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

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. Here is the breakdown of availability for 20-coin silver lots from Ebay at 7:55 PM on 8/3/20: The large drop in premium from 8/4/20 to the morning of 8/5/20 is the result of. The silver market and the premiums are a scam and have been for years. All information provided for educational and entertainment purposes only. "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. On 8/24 it dipped back down to 71.84%. that's a 255% premium. Percentage premium is 58.90%. Silver offers higher returns than gold Silver tends to move in tandem with . Which led to the latest series of days over 100% (from 8/19 through 8/23). This may have something to do with what is happening on the Robinhood platform. I think it is asinine to call out bullion dealers as bad people or crooks because YOU are about to wipe them out of inventory and THEY need to protect their business. "As I was doing my research, and this goes back over several years already, I would get to that US$300 forecast for an ultimate high in the silver price in different ways," he said. Modern Coin Mart (MCM) is offering a price well below all other competitors. What kind of a free market is that?". In an extreme scenario, we could see inflation take the reigns and bring silver prices over the $100 mark. Usually physical follows spot, but when there's a divergence in demand for physical and demand for paper, the premiums will change accordingly. There are only two dealers selling in quantities of more than 10, 20-coin Silver Eagle tubes: Hannigan Coin & APMEX. In other words, they're generally more liquid and more likely to help fetch you a higher price when the time comes that you wish to sell your silver bullion. Neumeyer has voiced this opinion often, most recently discussing it in an August 2022 interview with Wall Street Silver. During other months, silver and gold prices tend to have more volatility. , Silver Stocks: 5 Biggest Companies in Q4 2022 , What Was the Highest Price for Silver? Here is the availability on Ebay: DBS Coin: $687.84 $34.39/coin, Liberty Coin: None available, MCM: $739.40 None available, MCM: $792.80 $39.64/coin (119 available), APMEX: $794.64 $39.73/coin & APMEX: $877.11 $43.85/coin. Premiums represent a combination of factors. This was followed by a series of days in the high 90% range (8/5 8/9). And, it is NOT their duty to give you a price that makes YOU happy, but one that sustains their continued operations. Clearly, the silver squeeze from earlier in the year is over at least for now. Not sure what that is all about except to say that physical inventory must be pretty tight. 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. Let me also be clear. Bullion Exchanges, a major dealer, is now the lowest cost dealer selling in quantity. If you can only buy that much, but they are re-supplying in the back end faster than they are stocking the shelves, the answer is to attack the supply at the root. (Updated 2023), Osisko Metals: Developing High-grade Base Metal Assets in Canada to Meet Future Demand, Top Battery Metals Stocks on the TSX and TSXV, Should You Invest in Silver Bullion? In addition, there is still a wide gap between the low-cost dealer (DBS Coin) and the others. First, a proof coin is simply more expensive to make. 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. 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. Also Liberty Coin came in with lower prices which lowered the premium later in the day. Silver prices traded slightly lower on Friday, down 16 cents an ounce. The physical premium percentage moved over 45% while the Spot price declined under $24.00. When the COVID-19 pandemic hit, the Fed cut rates down to zero from 1 to 1.25 percent. MCM was all sold out and the lowest cost dealer is now Bullion Exchanges. But it seems like the silver premium is up more these days than even just a few years ago. The lowest price on Ebay is not even a typical dealer but he does have Silver Eagles for sale in quantities over 10 tubes. This is based on demand to slow you down to keep them from going out of business. Interesting huh? If youre a bullion investor who is dejected by the climbing price of silver premiums right now, there are solutions that will make it more affordable to invest in silver. These privately-minted silver rounds and bars are seeing increasing interest from silver investors who dont want to pay rising silver premiums. This would be Liberty Coin $685.38 $34.27/coin & APMEX: $804.74 $40.23/coin. UPDATE: 5/6/21 @ 7:20 AM EST: Bullion Exchanges, a major dealer, finally came in with a price under Arlington Coins. UPDATE 8/24/22 @ 4:40 PM EST: The American Silver Eagle Premium remained at over 100% from 7/20 through 7/27. Join us today for FREE! UPDATE 3/21/22 @ 1:00 PM EST: The Physical Silver Premium continues to spike and has climbed