Was shopping on the bay earlier today and noticed that the premiums have dropped slightly with the price of silver actually going up 11 cents ! though ASE,S have dropped below $40 found one for $38.50 but the biggest surprise by far was the Silver Krugerrand found that for $35.57 which is a pretty big discount so I bought 20 I couldn't help myself I am a silver junky...LOL
I bought a new 5 ounce Silvertowne bar last week for $30 an ounce at my LCS. I understand the silver junky part, I need a weekly silver fix or I get cranky.
Summer historically has been a low point for coins and PM. People have other things they are spending money on. Therefore it makes sense.
I ordered a Krugerrand from JM Bullion for $32.59. I also learned something in the process. I bought a couple silver coins that are government backed (African Silver) that benefit endangered species there). If Florida there is some crazy law I never ran into that made my entire purchase of 6 coins taxable. It appears if you buy less than $500 in total (FL only now)> that you must pay sales tax on some of these obscure coins. Live and learn.
But here is the thing > 2 of the coins are 2021 Type2 ASE's.....legal tender coins in the USA (in FL anyway are NOT Taxable)......yet since my order was combined they charged sales tax on the total invoice, so that doesn't add up?
My local gold and silver store owner in Arizona says very little inventory and hard to get replacements at any decent price. He says he's having to pay $3/4 over spot for anything at all ordered in and supply is still slow. Mentioned even apmex wanted $12 over spot for eagles and libertads. Said the places where he usually buys in bulk are now separating the more collector stuff and charging more of a premium.
I wonder does it really matter about the premium variations from coin type to another with a lesser premium since it seems you get more when you sell an ASE for example vs. the cheaper ones like Maple Leafs or such?
I haven't seen much easing, and don't expect to as long as silver is in the mainstream. This is new territory to me (I wasn't around in 1980 so can't speak to that). I just saw another thread in here that the mainstream "news" has finally picked it up. That can't be good for premiums. I have been studying the Reddit crowd since learning of it several months ago. If nothing else, to look at the pretty pictures! These guys (and gals) for the most part have no problem paying huge premiums all day long. "buy at any price" is the mentality there. I think premiums could double and many would still be going "all in" on silver. Much of this group is comprised of people who were not aware of or interested in silver when premiums were low, so this is normal to them. I don't see premiums coming down until enough people lose interest, which (to me) doesn't seem likely in the short term as this movement continues to gain traction. Unfortunately the online dealers caught on early and ruined it for everyone. Now, to keep up inventory, the LCS has to beat the online dealers' buy prices or people wouldn't sell to them. Naturally the sell price also has to get ridiculous. Too bad, the LCS used to be the haven of sanity and good deals!
For anyone not around for the last runup, (not just you sir but anyone), I would suggest looking at CT archives from 2010-2013. We had the same crowd as is now on Reddit, (to the MOON, bold predictions of $120 silver in a year, etc). The threads also documented high premiums, how, "they will just go higher as people figure out how rare silver is". Just like if you are overpaying $12k for a used car right now, paying over $40 for ASEs will not end well I am afraid. I picked up LOTS silver at melt 2015-2019 I am sure I paid half of what the original owner paid. Just read the last time and draw your own conclusions. History may not repeat, but it usually rhymes, and "different this time" is actually very rarely the truth.
Glad I'm only a Token addict and a lover of Gold, Silver has gone to unbelievable heights, so I keep my distance!
Hi medoraman, I think you make a good point. Back in 2011 is when I started paying attention, so I remember plenty of "too the moon" talk then. Almost out of college, finding out by chance that my forgotten 10 Oz bar of silver that I bought for $50 as a kid (because it was cool) was worth $440 was what got me interested again. In my inexperienced mind, it supported the case for spectacular gains to be had. 2011 swiftly taught me to tread carefully and not to believe that hype. I'll admit this time has a different feeling for various reasons. However, I absolutely recognize that part of it could be that I was the newbie in 2011, and this is the first time I'm getting to watch another significant influx of newbies from the perspective I have now. I still have that gut feeling that premiums are going to stay at or above current levels for a while regardless of spot price. Partly due to greed, and mostly because plenty of people continue to pay. I would love to be wrong! It's been ages since I bought an ASE... I'd feel a bit violated paying for one now!