to increase you see premiums go sky high selling in quantities 10. Is the next least expensive offer is Liberty Coin: $ 714.52 $ 35.72/coin more...

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