You can continue following my writing here on JMBullion.com as well as on social media channels like my Twitter page. But the best way to cut costs is . Baby eels are one of Spain’s most expensive foods, but when you see them for the first time you might wonder why. Silver seems to have found a new trading range between $33.00 and $35.50 . Subscribe to the JM Bullion newsletter to receive timely market updates and information on product sales and giveaways. Though you'll want to check out our guides to the best dishwashers , best washers and dryers , best refrigerators , and best ovens for the most up-to-date recommendations, here's a guide to what you generally get with expensive … When the first silver American Eagles hit the market in 1986, there was pent-up demand for an American-made silver bullion coin. Now, over the long term, the US Mint might be able compensate for a 2Xs or 3Xs demand over a 5 or 10 year stretch, but certainly not, say, doubling bullion demands in the short term. It will find its way to the top. Think about it: without inventory you would essentially become a back-order promise dealer, building up a massive short position in silver while angering your customer-base as you sit on their good funds making them wait on their purchased products’ delivery from the mint. Let’s say in this example that demand in US dollar terms remains flat, meaning demand remains at $1 billion USD for the year. Why Silver Premiums Are so High Right Now and How One Might Take Advantage of It? I, myself, and many other silver industry experts believe there will come a day when, in order to get physical bullion, the price will be extremely cost prohibitive . We also have a temporary $299 order min. Wondering why Palladium is so expensive and Platinum so cheap? Inventory shortages almost always happen during periods of dramatically falling spot prices. At about $2,500 (£1,922) an ounce of palladium is more expensive than gold, and the pressures forcing its price up are unlikely to ease anytime soon. Here we will explain (#1) what is the Silver Spot Price and (#2) its relation to the physical Silver … I am looking around for their 1oz bars and they are going for nutty prices. He showed me to the extent the insanity of the prices of the game cartridge (upwards of over $100) on ebay. © Copyright 2021 JM Bullion. Export duties, strong wages for employees, high taxes. Hopefully, in this regard, I have been helpful in clearing up any confusion you may have had. /r/Silverbugs is a forum for Physical Silver stackers. Enter your email address and we will send you a link to reset your password. Most of Pandora isn’t that expensive. They utilize expensive diamonds as well as less costly semi-precious stones in order to create some unique pieces adjusted for each and everyone’s budget. Best to get your position settled before this chaotic time-frame appears before us. I’m not going to deny that dealers partly use these moments of high demand to expand their profit margins and company war-chests via larger premium charges. So I am starting my research now. Investor Implication: Gold takes up much less storage space than silver, is cheaper to store, is lighter and … If only I knew this would happen I wouldn't have sold my copy years ago. A new hot tub can be as much as 100% markup, meaning the dealer doubled their cost on it. They’re not, to put it … It will find its way to the top. Small shocks in silver spot price volatility can create major silver supply shortages and doubles or triples in demand, which the silver bullion industry most likely cannot handle at the moment. Supplies of physical silver, as … Many investors have switched to Silver Maples, Krugerrands, Philharmonics, and Britannias due Plus, I can also write off a substantial amount on my taxes (which I will in 2016), and then turn around and buy more silver with the tax rebate proceeds. Bullion and Coins. Some people associate sterling silver with being too expensive. Instead silver bullion prices have remained flat due to a recent lack of physical bullion supplies and higher investor demand. 7 Reasons to Start Buying We're going to dispel those myths. Press J to jump to the feed. Pandora bracelets are generally made of gold or silver. 2) Average annual demand for physical silver is about $1,000,000,000 USD (aka one billion dollars). Edit: I'd like to add that no matter all the fancy process, high end machinery, assay cards, or quality will ever get me to pay $7.99 premium for a PAMP product again. (My disclaimer: I am not a tax accountant nor your financial adviser, therefore you should consult accredited professionals if you have further questions.). Over JMs and Engelhards, New comments cannot be posted and votes cannot be cast. Plus the things are made as well as a high quality as a US or Perth Mint proof coin, compare that to the hideous indian head rounds you can buy for 25 cents over spot that look like a child drew the design and it was stamped out in someones garage. By creating an account, you are agreeing to the Terms of Service and the Privacy Policy. A lot of it is silver and much less. Pokemon Silver is my favorite game in the series and I want to get SoulSilver. (Instead of hovering around 5% above their base metal price like gold and silver, copper premiums are often many times their base metal price.) Good question. Again not justifying the price because I'm cheap and buy $0.79 premium silver but when you see a regular mint make a product vs PAMP you can appreciate why they charge the higher premium. Silver’s paper spot price has recently fallen to 6+ year lows (touching a low price near $14 oz USD) yet physical silver bullion prices have not fallen. Not paper stocks. Export duties, strong wages for employees, high taxes. We've tested thousands of appliances from cheap washers to ultra-expensive refrigerators, so we have years of data to help you figure it out. Within the bullion industry, we have witnessed the recent domino effect: – This summer, on July 7th, the silver spot price fell heavily and the US Mint went on “allocation,” limiting the supply of newly struck American Silver Eagle coins to dealers. – This increase in demand for all silver bullion products creates the same manufacturing constraints for every other sovereign and private mint organization the same way it affects the US Mint. The dish can be incredibly pricey and is typically found only in high-end restaurants. