Silver Is On A Tear Today

Silver was doing fine until Israel made an announcement about Trump and Iran. Then, Boom, it dropped like a lead fishing weight.

 

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Everyone else can swap silver for lead weights, then. I'll hold.

 

So will I. In fact, I’ll trade my fishing weights for your silver. Hehehe

 

I don't really understand much about the silver market. What does a 25% premium actually mean?

 

Breaking it down to sheer dollars and cents and supply side economics, I see it like this.

With the incredibly volatile pricing for the past 3-4 months, and the short supply, APMEX and all the other majors have been paying up for whatever inventory they currently have. The past couple of weeks have shown a bit lower bottom side of the pricing range. With today's considerable drop in silver spot, if APMEX were to keep their lower premiums on the ASE's they'd lose money. That can't happen. So they increase premiums to effectively guaranty they are profitable.

Based on today's closing spot vs their quoted ASE price the premium is 21%.