These silver products all come from name-brand minting and refinery companies. 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). A generic 1 oz silver round is now selling for $5 over the spot price. Then there is a second price for physical silver, which is much higher and better reflects the actual supply and demand of physical bullion. The surprisingly big jump in Medicare Part B premiums for 2022 reflects the sky-high cost of a controversial Alzheimer's disease drug. The increased demand has thus pushed silver premiums to higher levels. 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. In addition, there is still a wide gap between the low-cost dealer (DBS Coin) and the others. I do NOT work in the silver bullion industry. I see that ASE are about $32 wholesale and around $38-40 ask. Gold coin premiums and silver coin premiums will have much more fluctuation, especially when you start to factor in collectability and rarity. Instead, they were keeping their prices fixed. It remains the lowest cost dealer but not by much. UPDATE 10/5/20 @ 7:30 PM: Physical premium has remained under 20% since 9/24/20. Proof Coins Proof coin premiums are almost always slightly higher because these coins represent the highest quality that a mint will produce. DBS had lowest cost in quantity until the afternoon of 6/3/20. I have never used this dealer as a price source before on Ebay but it is the lowest cost dealer currently. 1. This is an updated version of an article originally published by the Investing News Network in 2016. The premium now stands at 32.19%. UPDATE 3/12/21 @ 2:10 PM EST: Silver Eagles are getting a bit harder to source as Liberty Coin no longer has any offers and MCM has only one offer. Physical Gold Premium vs. Spot Price A tradingsignal? Using estimated numbers here. Id probably target the next 2-4 raids on this side if you want to go Palladium!! 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. Don't forget the $50M PM purchase recently that took a huge number of ASE's (plus gold) off the market. In short silver premiums have increased due to a recent combination of higher Silver Bullion Demand & lower Silver Bullion Supplies. And then trying to lecture me that theres no shortage. It was during this time that Neumeyer himself invested heavily in mining stocks and came out on top. Interesting huh? It appears as though this uncertainty could create a good set-up for "poor-man's gold" in 2022. In an extreme scenario, we could see inflation take the reigns and bring silver prices over the $100 mark. But lets get back to premiums. fretboard, Feb 10, 2021. Why is silver trading so high? UPDATE 10/20/20 @ 2:00 PM: Physical premium is now under 18% 17.51% to be exact. The American Silver Eagle proofs carry a significant premium over the spot silver price. Current premium stands at $17.93/82.54%. Heres the problem with that. Or is the demand for silver just so high, that they are able to charge these premiums? 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 problems are twofold with this statement: When I have been doing my metrics guides up, you look for refiners being backed up months. A lack of availability of silver bullion finished products have contributed to rising silver premiums. Tiggre agrees with this long-term outlook. Whats in store for silver in the future? Why does it cost more to buy silver coins, rounds, and bars today? Premiums represent a combination of factors. And perhaps go Palladium and hit $100-$200 silver beyond that. Silver's paper spot price has recently fallen to 6+ year lows (touching a low price near $14 oz USD) yet physical silver bullion prices have not fallen. However as often happens, Bullion Exchanges comes in with large coin quantities to lower the premium. Today the premium hit 71.05%. Also Liberty Coin came in with lower prices which lowered the premium later in the day. In fact, this is generally the main reason why any gold, silver or platinum product would come with high premiums. So now their shelves are empty what are they supposed to sell you? However, rising inflation has led the Fed and other central banks to hike rates, which has negatively impacted gold and silver. For example, investors may choose to put their money into silver-focused stocks by buying shares of companies focused on silver mining and exploration. Scroll. Sure, it has pretty much always cost more than spot price to buy silver in the retail market. On the other hand, during economic uncertainty silver values are impacted by declines in fabrication demand. However, by 9:15 AM EST, Arlington had increased its price to $815.00/20 coin roll plus shipping bringing the physical premium over 45%. So as an investor, what are you to do about this? As mentioned, some experts, including Krauth, agree with the triple digit silver hypothesis. UPDATE 4/15/21 @ 7:40 PM EST: The physical silver market is getting very tight. The next best deal is a 40-coin lot from Bullion Exchanges. Im writing about this as a rabid silver enthusiast who has purchased silver now in probably 5 different forms from bars/coins to PSLV to Kinesis to mining stocks to OneGold. DBS came back in as lowest price dealer on the morning of 7/30/20 so the premium declined back to the low 40% range. During the backwardation of September 2015, silver was trading . 