", Another factor driving Neumeyer's position is his belief that the silver market is in a deficit. Electric vehicles, solar panels, windmills, you name it. The silver squeeze will then be the blueprint for the gold squeeze. These retail companies have a business to run. . You are sort of seeing narratives out there by the evil dark lord sith Jeffrey Christian and the like talking about there is no shortage. Some may mark up prices to prevent running out of inventory, or to capture profits. Enroll in economics 101. 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. If you have constricted supply and massive demand, on a product that will increase in price and demand as price increases. UPDATE 2/1/21 @ 8:55 AM EST: APMEX is still offering 20-coin silver eagle tubes in quantity. And a short time later DBS Coins & MCM also began offering silver eagles in quanitity. I purchased a roll of Silver Eagles back in August of 2019 at a 13.47% premium. Clearly, the silver squeeze from earlier in the year is over at least for now. By late Monday morning on 8/3/20, all low cost dealers were selling in limited quantities. "And we will be dealing with the costs for many years to come.". Anyone take a look at timber versus lumber. So, if the silver price does rise, how high will it go? Dont forget to follow us @INN_Resource for real-time news updates! Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. UPDATE 10/27/20 @ 7:20 PM EST: Physical premium is back below 19%. The same cant be said for those who invest in stocks (remember Enron? 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). In February 2023, the Fed raised rates by just 25 basis points, the smallest hike since March 2022, as Chair Jerome Powell said the process of disinflation has begun. 3,273. The commoditys price uptick came on the back of very strong silver investment demand. Silver is also being drained from the paper exchanges and IMHO something is afoot. Keith Neumeyer of First Majestic Silver has said he sees the white metal reaching US$100 per ounce. But anyone, really, can go to the COMEX today and take off millions of ounces. UPDATE 4/15/21 @ 7:40 PM EST: The physical silver market is getting very tight. Create a free website or blog at WordPress.com. But by 9:40 PM EST the premium had jumped back above 60%. But lets get back to premiums. I recently used them and there was a steep $1.25 or so premium for an allocated vault product. DBS Coin is the lowest price dealer now. Now time to light the fuse of the powderkeg. . Then there is a second price for physical silver, which is much higher and better reflects the actual supply and demand of physical bullion. This situation has happened time and again but Bullion Exchanges will often come back in with quantity offers so I will update if/when it does. However, rising inflation has led the Fed and other central banks to hike rates, which has negatively impacted gold and silver. Im also aware as supply is unlocked, its possible the refineries and others are hedging what they just bought to protect from downside price moves. Your trusted source for investing success, Could the Silver Price Really Hit US$100 per Ounce? 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%. Yeah, that seems to make sense . Yet Apmex is selling a silver eagle at $38? ), then their products are still worth at least the face value associated with the coin. 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. And gold bars, Maybe 5%. Silver is, of course, the more volatile of the two precious metals, but nevertheless it often trades in relative tandem with gold. Joshua McMorrow-Hernandez is a journalist, editor, and blogger who has won multiple awards from the Numismatic Literary Guild. UPDATE 8/24/22 @ 4:40 PM EST: The American Silver Eagle Premium remained at over 100% from 7/20 through 7/27. 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. When Palladium broke the tampy tamp, then it went nuts. 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 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%. Looks like the craziness has passed sort of for now. I had to go the second page of Ebay results to find the lowest cost. 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. . Thats roughly a 35% premium. Los Angeles Times, June 12, 2013. Proof Coins Proof coin premiums are almost always slightly higher because these coins represent the highest quality that a mint will produce. UPDATE 4/13/21 @ 9:45 AM EST: The physical silver premium has started to decline, yet again, because the two low cost dealers are not adjusting their prices for the increase in Spot:Inheritance Precious Metals&Hannigan Coin. You would do the exact same thing if you had 240 1,000 oz bars and 30,000 people instantly trying to buy them. We will see how long it lasts. 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.". Required fields are marked *. 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. On the other hand, during economic uncertainty silver values are impacted by declines in fabrication demand. Mints and refiners set manufacturing charges based on the cost of labor and equipment, not on the spot price for the metal. Physical Gold Premium vs. Spot Price A tradingsignal? Today the premium hit 71.05%. Let me translate. And, yes, Bullion Exchanges did come in with quantity by 9:30 PM EST. 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. April 27, 2022 10:33AM. That hedging in itself is potentially shorting on the COMEX and creating the downward price pressure they are trying to protect against. UPDATE 4/9/21 @ 9:15 AM EST: The brief decline in the physical silver price earlier in the week has ended. 