April 27, 2022 10:33AM. 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%. Is there any justification for this? UPDATE 3/30/21 @ 8:15 PM EST: The Spot silver price declines as the physical price increases. Not sure what that is all about except to say that physical inventory must be pretty tight. We will see how long it lasts. 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). 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. Theres a significant distance for silver to go before it reaches the success Neumeyer has boldly predicted. If you look at the spot price of silver at this moment, its somewhere around $28. If inflation continues to rise and reaches double-digit values through 2022 and 2023, the price of $100 an ounce for silver could be possible. UPDATE 1/30/21 @ 9:45 PM EST: Something is certainly going on. 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). Modern Coin Mart (MCM) is offering a price well below all other competitors. Yet Apmex is selling a silver eagle at $38? Now it is Liberty Coin. Current premium stands at $17.93/82.54%. ", Another factor driving Neumeyer's position is his belief that the silver market is in a deficit. Using estimated numbers here. But imagine Monique's surprise when her renewal notice showed that her after-subsidy premium would be going from $0/month in 2021 to $226/month in 2022. A currency is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. They are really smart people who are saying really dumb things to talk down to the uneducated and drive a dishonest media narrative. 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. Go to your favorite online dealer. Join us today for FREE! The premium on a silver product is the amount of money above the spot price of silver that the product costs. At $28, no one is likely to run to the coin shop with grandmas silver. In my opinion, the demand for physical investment has by far been the biggest disruptor . Silver and gold are the types of things that as price rises, people pile into it. But key shortcomings . And gold bars, Maybe 5%. UPDATE 5/7/21 @ 7:20 AM EST: Arlington Coins is no longer selling in quantity (only 9 tubes left). Essentially, there are now two prices for silver. Real estate is rapidly cooling off and cryptocurrency is proving its not the failsafe juggernaut many thought it was. UPDATE 3/12/22 @ 3:00 PM EST: The Physical Silver Premium spiked this past week almost as high as 50% it now stands at 41.51%. 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). 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%. How does this REALLY end in higher silver prices? I have never used this dealer as a price source before on Ebay but it is the lowest cost dealer currently. 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. 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. But Im cautiously enthused because, you know, I thought it would have happened sooner than it currently is happening., In his August 2022 with Wall Street Silver, he reiterated his support for triple-digit silver and said he's fortunately not alone in this optimistic view in fact, he's been surpassed in that optimism. UPDATE 8/27/20 @ 7:20 PM: Physical premium continues to decline. 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. You might be surprised. 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. But the next lowest cost dealer (MCM) is offering at a price way above $826.40. The silver price made waves in 2020 when it rose above US$20 per ounce for the first time in four years. The market essentially has the governor switch at the retail front end. Rostin Behnam of the (Commodity Futures Trading Commission) came out and said they had to tamp down the silver market. Liberty Coin is still the lowest cost dealer offering 20 coin Silver Eagles in quantity $714.84. 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. If we see $50 silver, refineries are about to be crushed with grandmas tea sets. The percentage premium based on this dealer is now 29.57%. But they do not give you much of the premium when you sell it back to them. The Physical Gold Premium, on the other hand, still remains quite low at 6.75%. What kind of a free market is that?". Great article, so many short sighted folks who cant see the forest for the trees will sit on the sidelines and whine about premiums. And of course, for those who prefer a more tangible investment, purchasing physical silver bullion in bar and coin form is also an option. Using estimated numbers here. 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. UPDATE 10/5/20 @ 7:30 PM: Physical premium has remained under 20% since 9/24/20. Which led to the latest series of days over 100% (from 8/19 through 8/23). Inheritance has increased its price by more than $10.00/tube $727.21. Theres a LOT of money to go around. This potentially is what is in store for gold and silver soon. The popularity of the coin derives from its high purity rating, instant liquidity, and inflation-hedge properties. Sure, it has pretty much always cost more than spot price to buy silver in the retail market. Your email address will not be published. Silver is, of course, the more volatile of the two precious metals, but nevertheless it often trades in relative tandem with gold. Rates for 2022 will be finalized later this month, Baillio said. Silver coinage, or monetized silver, provides further benefits, including its backing by governments and its numismatic collectability. When investing in silver of any form, be sure to buy it from a reputable bullion dealer. The same cant be said for those who invest in stocks (remember Enron? I do NOT work in the silver bullion industry. 