UPDATE 4/9/21 @ 9:15 AM EST: The brief decline in the physical silver price earlier in the week has ended. In a May 2022 interview with INN, he explained that there are multiple paths silver could take to get to the triple digits. At least this has been the case since I started to closely follow the Ebay market since last Spring. In periods of high demand, premiums for a given silver product are likely to increase. What is normal? Learn more about the current gold and silver market from Gainesville Coins: Silver Investment Returns: Analysis for Investors, Silver Price Today: Check Silver Spot Prices. The World Bank's Commodity Markets Outlook in October 2022 saw the silver price . Neumeyer has voiced this opinion often, most recently discussing it in an August 2022 interview with Wall Street Silver. They may deny you. UPDATE @ 9:10 AM EST: Sure enough, DBS Coin came in as the lowest cost dealer $673.38/$33.67 per coin. Silver Forecasts predicts that sustainable global silver demand will hit an eight-year high of 1.025 billion ounces by 2021 alone, driven by increased investment in industry, jewelry, manufacturing and physical demand. UPDATE 11/1/20 @ 7:30 PM EST: Physical premium dipped below 20% and has remained there since. As DEMAND rises, PRICE must move up in order to adjust to limited supply. Available supply is not the same as supply. This increasing demand for the white metal is happening in concert with decreasing mine supply, which has the potential to push the silver price to US$50 just not in the short term. They are really smart people who are saying really dumb things to talk down to the uneducated and drive a dishonest media narrative. As of 5/29 in the afternoon DBS was no longer selling in quantity now Bullion Exchanges is. 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. 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. 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 inflation continues to rise and reaches double-digit values through 2022 and 2023, the price of $100 an ounce for silver could be possible. 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 1/30/21 @ 10:15 PM EST: I finally found a dealer selling 20-tube coins Aydin Coins. NOTE: Daily graph is updated once per day. Does gold store energy? We are also discovering just how fragile the cryptocurrency world really is. The next best deal is a 40-coin lot from Bullion Exchanges. A silver Britannia is about 8 per coin over spot. Doesn't seem so bad now when you consider the process from mine to your hand is very similar regarding cost. Bullion Exchanges, a major dealer, is now the lowest cost dealer selling in quantity. 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. You would do the exact same thing if you had 240 1,000 oz bars and 30,000 people instantly trying to buy them. Weve set the scene: Investors have put a lot of money into cryptocurrency, real estate, and other investments during some very tenuous timescertainly the most nerve-wracking socioeconomic situations of this century and easily the most dire since the global economic troubles of the 1970s era. Now time to light the fuse of the powderkeg. The physical silver premium broke below 35% on 6/25/20. American Silver Eagles' premiums are high for one main reason: demand. (Updated 2022). Join us today for FREE! 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). I think it is asinine to call out bullion dealers as bad people or crooks because YOU are about to wipe them out of inventory and THEY need to protect their business. Silver is also being drained from the paper exchanges and IMHO something is afoot. This leads to increased buying and selling, and bullion sellers react accordingly. They just keep raising it, and over time that increase has been fairly substantial. First, let's define what a "premium" is in this context. To anyone with a business education, it makes them look disgusting as they are manipulating facts. The bullion content is guaranteed by these longstanding names. This is why the premium on physical silver declined from its 66.22% high earlier in the day. As a by-product metal, investors can also gain exposure to silver through some gold companies. UPDATE 7/6/22 @ 6:30 PM EST: The American Silver Eagle Premium almost hits 100% highest since I began keeping track. This would be Liberty Coin $685.38 $34.27/coin & APMEX: $804.74 $40.23/coin. Scan this QR code to download the app now. Hannigan is still steady at $729.98/tube. UPDATE 10/28/20 @ 7:20 PM EST: Physical premium is back above 20%. A similar twenty-percent premium . Nonetheless, well-known figure Keith Neumeyer, CEO of First Majestic Silver (TSX: FR. UPDATE 8/10/20 @ 10:05 AM: The decline in premium has continued since 8/5/20. Silver prices traded slightly lower on Friday, down 16 cents an ounce. The silver price made waves in 2020 when it rose above US$20 per ounce for the first time in four years. 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. 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. And they may have 10,000 available but 100,000 want them at $5 over. 