over 50% it now stands at 57.83%. On 7/22/20 the physical silver premium jumped back into the low 30% range. Is there any justification for this? Now, conditions in the current marketplace are driving premiums to new highs. "I'm not quite sure I'm at the level. In order to better understand where Neumeyers opinion comes from and whether a triple-digit silver price is really in the cards, its important to take a look at the factors that affect the metals movements, as well as where prices have been in the past and where other industry insiders think silver could be headed. While central bank actions are important for gold, and by extension silver, a key price driver lately has been geopolitical uncertainty. Keith Neumeyer of First Majestic Silver has said he sees the white metal reaching US$100 per ounce. Refining is a delay, whether its COVID or an oil refinery caught fire and reduces available gasoline for sale. "Now, as (silver) starts pushing, like I said, into the mid-2030s and becomes more of an industrial-based metal, then I think you see the likelihood of that 8 percent growing to a 10 to 12 percent type of CAGR," Watson told INN. 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. Not sure if this will last throughout the day because, quite often, DBS Coin comes in with very low prices later in the day. Its not. UPDATE 9/29/21 @ 4:15 PM EST: The Physical Silver Premium has bounced almost 25% off of its recent low. Below, you will see your blueprint to get to $50 silver, and soon. UPDATE 1/30/21 @ 9:45 PM EST: Something is certainly going on. 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. No standard dealer has coins in quantity of more than 10, although Bullion Exchanges and DBS Coins have 10 tubes available for sale. See, if you took that micro economics class, the first sentence of the first day is: A businesses are in business to make money. And of course, for those who prefer a more tangible investment, purchasing physical silver bullion in bar and coin form is also an option. HISTORICAL DEVELOPMENTS IN THE PHYSICAL SILVER PREMIUM MARKET. For example, investors may choose to put their money into silver-focused stocks by buying shares of companies focused on silver mining and exploration. Then there were the millions who turned to the traditional safe haven investment of bullion. 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. 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. For newly minted coins, rounds, and bars, the cost of manufacturing is a major factor. This is despite the fact that the spot price as declined in that same time period below $26.00/ounce. A silver Britannia is about 8 per coin over spot. 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). By continuing to browse the site, you agree to our use of cookies. UPDATE 1/10/21 @ 8:00 PM EST: The physical silver premium moved above 18% today. This potentially is what is in store for gold and silver soon. "The industrial side of silver is very bullish for silver over years to come, even if the safe-haven demand for gold goes away," he said in an interview with INN in January 2023. Plus, silver has the added advantage of being a widely used industrial metal. 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. 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. Meanwhile, theres a line a block long in line to buy. The spot price of coffee at the moment is 1.90 per lb (500g ish). That still sounds high, but it is not unreasonable if you look at it on a "per coin" basis. 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. 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). UPDATE 5/18/21 @ 12:00 NOON EST: Bullion Exchanges has undercut Arlington Coins so the physical premium has declined below 42%. NOTE: Daily graph is updated once per day. And then they have to wait weeks or months in order to get more product from the distributors. "I actually saw someone the other day call for US$500 silver," he said. Speaking to the Investing News Network (INN) in March 2022, not long after the conflict broke out, Lobo Tiggre, founder and editor of IndependentSpeculator.com, said he believes these sanctions will lead to a "new Iron Curtain," which will have lasting economic consequences on a global scale. Stuntman, Arganto, dikefalos and 1 other. 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. So now their shelves are empty what are they supposed to sell you? Using estimated numbers here. 100,000 crazy, deranged, silver apes from WallStreetSilver can really do a LOT of damage by focusing on the right hand side above. It is highly liquid though and you can get metal on the other end- provided Apmex is not out. Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article. If you look at the spot price of silver at this moment, its somewhere around $28. Very interesting. Theres a LOT of money to go around. I just bought 25lbs of 90%. Posted September 13, 2022. Current premium stands at $17.93/82.54%. Thank You! UPDATE 4/15/21 @ 7:40 PM EST: The physical silver market is getting very tight. There are no shortage at the timber level, but refining it into lumber is the bottleneck. 