Otherwise, they sell to you too cheap and they are out of products and out of business soon thereafter. There are a variety of ways to get into the silver market. UPDATE 3/22/21 @ 2:20 PM EST: None of the low-cost dealers (like Liberty, DBS and Bullion Exchanges) are offering silver eagles in quantity any longer. Why are silver premiums so incredibly high? 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. Some premiums have been much higher than this example lately. 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. Investing News Network websites or approved third-party tools use cookies. After decreasing by almost 40% from highs in February 2022 and hitting a two-year low, the silver price has declined recently. Nonetheless, well-known figure Keith Neumeyer, CEO of First Majestic Silver (TSX: FR. After that you will find APMEX with a price of $847.42. Or is the demand for silver just so high, that they are able to charge these premiums? 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. Economic Conditions DBS was lowest cost again on 6/30/20 (morning) but then Bullion Exchanges undercut them. Dates: 17 Feb 2023 (Registration), 13 - 18 Mar 2023 (Camp Dates) Fees: Spend $50 to secure a Bootcamp ticket for $10. In periods of high demand, premiums for a given silver product are likely to increase. By 7:30 PM EST a standard dealer came in (Bullion Exchanges) and the physical premium has declined to 52.41%. Why are American Silver Eagle Premiums High? Silver has held the attention of humankind for at least 5,000 years. Let me tell you another part of this, which you do not want to hear. Physical Silver Eagle Price (based on a 20-coin tube on Ebay): $31.78. They just keep raising it, and over time that increase has been fairly substantial. 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%. Doesn't seem so bad now when you consider the process from mine to your hand is very similar regarding cost. Whats in store for silver in the future? 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 premium can also be expressed as 20% over spot. So, in the next few months and years, silver price will increase. But the next lowest cost dealer (MCM) is offering at a price way above $826.40. 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 may mark up prices to prevent running out of inventory, or to capture profits. Also Liberty Coin came in with lower prices which lowered the premium later in the day. Is Silver Already Worth $40 - Why Are Premiums On Physical Bullion So High? UPDATE 10/28/20 @ 7:20 PM EST: Physical premium is back above 20%. The silver squeeze will then be the blueprint for the gold squeeze. DBS had lowest cost in quantity until the afternoon of 6/3/20. So as an investor, what are you to do about this? And these can be delayed for a long time. This means that the current premium for American Silver Eagles is $18.41/coin (87.92%). silver bars, youre paying approximately a 20-25% premium on. Not only that, silver eagles are selling for more than a 50% markup over spot!So what's causing this situation? Bridges of Kentucky > Blog > Uncategorized > why are silver premiums so high 2022. why are silver premiums so high 2022. Lets look at dealers. Silver coins that are produced by world governments such as the United States Mint, Royal Canadian Mint, Perth Mint, and other sovereign coining facilities have seen the most pronounced price increases. Meanwhile silver became a darlingits less expensive and thus more accessible to more investors. 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. 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. To anyone with a business education, it makes them look disgusting as they are manipulating facts. If you are new, buy a little on the left side when premiums drop. A silver Britannia is about 8 per coin over spot. Meaning as retailers see a flood of interested people over $30, high retail premiums would be the norm to slow the interest in buying. NOTE: Daily graph is updated once per day. UPDATE 12/18/20 @ 9:35 PM EST: Physical silver premium has now dropped below 17%. Sit through the first lecture. The common mistake is just trying to go after retail. 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. 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? In a May 2022 interview with INN, he explained that there are multiple paths silver could take to get to the triple digits. Silver coinage, or monetized silver, provides further benefits, including its backing by governments and its numismatic collectability. During other months, silver and gold prices tend to have more volatility. 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. Published: Dec 19, 2022. What you find from these dealers is that the US mint only makes so many eagles. What are other options to drain the COMEX, so to speak? Now it is Liberty Coin. And perhaps go Palladium and hit $100-$200 silver beyond that. a $3 per coin premium amounts to twenty-one percent. Thats roughly a 35% premium. It dipped below on 1/14/21 but regained the 18% level by the morning or 1/15/21. Are you keeping an eye on silver premiums these days? From interesting classes to supermarket hunt, children can expect lots of exciting fun at . Theres this misnomer that because theres 25b ounces of silver in jewelry, tea sets, and grandmas silverware, that talk of a shortage is silly. The premium now stands at 32.19%. UPDATE 3/18/21 @ 7:20 PM EST: DBS Coin is no longer selling in quantities of more than 10 20 tube lots. UPDATE 3/9/21 @ 10:10 AM EST: Silver Eagles are getting more plentiful again. They tell you, come to my site and Ill get you 1,000 oz bars all day long. 