Why are the premiums on silver so high?

Thanks!

I was just wondering if maybe I'd get more than spot +$1 if I took in a Mint sealed, unopened tube of American Silver Eagles to sell so I could buy a 1/4 oz American Gold Eagle.

I was hoping with spot ~$27/oz I could maybe get $30/each ($600 for the tube) and then buy a 1/4 oz Gold Eagle for $500 of that.

 

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@Mammothtooth. Let me in on this. Who's giving Tampa +9 ?

 

A lot of people feel that if you don't hold it you don't own it making their demand for actual silver decouple from paper silver and are willing to pay the price to hold it.

 

This is when "stackers" go into a holding pattern. It's what you should be doing as well if you intend to save what you have. Buying is bad and selling is bad, unless you are selling to the end user on eBay or places like CL, OfferUp, FB Marketplace...

 

most people here are all talk and never sell and take a profit.

 

I'm planning on rolling some silver into gold once the GSR hit's the sub 60's. I'd like to add an ounce of gold to my stack. I'm not trying to make a profit, just add more metal to my stack. Someday way down the road, I will sell. I swear!!

 

Yep correct FryDaddyJr your spot on with that. I didn't realize it until this last surge I had a golden to chance and wouldn't pull the trigger.. Whats up with that, saved and stacked since 2012 short time and then just sat and watched.. what
jtlee32 said SOMEDAY I SWEAR.

 

Some of us aren’t holding PM’s for the profit. I hold mine because I enjoy them and like the thought of passing them to my grandkids when I leave this party.

 

Because they can't replenish their stock and have to guess which way the price is going to move until they can.
Plenty of 1,000 oz. bars around, but not collector rounds and bars.

 

The simple answer to your question as some have eluded to, everybody has to
make money, and they couldn't do that selling everything at spot, some dealers do offer beginner packages at spot best to try and find those but those aren't available every day, but they are out there, just enough to put the hook in to you.

 

That's right, many of the people gobbling up silver at these hard to believe prices are new to silver and I'm thinking they're in for a rude awakening when it comes time to cash out!

 

And they have a lot of money that there not afraid to blow out on high silver prices

 

Yep, many will learn a valuable lesson!

 

That's because the wife says don't give it away....you dont need the money...If your going to sell it make some money.

 

You know my wife?

 

...don't ask, don't tell...

 

Some of us have held silver for years.
For example 2 100 oz bars from the 1970's purchased in the mid 4 dollar range.
Just sayin...

 

Are you sure you want to do that? It sounds like a "lateral move" at best. Good for the dealer I'm sure, he'll make $$ both ways.

BTW, ASE's are going for $40 each on fee-bay these days; sometimes more. I'd keep the ASE roll if I were you, and buy a little gold when you can afford it. Maybe an old $5 Liberty or a British Sovereign instead of the 1/4 oz Gold Eagle.

And when are PM's going to have another downturn? I have no clue, but it always happens.....

 

You did well,very nice old pour silver bars!

 

Most dealers adjust premiums based on demand. Like any other business, they charge what the market will bear. The premiums will not come down until PM becomes boring again, demand slackens and they start to get too much inventory. It does this every single time there is a runup in PM because of some economic scare. Nothing new. I would have told you it would happen 2 years ago if you asked me, since it always behaves that way.