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. But in advance of these, you see premiums go sky high. "The industrial demand for silver, the actual use case the solar panels, electrification, the silver in the cars is just going up and up and up. All information provided for educational and entertainment purposes only. Consider whats happening over the last several months, though. The premium now stands at 32.19%. Why are American Silver Eagle Premiums High? This represents a $11.75/45.12% premium. The value of silver is already lower than many other metals, but more importantly it is rarely found on its own. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. What a nightmare to go through it. "And we will be dealing with the costs for many years to come.". Know that the correct answer will depend upon your objectives mostly. The silver squeeze will then be the blueprint for the gold squeeze. Using estimated numbers here. 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. Anyone with a brain realizing that FINISHED PRODUCTS for sale are not the same as RAW MATERIALS. Meanwhile silver became a darlingits less expensive and thus more accessible to more investors. The increased demand has thus pushed silver premiums to higher levels. On the bright side, premiums have not been this low for a long time . But it seems like the silver premium is up more these days than even just a few years ago. Speaking to the Investing News Network (INN) in March 2022, not long after the conflict broke out, Lobo Tiggre, founder and editor of IndependentSpeculator.com, said he believes these sanctions will lead to a "new Iron Curtain," which will have lasting economic consequences on a global scale. By continuing to browse the site, you agree to our use of cookies. Outlook, Risks, Comparison to Gold , How to Invest in Silver as an Inflation Hedge | Investing 101 | US News , Investing in Gold and Silver: A Decision Guide | Morgan Stanley , Maria Smirnova: Gold Outlook Strong in 2023, Silver Swing Factor to Watch, Should You Invest in Silver Bullion? Here are just a few of the private-mint silver products that you can buy for relatively low premiums: Mason Mint silver bar, one of the most affordable 10 oz silver bars. This backlog in refining capabilities restricts supply into the market. 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. Lets look at silvers recent history. The current gold to silver price ratio of 1/76 is an historic outlier. Pre-sales for future delivery are not counted. In my opinion, the demand for physical investment has by far been the biggest disruptor . 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. By the afternoon of 7/30/20 the premium skyrocketed to over 60% because all of the low-cost dealers were selling in quantities of fewer than 10. Mike Maloney told me the seigniorage on Silver Eagles is 50% higher today than when he started GoldSilver in 2005. This is now obvious with the failure of FTX and huge losses seen with the popular Bitcoin and other digital currencies. UPDATE 3/21/22 @ 1:00 PM EST: The Physical Silver Premium continues to spike and has climbed over 50% it now stands at 57.83%. 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 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%. Current premium stands at $17.93/82.54%. 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. Problem is they charge you for the premiums, which I understand based on your explanation. They are NOT in the business of running a charity. HISTORICAL DEVELOPMENTS IN THE PHYSICAL SILVER PREMIUM MARKET. PSLV is indeed draining 1,000 oz bars from the market. You should by now already have a decent physical stash. American Gold/Silver Eagle Physical Premium Over Spot. Current percentage premium is 44.63%. Its safe to say that silver has really enjoyed a flurry of attention in recent times. Those who wish to buy silver rounds and bars should consider buying them while their premiums are still relatively reasonable. 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. 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%. Liberty Coin is the lowest cost dealer selling in quantities of over 10, 20-coin tubes. 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. 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. 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. 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. make money in the event you clean them out and they have no products to sell for weeks or months. Im also aware as supply is unlocked, its possible the refineries and others are hedging what they just bought to protect from downside price moves. INN - Investing News , Is Silver a Good Investment? And thats 1,000 oz bars. Rates for 2022 will be finalized later this month, Baillio said. Immediately, please stop reading. 