There has been much discussion lately in the silver investing community about tight supplies of bullion coins, mint rationing and exploding premiums. So, I decided to take a look at some popular places to buy Silver Eagles online to determine just how high the premiums have actually climbed. For consistency sake, I will use a roll of 20 Silver Eagles to measure the premium versus the current silver spot price of $14.55.
Several sellers have Silver Eagles for sale on Ebay with most rolls of 20 going for around … read more
We have been following this story for many weeks now. Despite explanations put out by mints that the problem is a manufacturing crunch, rising premiums are across the board encompassing silver shot, bars and 90% silver coins. Premiums on $100 bags of 90% silver coins are now 35 – 50%. Since these coins are no longer “manufactured”, the manufacturing crunch doesn’t explain price increases. Furthermore, the US Mint, for instance is selling record amounts of Silver Eagles. they seem to be able to manufacture them just fine when they have silver “blanks” available. I believe that the reason for increasing premiums is the intense demand for physical silver. These premiums should alert the “powers that be” of the massive disconnect between the physical and paper silver markets.