Why Are Premiums On Physical Silver Bullion So High? The Spot Price Isn't What You Think

Four Reasons You NEED To Be Stacking Physical Silver In 2022 ► https://www.youtube.com/watch?v=O2WKDsg33hQ

When I first started stacking premiums on physical silver were much lower than they are today. In this video I discuss why the premium over spot has increased so much for many types of silver bullion.

None of this information should be considered investment advice, I’m just telling you what I’m doing. And I am still stacking, despite the record high “premiums”. I get into why in this video, and also go over why the spot price of silver isn’t what you might think.

Are you still stacking with these high premiums? Let us know in the comments below!

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20 Comments

  1. What do you think about the 100g combibar for silver? It's premiums 90%-100% over spot, however APMEX 1oz bars currently are about 30% over spot WITHOUT the bartering ability of the combibar. Also if you buy 50g-100g plus of the GOLD combibar the premiums are negligible at best, 3%-7-13% 13% for 20g. So my question is are these premiums justified, & are combiars in silver & gold worth the price for investment purposes?

  2. The true value of anything is what someone will pay for it…..spot price is manipulated by Goldman Sachs etc…Nov 4th 2022 I'd say true silver is $27+ Oz, gold $1750

  3. ok but why dosnt the price of the silver go up if there's a shortage rather than the premium

  4. You did not answer an important question: The middle-men such as Gainseville Coins, Gold Silver (Maloney), and others……they all can buy silver bullion from the US Mint for a set price. It is not the US Mint marking up the sale price over the "spot price", but it is those middlemen who are doing the price gouging. For example, back around 2010 when I bought my first monster boxes of Silver Eagles, I could buy them for only about 80 cents over the spot price. The US Mint was selling them for only about 50 cents over spot, and so the mark-up by the middlemen was very small……only about 30 cents. Today the US Mint is selling these coins to the middle men for about $4 above spot……..and these greedy bazzzterds are then marking it up another $10 per ounce. Please explain why they are allowed to gouge customers like us.

  5. It is all smoke and mirror, …. they'll charge whatever the market will bare. So if people stop buying the coins, watch that spread narrow.

  6. When silver prices rises it cost more to buy,but when they drop it doesn't drop in price.when they say as low as 25.50 you find out you have to buy over 2000,you wind up paying 27 to 35$ and 9.95 shipping unless you spend 200 and up.i did pretty good in the past buying 5 coins for 122$ free shipping.now I feel I'm losing at today's rates.

  7. I'm a gold bug right now, silver is too crazy now. 3% vs 30%. When silver calms down I'll be back in.

  8. All of this always comes down to supply and demand. Premiums just measure the pressure, that is the higher they are the greater the demand, and vice versa. Thank you for a thoughtful presentation.

  9. Ok, but why the spread when selling physical silver is so high compared to gold for instance ? It's like 50%

  10. I stopped buying Silver, the increase mark up and the tax… I'm going to be losing money.. Im a 10 percent per check buyer from 2013 – 2020. What happened ? 10 bucks markup for Eagles? plus, Silver hasn't done anything in 5 years even with inflation now.

  11. Totally!!!, can you imagine some dummy with a 1933 $10 silver cert and deciding to keep it for all these years instead of exchanging it for ten silver coins? Haha jk.

  12. If I want to sell my silver, will I get my premium paid back to me, and if not, why not??? I bought most of my silver before there were any premiums, where I bought, anyway.I don't even want to buy any silver anymore, because I feel like I'm getting ripped off.I just started paying premium last year, and I bought a lot less than I would have without having to pay a premium.

  13. High premiums are probably a good indicator of the real inflation rate. Suppliers have to cover wages, transport, insurance, advertising, and on and on….all of which the costs are rising. Premiums were lower during supply crunches in the past, even when spot was high, the big difference is the overhead costs of suppliers and exchanges are being hit by inflation just like every other business. No one likes paying premiums, just like income taxes but I think of over spot premiums the same way I think about income tax…It is a cost of doing business and If I'm paying more of it, I'm most likely making more in the grand scheme of things.

  14. Brittanias are super underrated. Soverign, Beautiful design, history and heritage, great security feautures. Way less of a premium compared to ASE or even Maples.

  15. Thank you, In my opinion, Premiums are a reflection of the actual worth of the metal. Futures,(paper) spot amounts are a manipulated fraud. You are correct, though premiums are high that ,in my mind we know that the spot is manipulated to stay low and discourage purchases and supply may be short. You, are also correct, availability will be the final straw that will affect the cost of the metals. For now we are limping along with real or manufactured shortages. Like you I also stack, not at a large level any more, but at a steady and very deliberate pace. One day, as you mentioned, when it goes BOOM, there may, NO, or very little available to buy, which could make prices now a real deal. Thank you again..

  16. The higher inflation gets, the less people are going to worry about premiums, for anything will be better than keeping fiat in the bank. Even now, why should people keep more dollars than they really need in the banks, when all the banks do is make millions on the money of their depositors and give us nothing in return? High inflation and zero percent interest means that actual interest rates are far less than zero. In a way it's like us paying them to hold our dollars, or we can just get out of their system and hold our own money…….real money…….real metal.

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