premiums on physical Ag blowing up

[neilgin1]

"Everything has changed in the past 48 hours…

Tuesday morning we warned that physical shortages and BIG jumps in physical silver premiums were imminent after 90% silver premiums had doubled in the past 48 hours.

Below is an update of the physical precious metals markets over the past 48 hours:

90% premiums skyrocketed over the weekend after the Greek Referendum vote with availability nearly nill- wholesalers/distributors are now offering 90% silver in volume at up to $3 over spot, and supplies are rapidly vanishing

Just before noon Tuesday, the US Mint advised Authorized Primary Dealers it had SOLD OUT of all Silver Eagle coins, and would be taking no further orders until approximately August, at which point it would begin rationing coins to Authorized Dealers.

Silver Eagle premiums instantly skyrocketed across the market, with premiums rising as high as $3.25 over spot/oz WHOLESALE / IN BULK

Between 4pm EST and 5pm EST on Tuesday 7/7, one of the largest Authorized Dealers sold through 250,000 Silver Eagles and raised premiums .50/oz further!

SDBullion broke all-time sales records Tuesday for order volume as well as total ounces sold- with demand FAR OUTPACING the Nov 5th 2014 bottom for gold and silver which had previously held both records.


Later in the afternoon, premiums began surging on Silver Maples and silver rounds and bars, and Authorized Dealers are advising that a production and premium hike announcement is expected imminently from the Royal Canadian Mint.

Wholesale premiums on many silver rounds and 10 and 100 oz bars HAVE DOUBLED in 48 hours.

SDBullion received a wholesale quote from one of the largest Authorized Dealers Wednesday for nearly $5/oz over spot for 5,000 oz of current year America The Beautiful Coins- a premium spike of over 100% in less than 24 hours!

Tuesday, the Sunshine Mint rounds and bars went from immediately available to production completely sold through August 13th in under 4 hours!

In many cases, physical silver is now MORE EXPENSIVE to acquire (on both a wholesale as well as retail level) after a $1/oz paper smash than it was prior to this week’s trip down the proverbial mine-shaft!

Wednesday the shortage began to spread to GOLD products.

Back dated gold Eagles and Maples are now NON EXISTENT on the US wholesale market.

Current year gold coins are now 2 weeks out at most of the Authorized Dealers. This type of gold shortage did not occur even when gold dipped to $1130 last November.

While spot/paper prices have stabilized today, if any further weakness materializes in the paper futures markets for gold and silver, we are looking at the very real potential of 2008 style physical premiums to acquire precious metals.

We will keep you updated as the precious metals shortage situation progresses.

-Doc"

http://www.silverdoctors.com/physical-s ... -premiums/

[Cu Penny Hoarder]

90% is now $6.00 over spot on Apmex - yikes!

[silverstacker]

My LCS raised premiums on ASE to $4 over. Maples $3.50 over and 2.00 over generic.

[beauanderos]

Looks like Provident is willing to undercut them while supplies last

[Rosco]

JM Bullion was reasonable last Night on 999.9 for $16.08

[aloneibreak]

$15 was a psychological trigger point for many...

[everything]

Since we hit nearly $50 about 4 years back many are going to continue to load up. It's going to take some time for investors to lose interest. I just keep to 100 oz. a year/1 oz. of gold. If we ever fall into recession again, I can only speculate that silver would be on sale. Compare silver prices is a good site to look at premiums, I see 10 oz. bar premiums are creeping up, nearing 10%, and more, don't see that to often.

[fansubs_ca]

Oddly I remember back in 2008 10 Ounce bars were the first to disappear.

I forget whether 1 ounce or junk was next, it wasn't long after that 100 ounce
bars disappeared and physical was only available if you could afford to buy a
1000 ounce bar in one shot. (I'm not a member of the "1000 ounce club".)

This time around it is/will be a bit different because dealers:

A: Kept more of their working inventory in small stuff and little to no 1000 Ounce
bars so they are better prepared to serve the little guy this time around.
B: Are being more pro-active adjusting premiums instead of waiting until they are
totally sold out.

Most dealers are applying the lessons they learned last time around.

As for the current situation in junk silver I'm wondering how much has hit the
smelter since then, there might be a noticably smaller pool of it out there now.

[neilgin1]

Since we hit nearly $50 about 4 years back many are going to continue to load up. It's going to take some time for investors to lose interest. I just keep to 100 oz. a year/1 oz. of gold. If we ever fall into recession again, I can only speculate that silver would be on sale. Compare silver prices is a good site to look at premiums, I see 10 oz. bar premiums are creeping up, nearing 10%, and more, don't see that to often.

