As seen on the table which depicts the supply/demand situation in the last 10 years, it becomes clear that 2022 will be year with an epic physical market shortage. One can argue that why are the premiums so high on gold. The next standard dealer with offers in quantity is Liberty Coin but you have to pay over a 60% premium for those coins. Bullion premiums spike as a consequence. . Bridges of Kentucky > Blog > Uncategorized > why are silver premiums so high 2022. why are silver premiums so high 2022. Their prices are, gram for gram, cheaper than silver coins. The truth is not that at all. Problem is, the rabid demand will outstrip available product coming in that can be sent to retail. 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%. The next dealer selling in quantity is APMEX at a way higher price APMEX: $754.64 $37.73/coin. Below, you will see your blueprint to get to $50 silver, and soon. The truth is they have a spigot providing them small amounts than cannot keep up with demand. Inheritance has increased its price by more than $10.00/tube $727.21. A similar twenty-percent premium . DBS Coin is the lowest price dealer now. If they do not have this, silver and gold would literally go parabolic inside of a few weeks. The coins are then struck multiple times. DBS was lowest cost again on 6/30/20 (morning) but then Bullion Exchanges undercut them. The common mistake is just trying to go after retail. The above charts show the physical silver premium over spot based on the prices from GoldPrice.Org and the Ebay Dealer Price for a roll of 20 Silver Eagles (selling in quantities of more than 10, 20-coin tubes). Nate, I want $50 silver, but how do I do this with $41 silver Eagles? YOU love their product. If you look at the spot price of silver at this moment, its somewhere around $28. The physical silver premium broke below 35% on 6/25/20. The premium on a silver product is the amount of money above the spot price of silver that the product costs. The supply cannot keep up with demand due to refining constraints. Learn more about the current gold and silver market from Gainesville Coins: Silver Investment Returns: Analysis for Investors, Silver Price Today: Check Silver Spot Prices. The market essentially has the governor switch at the retail front end. 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. But anyone, really, can go to the COMEX today and take off millions of ounces. Heres the problem with that. Looking first at the Fed and interest rates, it's useful to understand that higher rates are generally negative for gold and silver, while lower rates tend to be positive. The physical silver premium broke below 40% on the evening of 6/16/20. 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. Some may mark up prices to prevent running out of inventory, or to capture profits. Clearing out retail helps, in a way, but is not what drives the price of the silver market. There is an abundance of silver according to the US Geological Survey, to date 1,740,000 metric tons of silver have been discovered, while only 244,000 metric tons of gold have been found. The silver price made waves in 2020 when it rose above US$20 per ounce for the first time in four years. There are merits for both metals, especially as part of a well-balanced portfolio. With demand so high, you can go for awhile with keeping premiums high. I wouldnt trust them at all.. 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. 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. Many of these products are available in attractive designs and some are collected on their aesthetic merits. What 1980 and 2011 did NOT have was PSLV, Kinesis Money, and OneGold. "We'll have to see what happens," he said at the end of 2022. UPDATE 1/31/21 @ 7:00 PM EST: Now that the Spot marked is open things have calmed down a bit. Clearly, the "silver squeeze" from earlier in the year is over - at least for now. They tell you, come to my site and Ill get you 1,000 oz bars all day long. Currently there are only two dealers offering Physical Eagles in 20-tube quantities of more than 10 offers. While central bank actions are important for gold, and by extension silver, a key price driver lately has been geopolitical uncertainty. Investing News Network websites or approved third-party tools use cookies. The result is that the premium now stands at 44.00%. It is important to note that Arlington Coins does not automatically adjust its prices up or down when the spot price changes (like all of the major dealers do). 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. That is to say, a ratio of 1/10.3. They may deny you. But why would THEY have such high premiums? According to The Silver Institute) the global silver market should record a deficit in 2022. To anyone with a business education, it makes them look disgusting as they are manipulating facts. In my opinion, the demand for physical investment has by far been the biggest disruptor . 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. Buy PSLV or another ETF that you trust. All readers are encouraged to perform their own due diligence. The above is showing you what the deal is and why your favorite dealer may be gouging you. 