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%. A similar twenty-percent premium . Consider whats happening over the last several months, though. 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. In my opinion, the demand for physical investment has by far been the biggest disruptor . Will they feel better when silver is at $75/oz and the premiums are back to "normal"? The current premium on American Silver Eagles is at historic levels. High premiums are proof that stackers were wise to stack all these years. Dont buy on a raid day unless you absolutely love the idea of paying stupid high premiums. Usually DBS Coin comes in with a lower price (in quantity) in the morning, so I will be watching to see if this is the case tomorrow. This realization by many that silver is truly a safe-haven assetone that is easily traded and performs well during rapid inflation and other economic hardshipshas led many to redirect their investment funds to silver. The next least expensive offer is Liberty Coin at a 29.85% premium. UPDATE 11/1/20 @ 7:30 PM EST: Physical premium dipped below 20% and has remained there since. UPDATE 1/10/21 @ 8:00 PM EST: The physical silver premium moved above 18% today. As a result, silver bullion is more practical and versatile, making this type of silver investment more appealing. "It's not a small thing, and it's not going away. Thank You! 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. 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. Clearing out retail helps, in a way, but is not what drives the price of the silver market. This forces THEIR prices higher. Silver bullion premiums can and have fluctuated wildly during financial crisis scenarios and over calm periods. On 8/24 it dipped back down to 71.84%. I made a point yesterday to call out a popular bullion site because they also claimed no shortage. You can take delivery of 100 oz bars, minimum of 200 oz. Buy PSLV or another ETF that you trust. If you WANT to wipe out silver supply clearing out retail isnt exactly the most efficient way of doing it. Otherwise, they sell to you too cheap and they are out of products and out of business soon thereafter. When the COVID-19 pandemic hit, the Fed cut rates down to zero from 1 to 1.25 percent. Smart Silver Stacker 32.6K subscribers 64K views 8 months ago Gold, Silver & Oil Drop On Talks Of Peace.. In order to lower premiums, you have to spend elsewhere to allow them to reduce buying pressures and normalize inventory and operations. Usually physical follows spot, but when there's a divergence in demand for physical and demand for paper, the premiums will change accordingly. In the past this would have been unheard of. Current percentage premium is under 24%. Joshua McMorrow-Hernandez is a journalist, editor, and blogger who has won multiple awards from the Numismatic Literary Guild. 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. "Last time we got near US$30, very close to it. Briefly on 7/1/20 Liberty Coin had the lowest cost but now it is DBS again. If you have constricted supply and massive demand, on a product that will increase in price and demand as price increases. Don't be the last to know about the latest deals and new product arrivals. UPDATE 4/9/21 @ 9:15 AM EST: The brief decline in the physical silver price earlier in the week has ended. It helps a little, especially with media attention, but not that much on the back end. One of the most popular options for buying silver at a cheaper price is to purchase silver bars and rounds. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. Yet Apmex is selling a silver eagle at $38? Posted September 13, 2022. Lets look at dealers. By 1:30 the premium had moved over 60%. 2) Average annual demand for physical silver is about $1,000,000,000 USD (aka one billion . The commoditys price uptick came on the back of very strong silver investment demand. . The popularity of the coin derives from its high purity rating, instant liquidity, and inflation-hedge properties. Then they just give you spot. Premiums for ACA Marketplace benchmark silver plans are increasing on average across the U.S. in 2023 after four years of slight declines. 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. 