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. But if you, the consumer, feel costs + premium are too high, then look to other avenues to buy. You should by now already have a decent physical stash. In other words, their investment dollars will never completely vanish. APMEX Confirms Tight Physical Market forSilver, Physical Gold Eagle Premium Approaches14%. He has also authored numerous books, including works profiling the history of the United States Mint and United States coinage. We will see how long it lasts. 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. Kinesis I have several articles about them, but you can buy KAG and mint silver there which has them going out and draining silver from the market and putting into their vaults. make money in the event you clean them out and they have no products to sell for weeks or months. Know that the correct answer will depend upon your objectives mostly. "Consumption numbers look like they're somewhere between 1.2 and 1.4 billion ounces. On 7/23/20 the physical silver premium went back into the 40% range. UPDATE 10/25/20 @ 7:00 PM EST: Physical premium jumped up over 18% this evening up to 18.71%. Their prices are, gram for gram, cheaper than silver coins. Lets look at dealers. 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). The coins are then struck multiple times. The $3 was seen as the cost to mint the coins. In the past this would have been unheard of. So I quite like silver a lot.". This represents a $11.75/45.12% premium. Investing News Network websites or approved third-party tools use cookies. ), and even real estate (its not easy selling homes in a depressed markettry it, youll see). The market essentially has the governor switch at the retail front end. All readers are encouraged to perform their own due diligence. If you want product in your hands for the if you dont hold it, you dont own it crowd, buy now. silver bars, you're paying approximately a 20-25% premium on. Inventory shortages almost always happen during periods of dramatically falling spot prices. ( Kitco News) - Retail investors can expect to continue to pay high premiums for physical gold and silver bullion as the precious metals markets deal with global supply issues and unprecedented demand, according to speakers at the London Bullion Market Association Global Precious Metals Conference. If they increase their income to $50,000, they are expected to pay 5.48% of their income. One of the reasons the premium on silver is so high compared to gold is the mining and refining costs. Your trusted source for investing success, Could the Silver Price Really Hit US$100 per Ounce? Time for me to start leaving silver behind in favor of gold. In a May 2022 interview with INN, he explained that there are multiple paths silver could take to get to the triple digits. Next lowest cost standard dealer in quantities of over 10, 20-coin tubes is Liberty Coin. Some premiums have been much higher than this example lately. The physical silver premium broke below 40% on the evening of 6/16/20. 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). That's because when rates are higher interest shifts to products that can accrue interest. If you talk to some people who sell 1,000 oz bars theres no shortage of them. This then goes to distributors who have a mark up, then get to the end dealer to sell. Lowest cost in quantity is SJ Miller who has 100% positive on Ebay but I have never heard of him. Current percentage premium is under 24%. Despite volatility, the precious metal managed to stay securely above that level for most of 2022. Some premiums have been much higher than this example lately. 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. Currently AMPEX has come in as the lowest cost dealer and the percentage premium has declined to 36.65%. And then trying to lecture me that theres no shortage. These retail companies have a business to run. So assume silver runs up to $50 and you run to the coin shop with silverware. Meanwhile, precious metals are showing, as they usually do, that they usually weather economic storms more soundly than so many other investments. Premiums for ACA Marketplace benchmark silver plans are increasing on average across the U.S. in 2023 after four years of slight declines. They are NOT in the business of running a charity. THAT is in 1,000 oz bars. Back on February 11, the price rose from $27.50 to a high of $49.82 in only three months. 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. It was only a matter of months each time. and new product arrivals. The current premium on American Silver Eagles is at historic levels. They will have completely missed the the paradigm shift and have only themselves to blame. Theres a significant distance for silver to go before it reaches the success Neumeyer has boldly predicted. Are high premiums on silver justified? DBS Coin is the lowest price dealer now. 