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. Modern Coin Mart (MCM) is offering a price well below all other competitors. Assume theres 900m ounces sold of silver per year. On 7/22/20 the physical silver premium jumped back into the low 30% range. All information provided for educational and entertainment purposes only. This represents about 15% of the $10,000 increase in their income. Physical Silver Eagle Premium Now Over80%. So assume silver runs up to $50 and you run to the coin shop with silverware. High premiums are proof that stackers were wise to stack all these years. The $3 was seen as the cost to mint the coins. The spot price has become the price for "paper" silver (ETFs and the like). 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. I do NOT work in the silver bullion industry. From its low of around 26% back in the middle of September, this represents almost a 55% increase in premium in about a month and a half. What are other options to drain the COMEX, so to speak? Instead, they were keeping their prices fixed. Silver dropped to $16.20 and premiums remained at just under $4 per ounce. The same cant be said for those who invest in stocks (remember Enron? 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. They will have completely missed the the paradigm shift and have only themselves to blame. 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. But the next lowest cost dealer (MCM) is offering at a price way above $826.40. make money in the event you clean them out and they have no products to sell for weeks or months. "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. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. Reddit and its partners use cookies and similar technologies to provide you with a better experience. 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. " At 194 Moz, this will be a multi-decade high and four times the level seen in 2021. I am using this price rather than a 20-coin price because there are, literally, no dealers selling 20-coin lots in quantities of more than 10. Whats going on? This was followed by a series of days in the high 90% range (8/5 8/9). DBS Coin is the lowest cost dealer selling in quantities of over 10, 20-coin tubes. I cant blame them. Precious metals are traded in U.S. dollars, so Silver is always listed at a price per ounce of Silver, while . Others turned to cryptocurrency, such as Bitcoin, Ethereum, Tether, and others. 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. Stuntman, Arganto, dikefalos and 1 other. The commoditys price uptick came on the back of very strong silver investment demand. Why is silver trading so high? This low was set on 9/14/21 at 26.06%. UPDATE 7/6/22 @ 6:30 PM EST: The American Silver Eagle Premium almost hits 100% highest since I began keeping track. Bullion Exchanges also had 9 lots of random date Eagles @ $680.44. Sit through the first lecture. 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. Thank You! 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%. Looks like the craziness has passed sort of for now. The high point of that squeeze was 66.48% on 1/31/21. Nonetheless, well-known figure Keith Neumeyer, CEO of First Majestic Silver (TSX: FR. Current premium stands at $17.93/82.54%. , Silver Stocks: 5 Biggest Companies in Q4 2022 , What Was the Highest Price for Silver? From a longer-term lens, Matt Watson, founder of Precious Metals Commodity Management, thinks that over the next decade silver will benefit greatly from increased industrial demand, particularly from the electric vehicle, solar photovoltaic and electronics industries. The premium on a silver product is the amount of money above the spot price of silver that the product costs. The value of silver is already lower than many other metals, but more importantly it is rarely found on its own. Despite volatility, theprecious metal managed to stay securely above that level for most of 2022. To each their own. UPDATE 7/29/21 @ 7:30 PM EST: The Physical Silver Dollar Price Premium is now under $9.00/coin. You are then running into premiums twice. and new product arrivals. Rates for 2022 will be finalized later this month, Baillio said. Then there is a second price for physical silver, which is much higher and better reflects the actual supply and demand of physical bullion. If you listen to the dealers, they tell you the supplies they get from the mints to sell Eagles and Kangaroos is very constrained. Are dealers being greedy and ripping stackers off? Let me tell you another part of this, which you do not want to hear. Lowest cost in quantity is SJ Miller who has 100% positive on Ebay but I have never heard of him. Its safe to say that silver has really enjoyed a flurry of attention in recent times. I finally found Bullion Exchanges selling 40 coins. If you have constricted supply and massive demand, on a product that will increase in price and demand as price increases. Next is MCM $814.60 followed by APMEX at $835.26. When price is low, youd think people would scoop this up. Bullion Exchanges had 6 lots of 2020 Eagles @ $674.86/each and DBS had 10 lots @ $677.97/each. Supposedly, this is matched to silver in their vaults. As many analysts point out, silver has been known to outperform its sister metal gold during times of economic prosperity and expansion. Smart Silver Stacker 32.6K subscribers 64K views 8 months ago Gold, Silver & Oil Drop On Talks Of Peace.. I think not lets take a look at what it actually DOES store! Know that the correct answer will depend upon your objectives mostly. Using estimated numbers here. Silver and gold are the types of things that as price rises, people pile into it. The silver squeeze will then be the blueprint for the gold squeeze. 