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the policy or position of JM Bullion, Inc. While wondering why Tiffany is so expensive, you might also be curious as to which country you can purchase Tiffany the cheapest. Silver dealer supply chains add a premium to their silver coin prices to recoup the costs associated with buying, storing, inventorying, hedging, marketing, selling, and finally safely shipping the silver coins to their respective buyers. Can someone tell me why this is so expensive on most websites? Soo pretty. Regardless, I have recently sold 2 of my own mint cases on eBay (getting paid by PayPal only) in order to take the proceeds and buy 100 oz bullion silver bars simultaneously. For example, the largest silver salesman in the world, the United States Mint, would need to increase their currently claimed minting capacity from just over 66 million coins to around 100 million coins to meet the demand of the above example. Made in Germany, same reason why a german made anything costs 2-5x more than a similar item made in china. Why are the premiums for a specific copper coin or bar higher – as a percentage of the base metal price – than their more valuable gold and silver counterparts? Anyone know why they are so expensive and can anyone recommend a cheaper one. This game sold millions of copies and is not that old, makes no sense that is so rare and expensive now, even pre-owned is nearly 50 bucks. Now, as for what I am doing this moment to take advantage of the current high premiums on American Silver Eagle coins? What I am saying to you is, there is a price equilibrium that needs to be balanced between today’s now LOW SUPPLY & HIGH DEMAND for silver bullion (by the way, if this shortage bleeds into gold bullion like it did in 2008, we’ll likely be in the midst of another banking crisis). Higher premiums (aka higher prices) for American Silver Eagles in the short run and, consequently, for other silver products (as Silver Eagles are the #1 silver bullion product and they, along with 90% silver, typically lead the bullion markets premium momentums). Press question mark to learn the rest of the keyboard shortcuts. So it might be a case of Nintendo pressing more copies of Silver bc it was selling more, and all the copies you see in the store now are the left over copies from Nintendo printing just a slight bit too many. If you want cheap stuff, look elsewhere. All Rights Reserved. With Silver Eagle premiums still ranging from $9-$10 per coin, why is the U.S. Mint still selling so many of them?? I can hear the cynics out there saying, “That’s bull! So, if not this year then maybe next year, there won’t be any large trader to repress silver prices. Now for those who remain confused, I would like to explain: 1) Let’s say the spot price of silver today is $15 oz USD but by next week it dramatically falls to $10 oz. Cuz they're gorgeous. Their website isn’t much better at all. (Aasif Hirani is the Director of Tradebulls Group. Silver prices have dropped to their lowest level since 2009, boosting demand for the physical metal at a rate not seen in a decade. Everyday, the asset becomes more and more scarce, as people buy it and hodl it in their wallets. Geigers are premium bullion. Silver News Headlines MetalsDaily.com brings you all the latest live silver news, headlines, data analysis and information from the global silver markets. Prices are holding in the $1,775 range today. The dealers are taking advantage of everyone!”. I go to Gamestop and it's like $50 I go on Amazon and it's around the same price. Enter internet armchair “silver bullion experts” who often comment on what is happening with erroneous opinions spreading confusion and disinformation on the topic. Then dollar cost average buying week to week, to get yourself into a position with which you feel comfortable. Good luck finding Chilean sea bass on the menu at your local Red Lobster. Doing this “flip” or silver bullion arbitrage at the moment allows me to add about 20% to my underlying silver sold, while also allowing me to write off $3000 USD on my personal tax return for 2015 as my purchases in 2012 / 2013 were at substantially higher spot prices. In short silver premiums have increased due to a recent combination of higher Silver Bullion Demand & lower Silver Bullion Supplies . New silver bullion buyers often ask why the fluctuating Silver Spot Price is lower than the price for the various Silver Bullion products we offer on our website. The reason why BTC is so expensive is because there's a limited number of it that will ever be created. What is it that makes Chilean sea bass so expensive In this article, I will explain first how and why silver bullion premiums have aggressively increased since the middle of summer 2015 AND how and what I am doing to take advantage of the current premiums via a bullion form sell and buy arbitrage. Editor's note: The estimated amount of gold left in Earth’s crust is 55,000 tons, not 55 tons as the video states. lol, They’re usually the highest! – This supply vs demand problem compounds and typically feeds on itself producing extended lead times until spot prices flatten, demand cools, supplies increase, premiums shrink, and bullion investor back-orders are finally delivered. Other than that, … The value of the 1995 silver eagle is less than the 1986 silver eagle, even though 700,000 fewer of . I live in the area, what's the deal they have going on? Research provided by James Anderson on behalf of JMBullion.com. – This silver supply constraint, in the midst of rising investor demand, forced bullion dealers to raise price premiums as their inventory levels shrunk. In other words, silver bullion supply will not meet this increased silver