I think not lets take a look at what it actually DOES store! 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. While not all silver market watchers anticipate a triple-digit silver price in the near future, there is support for Neumeyers belief that the metal is undervalued and that ideal conditions are present for silver prices to rise., Many are on board with Neumeyer in the idea that silver's prospects are bright, including Peter Krauth of Silver Stock Investor, who believes that "we are very likely going to experience the greatest silver bull market of our generation.". Are high premiums on silver justified? Meanwhile, theres a line a block long in line to buy. UPDATE 7/6/22 @ 6:30 PM EST: The American Silver Eagle Premium almost hits 100% highest since I began keeping track. He thinks its only a matter of time before the market corrects, like it did in 2001 and 2002, and commodities see a big rebound in pricing. Is there any justification for this? You would do the exact same thing if you had 240 1,000 oz bars and 30,000 people instantly trying to buy them. Posted September 13, 2022. Edit: Im aware 1,000 oz bars are not going through your local coin shops I just wanted to show a point of sale before things go to the refineries to then be turned into finished products. You can take delivery of 100 oz bars, minimum of 200 oz. The next standard dealer with offers in quantity is Liberty Coin but you have to pay over a 60% premium for those coins. The next best deal is a 40-coin lot from Bullion Exchanges. You might be surprised. UPDATE 1/30/21 @ 9:45 PM EST: Something is certainly going on. This premium can also be expressed as 20% over spot. 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. PSLV is indeed draining 1,000 oz bars from the market. If you want $100 and $200 silver, look at the chart above. This may have something to do with what is happening on the Robinhood platform. This is exactly what happened today. Because this is the internet, of course someone called bullshit on me. (Updated 2022) , Silver Price Manipulation: Fact or Fantasy? With demand so high, you can go for awhile with keeping premiums high. In a May 2022 interview with INN, he explained that there are multiple paths silver could take to get to the triple digits. The past few years have been filled with major geopolitical events such as tensions between the US and other countries such as North Korea, China and Iran. But in advance of these, you see premiums go sky high. Notice the very large difference in offer prices almost a $120.00 difference. If you have constricted supply and massive demand, on a product that will increase in price and demand as price increases. Ive been calling for triple-digit silver for a few years now, and Im more enthused now, Neumeyer said at an event in January 2020, noting that there are multiple factors behind his reasoning. If you sell sausage, and theres a shortage of sausage from the suppliers, it doesnt matter if there are 23 billion pigs on the planet, its still a shortage. So I quite like silver a lot.". Mike Maloney told me the seigniorage on Silver Eagles is 50% higher today than when he started GoldSilver in 2005. But if you, the consumer, feel costs + premium are too high, then look to other avenues to buy. 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%. So as an investor, what are you to do about this? make money in the event you clean them out and they have no products to sell for weeks or months. From interesting classes to supermarket hunt, children can expect lots of exciting fun at . Using estimated numbers here. UPDATE 1/31/21 @ 2:00 PM EST: Aydin Coin is sold out. 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. The cheapest 500g coffee I can find is 6.75. The talking heads of the world stop talking like 25B oz is available. 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. Yet Apmex is selling a silver eagle at $38? The premium hike will put more than a dent in the newly . Is there any justification for this? And gold bars, Maybe 5%. By 7:30 PM EST a standard dealer came in (Bullion Exchanges) and the physical premium has declined to 52.41%. UPDATE 8/10/20 @ 7:45 PM: The previous low-cost dealer, MCM, does not show any coins for sale at previous prices (now MCM is offering 20-coin lots at $772.40) so the premium increased. For that reason, its helpful to look at gold price drivers when trying to understand silvers price action. As long as Arlington is in the market selling Silver Eagles, the physical premium will be artificially suppressed. 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%. Premiums represent a combination of factors. 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. 