Question about Physical Silver Supply

Discussion in 'Bullion Investing' started by SilverMike, Mar 14, 2020.

  1. SilverMike

    SilverMike Well-Known Member

    I have only been accumulating silver (mostly 90% and ASEs) for the last five years, so I haven't seen a situation like the last week.
    Emails I've gotten from dealers are saying that there is a (temporary?) shortage of physical silver due to a run on their inventory in the last few days.
    This seems to be validated to some degree based on their pricing. Recently my go to has been SD Bullion, where I paid about $118 for a $10 FV roll of 90% yesterday.
    This morning that same roll is about $134. Today spot is $14.79 and the cost of silver in that roll this morning is about $18.53, so nearly a $4 premium per ounce.

    So, for those who have been through some ups and downs in the silver market before, does this typically even out? In other words, if we wait a while will premiums likely fall again as supply returns?

    My gut says yes, but I know we can also learn from the past. Any thoughts?
    ripple likes this.
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  3. baseball21

    baseball21 Well-Known Member

    Premiums will fall again when panic subsides and normalcy returns. It's unfortunate but many try and take advantage of panic by upping their prices where in this case spot price has actually been going down significantly

    At least in 2010/11 spot price was actually going up
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  4. desertgem

    desertgem MODERATOR Senior Errer Collecktor Moderator

    I agree with baseball21 on that. I suspect that with oil falling also due to offshore problems, many oil-gasoline suppliers are trying to squeeze max dollars out of any products they bought at much higher prices, before the public really understands that situation. IMO, Jim
    ripple, LA_Geezer and SilverMike like this.
  5. baseball21

    baseball21 Well-Known Member

    Gas really should be like a buck a gallon or at least definitely under $2 but the local stations are always quicker to raise prices than lower them
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  6. FarmerBill

    FarmerBill Member

    I know I was in buy mode yesterday. Got silver eagles for $16.60 and 10 oz bars for $156.00
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  7. BigTee44

    BigTee44 Well-Known Member

    Where did you get your eagles that cheap?
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  8. Packrat

    Packrat Active Member

    I tink cheapest in Jackson, TN this morning is 1.87
  9. Gilbert

    Gilbert Part time collector Supporter

    When prices of PMs drop quickly, dealers do not want to sell inventory that was purchased at much higher prices. That is only human nature. And the price dealers offer for product is not sufficiently high to induce people to sell.
    ripple likes this.
  10. FarmerBill

    FarmerBill Member

    Retail coin shop in central Illinois. Im sorry but that's all im going to share.
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  11. FryDaddyJr

    FryDaddyJr Junior Member

    were they culls?
  12. Clawcoins

    Clawcoins Well-Known Member

    For years i would collect ASEs .. since about 1990ish.
    A few years ago I was tracking spot vs sale price of a few vendors. I have some posts in some thread here.

    In short, and in general, when spot price drops quickly, premium will stay up.
    This is to allow the people who are in "panic" and do not look at spot/premium to buy. Then after a while premium goes down.

    This is in a general supply/demand environment.
    I have not looked at it in this particular situation though, and premium is probably going to stay wide for a while to take advantage of those that are in a "hurry" to cash in to nothingness.
    Last edited: Mar 15, 2020
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  13. FarmerBill

    FarmerBill Member

    No. Random years though.
  14. 05Wildcats

    05Wildcats Well-Known Member

    Prices to purchase at LCS on Friday the 13th. 3-13.jpg
  15. FryDaddyJr

    FryDaddyJr Junior Member

    i saw cull silver eagles for 16 today, should have snapped em up. got some sealed bars instead
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  16. FarmerBill

    FarmerBill Member

    Maybe I'm a little confused here. What exactly is a cull silver eagle? To me a cull is a coin that has circulated to below a grade of good.
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  17. baseball21

    baseball21 Well-Known Member

    For an ASE for recent dates it's anything grading under a 68. For some early dates it's a little lower but basically just the grade where there would be no premium which is still MS something for the bullion versions
    Last edited: Mar 15, 2020
  18. FryDaddyJr

    FryDaddyJr Junior Member

    cull eagles are beat up or toned. I saw one video where a guy bought a roll online and they looked pretty much new though
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  19. baseball21

    baseball21 Well-Known Member

    Toned no. Tones ones can be the most expensive by far depending on the toning and look
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  20. FryDaddyJr

    FryDaddyJr Junior Member

    not a pretty toned. just stained looking, brown
    ripple likes this.
  21. goldcollector

    goldcollector Member

    Yes there is always a shortage of silver and the price is always just about to go parabolic. The shortage in s so extreme that without ant doubt silver will be completely extinct no later than January 1st 2020. Ignore the anti silver "trolls", the silver crowd will have the last laugh come Jan 1st 2020 when there is no silver left anywhere in the world. Well except for the silver they spent the last decade paying $25-$30 an ounce for. But don't worry by Jan 1 2020 silver will be extinct, it will be at least $500 an ounce and the GSR will be 5 or lower. Lol
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