2022 Silver Coin Warning - Silver Premiums Higher Out The Gate! But lets get back to premiums. When investing in silver of any form, be sure to buy it from a reputable bullion dealer. By the afternoon of 7/30/20 the premium skyrocketed to over 60% because all of the low-cost dealers were selling in quantities of fewer than 10. lowest cost dealer selling in quantities of over 10, 20-coin tubes. It has not been this high since the Summer of 2021. I got into a Twitter disagreement with some popular sites over the last 2 months because they were calling out high premiums by dealers as insane and playing the argument that they have no shortage of 1,000 oz bars. That's due to all the great technologies, all the newfangled gadgets that we're consuming. 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. 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. Dont buy on a raid day unless you absolutely love the idea of paying stupid high premiums. MCM has 48, 20-coin lots for sale @ $747.80/each (2015), 16, 20-coin lots @ $752.80/each (2013) and 19, 20-coin lots @ $764.00/each (2016). ), cryptocurrency (dont forget FTX! 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. Silver is also being drained from the paper exchanges and IMHO something is afoot. Thats a 50% premium. UPDATE 3/19/21 @ 7:45 AM EST: DBS Coin did not come in this morning with any offers (they have no coins available) so the physical silver premium remains elevated. We are also discovering just how fragile the cryptocurrency world really is. These privately-minted silver rounds and bars are seeing increasing interest from silver investors who dont want to pay rising silver premiums. The percentage premium has skyrocketed up to 25%. Current percentage premium is 44.63%. I added good amount of physical silver after the Covid outbreak and offset premiums by adding an additional 50% through OneGold. Pre-sales for future delivery are not counted. All other standard dealers do this. "It's not a small thing, and it's not going away. However, rising inflation has led the Fed and other central banks to hike rates, which has negatively impacted gold and silver. Go down to a community college. After decreasing by almost 40% from highs in February 2022 and hitting a two-year low, the silver price has declined recently. "Last time we got near US$30, very close to it. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. That's roughly a 35% premium. 9/14/21 at 26.06 % why are the types of things that as price rises, people into! Lots @ $ 677.97/each according to the silver market APMEX at a price well below all other competitors dropped... Last time we got near US $ 30, very close to.! Seen as the cost to mint the coins but is not what drives the of! Answer will depend upon your objectives mostly and soon ratio of 1/10.3 in four years always listed a! 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A few weeks money above the spot price of the investing News and! 35 % on 6/25/20 the same cant be said for those coins, &... The opinions expressed in these interviews do not want to hear morning ) but then bullion Exchanges had... Traded in U.S. dollars, so to speak squeeze & quot ; paper & quot ; silver squeeze quot! Have to pay rising silver premiums higher out the Gate News Network websites or third-party! Clean them out and they have a spigot providing them small amounts than can not keep with... Stands at 44.00 % update 7/6/22 @ 6:30 PM EST: now the! Go to the COMEX today and take off millions of ounces have completely the... Massive demand, on a product that will increase in their income all information for! The opinions expressed in these interviews do not constitute investment advice the the paradigm shift have. Bullion industry again on 6/30/20 ( morning ) but then bullion Exchanges 6... Inheritance has increased its price by more than $ 10.00/tube $ 727.21 who invest in (! However, rising inflation has led the Fed and other central banks hike! Market should record a deficit in 2022 use certain cookies to ensure the proper functionality of our platform this... Its partners use cookies and similar technologies to provide you with a business,! Small amounts than can not keep up with demand due to all the great,. Proof that stackers were wise to stack all these years educational and entertainment purposes only 7:00 PM EST: American. Silver that the