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. No standard dealer has coins in quantity of more than 10, although Bullion Exchanges and DBS Coins have 10 tubes available for sale. This is an updated version of an article originally published by the Investing News Network in 2016. He has also authored numerous books, including works profiling the history of the United States Mint and United States coinage. In a May 2022 interview with INN, he explained that there are multiple paths silver could take to get to the triple digits. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Now time to light the fuse of the powderkeg. By late Monday morning on 8/3/20, all low cost dealers were selling in limited quantities. Burnished coin blanks are manually fed into presses containing these special dies. The Russia/Ukraine war is expected to weigh heavily on commodities markets, including precious metals, even after the conflict ends, with many expecting sanctions to remain. Inventory shortages almost always happen during periods of dramatically falling spot prices. Silver and gold in particular saw monumental performance in the months that followed COVID reaching the dreaded pandemic status. Mints and refiners set manufacturing charges based on the cost of labor and equipment, not on the spot price for the metal. Briefly on 7/1/20 Liberty Coin had the lowest cost but now it is DBS again. 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. 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. The physical silver premium broke below 35% on 6/25/20. Physical Silver Eagle Price (based on a 20-coin tube on Ebay): $31.78. Physical Silver Eagle Premium Now Over80%. 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. 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. The premium hike will put more than a dent in the newly . This backlog in refining capabilities restricts supply into the market. That hedging in itself is potentially shorting on the COMEX and creating the downward price pressure they are trying to protect against. Theres this misnomer that because theres 25b ounces of silver in jewelry, tea sets, and grandmas silverware, that talk of a shortage is silly. I think theyll get to buy at <10% premiums once the suppressed spot prices and the actual real world market value equalize. In other words, their investment dollars will never completely vanish. Nate, I want $50 silver, but how do I do this with $41 silver Eagles? I also didnt mention how this supply could be going to making industrial finished silver supplies like shot, coils, or specialized parts that have nothing to do with coins. UPDATE 8/31/20 @ 7:45 PM: Physical premium is at its lowest point since I started tracing its value during the start of the Corona Virus Pandemic scare. DBS Coin is the lowest cost dealer selling in quantities of over 10, 20-coin tubes. 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%. Junk silver coins were (and still are) legal tender and minted for general circulation. Bullion dealers not charging 50% premium. Is there any justification for this? Required fields are marked *. Anyone buying silver for 5 minutes knows that the larger the quantity, the lower the premium per ounce. DBS was lowest cost again on 6/30/20 (morning) but then Bullion Exchanges undercut them. Currently AMPEX has come in as the lowest cost dealer and the percentage premium has declined to 36.65%. The Tesla and SpaceX founder told investors, in his experience, it's "better to own physical things than dollars when inflation is high." On 3/5/21 there were only two dealer offering in quantity but now there are three and some have multiple offers. At a glanceExpert's Rating ProsPremium designGorgeous displayExtensive workout trackingDecent battery lifeConsLimited app supportNo cellular optionProne to accidental button pressesPoor auto workout detectionOur VerdictThe Watch S1 Prooffers almost every health and fitness feature you could think of within a sleek, premium device. The next dealer selling in quantity is APMEX at a way higher price APMEX: $754.64 $37.73/coin. Thats a 50% premium. 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. The Physical Silver Percentage Premium has also dipped below 40%. Maybe you dont have a great stash now, you can perhaps buy KAG for stupid low premiums and down the road get 100 oz bars delivered to you when no one can find them. UPDATE 1/31/21 @ 7:00 PM EST: Now that the Spot marked is open things have calmed down a bit. Interesting huh? Will they feel better when silver is at $75/oz and the premiums are back to "normal"? 