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. The premium hike will put more than a dent in the newly . This premium can also be expressed as 20% over spot. A silver Britannia and a gold Britannia have almost exactly the same journey from the ground to the customers hands, same machines, same transport and probably the same employees manufacturing them. As mentioned, some experts, including Krauth, agree with the triple digit silver hypothesis. Plus, silver has the added advantage of being a widely used industrial metal. I cant blame them. Meanwhile, theres a line a block long in line to buy. UPDATE 10/27/20 @ 7:20 PM EST: Physical premium is back below 19%. It remains the lowest cost dealer but not by much. Mints and refiners set manufacturing charges based on the cost of labor and equipment, not on the spot price for the metal. It is also harbored by preppers and survivalists who believe silver has trading potential should the monetary system as we know it collapse. I wouldnt trust them at all.. The same cant be said for those who invest in stocks (remember Enron? 3,273. But if you go into these markets and listen to the people who are telling you bullion dealers are gouging you due to fake shortage are selling you a product they perhaps marked up 5-16x on premiums. . Modern Coin Mart (MCM) is offering a price well below all other competitors. After that you have to pay $826.14 from Bullion Exchanges because it is the next dealer selling in quantities over 10. Eventually, gold prices softened and have remained unsettled ever since. 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). In the past this would have been unheard of. In fact, this is generally the main reason why any gold, silver or platinum product would come with high premiums. In fact, in order for the precious metal to jump to the US$100 mark, its price would have to increase from its current value by more than 350 percent. 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. The premium on a silver product is the amount of money above the spot price of silver that the product costs. silver bars, youre paying approximately a 20-25% premium on. Look at the drip above that is going to dealers. In order to glean a better understanding of the precious metals chances of trading around the US$100 range, its important to examine the elements that could push it to that level or pull it further away. 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%. Gold coin premiums and silver coin premiums will have much more fluctuation, especially when you start to factor in collectability and rarity. In an extreme scenario, we could see inflation take the reigns and bring silver prices over the $100 mark. 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. The primary reason that silver is sold at a significant discount to gold is supply and demand. At times hes been even more bold, suggesting the white metal could reach US$1,000. Premiums for ACA Marketplace benchmark silver plans are increasing on average across the U.S. in 2023 after four years of slight declines. Buy PSLV or another ETF that you trust. fretboard, Feb 10, 2021. why are silver premiums so high 2022. why are silver premiums so high 2022. university of chicago writing professor . However, premium changes vary by . 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. ( 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. Using estimated numbers here. What you find from these dealers is that the US mint only makes so many eagles. Interesting huh? I got into a Twitter disagreement with some popular sites over the last 2 months because they were calling out high premiums by dealers as insane and playing the argument that they have no shortage of 1,000 oz bars. The market essentially has the governor switch at the retail front end. The problems are twofold with this statement: When I have been doing my metrics guides up, you look for refiners being backed up months. But now, we can filter a lot of those people towards other instruments, bypassing the air brakes of the trickle of the retail front end supply. UPDATE 3/18/21 @ 7:20 PM EST: DBS Coin is no longer selling in quantities of more than 10 20 tube lots. Many of these products are available in attractive designs and some are collected on their aesthetic merits. Supposedly, this is matched to silver in their vaults. What kind of a free market is that?". 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 talking heads of the world stop talking like 25B oz is available. Your trusted source for investing success, Could the Silver Price Really Hit US$100 per Ounce? 1. 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. 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. World Bank & # x27 ; premiums are still relatively reasonable reached in March 2022, when the yellow-colored metal! Of money above the spot price of gold was reached in March,... Objectives mostly sky high update 7/27/21 @ 1:10 PM EST: physical premium dipped below 20 % spot... 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An historic outlier would be Liberty Coin is no longer selling in quantities more! Silver Dollar premium has slipped below $ 10.00 for the first time four. Will depend upon your objectives mostly is they charge you for the premiums, which I understand on.