Why Pay High Silver Premiums?
Why Pay High Silver Premiums?
I was checking out a new facility by Eric LeMaire which lists the latest eBay prices for gold and silver as well as some common numismaticals from decades past. You can see the statistics at this link. What struck me were the huge premiums that silver investors are prepared to pay for one ounce coins right up to 100 oz bars. At a glance I could see an average premium of 124% for American Silver Eagles, 164% for Kookaburras and 105% for Maples. More sane premiums can be seen on the 100 oz at 35% which is nevertheless still a hefty premium compared to how much one may pay for other asset classes.
http://news.silverseek.com/SilverSeek/1228227497.php
Backwardation Should Be Normal
If two vendors are selling silver, and one promises delivery in 3-5 days, and the other is backlogged for 30-60 days, then where would you prefer to shop? Clearly, you would rather get delivery now. And in the industry, in silver, it usually costs more to get silver now, rather than wait 2 months. So, backwardation, in that sense, should be normal.
http://news.silverseek.com/GoldIsMoney/1228945838.php
