The Mental Militia Forums

Please login or register.

Login with username, password and session length
Pages: [1]   Go Down

Author Topic: Premiums and Delivery Delays Rise  (Read 1459 times)

DiabloLoco

  • Guest
Premiums and Delivery Delays Rise
« on: September 25, 2015, 04:00:44 pm »

Premiums and Delivery Delays Rise on Silver Coins and Bars

http://www.commoditytrademantra.com/silver-trading-news/premiums-and-delivery-delays-rise-on-silver-coins-and-bars/

Quote
Silver bullion coins are continuing to see rising premiums and delivery delays due to continuing very robust demand and a lack of supply of all silver bullion coins.
Premiums on silver eagles have been creeping up since mid-May (see chart below) and wholesale premiums have risen from 14% in May to over 25% this week. Silver eagles remain probably one of the best proxies for silver coin demand and also of investment and store of wealth demand for silver.

The shortage of silver coins is due to continuing robust demand and a lack of supply of silver bullion coins. It is primarily due to a lack of coin minting capacity and of actual coin blanks or planchets.
At the same time, it should be noted that premiums are not far above the level seen in 2013 when they went over 22%. Indeed, at the height of the financial crisis in late 2008, premiums on silver eagle coins surged over 70%  (see chart below) due to sharp fall in the silver price after the Lehman collapse and the very high silver demand seen at the time.

The U.S. and Canadian Mints are rationing supply and wholesalers are waiting on allocations. For a second week in a row, the U.S Mint has reduced its weekly allocation of silver eagles – limiting sales of the silver coins since their return after temporarily selling out in July.
The allocation this week fell to 750,000 eagles, which is a large over 7% reduction at a time of high demand and delivery delays in the market. Last week’s allocation dropped by 19% to 809,500 coins from the prior week’s supply of 1 million coins. The opening week of September also saw a rationing of just 1 million coins.
These weekly inventories have been snapped up almost immediately. In the last two weeks, all available Eagles were bought in just two days.

Lots of nice charts in the article. Please click to view in it's entirety.

It seems that silver is in very short supply and the demand is WAY up! The laws of supply and demand suggest that the price should go up quickly in these conditions. The question is......will it be ALLOWED to? Can they keep up with the manipulations, or will their efforts fail? They are certainly being tested. Time will tell. :popcorn:
Logged

DiabloLoco

  • Guest
Re: Premiums and Delivery Delays Rise
« Reply #1 on: September 29, 2015, 01:35:45 pm »

Sound advice for those looking to take advantage of the low price of silver without paying exorbitant premiums.

The Growing Price Markup on Junk Silver

http://www.junksilverbook.com/?p=37




Quote
There are some interesting facts here:

It is more expensive now  with spot at $15.24 than in August 2014 when spot was at $20.49.
The current markup price is a staggering 42.59% over spot.
Apmex’s purchase price (that is what they will pay people to buy Junk Silver), previously was right at or very close to spot.   Currently the advertised purchase price is 15.75% over spot.
However, their current sale price ($1,553.70) is marked up 23.19% over their purchase price ($1,261.26).
Compare to August 2014 when the sale price ($1,535.82) was only marked up 4.83% over their purchase price ($1,465.03)
What is interesting is that even with these high premiums many businesses are still sold out of Junk Silver frequently.  This indicates that either people are still purchasing in high volume and/or businesses are having a hard time purchasing Junk Silver to resale.   But based on the very large difference between their advertised purchase price and sale price it is clear that they are making a healthy profit.

It seems like the best option right now, to avoid paying extreme markups, is to buy generic rounds and bars, and hope that once the price of silver stabilizes that markups on Junk silver and ASE’s will come back down to more reasonable levels.
Logged

Silver

  • thrivalist
  • Moderator Group
  • Sr. Member
  • *****
  • Offline Offline
  • Posts: 3687
Re: Premiums and Delivery Delays Rise
« Reply #2 on: September 30, 2015, 06:25:09 am »

42.59% over spot?!!!

I checked Goldmasters; they want $1413 plus shipping for a $100 face value bag of silver coins.  That's for a bit over 71 ounces of silver; coinflation puts the melt value at today's silver price at $1060.  A 33% premium, still quite large.

When I was buying silver heavily (literally!) there were times when it was sold below spot, and I got insurance and shipping for no extra charge.  No one wanted silver when it was less than $10 an ounce.

