Silver Coin Premiums Set To Climb On Reduced Supply

gold & silver sold outIncreasing demand for U.S. silver coins is set to send premiums to the highest since October according to Bloomberg.
The premium charged by wholesale dealers for American Eagle coins from the U.S. Mint may rise from 14%. The mint has said that weekly allocations will be reduced despite very strong demand so far this month.
Yesterday, the U.S. Mint said 89% of this week’s quota of 3.58 million silver eagles were sold following sales that were stopped on December 9th because of a lack of supply.

 

2014 Silver Eagles As Low As $2.99 Over Spot!
-While Supplies Last!

Silver Eagle

 
From Goldcore:

Today’s AM fix was USD 1,248.75, EUR 913.10 and GBP 760.97 per ounce.
Yesterday’s AM fix was USD 1,246.00, EUR 911.89 and GBP 757.86 per ounce.

Gold climbed $7.70 or 0.62% yesterday, closing at $1,254.80/oz. Silver rose $0.32 or 1.59% closing at $20.45/oz.

Gold is marginally lower today but remains near its highest in a month. Safe haven buying has increased after a drop in equities globally due to concerns over the U.S. economy after a disappointing jobs report last week.


Gold in U.S. Dollars, 5 Year – (Bloomberg)

Increasing demand for U.S. silver coins is set to send premiums to the highest since October according to Bloomberg.

The premium charged by wholesale dealers for American Eagle coins from the U.S. Mint may rise from 14%. The mint has said that weekly allocations will be reduced despite very strong demand so far this month.

Yesterday, the U.S. Mint said 89% of this week’s quota of 3.58 million silver eagles were sold following sales that were stopped on December 9th because of a lack of supply.

Sales of silver American Eagles rose to an all-time high of 42.675 million ounces in 2013. Purchases jumped to a monthly record in January 2013, and the mint suspended business for a week because of a lack of inventory.

The silver bullion coin market is tight with strong hands refusing to sell and mints rationing supplies. Silver’s sharp fall is seeing the smart money continue to accumulate silver coins while supply is available and premiums still relatively low.

Separately, the Perth Mint has announced that they have sold out of their silver bullion coin – the one ounce 2014 Australian Kookaburra.

Silver has climbed 8.9% from a five-month low at the end of 2013.

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Comments

  1. actually just silver doctors….I think that would be to a lack of hedging….that happens when you drink your own kool-aid I believe..l..but please give us the next link trolling headline….”if gold breaks 1215 this week its going to the MOOOOON!!”

    • Speaking of trolling…your post makes no sense at all.
       
      I guess people can’t read. The post is from Goldcore via Bloomberg, (not SD’s). Shooting the messenger is par for the course these days with trolls, idiots and buffoons.

    • Are you attempting to make a point here? If so, what is you point?
       
      I find it a good practice to avoid intoxicants until at least 3:00 PM

    • Also, I`ve read many complaints about premium`s. All posted by readers who have no idea how the precious metals market place works. And, I`m not going to explain it ever again. It`s a bit like trying to train my Labrador to read a map.

    • @Bay-of-Pigs
      I have no problem shooting the messenger when the message contains an obvious factual or cognitive flaw.  Especially when the messengers are supposed to be experts in the field of bullion and PMs (which, though related, are two separate mkts)

      In regards to this message, it actually makes sense. But you see, when the people reposting this are very close to the wholesale and physical markets I trust that they know these markets better than the average joe such as myself as physical markets are very opaque (unless we are talking coinage and bullion products). Warranted or not, this leads me to trust them a bit more than average, even if I know this site is just designed to help pump their bullion page. When these so called experts hype 2013 silver eagle premiums to go higher with mint shut downs looming, and then just weeks later announce blow out deals on 2013 silver eagles, it really makes me question not just their credibility, but also their motives. Add to this they were called out with a tag in the forum on this very topic and did not bother with even a quick reply.

  2. ASEs have always carried a heavy premium this side of the pond.  The cheapest I can find at the moment is 15.35 – which is 3 pound over spot (just under $5). 
    http://atkinsonsbullion.com/silver-coins/2014-1oz-usa-silver-eagle
    Add to this premium the dreaded 20%VAT and it’s easy to understand my grand total for these coins is 15.
    But hey, I just bought some .500 for 12 pound 30 per troy oz off feebay :-)   That included delivery and was just under the current spot.  Sometimes it pays to watch that ticking clock go down and wait patiently.

  3. …..MIGHT go up from 14%…..WTF?  Who are these guys trying to bullshit?  Where can you buy ASEs for anywhere under TWENTY-FIVE % premium.  C’mon with the crap.  ASEs at anywhere around spot plus 20-25% is a good deal.  A few percentage points don’t mean shit unless your buying several monster boxes.

  4. Ya the day will come when the price of silver is held down to $18 area an the premium will equal that amount. So you actually have $36 dollar silver. Could this be it, the new chance, the big move we all been waiting for? Just think about it. If the crimex holds the price down an that’s all they can hold down o please let the premiums rise faster then the government can hold the price down. Its an instant win win. It could move faster then you could bite the bit coin. And alls it has to take is a couple of big pms warehouses to start jacking there silver premiums prices up an also starting jacking up prices on ebay. Puts some ads in the paper saying for a solid week its the usa take back Americas real money to be honest again. Everybody cash in all your coinage an buy silver bullion. And as the prices rise sell your paper investments to?

    • I don’t think that is possible without a shift in business practices employed by producers and merchants.  One of two things happens in your scenario.  People will stand for delivery at spot price and conevert to bullion products to sell to the public for a profit… or there will be no paper price (i.e. the price will just be $36).
       
       

  5. US 90% coins are just as bad, dimes at $1.80 each

    • Yu can save 20c at provident if you have enough for a $100 face bag.  I would gladly buy $1.80, at auction they are going for more than $2 around here.  I probably should try to buy and sell, but draws unnecessary attention to myself for not a huge reward.

    • @mikeyj80 , just wait until we get that big collapse of the dollar, and of the country that so many folks are cheering for.  The supply lines will be completely severed.  Anybody who tries to buy things using silver or gold sill also draw unnecessary attention to themselves.
      After the collapse, a bar of soap may be used as money.  Just read some of the accounts from the wards in the Balkans back in the 1990s.

    • i have, and that is truly scary stuff!  Duck and cover as best as you can!

  6. “…Increasing demand for U.S. silver coins is set to send premiums to the highest since October according to Bloomberg.”
    The first line of the report tells us all we need to know…  according to Bloomberg MOPE service. == “Use DISCERNMENT!
    I don’t really trust the GoldCore reports either.  As a general rule they seem reasonably accurate with the factoids, but their spin is suspect.
     

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