guys, could you help me out here?....I've never bot anything larger than a one toz .999 or .9999 (Maples) because IF/WHEN paper fiat, goes blooey, or "cash" is 'eliminated, ...whatever dystopian bollshite schemes afoot to make the ordinary American (me and others) into serfs, its my intention to submerge into the grey and black market with other ordinary "Muricans to trade for essentials, using a triad of at the beginning, of paper currency...and then a triad of copper 95%'ers, un-debased nickels, and 40%/90% AMERICAN coinage/.999-.9999 one toz American slash Canadian mint silver ounces.....MEANING since I would be trading with others in the same economic class, AND I view, left to its own FREE MARKET devices, silver would be trading (at 2015 dollar values) at various ascending levels, a. $100-150 a toz -----b. $150-250 (up to 300)--------c. $250-450 a toz-----d....hyperspike to $1000

(I haven't got to my question yet, please have some patience, as I'm trying to wargame out, the possibilities in a world, where the national debt is 18 trillion, a clearly insane, unsustainablem unpayable amount)

so when I quote these levels in dollars, i'm speaking more of values, rather than clods of worthless paper. what i'm getting at is fractionalization, and i'm curious WHY a 10 toz bar is so sought after?...is it the intent to sell these bars to an LCS, for a quick hit "profit"....or is the intent to sell it, for a LARGE purchase?...or to a smelter?

I realize a lot of you all, regard my "price" valuations as cause for eye rolling, but I fail to see how the various central banks. IMF's, BIS's...whatever foul financial institution can squirm their way out of this enormous DEBT, without some sort of earth shaking reset...RESET....maybe a "NEW DOLLAR"?...say one hundred old dollars for ONE "new dollar"?...I don't know...or if unfettered, one sees a spike in PM values, with a 50% windfall tax tacked on by the gvt?....this is of course, dealings in the white market.

I think of the poor sod, in need of funds, having to sell to a local LCS, and receiving the faux valuation based on the P-COMEX quote (Peoples Commodity Exchange, not a free market anymore, but a criminally manipulated bs enterprise run by men who should be behind bars in a JUST society, which we are not anymore, for reasons I don't have the energy or desire to run down, plus our fellow citizenry, maybe 97%, have absolutely NO IDEA of the gathering tsunami .....watch the "Hershey Bar or 10 Toz bar" video I posted)

maybe i'm just blithering, but I AM curious, what could I do with a 10 toz bar, that I couldn't DO BETTER with ten one toz Maples, or clean and real ASES?....and I don't ask that question as a straw dog or to bait....teach me, serious.....i'm always everyday ready to learn, coz I see the day and age we're in, and my heart is heavy....if i'm effed up in my thinking, then help me to get un-effed.

be well, n

[pennypicker]

Neil, I agree 100% with your logic that ten maples will be more practical during a SHTF scenario than a ten oz bar. For many people, myself included, the look and feel of a ten oz bar in one's hand is quite pleasing. So for me I will occasionally pick up a ten oz bar just for aesthetic reasons and the feeling that I am holding a chunk of silver that is somewhat substantial.

My favorite two forms of silver in a SHTF scenario is the 1 oz silver Maple Leaf (2014 and newer with their security features) as well as the beloved mercury dime.

[neilgin1]

Neil, I agree 100% with your logic that ten maples will be more practical during a SHTF scenario than a ten oz bar. For many people, myself included, the look and feel of a ten oz bar in one's hand is quite pleasing. So for me I will occasionally pick up a ten oz bar just for aesthetic reasons and the feeling that I am holding a chunk of silver that is somewhat substantial.

My favorite two forms of silver in a SHTF scenario is the 1 oz silver Maple Leaf (2014 and newer with their security features) as well as the beloved mercury dime.

Penny, thanks for responding...I didn't even think of that...the PLEASURE of HOLDING a ten toz bar....didn't even occur to me. Tell you why....my modus is when I got a roll, I glass, weigh every coin, gloves, etc...then get a desiccant pack, then into one of the lock boxes and its then put in the big safe...and then that's it....maybe, when I do hard counts every two or three years, I might see a coin. know why?.....i'm really ...mmm..."scared" isn't the right word, (and i'm NOT saying you do this) but I'm never going to make silver an idol, because for all my faults and transgressions, I do love God....and I don't say that in any Bible thumping, tightly wound 'religionist' way...or judging way, its a real relationship, where I literally see my Father in everything, and I can FEEL His love for me....and I know that the one thing that REALLY torques God is idol worship....and i'm NOT writing that towards one single man on this board.

but I was thinking, and maybe the 10 toz, in the future, maybe in a SHTF sit, it can used for big trades, like if I see two Angus steer for sale, or an Angus bull and cow....or two 1000 foot rolls of barbed wire...or better, razor wire, or a smaller lumber grade sawmill, etc....you get my meaning.