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. 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. Weve set the scene: Investors have put a lot of money into cryptocurrency, real estate, and other investments during some very tenuous timescertainly the most nerve-wracking socioeconomic situations of this century and easily the most dire since the global economic troubles of the 1970s era. The increased demand has thus pushed silver premiums to higher levels. UPDATE 10/29/21 @ 2:50 PM EST: The Physical Silver Premium has now bounced all of the way up to a 40% premium over spot. On 7/22/20 the physical silver premium jumped back into the low 30% range. Mike Maloney told me the seigniorage on Silver Eagles is 50% higher today than when he started GoldSilver in 2005. 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. The Physical Gold Premium, on the other hand, still remains quite low at 6.75%. If we see $50 silver, refineries are about to be crushed with grandmas tea sets. 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. 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? This represents a $11.75/45.12% premium. Why are American Silver Eagle Premiums High? Next lowest cost standard dealer in quantities of over 10, 20-coin tubes is Liberty Coin. Refining capability. That's roughly a 35% premium. UPDATE 11/1/20 @ 7:30 PM EST: Physical premium dipped below 20% and has remained there since. UPDATE 1/31/21 @ 7:00 PM EST: Now that the Spot marked is open things have calmed down a bit. Otherwise, they sell to you too cheap and they are out of products and out of business soon thereafter. This is now obvious with the failure of FTX and huge losses seen with the popular Bitcoin and other digital currencies. I have never used this dealer as a price source before on Ebay but it is the lowest cost dealer currently. Back in February 2022, David Morgan of the Morgan Report told INN he thought there was potential for silver to hit US$50 in the short term, as high levels of stock market volatility could make the white metal more attractive to investors and might drive it up over the US$30 mark. To each their own. 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. The all-time record-high nominal price of gold was reached in March 2022, when the yellow-colored precious metal hit $2,074 an ounce. THIS WILL MAKE RETAIL PREMIUMS JACKED. Investing News Network websites or approved third-party tools use cookies. This low was set on 9/14/21 at 26.06%. Is Silver Already Worth $40 - Why Are Premiums On Physical Bullion So High? However, 2022 didn't shake out as many expected, and Morgan's expectations are more muted for 2023. 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. Meaning as retailers see a flood of interested people over $30, high retail premiums would be the norm to slow the interest in buying. Silver has the best chance to rise in 2022, said Gainesville Coins precious metals expert Everett Millman, as quoted on Kitco.com. On the bright side, premiums have not been this low for a long time . Scan this QR code to download the app now. Using estimated numbers here. Not sure if this will last throughout the day because, quite often, DBS Coin comes in with very low prices later in the day. I made a point yesterday to call out a popular bullion site because they also claimed no shortage. 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). More controversially, Neumeyer is of the opinion that the white metal will eventually become uncoupled from its sister metal gold, and should be seen as a strategic metal due to its necessity in many everyday appliances, from computers to electronics, as well as the technologies mentioned above. Why are Silver Premiums so High? And perhaps go Palladium and hit $100-$200 silver beyond that. Problem is, the rabid demand will outstrip available product coming in that can be sent to retail. and our (Updated 2022). Next is MCM $814.60 followed by APMEX at $835.26. He thinks its only a matter of time before the market corrects, like it did in 2001 and 2002, and commodities see a big rebound in pricing. So assume silver runs up to $50 and you run to the coin shop with silverware. 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. UPDATE 1/30/21 @ 10:15 PM EST: I finally found a dealer selling 20-tube coins Aydin Coins. Instead, they were keeping their prices fixed. 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. Bullion Exchanges had 6 lots of 2020 Eagles @ $674.86/each and DBS had 10 lots @ $677.97/each. Very interesting. The premium on a silver product is the amount of money above the spot price of silver that the product costs. 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%. And thats 1,000 oz bars. That's because when rates are higher interest shifts to products that can accrue interest. Investing success, Could the silver squeeze from earlier in the interviews it.... Spot marked is open things have calmed down a bit the gold squeeze was reached in March 2022, Gainesville! And hit $ 2,074 an ounce because when rates are higher interest shifts to products that can be sent retail. Over at least the face value associated with the coin shop with silverware their products are still at! A deficit reached in March 2022, when the yellow-colored precious metal hit 100-. 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