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 commoditys price uptick came on the back of very strong silver investment demand. While these products have also seen some increases in premiums in recent months, they pale in comparison to the price increases seen with monetized silver coins. Get your shiny. A currency is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. "It is so cheap relative to other metals and other. A lack of availability of silver bullion finished products have contributed to rising silver premiums. Everyone knows gold is also heavily manipulated, and using funds like OneGold, Kinesis Money, and PSLV will be able to put continued pressure on the 100oz bar market there and create the same net effect. Look at the drip above that is going to dealers. When retail gets cleaned out, they have to order more product from distributors or mints. Inventory shortages almost always happen during periods of dramatically falling spot prices. While this is the case throughout the silver industry, it seems to be especially pronounced on monetized silver coins more so than with silver rounds or silver bars. That hedging in itself is potentially shorting on the COMEX and creating the downward price pressure they are trying to protect against. I made a point yesterday to call out a popular bullion site because they also claimed no shortage. So now their shelves are empty what are they supposed to sell you? UPDATE 10/15/20 @ 7:30 PM: Physical premium is STILL under 20% 18.19% to be exact. How does this REALLY end in higher silver prices? If you want your silver, they cash you out to dollars, then you can buy at the best premiums on Apmex. What you and others can do if you are doxxed your rights online and with the law, Kinesis metals holdings as part of a LAYERED approach a USE CASE for Kinesis Monetary System, Follow Renaissancemen.org on WordPress.com, That the price point will then unlock supply, bringing this supply to market, That the refining capability exists to then process raw materials into finished products. UPDATE 2/1/21 @ 8:55 AM EST: APMEX is still offering 20-coin silver eagle tubes in quantity. 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). The current gold to silver price ratio of 1/76 is an historic outlier. During other months, silver and gold prices tend to have more volatility. Looks like the craziness has passed sort of for now. Great article, so many short sighted folks who cant see the forest for the trees will sit on the sidelines and whine about premiums. This means that the current premium for American Silver Eagles is $18.41/coin (87.92%). Junk silver refers to United States minted dimes, quarters and half dollars with dates before 1965 consisting of 90% silver and 10% copper. Los Angeles Times, June 12, 2013. The coins are then struck multiple times. That's due to all the great technologies, all the newfangled gadgets that we're consuming. This premium can also be expressed as 20% over spot. The Physical Gold Premium, on the other hand, still remains quite low at 6.75%. And then trying to lecture me that theres no shortage. Tiggre agrees with this long-term outlook. 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. "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. The spot price of coffee at the moment is 1.90 per lb (500g ish). This leads to increased buying and selling, and bullion sellers react accordingly. 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. And, it is NOT their duty to give you a price that makes YOU happy, but one that sustains their continued operations. The strength of the US dollar and US Federal Reserve interest rate changes are factors that will continue to affect the precious metal, as are geopolitical issues and supply and demand dynamics. The World Bank's Commodity Markets Outlook in October 2022 saw the silver price . "And we will be dealing with the costs for many years to come.". The silver price made waves in 2020 when it rose above US$20 per ounce for the first time in four years. There are no shortage at the timber level, but refining it into lumber is the bottleneck. 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. If you look at the spot price of silver at this moment, it's somewhere around $28. 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. UPDATE 6/15/22 @ 1:00 PM EST: Liberty Coinis thelowest cost dealer selling in quantities of over 10, 20-coin tubes. and new product arrivals. Thats roughly a 35% premium. There are a few different threads here where we have discussed this in more detail. That's roughly a 35% premium. As a result, silver bullion is more practical and versatile, making this type of silver investment more appealing. And these can be delayed for a long time. But why would THEY have such high premiums? Peter Krauth: The Great Silver Bull.triple digit silver is coming 174K views 754K views 2 years ago Mix -. 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. Then they just give you spot. INN - Investing News , Is Silver a Good Investment? However as often happens, Bullion Exchanges comes in with large coin quantities to lower the premium. As many analysts point out, silver has been known to outperform its sister metal gold during times of economic prosperity and expansion. Why is silver trading so high? Anyone with a brain realizing that FINISHED PRODUCTS for sale are not the same as RAW MATERIALS. The surprisingly big jump in Medicare Part B premiums for 2022 reflects the sky-high cost of a controversial Alzheimer's disease drug. UPDATE 3/18/21 @ 7:20 PM EST: DBS Coin is no longer selling in quantities of more than 10 20 tube lots. Physical Silver Eagle Price (based on a 20-coin tube on Ebay): $31.78. Venue: Eastpoint Mall. One can argue that why are the premiums so high on gold. This is why they need tampy tamp. The truth is they have a spigot providing them small amounts than cannot keep up with demand. It is now above 20%. UPDATE 7/29/21 @ 7:30 PM EST: The Physical Silver Dollar Price Premium is now under $9.00/coin. Bullion Exchanges, a major dealer, is now the lowest cost dealer selling in quantity. But it seems like the silver premium is up more these days than even just a few years ago. Silver is, of course, the more volatile of the two precious metals, but nevertheless it often trades in relative tandem with gold. 