I also agree with you a hunnert percent, that new Maple, the 14's and 15's.....gosh I love that coin, and I do love the Eagle, especially the burnished surface ones.....and the Mercury?....amen, it is pretty, but I got late to game, Feb 08, was when I got serious about stacking, and by the time I got up the learning curve...to appreciate silver coin beauty, the price and demand just took off on me, much like the Walking Lib halves. I would have to say the Merc and the Walking Lib, are the two most beautiful American 20th century 90's minted....y'know Barber, the chief engraver for so many years?.....God love him, but that sure was an unimaginative soul...the man engraved some dreary coins,you know what I just did know, I went to this site...a favorite of mine:
http://www.coincommunity.com/us_coin_facts/

to look up if the same guy designed the Merc and the Walking Lib....sure enough, this man:

Adolph Alexander Weinman,,,fascinating wiki entry....guy was a REAL artist.
https://en.wikipedia.org/wiki/Adolph_Alexander_Weinman

and even more fascinating he used THE "IT" model of the early 20th century , Audrey Munson, and her story is even MORE fascinating, bizarre and sad
https://en.wikipedia.org/wiki/Audrey_Munson

then finally I wanted to read about Barber, and kind of compare his life to Adolph Weinman's.....and oh boy, Charles succeeded his father as chief engraver......and Charles sounds like a real a-hole, coz he was highly critical of St. Gaudiens engraving work!
an artist who crafted one of the most prized sought after gold coins to be had, Barber was highly critical of...imagine that, most probably consumed with jealousy.
https://en.wikipedia.org/wiki/Charles_E._Barber

fun post to write, learned a lot, have a blessed day Penny, we out, n

[InfleXion]

The reason 10 oz bars sell out quicker is because they have lower premiums. Remember that precious metals were (and will one day again be) money for 4 reasons: durability, portability, fungibility, and the relevant one to your question: divisibility. You can always melt down a larger piece into smaller pieces with no loss of value so long as there wasn't any premium on your initial purchase.

It is cool to hold a 10 oz bar though. I still have one 100 oz Pan American bar left from when I initally backed the truck up in 2008, and it really is awesome to hold. The others were traded away for government silver since then, since I bought for no premium when eagles had high premiums, and then traded for eagles when the premiums were closer to parity so it was as if I bought eagles for tiny premium at $12/oz, but I had to keep one big bar and I will definitely never melt it.

If agility is your primary concern, then fractional gold is probably your best bet. The premiums are higher but you'll get them back because people want them. Also, on a percentage basis an ounce of silver usually has higher premiums unless you're dealing in 1/20th gold coins which I don't bother with except for collecting lunars or pandas.

[J_Dodge]

To me it doesn't matter what the type of silver the item is (admittedly I own nothing heavier than 1 oz coins), but the solid weight of silver coins in ones hand just plain feels good. The 'klink' is also a sound of enjoyment.

JD

[Rastatodd]

I'm going to add my two cents.
Over at Silvertowne, shopping for some silver. I go to my always trustworthy 1 oz. donkey bar and low and behold that generic of generic bar is selling for $3 premuim per.
Has the world gone made. Or should I never mind the hike in premuim costs and just keep buying. Silver prices now may be a steal if we ever get back to the lofty heights of $49 again.
My gut feeling is to stack fia and wait for things to calm down. What say ye, ladies and gents. Opinions?

[pennypicker]

My gut feeling is to stack fia and wait for things to calm down.

My feelings exactly!

[John Reich]

My gut feeling is to stack fia and wait for things to calm down.

My feelings exactly!

+1

[68Camaro]

Continue to look for deals and focus on them. If you don't find deals in PMs then shift to other commodities. Stock up on food, toilet paper, razor blades, soap, etc. Pick the best deal at the time.

[neilgin1]

Continue to look for deals and focus on them. If you don't find deals in PMs then shift to other commodities. Stock up on food, toilet paper, razor blades, soap, etc. Pick the best deal at the time.

amen.....soap is one of those items is that isn't really thought of, or regarded as essential...until you don't have it. its not "exciting"..until you start to get fonky. (i'm still taking bars out of Ivory 99/44th pure wholesale box, that I bought a few years back in the wholesale case for WAY below retail, and have a few more boxes.) anything that will get things CLEAN, whether it be bleach, scour powder, pine sol.....you don't have to go crazy.

and if you really want to talk about "currency" (as in highly sought after barter items) think vice.....and I haven't done this yet, but I notice at the various quik stops, they sell these cheap plastic bottles of say, "popov vodka" in the half pints or pints...search out where to buy a case or two. Believe me, things go south, these plastic bottles will have WORTH. (I don't drink, I learned ages ago, likker and me don't go well, when I got pie-eyed, things had a disturbing tendency to either catch on fire or blow up, and I like my freedom...learned these FEW hard lessons before I was 21, Praise a Wise God)

or tobacco, either cans of roll your owns, or tailor made's....a few cases, cheapest would PROBABLY be a trip to NC?...I don't know, that's another thing on my to do list. Personally I want to stay around my AOO, so I might have to spend up. but again I say, things go south?.....tobacco items will be high value trade-ables.

have a sunny day, n

[InfleXion]

My gut feeling is to stack fia and wait for things to calm down.

My feelings exactly!

+1

+2

Too much leverage and risk in markets today not to expect further downside in my opinion. I don't see a lot of downside in metals, but broader markets may still drag the paper price down until the physical market takes precedence. Bear in mind that China is planning to have a physical gold price setting exchange by the end of the year, so don't sit tight for too long.