Growing Premiums on Silver Coins and BullionSubmitted by akak on Thu, 09/11/2008 - 00:33
I was curious if any Daily Paulers would be willing to share their recent (i.e., last two or three weeks) experiences with purchasing silver, and give examples of the kind of premiums they have, or have had, to pay for various forms of silver.
While my experiences may not be very representative, within the last three weeks I have purchased 10 ounce silver bars with a premium of $1.50 over the spot price ---- up from just $0.60 earlier this year. Now, as of today, I was told that they would hold 10 or 100 ounce bars for me once they receive any (none currently on hand), but with a premium of $2.00 over spot. This is unprecedented, especially in a period of a falling silver spot price, as the standard premium for decades had been in the range of $0.50 to $0.60 over the spot price.
Likewise, the premium on Canadian silver Maple Leafs is now an astounding $3.75 over spot --- earlier this year, it was at $2.00, and late last year stood at $1.50. Silver American Eagles (SAE's) are unavailable through this dealer, and have been for most of the summer. Their stock of old 90% silver (pre-1965) US coins, commonly called "junk silver", is now also very low, whereas in the past it was almost a blight on the market, and could have been had for 1-2% over spot, even into earlier this year.
SOMETHING strange and never before seen is happening, despite all the shrill claims to the contrary by the apologists for the powers that be.