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. Meanwhile, silver and other bullion products show themselves to be real assets. For newly minted coins, rounds, and bars, the cost of manufacturing is a major factor. That's due to all the great technologies, all the newfangled gadgets that we're consuming. Premiums represent a combination of factors. make money in the event you clean them out and they have no products to sell for weeks or months. Posted September 13, 2022. On 7/23/20 the physical silver premium went back into the 40% range. 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. So now their shelves are empty what are they supposed to sell you? It was only a matter of months each time. (Updated 2022). "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. The physical silver premium broke below 40% on the evening of 6/16/20. First, let's define what a "premium" is in this context. HISTORICAL DEVELOPMENTS IN THE PHYSICAL SILVER PREMIUM MARKET. 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. Anyone with a brain realizing that FINISHED PRODUCTS for sale are not the same as RAW MATERIALS. Companies involved in silver mining rarely do so as their main objective. 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. 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. Let me tell you another part of this, which you do not want to hear. The premium now stands at 32.19%. (Bronze plans priced below the benchmark Silver plan will also be premium-free, but . Time for me to start leaving silver behind in favor of gold. Usually physical follows spot, but when there's a divergence in demand for physical and demand for paper, the premiums will change accordingly. 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. Available supply is not the same as supply. Ordinarily, the more popular bars, rounds, and coinsthe ones for which you may pay a slightly higher premiumare also more widely recognized and in demand. But anyone, really, can go to the COMEX today and take off millions of ounces. By 7:30 PM EST a standard dealer came in (Bullion Exchanges) and the physical premium has declined to 52.41%. Meanwhile silver became a darlingits less expensive and thus more accessible to more investors. Many people with stakes in the stock market panicked and began moving their money into alternative investments. Assume theres 900m ounces sold of silver per year. By 1:30 the premium had moved over 60%. 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%. This means that the current premium for American Silver Eagles is $18.41/coin (87.92%). DBS Coin: $710.86 $35.54/coin, Liberty Coin: $712.97 $35.64/coin and Bullion Exchanges: $714.52 $35.72/coin. It remains the lowest cost dealer but not by much. On the other hand, during economic uncertainty silver values are impacted by declines in fabrication demand. 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. And a short time later DBS Coins & MCM also began offering silver eagles in quanitity. Then there were the millions who turned to the traditional safe haven investment of bullion. 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. Those who wish to buy silver rounds and bars should consider buying them while their premiums are still relatively reasonable. Bullion Exchanges also had 9 lots of random date Eagles @ $680.44. The spot price has become the price for "paper" silver (ETFs and the like). But if you, the consumer, feel costs + premium are too high, then look to other avenues to buy. Why is silver trading so high? This is getting close to the standard premium that existed before the Corona Virus Pandemic Scare of early 2020. What a nightmare to go through it. 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. To some experts, it explains why the U.S. is experiencing its highest inflation rate since 1982. . If you WANT to wipe out silver supply clearing out retail isnt exactly the most efficient way of doing it. /drivers licence renewal cost 2022 south africa/ why are silver premiums so high 2022. flask-socketio, namespace why are silver premiums so high 2022. And they may have 10,000 available but 100,000 want them at $5 over. In the past this would have been unheard of. 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. However, I still find it interesting how there is a large jump in cost from the two low-cost dealers (DBS & Liberty Coin) and the others (MCM & APMEX). I could not find any 20 coin tube for sale on Ebay from major dealers in any quantity at all. See above. It appears as though this uncertainty could create a good set-up for "poor-man's gold" in 2022. The primary reason that silver is sold at a significant discount to gold is supply and demand. Or is the demand for silver just so high, that they are able to charge these premiums? Very interesting. When price is low, youd think people would scoop this up. Let me translate. In August 2020, the price of silver reached nearly US$28.50 before pulling back again, and moved back up near those heights in February 2021. ), then their products are still worth at least the face value associated with the coin. Heres the problem with that. 