bullion demand this fall or winter, most likely. Keep up to date with the largest and fastest source of silver market The mintage of 1995 silver eagles was the fourth-lowest since 1986, with a production level of approximately 4.67 million coins. Remember that the physical precious metals bullion market is minuscule relative to all other asset classes. Well, yes and no. so much so that if you don’t have it, it will be hard to pull the trigger on buying high premium bullion, most likely when you need it most. Why is the current price of silver low in the face of its use in solar energy, healthcare, jewelry, and almost every industrial and manufacturing process or component, from computers to fabrics? Gold and Silver price update for November 2011 Gold did well last week – finishing up $33/oz at $1,788. – Rising premiums on US mint products induces buyers to purchases other sovereign silver coins with lower premiums over spot, like Canadian Maple Leaf coins, as well as privately-minted products like Sunshine Minting bullion bars and rounds. Some jewellery can appreciate, and some watches definitely can. So when you buy a Silver Eagle (and most sovereign coins) at least three layers of cost are included in that transaction. Thanks for reading my thoughts, I wish you and yours the very best. Get a (think it's called) "Signature Security Line" 10oz. So, if the US Mint cannot meet demand with increased supply capacity in the short run, how else might dwindling inventories be managed? How and why silver bullion supply constraints are happening. . Real world manufacturing operations don’t move that fast; they are not that scalable short term. So why are silver premiums so damn high right now?! On the other end of the spectrum, some think it's inferior quality because it's not pure gold. I really like over unders but i can seem to find a nice one under 2k. What are you doing to take advantage of the current situation in the silver bullion market? It just so happens our educational system doesn’t teach much in the way of common sense economics (Austrian School) nor how individuals or businesses manage money (but that is a whole ‘nother can of beans which I won’t open here). If that is the case, and silver bullion premiums stayed flat, then the silver bullion industry’s manufacturing output would need to increase by 50% to meet demand. So, before I get to the four top reasons to expect higher silver prices, let me address a couple factors keeping prices in check first. Not going to happen in such a short time-frame. So silver coins and bars must be stored in a dry place with no exposure to the elements, a concern you don’t have with gold. Made in Germany, same reason why a german made anything costs 2-5x more than a similar item made in china. But the rise in premiums for Silver Eagles is not necessarily because dealers like GoldSilver are charging more — our prices are largely dictated by the market, as there are few regulations limiting who can sell a gold coin, and competition is very … Redmond Rare Coins has a good deal on the 10oz Geiger bars right now if you happen to live near Seattle. Note: this is a little bit of a rant So my friend was complaining about Pokemon Soul Silver being too much. We’re talking less than $20 billion USD in physical silver bullion gets mined and sold annually versus a global financial market that moves $10’s of trillions in USD annually. The aforementioned recent spot price vs bullion supply reverberations in the silver bullion market test one’s basic Economics 101 knowledge. For any manufacturer of real world goods, a 50% increase in production over the short term is huge. This is a big reason why I suggest, if you haven’t got any bullion yet, do so now, even if you only get some to start. The 100 oz silver bullion bars at the moment have substantially lower premiums over spot. Like the same density as all other 999 silver? Dragon fish, or Asian arowana, are some of the most expensive pet fish in the world. I so happen to have bought a lot of American Silver Eagle mint cases in 2012 and 2013 and, thus, I have some on-paper loses (but I had some peace of mind and good nights’ sleeps throughout those years, which I wouldn’t have had if that capital had been the shaky banking system). ;). BUT, I will also point out that, without having an adequate bullion inventory on hand, if a dealer simply sold their smaller stack to the public at standard razor thin bullion premiums, they will quickly run out of inventory, and they may also end up losing both customer base and, potentially, their business in the process. . I am thinking about getting into bird hunting next year. Silver’s paper spot price has recently fallen to 6+ year lows (touching a low price near $14 oz USD) yet physical silver bullion prices have not fallen. In short silver premiums have increased due to a recent combination of higher Silver Bullion Demand & lower Silver Bullion Supplies. So why are silver premiums so damn high right now?! You can also get our 100% FREE BULLION INVESTING GUIDE emailed to you right now. Often depends of specific makes and models when it comes to watches.20 Feb 2016 Why is Pandora so expensive? Why Are Pamp Suisse Silver Bars So Expensive Monday, 4 January 2021 How to invest in silver for beginners help identify fortuna ingot coin why is gold so expensive american why is gold so expensive american pamp suisse silver bars so expensive pamp suisse silver … NOTE: Due to extreme order volumes, please expect shipping delays of 10+ business days. All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice. The bullion industry also does a poor job of explaining how and why premiums expand and shrink. Why are hot tubs so expensive? Thus, I gain silver on the sale and buy. , there was pent-up demand for an American-made silver bullion Supplies hot tub can be as as... To you right now if you happen to live near Seattle here on JMBullion.com as well on! Spot prices are you doing to take advantage of everyone! ” the keyboard shortcuts learn the of. 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