With the lack of availability of precious metals retail bullion products, the premiums for gold and silver coins-bars continue to be quite elevated. Depending on the dealer, 2020 Silver Eagle premiums are still ranging between $7.5 and $13. Thus, the Silver Eagle premiums are between 47-81% of the spot price, depending on the dealer.
I continue to check the U.S. Mint website, but there still hasn’t been any update for Silver Eagle sales for May. While the U.S. Mint sold 7,000 oz of Gold Eagles in May so far, it shows no figure for Silver Eagles. The large online dealers are still struggling to obtain supplies of silver bullion products with the availability pushed back 2-4 weeks or longer.
Precious metals investors are wondering when retail gold and silver premiums will begin to decline. That’s a good question. Gold Eagle Premiums back in early 2009 shot up to 8% and then declined substantially in early summer. By the end of 2009, Gold Eagle premiums had fallen back to 4%, shown here from GoldChartsRus:
The gold and silver coin premiums used on Nick Laird’s GoldChartsRus website mainly come from MONEX. While these premiums provide investors with a guide, I wouldn’t trust MONEX as a company. Monex seems to continue to get into trouble by DEFRAUDING investors.
Federal Court Allows CFTC Case Against $290M Fraud to Proceed
The CFTC alleges Monex Deposit Company scammed thousands of retail customers out of more than $290 million (July 26, 2019)
So, good luck if you use or want to use MONEX to acquire precious metals.
Even though some gold bullion product premiums have declined, it will be interesting to see how the premiums will change as the global contagion continues to wreak havoc in the financial system and economy.
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