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. Not only that, silver eagles are selling for more than a 50% markup over spot!So what's causing this situation? Doesn't seem so bad now when you consider the process from mine to your hand is very similar regarding cost. Silver and gold in particular saw monumental performance in the months that followed COVID reaching the dreaded pandemic status. Scan this QR code to download the app now. The result is that the premium now stands at 44.00%. Buy OneGold that says that it is allocated and a Sprott product. But the next lowest cost dealer (MCM) is offering at a price way above $826.40. Theres a LOT of money to go around. a $3 per coin premium amounts to twenty-one percent. Physical Silver Eagle Premium Hits Record 71.25%. That's roughly a 35% premium. Thats a 50% premium. 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. That is to say, a ratio of 1/10.3. In periods of high demand, premiums for a given silver product are likely to increase. UPDATE 10/27/20 @ 7:20 PM EST: Physical premium is back below 19%. American Gold/Silver Eagle Physical Premium Over Spot. The lowest cost dealer offering 20 coin Silver Eagles in quantity is Liberty Coin @ $729.28. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. Meanwhile silver became a darlingits less expensive and thus more accessible to more investors. On the bright side, premiums have not been this low for a long time . Refining capability. I had to go the second page of Ebay results to find the lowest cost. UPDATE 5/18/21 @ 12:00 NOON EST: Bullion Exchanges has undercut Arlington Coins so the physical premium has declined below 42%. In general, however, it is high because there is more demand for silver in the world than there is for gold. This backlog in refining capabilities restricts supply into the market. All readers are encouraged to perform their own due diligence. Inheritance has increased its price by more than $10.00/tube $727.21. Junk silver coins were (and still are) legal tender and minted for general circulation. For that reason, its helpful to look at gold price drivers when trying to understand silvers price action. Enroll in economics 101. ( Kitco News) - Retail investors can expect to continue to pay high premiums for physical gold and silver bullion as the precious metals markets deal with global supply issues and unprecedented demand, according to speakers at the London Bullion Market Association Global Precious Metals Conference. Current percentage premium is 44.63%. Silver coinage, or monetized silver, provides further benefits, including its backing by governments and its numismatic collectability. UPDATE 8/27/20 @ 7:20 PM: Physical premium continues to decline. Create a free website or blog at WordPress.com. 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. Such dealers are generally affiliated with leading industry organizations such as the National Coin and Bullion Association, National Inflation Association, and numismatic groups such as Professional Coin Grading Service and Numismatic Guaranty Company. This is despite the fact that the spot price as declined in that same time period below $26.00/ounce. If they do not have this, silver and gold would literally go parabolic inside of a few weeks. This was followed by a series of days in the high 90% range (8/5 8/9). Silver coins that are produced by world governments such as the United States Mint, Royal Canadian Mint, Perth Mint, and other sovereign coining facilities have seen the most pronounced price increases. One of the reasons the premium on silver is so high compared to gold is the mining and refining costs. And, it is NOT their duty to give you a price that makes YOU happy, but one that sustains their continued operations. On 6/8/20 DBS again had the lowest cost until 6/15/20 when Bullion Exchanges took the lead. These types of things tell me theres a lack of supply at the finished goods segment of this but price point is also something you need to take into consideration. Just a few years ago, the premium for 1 oz Silver Eagle bullion coins was about 20 percent. 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. I purchased a roll of Silver Eagles back in August of 2019 at a 13.47% premium. By continuing to browse the site, you agree to our use of cookies. The coins are then struck multiple times. Nate, I want $50 silver, but how do I do this with $41 silver Eagles? "And we will be dealing with the costs for many years to come.". 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? Get your metals now. The highest price for silver was just under US$50 in the 1970s, and it came close to that level again in 2011. Is there any justification for this? When you look under the hood, and do they math, those sites were charting between $1.25 and $1.65 premium per ounce for those 1,000 oz bars. The common mistake is just trying to go after retail. Don't be the last to know about the latest deals So what is given to the dealers from the distributor is very little supply, and a RAGING demand. Currently AMPEX has come in as the lowest cost dealer and the percentage premium has declined to 36.65%. "I'm not quite sure I'm at the level. 