He has also authored numerous books, including works profiling the history of the United States Mint and United States coinage. 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. 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. And gold bars, Maybe 5%. This potentially is what is in store for gold and silver soon. One of the reasons the premium on silver is so high compared to gold is the mining and refining costs. UPDATE 7/27/21 @ 1:10 PM EST: The Physical Silver Dollar Premium has slipped below $10.00 for the first time since 3/22/21. Your email address will not be published. These retail companies have a business to run. 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. Scroll. These dealers wereInheritance Precious Metals&Hannigan Coin. Published: Dec 19, 2022. UPDATE 10/15/20 @ 7:30 PM: Physical premium is STILL under 20% 18.19% to be exact. Not sure if this will last throughout the day because, quite often, DBS Coin comes in with very low prices later in the day. Which led to the latest series of days over 100% (from 8/19 through 8/23). 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. This represents a $11.75/45.12% premium. 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? When the COVID-19 pandemic hit, the Fed cut rates down to zero from 1 to 1.25 percent. The Physical Gold Premium, on the other hand, still remains quite low at 6.75%. The American Silver Eagle proofs carry a significant premium over the spot silver price. And for that, please take a look at the three options I mention above. Its not. I mean, except for an unlikely scenario, it seems to me that this is a paradigm shift; it's a one-way transition," he said. 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. The spot price has become the price for "paper" silver (ETFs and the like). Is there any justification for this? So assume silver runs up to $50 and you run to the coin shop with silverware. So, if the silver price does rise, how high will it go? And gold bars, Maybe 5%. , Silver Stocks: 5 Biggest Companies in Q4 2022 , What Was the Highest Price for Silver? The increased demand has thus pushed silver premiums to higher levels. This may have something to do with what is happening on the Robinhood platform. Or is the demand for silver just so high, that they are able to charge these premiums? "Once silver gets above US$33 and it stays there for three or four days or better yet, even two or three weeks there's not much holding it back to hit US$50 again," he said at the time. Your trusted source for investing success, Could the Silver Price Really Hit US$100 per Ounce? DBS was lowest cost again on 6/30/20 (morning) but then Bullion Exchanges undercut them. UPDATE 8/19/20 @ 9:10 AM: Liberty Coin came in with very low prices on a lot of 20 coins so the premium plunged this morning down to near 26.00% before rebounding above 27% later in the day. They may deny you. That is to say, a ratio of 1/10.3. 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. 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. The silver price made waves in 2020 when it rose above US$20 per ounce for the first time in four years. You are then running into premiums twice. Meanwhile, theres a line a block long in line to buy. Proof Coins Proof coin premiums are almost always slightly higher because these coins represent the highest quality that a mint will produce. 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? In addition, there is still a wide gap between the low-cost dealer (DBS Coin) and the others. Now time to light the fuse of the powderkeg. Usually physical follows spot, but when there's a divergence in demand for physical and demand for paper, the premiums will change accordingly. By 1/19/21 (evening) it had moved back into the 19% range. It is also important to note that this dealer does not automatically modify its price with each move in the spot market. First, let's define what a "premium" is in this context. 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. 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%. At $28, no one is likely to run to the coin shop with grandmas silver. A currency is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. Dont forget to follow us @INN_Resource for real-time news updates! Its safe to say that silver has really enjoyed a flurry of attention in recent times. If they increase their income to $50,000, they are expected to pay 5.48% of their income. Heres the problem with that. In fact, this is generally the main reason why any gold, silver or platinum product would come with high premiums. 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%. 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. Some may mark up prices to prevent running out of inventory, or to capture profits. As of 5/29 in the afternoon DBS was no longer selling in quantity now Bullion Exchanges is. Looks like the craziness has passed sort of for now. Problem is, the rabid demand will outstrip available product coming in that can be sent to retail. And they may have 10,000 available but 100,000 want them at $5 over. That's due to all the great technologies, all the newfangled gadgets that we're consuming. However as often happens, Bullion Exchanges comes in with large coin quantities to lower the premium. This is why they need tampy tamp. Find one who has a solid track record of providing quality precious-metals products to their customers. Briefly on 7/1/20 Liberty Coin had the lowest cost but now it is DBS again. Bullion dealers not charging 50% premium. The premium hike will put more than a dent in the newly . 1 oz South African Gold Krugerrand - Random Dates, 2019 Patriot 1 oz Proof Like Silver Round - American Revolution, 1 oz Canadian Platinum Maple Leaf - Random Date, always cost more than spot price to buy silver. The premium on a silver product is the amount of money above the spot price of silver that the product costs. This accounts for yet another spike in physical silver premiums to almost 60%. Bullion Exchanges was the least expensive dealer (in quantity) beginning 6/19/20 until DBS (briefly) took the lead on 6/22/20. See above. To anyone with a business education, it makes them look disgusting as they are manipulating facts. You should by now already have a decent physical stash. If you find the information on this website interesting or useful, please consider supporting my work by clicking this link and donating through PayPal. Why is silver trading so high? High premiums are proof that stackers were wise to stack all these years. 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. 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 current premium on American Silver Eagles is at historic levels. 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. One of the most popular options for buying silver at a cheaper price is to purchase silver bars and rounds. There are a variety of ways to get into the silver market. Bullion Exchanges also had 9 lots of random date Eagles @ $680.44. silver bars, you're paying approximately a 20-25% premium on. And, yes, Bullion Exchanges did come in with quantity by 9:30 PM EST. 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. "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 these can be delayed for a long time. As a by-product metal, investors can also gain exposure to silver through some gold companies. 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. Investing News Network websites or approved third-party tools use cookies. Go down to a community college. If you look at the spot price of silver at this moment, its somewhere around $28. That still sounds high, but it is not unreasonable if you look at it on a "per coin" basis. 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