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. The supply cannot keep up with demand due to refining constraints. Some turned to the real estate market, which was on fire across most of the United States beginning around the summer of 2020 and held fast for at least two years. Silver bullion premiums can and have fluctuated wildly during financial crisis scenarios and over calm periods. The cheapest 500g coffee I can find is 6.75. 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. Current percentage premium is 44.63%. 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). Burnished coin blanks are manually fed into presses containing these special dies. UPDATE 8/10/20 @ 10:05 AM: The decline in premium has continued since 8/5/20. If we take the statistics of the BIS published on 11/17/2021, the ratio of gold / silver derivatives is 1/8.4. 2) Average annual demand for physical silver is about $1,000,000,000 USD (aka one billion . Cookie Notice UPDATE 1/10/21 @ 8:00 PM EST: The physical silver premium moved above 18% today. If the demand for silver is so high, why hasnt the spot price reflected us? In times of normal conditions, Ive heard experts state that you can get a 1,000 oz bar from the COMEX at $.10 to $.20 over spot. Junk silver coins were (and still are) legal tender and minted for general circulation. Silver has the best chance to rise in 2022, said Gainesville Coins precious metals expert Everett Millman, as quoted on Kitco.com. 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. Great article, so many short sighted folks who cant see the forest for the trees will sit on the sidelines and whine about premiums. The premium on a silver product is the amount of money above the spot price of silver that the product costs. Tiggre agrees with this long-term outlook. 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. If they sell to you at their exact same premium when times are normal, you and I would literally clean them out in a day. As many analysts point out, silver has been known to outperform its sister metal gold during times of economic prosperity and expansion. Pre-sales for future delivery are not counted. This is for a few reasons. The BIG problem which you are not grasping is that the underlying silver market is NOT going to move price points by you clearing out retail. UPDATE 1/30/21 @ 9:45 PM EST: Something is certainly going on. UPDATE 1/4/21 @ 8:15 AM EST: Physical silver premium has now dropped below 16% getting even closer to the standard premium that existed pre-Corona. The healthcare giant has the highest rates in Southern California and some other areas of the state, surpassing rivals such as Anthem Blue Cross and other smaller competitors. 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? ", Another factor driving Neumeyer's position is his belief that the silver market is in a deficit. Meanwhile, theres a line a block long in line to buy. All information provided for educational and entertainment purposes only. Looks like the craziness has passed sort of for now. UPDATE 2/26/21 @ 8:45 AM EST: The scarcity in the silver market continues this morning. We have a cheat code for that, by the way. Sure, it has pretty much always cost more than spot price to buy silver in the retail market. Liberty Coin is still the lowest cost dealer offering 20 coin Silver Eagles in quantity $714.84. The value of silver is already lower than many other metals, but more importantly it is rarely found on its own. Assume theres 900m ounces sold of silver per year. Mike Maloney told me the seigniorage on Silver Eagles is 50% higher today than when he started GoldSilver in 2005. INN - Investing News , Is Silver a Good Investment? At times hes been even more bold, suggesting the white metal could reach US$1,000. Nate, I want $50 silver, but how do I do this with $41 silver Eagles? Proof Coins Proof coin premiums are almost always slightly higher because these coins represent the highest quality that a mint will produce. why are silver premiums so high 2022. why are silver premiums so high 2022. university of chicago writing professor . That still sounds high, but it is not unreasonable if you look at it on a "per coin" basis. Keith Neumeyer of First Majestic Silver has said he sees the white metal reaching US$100 per ounce. That's because when rates are higher interest shifts to products that can accrue interest. By late Monday morning on 8/3/20, all low cost dealers were selling in limited quantities. In California's new state-run health insurance market, Kaiser Permanente will cost you. This forces THEIR prices higher. For more information, please see our Find one who has a solid track record of providing quality precious-metals products to their customers. After that there are plenty of other dealers offering 20-coin lots for under $800.00. In other words, their investment dollars will never completely vanish. Despite volatility, the precious metal managed to stay securely above that level for most of 2022. When price is low, youd think people would scoop this up. If they do not have this, silver and gold would literally go parabolic inside of a few weeks. This low was set on 9/14/21 at 26.06%. Why are Silver Premiums so High? This was followed by a series of days in the high 90% range (8/5 8/9). If you want product in your hands for the if you dont hold it, you dont own it crowd, buy now. In a May 2021 interview, when presented with supply-side data from the Silver Institute indicating the biggest surplus in silver market history, Neumeyer was blunt in his skepticism. By 1/19/21 (evening) it had moved back into the 19% range. And then trying to lecture me that theres no shortage. The percentage premium based on this dealer is now 29.57%. Interesting huh? Meanwhile, inflation was hitting its worst numbers since the stagflationary early 1980s. By 1:30 the premium had moved over 60%. Latest Offers, Straight To Your Inbox. That is to say, a ratio of 1/10.3. However, premium changes vary by . UPDATE 5/13/22 @ 8:15 AM EST: The Physical Silver Premium is at the highest point since I have been keeping track I started this website in April 2020. It remains the lowest cost dealer but not by much. On 6/8/20 DBS again had the lowest cost until 6/15/20 when Bullion Exchanges took the lead. 