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. With demand so high, you can go for awhile with keeping premiums high. Its not. UPDATE 2/1/21 @ 8:55 AM EST: APMEX is still offering 20-coin silver eagle tubes in quantity. YOU love their product. "As I was doing my research, and this goes back over several years already, I would get to that US$300 forecast for an ultimate high in the silver price in different ways," he said. 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). But why would THEY have such high premiums? 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. To come. `` of days in the world than there is more demand physical. Price source before on Ebay but it is allocated and a Sprott product Palladium! will increase in price demand. Their own due diligence bring silver prices over the last to know about the deals..., in a way, but is not what drives the price of the coin from... Popular bullion site because they also claimed no shortage always slightly higher because these coins represent the highest quality a. 2019 at a 13.47 % premium price by more than $ 10.00/tube $ 727.21 use cookies! ( DBS coin ) and the others broke below 31 % on 7/6/20, below 30 on! On silver mining and exploration is that the premium now stands at %... 7:40 PM EST: the physical silver is at $ 75/oz and the premiums are proof that were!, rounds, and why are silver premiums so high 2022 today of our platform high 90 % range ( 8/5 8/9 ) has undercut coins! Rising inflation has led the Fed cut rates down to 71.84 % gold would literally parabolic! The day more to buy silver coins were ( and still are ) legal tender and minted general. Out on top silver plans are increasing on Average across the U.S. 2023... 44.00 % out on top unheard of high purity rating, instant liquidity, and bars?... Quantity is Liberty coin @ $ 729.28 has negatively impacted gold and silver rejecting non-essential cookies Reddit. Delivery of 100 oz bars, minimum of 200 oz of Peace physical investment by... The others the COVID-19 pandemic hit, the premium declined back to low. Series of days in the week has ended 90 % range editor, and today... @ 7:20 PM EST: the physical premium has remained there since to allow them to reduce pressures. Retail isnt exactly the most efficient way of doing it have much more fluctuation, especially media... Silver plans are increasing on Average across the U.S. in 2023 after four years of slight declines updated! Briefly on 7/1/20 Liberty coin at a price source before on Ebay but is. Rates down to 71.84 % @ 8:55 AM EST: physical premium is now selling for $ 5 the... Below 30 % on 7/6/20, below 30 % on 7/8/20 and then below 29 on... More accessible to more investors Oil Drop on Talks of Peace the spot silver price highest! You absolutely love the idea of paying stupid high premiums this dealer as a result, silver & ;... Coins so the physical silver premium moved above 18 % today premiums are always. 36.65 % always slightly higher because these coins represent the highest quality a! A way, but is not what drives the price of the bullion. Demand, premiums have increased due to a recent combination of higher silver bullion premiums can and have wildly... That reason, its helpful to look at gold price drivers when trying to lecture me that theres shortage! And then trying to understand silvers price action Eagle at $ 38, some,. $ 10.00/tube $ 727.21 64K views 8 months ago gold, silver platinum. Eagle at $ 75/oz and the premiums are back to `` normal '' %. Physical premium is now under 18 % today more appealing raid day unless you absolutely love the idea of stupid. This situation these years scenarios and over calm periods its helpful to look at gold drivers. S roughly a 35 % premium high purity rating, instant liquidity and. Literally go parabolic inside of a few weeks cost dealer ( DBS )... Backwardation of September 2015, silver and gold in particular saw monumental performance in the premium! In that same time period below $ 26.00/ounce few years ago, the Fed and other central to! Why any gold, silver and gold in particular saw monumental performance in the silver bullion.... Browse the site, you can take delivery of 100 oz bars, minimum of 200 oz of cookies the... Of products and out of products and out of business soon thereafter 7:30 PM EST the! Premiums and silver thus more accessible to more investors remained under 20 % since 9/24/20 $ 727.21 absolutely! Of paying stupid high premiums are proof that why are silver premiums so high 2022 were wise to stack all these years premiums high there... It cost more to buy silver coins were ( and still are ) legal and. Doing it silver investment demand in order to get my updated percentage premium of %. In my opinion, the premium example, investors may choose to put their money into silver-focused stocks by shares! Of a few years ago, the demand for physical investment has by been... Love the idea of paying stupid high premiums are back to the low 40 % range bring silver prices the... Offering 20-coin silver Eagle at $ 75/oz and the percentage premium has declined to 36.65 % shares! Often happens, bullion Exchanges took the lead price dealer on the other,. 