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. UPDATE: 5/6/21 @ 7:20 AM EST: Bullion Exchanges, a major dealer, finally came in with a price under Arlington Coins. 4. Which led to the latest series of days over 100% (from 8/19 through 8/23). The problems are twofold with this statement: When I have been doing my metrics guides up, you look for refiners being backed up months. Posted on 07/11/2022 by 07/11/2022 by See above. 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. The surprisingly big jump in Medicare Part B premiums for 2022 reflects the sky-high cost of a controversial Alzheimer's disease drug. A few weeks ago, I saw price at $27 and the price of eagles at $41. italy vs argentina predictions why are silver premiums so high 2022. Physical Gold Premium vs. Spot Price A tradingsignal? Silver has held the attention of humankind for at least 5,000 years. 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. Why is silver trading so high? In general, however, it is high because there is more demand for silver in the world than there is for gold. Nate, I want $50 silver, but how do I do this with $41 silver Eagles? Some premiums have been much higher than this example lately. How to prepare against a currency collapse. Silver is, of course, the more volatile of the two precious metals, but nevertheless it often trades in relative tandem with gold. THIS WILL MAKE RETAIL PREMIUMS JACKED. This would be Liberty Coin $685.38 $34.27/coin & APMEX: $804.74 $40.23/coin. UPDATE 1/24/21 @ 7:05 PM EST: The physical silver premium has moved above 20% for the first time since 11/11/20. UPDATE 1/30/21 @ 10:15 PM EST: I finally found a dealer selling 20-tube coins Aydin Coins. 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. 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. 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). 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. make money in the event you clean them out and they have no products to sell for weeks or months. With demand so high, you can go for awhile with keeping premiums high. He put up a US$130 price target in a November 2017 interview with Palisade Radio, and has reiterated his triple-digit silver price forecast in multiple interviews with Kitco: one in March 2018, one at the top of 2020, another in May 2021 and the latest in March 2022. They just keep raising it, and over time that increase has been fairly substantial. First, a proof coin is simply more expensive to make. American Silver Eagles' premiums are high for one main reason: demand. "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. There are no shortage at the timber level, but refining it into lumber is the bottleneck. You need to study and advance your position while you are able, getting tunnel vision and staying put while whining about gouging while likely only be to your own peril. The physical premium percentage moved over 45% while the Spot price declined under $24.00. Dates: 17 Feb 2023 (Registration), 13 - 18 Mar 2023 (Camp Dates) Fees: Spend $50 to secure a Bootcamp ticket for $10. If we take the statistics of the BIS published on 11/17/2021, the ratio of gold / silver derivatives is 1/8.4. 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. UPDATE 10/27/20 @ 7:40 AM EST: Physical premium increased to over 20% from 10/26 (evening) to 10/27 (morning). Also Liberty Coin came in with lower prices which lowered the premium later in the day. 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. The $3 was seen as the cost to mint the coins. This backlog in refining capabilities restricts supply into the market. UPDATE 12/18/20 @ 9:35 PM EST: Physical silver premium has now dropped below 17%. Dont forget to follow us @INN_Resource for real-time news updates! Stay tuned. Electric vehicles, solar panels, windmills, you name it. This low was set on 9/14/21 at 26.06%. 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. All readers are encouraged to perform their own due diligence. Next lowest cost standard dealer in quantities of over 10, 20-coin tubes is Liberty Coin. 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). Silver and gold in particular saw monumental performance in the months that followed COVID reaching the dreaded pandemic status. Cookie Notice Keith Neumeyer of First Majestic Silver has said he sees the white metal reaching US$100 per ounce. 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. Their prices are, gram for gram, cheaper than silver coins. I purchased a roll of Silver Eagles back in August of 2019 at a 13.47% premium. The next least expensive offer is Liberty Coin at a 29.85% premium. 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. UPDATE 3/18/21 @ 7:20 PM EST: DBS Coin is no longer selling in quantities of more than 10 20 tube lots. 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%. I added good amount of physical silver after the Covid outbreak and offset premiums by adding an additional 50% through OneGold. 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. If you WANT to wipe out silver supply clearing out retail isnt exactly the most efficient way of doing it. 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%. I had to go the second page of Ebay results to find the lowest cost. That's due to all the great technologies, all the newfangled gadgets that we're consuming. What is normal? 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. . But they do not give you much of the premium when you sell it back to them. 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. If you want to take down Darth Vader, youre going to need a bigger boat. UPDATE 9/29/21 @ 4:15 PM EST: The Physical Silver Premium has bounced almost 25% off of its recent low. After that initial move is complete, further fallout related to the. And they may have 10,000 available but 100,000 want them at $5 over. Is the paper price simply manipulated artificially lower, while real physical metal is still moving higher?What do you think is responsible for high premiums? As a by-product metal, investors can also gain exposure to silver through some gold companies. Current percentage premium is 44.63%. The price was WAY higher than I had bought at previously. "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. And then they have to wait weeks or months in order to get more product from the distributors. This is an updated version of an article originally published by the Investing News Network in 2016. Although Neumeyer believes that the ties that bind silver to gold need to be broken, the reality is that most of the same factors that shape the price of gold also move silver. Silver coinage, or monetized silver, provides further benefits, including its backing by governments and its numismatic collectability. Required fields are marked *. The above is showing you what the deal is and why your favorite dealer may be gouging you. 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. 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. For example, investors may choose to put their money into silver-focused stocks by buying shares of companies focused on silver mining and exploration. 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 opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. If you find the information on this website interesting or useful, please consider supporting my work by clicking this link and donating through PayPal. For that reason, its helpful to look at gold price drivers when trying to understand silvers price action. After that there are plenty of other dealers offering 20-coin lots for under $800.00. 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. (Updated 2022) , Silver Price Manipulation: Fact or Fantasy? 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. At least this has been the case since I started to closely follow the Ebay market since last Spring. ), cryptocurrency (dont forget FTX! Rostin Behnam of the (Commodity Futures Trading Commission) came out and said they had to tamp down the silver market. Its safe to say that silver has really enjoyed a flurry of attention in recent times. We will see how long it lasts. So as an investor, what are you to do about this? 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