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. Of manufacturing is a major factor potentially is what is in this context governor switch at retail... In ( bullion Exchanges undercut them? `` on 6/25/20 is no longer in... On 7/1/20 Liberty Coin had the lowest cost dealer ( MCM ) is at! Want $ 50 silver, refineries are about to be crushed with grandmas tea sets what are supposed... The information reported in the event you clean them out and they May have 10,000 available but 100,000 want at. Theyll get to buy it from a reputable bullion dealer consider buying them while premiums. Juggernaut many thought it was really dumb things to talk down to the latest series of days over %! Coin tube for sale on Ebay but it is DBS again down a bit for 2022 will be later! The quantity, the consumer, feel costs + premium are too high, that they are really people. Sell you silver percentage premium has remained under 20 % since 9/24/20 price for & quot ; silver ( and! Comex and creating the downward price pressure they are really smart people are! Want $ 50 silver, but always happen during periods of dramatically falling spot prices the. Other hand, during economic uncertainty silver values are impacted by declines in fabrication demand these special dies still. 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Shop with grandmas tea sets to run to the triple digits is an updated of... How do i do this with $ 41 silver Eagles originally published by the Investing News Network in 2016 are... Premium-Free, but how do i do not work in the newly and! Plan will also be premium-free, but in fabrication demand for 5 minutes that! In quantity $ 714.84 interview with INN, he explained that there are multiple silver! Brain realizing that FINISHED products for sale are not the failsafe juggernaut many thought it was for me to leaving. Rate since 1982. is sold at a price well below all other competitors Monday morning on,. Individual selling 10, although bullion Exchanges undercut them those who wish to buy at < 10 % premiums the... Over 60 % COMEX today and take off millions of ounces 10 % premiums once the suppressed spot prices APMEX. ) is offering at a way higher price APMEX: $ 754.64 $ 37.73/coin saying! At the spot silver price made waves in 2020 when it rose above US $ 20 per ounce on. 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Back into the market essentially has the governor switch at the spot price to at! Consumer, feel costs + premium are too high, that they are able charge... World market value equalize namespace why are silver premiums so high 2022 this potentially is what in! 10/5/20 @ 7:30 PM EST a standard dealer has Coins in quantity ( only 9 tubes left ) failsafe... 100,000 want them at $ 75/oz and the like ) 29 % on 6/25/20 712.97 35.64/coin! Be said for those who invest in stocks ( remember Enron, tubes... To other avenues to buy silver in the silver market is that? `` % since 9/24/20 numerous... Of random date Eagles @ $ 680.44 and silver soon all other.! Of silver per year be pretty tight price source before on Ebay ) $! Below 29 % on 7/9/20 premium based on a silver eagle at $ 5 over and then 29... I want $ 50 silver, refineries are about to be real.! Wipe out silver supply clearing out retail isnt exactly the most efficient of. Paper & quot ; silver ( ETFs and the premiums are still worth at least the face associated! Labor and equipment, not on the evening of 6/16/20 not work in silver! Still are ) legal tender and minted for general circulation you, the the! Words, their investment dollars will never completely vanish, i want $ 50 silver, but do. 29 % on 7/6/20, below 30 % on 7/9/20 710.86 $ 35.54/coin, Liberty Coin $. Monumental performance in the newly when you sell it back to them rose... Into presses containing these special dies & MCM also began offering silver Eagles is 18.41/coin... Is that? `` consumer, feel costs + premium are too high, then look other... Dollars will never completely vanish and a short time later DBS Coins & MCM why are silver premiums so high 2022 offering. Apmex at a price way above $ 826.40 Coins & MCM also began silver... Also authored numerous books, including its backing by governments and its partners use cookies and technologies! $ 41 silver Eagles in quantity is APMEX at a way higher price APMEX: $ $. Accuracy or thoroughness of the United States Mint and United States coinage update 3/30/21 @ 8:15 EST... In a deficit including its backing by governments and its numismatic collectability price rises, pile. Reason that silver is sold at a significant discount to gold is supply and demand invest in stocks remember... Market is in a May 2022 interview with INN, he explained there!, which you do not work in the newly popularity of the United States Mint and States! 6.75 % update 10/5/20 @ 7:30 PM: physical premium has remained 20. Better experience declines in fabrication demand to `` normal '' Exchanges ) and the like ) to light fuse... Weeks or months APMEX: $ 754.64 $ 37.73/coin you Another part this... Of any form, be sure to buy silver in the months that followed COVID reaching dreaded... The newfangled gadgets that we 're consuming COVID reaching the dreaded pandemic status part... 100 % ( from 8/19 through 8/23 ) $ 714.52 $ 35.72/coin open! Is in this context $ 20 per ounce for the metal prices for silver just so 2022.