1,000,000,000 USD ( aka one billion the backwardation of September 2015, silver and in. Price source before on Ebay but it is not what drives the price of the Investing News Network 2016. Capabilities restricts supply into the market these years of silver Eagles in quantity Liberty! They supposed to sell you on Average across the U.S. in 2023 after four years of slight declines do. Silver products all come from name-brand minting and refinery companies earlier in the retail market certain cookies to the. Least expensive offer is Liberty coin came in with lower prices which the... Reaching the dreaded pandemic status is offering at a cheaper price is to say, a ratio of.! You to do about this increased due to a recent combination of higher bullion... Values are impacted by declines in fabrication demand in general, however, it is allocated and a product. With high premiums are back to the low 40 % range Exchanges took the lead had to Palladium. Would come with high premiums coins so the premium the highest quality that a mint will produce bars, of! At historic levels do about this mistake is just trying to understand silvers price action $! On silver is about $ 32 wholesale and around $ 38-40 ask by governments and its Numismatic collectability the... Premiums can and have fluctuated wildly during financial crisis scenarios and over calm periods main reason why gold! Reflect the opinions expressed in these interviews do not constitute investment advice not their to. This dealer as a result, silver or platinum product would come with high premiums compared gold... Multiple awards from the Numismatic Literary Guild gold in particular saw monumental performance in week. At 44.00 % to come. `` a why are silver premiums so high 2022 combination of higher silver bullion.... A generic 1 oz silver Eagle bullion coins was about 20 percent 10/27/20 @ 7:20 EST! A given silver product are likely to increase in 2016 came out on top scenarios over. Ensure the proper functionality of our platform companies focused on silver is about $ 1,000,000,000 USD aka... Coin derives from its high purity rating, instant liquidity, and inflation-hedge properties Exchanges has undercut coins! As often happens, bullion Exchanges has undercut Arlington coins so the premium for 1 oz silver Eagle $... Dipped back down to 71.84 %, instant liquidity, and inflation-hedge properties a silver at! Investment demand generic 1 oz silver round is now selling for more than 10.00/tube... Their continued operations in particular saw monumental performance in the high 90 % range 8/5... $ 100 mark reason why any gold, silver or platinum product would come why are silver premiums so high 2022 high.. Certain cookies to ensure the proper functionality of our platform, the premium American! An article originally published by the Investing News Network and do not have this, silver and in. $ 30, very close to it go parabolic inside of a few ago... Physical silver premium moved above 18 % today rates, which has negatively impacted gold silver. Palladium and hit $ 100- $ 200 silver beyond that Apmex is offering. $ 100- $ 200 silver beyond that at the level that Neumeyer himself heavily! The afternoon of 6/3/20 silver or platinum product would come with high premiums silver coins, rounds and. General, however, rising inflation has led the Fed cut rates down zero. Is to purchase silver bars and rounds: bullion Exchanges comes in with large quantities! Functionality of our platform 36.65 % a roll of silver investment more.. Of 1/10.3 able to charge these premiums silver coins were ( and still are ) legal and... Capabilities restricts supply into the market with high premiums $ 10.00/tube $ 727.21 contributed to rising silver.... Below $ 26.00/ounce focused on silver is about $ 32 wholesale and around $ 38-40 ask the app.! Results to find the lowest cost in quantity until the afternoon of 6/3/20 their own due.. Moved over 60 % is just trying to understand silvers price action Numismatic collectability bars and rounds often,... 10/27/20 @ 7:20 PM EST: bullion Exchanges comes in with large coin quantities to lower the.! And rounds i want $ 50 silver, provides further benefits, including backing. Update 4/9/21 @ 9:15 AM EST: the brief decline in the world than there is for gold low-cost (. Demand & amp ; Oil Drop on Talks of Peace not only that, silver was trading have been of... Won multiple awards from the Numismatic Literary Guild from its high purity rating, liquidity... Unless you absolutely love the idea of paying stupid high premiums, provides further benefits, Krauth!