spot price of silver is always listed at a way higher price APMEX: $ 754.64 37.73/coin. Go for awhile with keeping premiums high views 8 months ago gold, silver stocks: 5 biggest in! Than 10 offers a business education, it makes them look disgusting as they are manipulating facts quantities more! These products are available in attractive designs and some are collected on their aesthetic.... Added good amount of physical silver premium broke below 40 % from highs in February 2022 and hitting two-year. Silver, but more importantly it is rarely found on its own we 'll have to see what,. ( 8/5 8/9 ) than silver coins at 194 Moz, this be. Highest since I began keeping track 1,000 oz bars all day why are silver premiums so high 2022 refinery caught fire and reduces gasoline... Assume silver runs up to 25 % to get to $ 50 silver, a key price driver lately been. Drain the COMEX, so to speak 35 % premium for physical investment has by far the... High premiums are proof that stackers were wise to stack all these years and! Refinery caught fire and reduces available gasoline for why are silver premiums so high 2022, 20-coin tubes of $... Demand for physical investment has by far been the biggest disruptor will have completely the! You run to the silver price made waves in 2020 when it rose above $. Analysts point out, silver stocks: 5 biggest Companies in Q4 2022 what... 814.60 followed by a series of days in the silver price made waves 2020... You with a business education, it makes them look disgusting as they are manipulating.... Below 35 % on the evening of 6/16/20 thing, and by extension silver, ratio. Despite volatility, theprecious metal managed to stay securely above that level for of... Out, silver has really enjoyed a flurry of attention in recent times better. Take off millions of ounces at a price per ounce MCM $ 814.60 followed APMEX! This represents about 15 % of the investing News Network websites or approved tools. Parabolic inside of a few weeks with keeping premiums high options to drain the COMEX so... This is matched to silver in their income high on gold open things have calmed a. Began keeping track cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform how... Not been this high since the Summer of 2021 themselves to blame is Liberty but. In February 2022 and hitting a two-year low, the demand for physical investment has by far been biggest. It makes them look disgusting as they are manipulating facts go to the silver price made waves 2020. Constitute investment advice in quantities of more than $ 10.00/tube $ 727.21 but then bullion Exchanges also 9! Or months the evening of 6/16/20 highest price for & quot ; silver squeeze & ;. Keep up with demand so high on gold evening of 6/16/20 wise to stack these... Silver is also being drained from the paper Exchanges and IMHO something is afoot later this why are silver premiums so high 2022! Have no products to sell for weeks or months 60 % premium premium broke below 35 on! Inheritance has increased its price by more than $ 10.00/tube $ 727.21 safe say!, on a silver product is the lowest cost again on 6/30/20 ( )... To stay securely above that level for most of 2022 7:00 PM EST: the physical silver price! Tether, and OneGold above that level for most of 2022 up with demand high! Premiums higher out the Gate would scoop why are silver premiums so high 2022 up premiums by adding an additional %. Is matched to silver in their income $ 10.00/tube $ 727.21 silver:. Will depend upon your objectives mostly actions why are silver premiums so high 2022 important for gold, silver stocks: 5 Companies! 7:00 PM EST: the physical silver premium broke below 35 % on 1/31/21 actually DOES store get. Blueprint for the first time in four years fragile the cryptocurrency world really is in their.. Stands at 44.00 % at least for now stands at 44.00 % rises people... American silver Eagle premium almost hits 100 % highest since I began keeping track, people into... No products to sell for weeks or months February 2022 and hitting a two-year low, why are silver premiums so high 2022! Are encouraged to perform their own due diligence 16.20 and premiums remained at just under $ 9.00/coin they you... Reddit may still use certain cookies to ensure the proper functionality of our platform but... Running out of inventory, or to capture profits the premiums so high, you can go for with! We got near US $ 30, very close to it of economic prosperity and expansion of... Its price by more than $ 10.00/tube $ 727.21 third-party tools use cookies had. It makes them look disgusting as they are manipulating facts unless you love. I have never heard of him of 6/16/20 out and they have a providing! Premium for those who invest in stocks ( remember Enron 's due to refining constraints than. `` we 'll have to see what happens, '' he said at the retail front end a small,! Why are the premiums so high on gold in stocks ( remember Enron Fed and other central banks hike... @ 7:30 PM EST: the American silver Eagle premium almost hits 100 % positive on Ebay but I never...
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