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Thread: Why are premiums so high?

  1. #1

    Default Why are premiums so high?

    Even on 100-ounce bars, it is nearly $5 an ounce, so you lose almost 20% of your investment instantly. That's why for now, I'm mainly in paper.

    Silver is going down right now, but over the next two years, it looks quite good. I see the potential for high 20's.

    So where is this inflation right now? Oil is down 40%; commodities are crashing. Ah well, patience. And...even with the rate moves up, your CD still earns a negative real return.

  2. #2

    Default

    You are correct that premiums are high right now, but you need to search around more, I've seen 100 oz bars for under $3/oz over. Don't forget the $50M PM purchase recently that took a huge number of ASE's (plus gold) off the market. Silver is also being drained from the paper exchanges and IMHO something is afoot.
    Do your own due diligence

    I stand united with my friends & family in Canada who seek freedom.

  3. #3

    Default

    Quote Originally Posted by LongDonSilver View Post
    You are correct that premiums are high right now, but you need to search around more, I've seen 100 oz bars for under $3/oz over. Don't forget the $50M PM purchase recently that took a huge number of ASE's (plus gold) off the market. Silver is also being drained from the paper exchanges and IMHO something is afoot.
    https://quoththeraven.substack.com/p...utm_medium=web

    This guy seems to agree with you
    “The Federal Reserve is not currently forecasting a recession.”
    Fed Chairman Ben Bernanke, January 2008
    This is no longer posted in the Fed Minutes of January 2008, but still quoted here - https://www.nbcnews.com/id/wbna22592939. The FOMC minutes still quote MR. Reifschneider. as stating the same thing.

  4. #4

    Default

    When ever USD is up or anticipated to get stronger, commodities go down. I have bought/sold based on the USD chart for close to 20 years and always hit the lows. End of 2008 $10, 2016 $15,
    2020 $13. I expect the USD to fall for the next few weeks so price should go up from here for a short term.

  5. #5

    Default

    100 ounce silver bars from 9fine mint or Pioneer Metals are available at well known huge Walton family business for $2,269 (US$) at the moment. Price subject to changes.
    Do your own due diligence

    I stand united with my friends & family in Canada who seek freedom.

  6. #6

    Default

    Quote Originally Posted by LongDonSilver View Post
    100 ounce silver bars from 9fine mint or Pioneer Metals are available at well known huge Walton family business for $2,269 (US$) at the moment. Price subject to changes.
    that is still over 12% premium. too much premium, except if you figure that the POS is way undervalued already.

  7. #7

    Default

    Quote Originally Posted by maxwellsilverhammer View Post
    that is still over 12% premium. too much premium, except if you figure that the POS is way undervalued already.
    True, but much better than buying ASE's. Mostly responding to OP original post regarding about $5 over spot. With silver on the move (for now) I don't think we will see online premiums dropping much in the near future. Buy local if you can. I'm sure you have better deals that this, but not everyone.

    OBTW, I swapped a bunch of 90% silver over the weekend for gold since I could get a high X number over face for it. Even cull silver (well worn without dates) coins were being bought for about 17 times face. Figure 15-20% (more?) loss of weight on these coins and that worked out very well for me, IMHO.
    Do your own due diligence

    I stand united with my friends & family in Canada who seek freedom.

  8. #8

    Default

    Here, it is asked, why are premiums so high? Another way to ask the question might be - Why are spot prices so low?
    “The Federal Reserve is not currently forecasting a recession.”
    Fed Chairman Ben Bernanke, January 2008
    This is no longer posted in the Fed Minutes of January 2008, but still quoted here - https://www.nbcnews.com/id/wbna22592939. The FOMC minutes still quote MR. Reifschneider. as stating the same thing.

  9. #9

    Default

    Quote Originally Posted by Silver76 View Post
    Even on 100-ounce bars, it is nearly $5 an ounce, so you lose almost 20% of your investment instantly. That's why for now, I'm mainly in paper.

    Silver is going down right now, but over the next two years, it looks quite good. I see the potential for high 20's.

    So where is this inflation right now? Oil is down 40%; commodities are crashing. Ah well, patience. And...even with the rate moves up, your CD still earns a negative real return.
    me too, i have some pslv and royalty companies

  10. #10

    Default

    Quote Originally Posted by SilverPalm View Post
    Here, it is asked, why are premiums so high? Another way to ask the question might be - Why are spot prices so low?
    Silver is going to shine again. We are going to see $50 silver again, and soon. Or maybe its value calculated in another kind of currency. It will be queen to the gold king.
    Politicians and diapers must be changed often, and for the same reason. -Mark Twain

    The purpose of life is to matter, to be productive, to have it make some difference that you lived at all. -Leo Rosten

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