The large disparity between junk silver coins and silver rounds suggests that preppers are driving up the prices.  I have some pre-1965 coins for emergencies, but at prices like these I could be tempted to sell the coins and buy rounds.  I'd end up with more silver.

Peace,

Silver
Logged

DiabloLoco

  • Guest
Re: Premiums and Delivery Delays Rise
« Reply #3 on: September 30, 2015, 08:49:32 am »

Boy, I sure wish that the premium on the combibars wasn't so damned high! They are such an innovative product. I want some, but refuse to pay the premium. 100 grams of silver for $95!!! Crazy! The melt is less than $47! That's over 100%!!!!

http://www.apmex.com/product/75737/100x-1-gram-silver-bar-valcambi-silver-combibar-w-assay

However.....This product shows the disconnect between premiums on gold versus silver. For a gold combibar, the markup is peanuts compared to the silver version. :rolleyes:

http://www.apmex.com/product/85612/100x-1-gram-gold-combibar-valcambi-in-assay

Logged

DiabloLoco

  • Guest
Re: Premiums and Delivery Delays Rise
« Reply #4 on: September 30, 2015, 11:25:35 am »

I was just looking around and found that even the generic silver bars and rounds have outrageous premiums.

Believe it or not....This is the cheapest price I could find for a single 1oz silver bar. That includes shipping, but still!!! Holy crap!!

http://www.silvertowne.com/p-11650-silvertowne-trademark-1oz-999-silver-bar.aspx

Check & Wire Price:       Price:
       $17.85                  $18.39
Logged

Tahn L.

  • Sr. Member
  • ****
  • Offline Offline
  • Posts: 2013
  • Neither Predator Nor Prey
Re: Premiums and Delivery Delays Rise
« Reply #5 on: September 30, 2015, 12:06:05 pm »

I believe that one reason for the preference for one ounce rounds over US silver coins is because the younger generations are not familiar with the purity and weight of US coins and the silver rounds are minted with the weight and purity on them. Just an observation although I am sure there are other factors as well.
Logged
All human beings have two dogs within them. A good dog and an evil dog. The evil dog is always attacking and fighting the good dog. Which one wins?
The one you feed!
  Native American Story

Government is a meme, woven within a supporting memeplex.

Who ever frames the argument, kicks ass.

From MamaLiberty; "The Price of Liberty (is) self ownership, self control, integrity and non-aggression."

"The lust to control the lives and property of others is the root of all evil". MamaLiberty

DiabloLoco

  • Guest
Re: Premiums and Delivery Delays Rise
« Reply #6 on: November 11, 2015, 04:07:20 pm »

www.coinflation.com has just added a new feature. Bid/Ask premium percentages over spot. Granted it's wholesale, but still an interesting addition to an already interesting website. :thumbsup:

The current percentages are- Physical Silver Premium (Bid/Ask): 13.3% / 17.7%

Important New Feature for Coinflation

http://www.pcgs.com/news/important-new-feature-for-coinflation

Quote
Starting today, Coinflation™ will be listing the daily “bid-ask” premium on a $1,000 face value bag of U.S. silver coins. This will be found at the far right side of the top banner, immediately beneath the current Silver and Gold spot prices. The bid percentage (currently 13.3%) means that dealers are offering to pay 13.3% above the “melt” price for a $1,000 bag of U.S. silver coins, and the ask percentage (currently 17.8%) means that at least one dealer is offering to sell a bag at 17.8% above the “melt” price.

Note a few caveats:

These are wholesale, dealer-to-dealer offers, so as a non-dealer, you may have to pay a bit more. In general, dealers work on fairly tight spreads on bullion but they typically wish to make 5%-8% on the sale.
These premiums are for a full bag – $1,000 face value in silver coins, which if uncirculated, would weigh 723.4 ounces. (Circulated bags average about 715 ounces). Smaller quantities of silver coins will carry a higher premium.
Bags of half dollars usually trade for a bit more (5% or so) than bags of dimes or quarters.
Keeping these caveats in mind, you should now be able to get a far better idea of the real market for physical silver coins. These premiums will be updated daily. Keep in mind that last September, premiums were above 25%. Armed with this knowledge, you should now be able to buy and sell U.S. silver coins with greater confidence and security.
Logged
Pages: [1]   Go Up