The Silver Squeeze: Visualizing the Silver Shortage

silver squeeze

Despite ‘crashes’ in the market, the demand for physical silver continues to rise. Buyers are already outpacing sellers by a stunning 50-to-1 ratio. We are seeing the beginning of shortages; but this will only accelerate if Western governments continue with this raid on paper gold and silver.

When Supply & Demand take over…the Squeeze is On!!


2013 Silver Eagles As Low As $3.79 Over Spot at SDBullion!

From The Austrian Insider:

oil infographic


  1. People keep telling us the premiums are going sky high. Really? Look at the pricing here at the Docs. Does $3.79 sound like it is going sky high? Apmex and others are similar in that no one is running high prices on premiums.
    Why do you guys think that people in our own ranks keep telling us about these “high” premiums?
    Not trying to start anything but would like to hear your thought.
    By the way, I am have invested the FARM in physical silver just so you know.

    • Stuff like the above info graphic tend to be produced with a lag, so some of the facts like premium reportage can be off.  We’ve been reporting in realtime each Friday on our radio show what’s up with premiums, including their fast dive in the past two weeks.  But keep an eye on this because there’s a pretty good chance they’ll start to rise again. 
      Meanwhile, over in Asia, there really hasn’t been a contraction on premiums to speak of and entire nations like India and China are not getting all the metal they’re willing to buy at current prices.

    • that is a high premium do the math at $22.73 that is %16 over spot, normally one could get silver for under 5% spot for generic rounds.  Junk silver sold for less than 2% over at my local coin shops only a few months ago, now the premium has increased dramatically it over over 5 times as high.  

  2. $3.79 is over 15%. That’s high, in my book. I paid 5% back in the 80′s and 90′s.

      Dealers rely on % markups, not dollars per ounce made. 
      If I can make 15% on a $20 sale, ($3) that is much better than 5% on a $40 sale ($2)
      I make 50% more on each sale with a 50% lower base price! FANTASTIC!!! Less of MY 
      fiat is tied up in the process, or I can buy twice as much stock to sell. And people are 

    • Underground, this is generally true, but everyone pays bills in $, not percentages, so you need to turn inventory to $ and do so as efficiently as possible as nobody has access to unlimited capital.
      If I sell pennies for 2c, that is a 100% markup, but takes me forever to make enough money to pay the bills.

  3. When silver was at $24, premium was $6 for ASE and CML. That’s 25% premium. For generic 1oz silver bars and rounds, premium was $3.50 (15%). For 10 oz silver bars, premium was $2.50 (10.5%). When it dropped to $22.50, the premium for 10 oz rose to $3.50 (15.6%). This price was at my local coin/bullion store. These were my cash and carry price.
    Compared to 1oz gold premium of 3-5%, silver carries a much higher premium. If you calculate the premiums paid for $2,000 of gold vs $2,000 of silver, Ag premiums are much higher in terms of total dollars.

    • BINGO!!! 
      Mathematics is Our FRIEND! 
      The shills hope we are math illiterate LOL!

    • Agree, but lets be pragmatic about this as well.
      Do we want 20% premiums at $20 silver, or 10% premiums on $30 silver?  If you are not a hedger, the answer I think is clear.
      My lean is that premiums continue to trend lower in the short term, though the lions share of the work has already been done.

  4. I agree…   The premiums are not sky high and all the dealers are still keying off of the ‘Spot Price’.   I’m a little disappointed in the pendent’ claims of sky high premiums also.    However, with that said, if the price stays where it is (or lower) for a month or two, I think we will see the shortage you want to see.     
    The bullion banks are doing everything in their power to smash sentiment.  They are pros and they are doing a good job.   The good news is fundamentals eventually win out.

    • Last year I was paying $1-2 over spot on ASE’s, right now try close to $8 over spot.

    • Hunkered, you may be right, but I think that the sudden crash in price caused a run to the physical small oz products resulting in sky high premiums.  That initial frenzy has waned and now is back to more “normal” demand that can be kept up with.  I suspect that, assuming no major drop in spot price causing another temporary rush to physical, premiums will not see any increase in the short term as there is plenty of bulk silver supply available

  5. After years and years of buying US 90% silver coins below and at spot, it IS a shock to have vendors asking for (and getting) $4-5 OVER spot per ounce for such coins.  :-/

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