As Physical Silver Demand Soars, Bullion Dealers Offer Huge Buy-Back Premiums

[jct74]

As Physical Silver Demand Soars, Bullion Dealers Offer Huge Buy-Back Premiums

For those who have been keeping an eye on silver, things are getting a little tight.

Earlier Wednesday we noted a report from Ronan Manly of BullionStar.com, who revealed that more than 50% of deliverable silver on COMEX is suddenly 'not available.' Manly brought up this Oct. 19 tweet from metals expert Nicky Shiels, who said of delegates in attendance at the annual LBMA (Gold) conference in Lisbon; "they are mildly bearish Gold for the year ahead ($1830 by 2023s conference) but super bullish Silver ($28.30!) as the focus was on physical tightness driven by unprecedented demand."

Second, the spot market for silver remains in backwardation - meaning that the spot price of silver is above the futures price, which indicates an extremely strong demand for physical metal right now.

And as teh chart below shows, while silver futures have gone nowhere in the last four months, the price of physical coins has been soaring...

Demand has become so strong that, as the chart below shows, the extent of the physical silver percentage premium over spot is almost unprecedented...

The result? Bullion dealers are offering giant premiums over spot to buy silver.

APMEX, for example, is offering $10 over spot per coin right now.

...

https://www.zerohedge.com/commoditi...llion-dealers-offering-huge-buy-back-premiums

 

[oyarde]

If your dealer has an account with Upstate Coin and Gold they are paying dealers spot plus 13.25 on 2022 ASE's , spot plus 12.65 for various years sealed monster boxes , spot plus 12.50 for various years sealed tubes , spot plus 9.5 for imperfect , spotted , toned . Spot plus 5.00 on Libertads , spot plus 4.75 on Pandas. 84.00 on proof silver eagles in original govt packaging . Premiums on Proof Gold Eagles are high. They are selling those 2022 silver eagles to dealers at spot plus 15.95 and Libertads at spot plus 13.00. This puts retail for a silver eagle at spot plus 16 plus 10 percent , on 20.00 silver thats 40 bucks , retail on a proof about 102. There has been more buyers than sellers since the plague began.

 

[Brian4Liberty]

I would point out that the US government controls production of Silver Eagles. No competition in production.

On the other hand, if there are no blank silver rounds available, they can't make Eagles.

 

[oyarde]

Ive been picking up an occasional gold proof 1/10 oz gold eagle. I pay well for those. I rarely buy ordinary silver eagles for myself , I will mention though our supplier hhas been out of 2022 1/4 ounce gold eagles for some time. I did buy a silver round the other day ( kind of unusual for me ) it was a 2000 Norfed Ten Dollar denominated silver ounce . Usually I buy things more like uncirculated Morgan dollars , 1850's gold dollars or 2 1/2 gold coins ,classy like me

 

[oyarde]

I think spot will have to move back to 30 before these premiums go away. The premium wolesalers are selling 90 percent silv dime and quarters to dealers at is very high , basically about 30 an ounce , halves are higher.

 

[oyarde]

So the real price of silver is and has been 30 an ounce , reaching 40 for something like an eagle. We still sell ten ounce bars at under 260 ( currently 247 , up 2.00 in past two days)at the shop because we get a deal on those but thats about the only cheap silver and everyone is about out of one ounce rounds , bars , five ounce and ten ounce bars,.

 

[oyarde]

Well we've sold out of 10 oz silv bars and 1 oz silv rounds now at the shop with next deliveries due " early Nov. " of 90 ten oz bars and 250 rounds, still have eagles , 90 percent and some one oz bars. Oddly enough our cost on one oz bars are always at least .25 cents higher than rounds. I worked so hard today selling junk Merc dimes , junk Indian Cents , junk Buffalo nickels , one ounce rounds , ten ounce bars I rewarded myself with a gift purchase of 100 rounds of 28 Ga 7 1/2's and 12 Ga 00 Buck for my collection. Almost time to put a tasty quail in the skillet. Couldnt get any 28 Ga 6's. Shortages of everything under dems in amerika.

 

[CaptUSA]

Well we've sold out of 10 oz silv bars and 1 oz silv rounds now at the shop with next deliveries due " early Nov. " of 90 ten oz bars and 250 rounds, still have eagles , 90 percent and some one oz bars. Oddly enough our cost on one oz bars are always at least .25 cents higher than rounds. I worked so hard today selling junk Merc dimes , junk Indian Cents , junk Buffalo nickels , one ounce rounds , ten ounce bars I rewarded myself with a gift purchase of 100 rounds of 28 Ga 7 1/2's and 12 Ga 00 Buck for my collection. Almost time to put a tasty quail in the skillet. Couldnt get any 28 Ga 6's. Shortages of everything under dems in amerika.

Nice trade. I like to keep my back up plan diverse - but I never know what ratio to store between PM's, ammo, food, fuel, etc. I'm hanging on to my PM's for now, but always curious when to start trading them for the other things.