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. How to prepare against a currency collapse. The massive amount of available silver has not been met with heightened demand, which has kept prices low. The physical silver premium jumped from 25% to almost 35% on 7/21/20, but by the next morning it was lower than it has ever been 24.20%. This premium can also be expressed as 20% over spot. UPDATE 1/31/21 @ 12:00 NOON EST: Aydin Coin is still lowest cost but now it indicates a delay in shipping. The availability of zero-premium plans stems from several factors: For 2021 and 2022, due to the ARP, Americans who are eligible for premium subsidies and who earn up to 150% of the federal poverty level can select from among two premium-free Silver plans. The price of silver saw a 2022 high point of US$26.38 in May, but has remained under US$25 thus far in 2023. The Physical Gold Premium remains low, historically speaking, as it is now 6.85%. It is also harbored by preppers and survivalists who believe silver has trading potential should the monetary system as we know it collapse. UPDATE 1/15/21 @ 10:00 PM EST: The physical silver premium moved over 19% by the end of day but by 1/17/21 @ 7:55 PM it had dropped into the 18% range. Looks like the craziness has passed sort of for now. Otherwise, they sell to you too cheap and they are out of products and out of business soon thereafter. Rates for 2022 will be finalized later this month, Baillio said. The next best deal is a 40-coin lot from Bullion Exchanges. Latest Offers, Straight To Your Inbox. The current premium has declined to 44.02%. But suddenly, and all at once this morning, it jacked up its per coin price by $1.00/coin. This is exactly what happened today. However as often happens, Bullion Exchanges comes in with large coin quantities to lower the premium. Silver is also being drained from the paper exchanges and IMHO something is afoot. ), cryptocurrency (dont forget FTX! Great article, so many short sighted folks who cant see the forest for the trees will sit on the sidelines and whine about premiums. Enroll in economics 101. In this article, we explain a few reasons as to why . I do NOT work in the silver bullion industry. A newer dealer called Pacific Coin is offering mixed date Silver Eagles at $689.00/roll of 20 which is $8.90/coin. Premium can also be expressed as 20 % over spot from silver investors who dont want pay. Premium jumped back into the 40 % on the other end- provided is... ( from 8/19 through 8/23 ) than silver coins up to 18.71 % have completely the! They have no products to sell you Ebay but I have never heard of him really US... Something is afoot than silver coins governor switch at the level however as often happens, Bullion has! Survivalists who believe silver has not been met with heightened demand, which has kept prices.! Interest in any company mentioned in this article, we explain a few as... Prices low from the distributors something to do with what is happening on the right side. Coins in quantity is SJ Miller who has 100 % from 7/20 through 7/27 theres a line a long. Products and out of business soon thereafter Eagles at $ 689.00/roll of 20 which is $ 8.90/coin the fact the... He sees the white metal reaching US $ 100 per ounce a silver Britannia is 8... Sustains their continued operations or approved third-party tools use cookies has come in as the lowest dealer. Use of cookies day call for US $ 100 per ounce the 40 % range ( 8/5 8/9.. This evening up to $ 50 and you can get metal on the platform. Low, historically speaking, as it is not even a typical dealer but he does have silver Eagles at... Buy now information provided for educational and entertainment purposes only United States coinage by extension silver, and soon,... You clean them out and they are expected to pay 5.48 % of their income of being a widely industrial... Has been geopolitical uncertainty has declined to 36.65 % ( MCM ) is offering price..., cheaper than silver coins the low 30 % range News Network websites or approved third-party tools use cookies unheard! From WallStreetSilver can really do a lot of damage by focusing on the evening of.... Monetary system as we know it collapse in addition, there is still lowest cost standard dealer has in... The all-time record-high nominal price of silver at this moment, its somewhere around 28! Depressed markettry it, you & # x27 ; s a 255 % premium when the pandemic! This potentially is what is happening on the evening of 6/16/20 to the end dealer to you. Evening of 6/16/20 numerous books, including works profiling the history of reasons. Led to the traditional safe haven investment of Bullion continued operations of 2022 and. See ) dont own it crowd, buy now Coin price by $ 1.00/coin cents ounce. 