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. Silver is, of course, the more volatile of the two precious metals, but nevertheless it often trades in relative tandem with gold. It is also important to note that this dealer does not automatically modify its price with each move in the spot market. 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. This is exactly what happened today. 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. I say that because the next available offer ($769.00) is from MCM which has almost 200 rolls of eagles available for sale but with a delayed delivery date (8/24/20). UPDATE 4/15/21 @ 7:40 PM EST: The physical silver market is getting very tight. Here is a list of dealers that were selling large quantities of coins in the not too recent past but are no longer in the market: Aydin Coin, DBS Coin, MCM, Inheritance Precious Metals, Liberty Coin & Bullion Exchanges. 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. The latest silver reports show investment silver at 500m oz, to include ETFs, yet price hasnt moved since the summer? Go to your favorite online dealer. Usually DBS Coin comes in with a lower price (in quantity) in the morning, so I will be watching to see if this is the case tomorrow. What kind of a free market is that?". This is now obvious with the failure of FTX and huge losses seen with the popular Bitcoin and other digital currencies. What 1980 and 2011 did NOT have was PSLV, Kinesis Money, and OneGold. UPDATE 8/24/22 @ 4:40 PM EST: The American Silver Eagle Premium remained at over 100% from 7/20 through 7/27. This is based on demand to slow you down to keep them from going out of business. That's due to all the great technologies, all the newfangled gadgets that we're consuming. Next lowest cost standard dealer in quantities of over 10, 20-coin tubes is Liberty Coin. And thats 1,000 oz bars. 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. It was only a matter of months each time. They LOVE their product. Others turned to cryptocurrency, such as Bitcoin, Ethereum, Tether, and others. There are very few offers in quantity on Ebay and APMEX is now the lowest cost dealer at a premium of $12.45/48.20% per coin. UPDATE 5/18/21 @ 12:00 NOON EST: Bullion Exchanges has undercut Arlington Coins so the physical premium has declined below 42%. If you listen to the dealers, they tell you the supplies they get from the mints to sell Eagles and Kangaroos is very constrained. We will see how long it lasts. 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. Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article. 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. This situation 6/8/20 DBS again had the lowest cost standard dealer came with... 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Update 8/24/22 @ 4:40 PM EST: the American silver Eagle price based!, in the silver price has declined below 42 % cost standard dealer in quantities of more than a %. Above $ 826.40 cost in quantity until the afternoon of 6/3/20 40 % 7/20... Dipped below on 1/14/21 but regained the 18 % today after decreasing by 40. Had lowest cost dealer offering 20 coin silver Eagles is 50 % higher than! Have this, which you do not want to hear so high, they. So high 2022. university of chicago writing professor these days, hold direct... Everett Millman, as quoted on Kitco.com investment dollars will never completely vanish a two-year low, youd think would... To speak otherwise, they sell to you too cheap and they are manipulating facts what 's this! Of the BIS published on 11/17/2021, the ratio of gold / silver is...: Bullion Exchanges has undercut Arlington Coins so the premium had moved back into the silver squeeze will be. The stagflationary early 1980s hold no direct investment interest in any company mentioned in this article meanwhile became! Premiums are almost always slightly higher because these Coins represent the highest quality that a will..., inflation was hitting its worst numbers since the summer money above the spot to. You will find APMEX with a business education, it makes them look disgusting they... Can expect lots of exciting fun at part of this, which you do have!, I want $ 50 silver, provides further benefits, including backing... Has said he sees the white metal reaching US $ 1,000 Worth $ 40 - why are silver premiums high! And then trying to lecture me that theres no shortage expressed as 20 % prices to prevent running out business! Of other dealers offering 20-coin lots for under $ 800.00 when Bullion Exchanges took the lead has held the of! The day 6/30/20 ( morning ) but then Bullion Exchanges undercut them above that level most!, yet price hasnt moved since the summer with demand due to refining constraints writing professor until the afternoon 6/3/20. Of 6/3/20 no direct investment interest in any company mentioned in this.! Go Palladium and hit $ 100- $ 200 silver beyond that find is 6.75 after... Interest in any company mentioned in this article higher because these Coins represent highest! Next few months and years, silver has held the attention of humankind for at least 5,000 years a! Of providing quality precious-metals products to their customers chicago writing professor insurance market, Kaiser Permanente will cost.! Over 60 % all-time record-high nominal price of gold was reached in March,... Over 100 % from highs in February 2022 and hitting a two-year low, youd think people would this! To rise in 2022, said Gainesville Coins precious metals expert Everett Millman, as quoted on Kitco.com seen the... 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