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. There are 10 tubes of coins on sale atLiberty Coin(a different offer) andAPMEXfor lower prices but I only count dealers who are selling more than 10 tubes. Ultimately, investors enjoy the built-in protections that mint-coined bullion offers. On 3/5/21 there were only two dealer offering in quantity but now there are three and some have multiple offers. Theres a LOT of money to go around. If you talk to some people who sell 1,000 oz bars theres no shortage of them. In periods of high demand, premiums for a given silver product are likely to increase. "Consumption numbers look like they're somewhere between 1.2 and 1.4 billion ounces. 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. 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. The price increases arent really uniform across the board, and the answer to the situation isnt necessarily all that simple. Are you keeping an eye on silver premiums these days? The $3 was seen as the cost to mint the coins. Problem is they charge you for the premiums, which I understand based on your explanation. To anyone with a business education, it makes them look disgusting as they are manipulating facts. Go to your favorite online dealer. 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%. 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. Liberty Coin is the lowest cost dealer selling in quantities of over 10, 20-coin tubes. Scroll. Don't be the last to know about the latest deals and new product arrivals. Because the idea is that they only provide so much to retail from the mints so they cannot move the markets enough to affect underlying price. (Bronze plans priced below the benchmark Silver plan will also be premium-free, but . This moves price higher to meet that 10,000 available and find the equilibrium. 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). Whats going on? The best price is MCM: $736.40 $36.82/coin (105 available). This represents a $11.75/45.12% premium. OK, so: 1) Let's say the spot price of silver today is $15 oz USD but by next week it dramatically falls to $10 oz. Inheritance has increased its price by more than $10.00/tube $727.21. I do NOT work in the silver bullion industry. "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. As a by-product metal, investors can also gain exposure to silver through some gold companies. Thats a 50% premium. Eventually, gold prices softened and have remained unsettled ever since. So by the way I figure if real first quality ASE are $40 then the GSR is $2000/40 or 50 to 1. The spot price has become the price for "paper" silver (ETFs and the like). The increase of their expected contribution toward ACA health insurance, and the corresponding decrease in their premium tax credit will be: $50,000 * 5.48% - $40,000 * 3.18% = $1,468. Economic Conditions After decreasing by almost 40% from highs in February 2022 and hitting a two-year low, the silver price has declined recently. Neumeyer expects a triple-digit silver price in part because he believes the current market cycle can be compared to the year 2000, when investors were sailing high on the dot-com bubble and the mining sector was down. ), and even real estate (its not easy selling homes in a depressed markettry it, youll see). Theres this misnomer that because theres 25b ounces of silver in jewelry, tea sets, and grandmas silverware, that talk of a shortage is silly. Companies involved in silver mining rarely do so as their main objective. why are silver premiums so high 2022. why are silver premiums so high 2022. university of chicago writing professor . Lets look at dealers. Then there were the millions who turned to the traditional safe haven investment of bullion. This would be Liberty Coin $685.38 $34.27/coin & APMEX: $804.74 $40.23/coin. Premium is the additional cost of any Precious Metal above the spot price, which accounts for the costs of doing business, such as fabrication and distribution, and perhaps additional collectible, or numismatic, costs for rare items. Your email address will not be published. And perhaps go Palladium and hit $100-$200 silver beyond that. But lets get back to premiums. Remember at the same time those who deal with 1,000 oz bars are telling you theres no shortage, come here and they have 5-16x higher premiums than normal. The current premium has declined to 44.02%. The premiums are so high because people who don't think or research the ups and downs of silver prices continue buying. That is to say, a ratio of 1/10.3. 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. 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