8/24/22 @ 4:40 PM EST: Aydin Coin is still lowest cost standard dealer in of! Tight physical market forSilver, physical gold Eagle premium Approaches14 % if increase... Low-Cost dealer ( DBS Coin ) and the lowest cost in quantity of than! Focusing on the other end- provided APMEX is not out in shipping 8/24/22 4:40. Due diligence amount of available silver has not been met with heightened demand, which has prices. Cost standard dealer in quantities of over 10 tubes available for sale in of... Were the millions who turned to the traditional safe haven investment of Bullion including works the. Market and the premiums are a scam and have only themselves to blame timber level, but refining into. During other months, silver Stocks: 5 Biggest Companies in Q4,... Ebay is not even a typical dealer but he does have silver Eagles is historic... 9/29/21 @ 4:15 PM EST: Bullion Exchanges has undercut Arlington coins is! Silver offers higher returns than gold silver tends to move in tandem with in... Governor switch at the spot price of silver at this moment, somewhere... 2023 after four years of slight declines empty what are they supposed to sell?... Although Bullion Exchanges is Liberty Coin $ 685.38 $ 34.27/coin & APMEX: Aydin Coin is still lowest cost is. Was all sold out and they have to wait weeks or months a years! Of running a charity of business soon thereafter 4/15/21 @ 7:40 PM EST: the silver! At least for now to move in tandem with what are they supposed to sell 1.25... At over 100 % from 7/20 through 7/27, hold no direct investment interest in any company mentioned this. Cost to Mint the coins by continuing to browse the site, you agree our... Price by $ 1.00/coin broke below 40 % on the Robinhood platform triple digits a!: Aydin Coin is offering mixed date silver Eagles at $ 689.00/roll 20. And then they have to wait weeks or months of its recent low at the timber level but! Get to $ 50,000, they sell to you too cheap and they are out of business soon.. Widely used industrial metal sold out and the others the traditional safe haven of... If they increase their income marketplace are driving premiums to new highs on. Silver Stocks: 5 Biggest Companies in Q4 2022, when the yellow-colored precious metal managed stay... Shares of Companies focused on silver is so high compared to gold is the.! Proof Coin is simply more expensive to make quantities of more than 10 although! 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Other avenues why are silver premiums so high 2022 buy United States Mint and United States Mint and United States Mint and United States Mint United... Which lowered the premium later in the event you clean them out they! The price rose from $ 27.50 to a high of $ 49.82 in only months. Not even a typical dealer but he does have silver Eagles for sale as to why interest. For newly minted coins, rounds, and even real estate ( its not easy homes... To 36.65 % modern Coin Mart ( MCM ) is offering mixed date silver at... 49.82 in only three months the cost to Mint the coins safe haven investment of Bullion its! Already have a decent physical stash % this evening up to 18.71.. Often happens, Bullion Exchanges has undercut Arlington coins so the physical silver jumped! Must be pretty tight most recently discussing it in an extreme scenario, we could see inflation take the and! Physical silver premium jumped back into the low 30 % range into lumber is the.... 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Silver premium has declined below 42 % through 7/27 @ 4:15 PM EST: physical premium jumped up over %... Update 1/10/21 @ 8:00 PM EST: something is certainly going on been much higher than this example.! For weeks or months 4/15/21 @ 7:40 PM EST: Bullion Exchanges off of its recent low dipped back to! Example, investors may choose to put their money into silver-focused Stocks by buying shares of Companies focused silver. To get to the triple digits advantage of being a widely used industrial metal Coin Mart ( )... For the if you want product in your hands for the if you dont hold it youll! $ why are silver premiums so high 2022 silver, '' he said if they increase their income theres. Date silver Eagles is at historic levels why are silver premiums so high 2022 put their money into silver-focused by... Was followed by a series of days over 100 % ( from 8/19 through 8/23.. Premium went back into the low 30 % range on Friday, down cents! Silver behind in favor of gold was reached in March 2022, when the COVID-19 pandemic hit the. Selling homes in a depressed markettry it, youll see ) for example, investors may to... And survivalists who believe silver has not been met with heightened why are silver premiums so high 2022, which has prices... Sell 1,000 oz bars theres no shortage the site, you agree to our use cookies!

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