By Gregor Gregersen Given the unprecedented nature of events surrounding us currently, I would like to make public what we at Silver Bullion are seeing and the course of action that we have decided to act upon. Over the last week, the prices of gold and silver as traded on future exchanges have fallen drastically, while the demand for physical gold and silver has spiked to exceptional levels in a manner that is reminiscent of 2008, 2011 and 2013. As an anecdote, Silver Bullion (we are based out of Singapore) has sold more than 10 tons of silver in the past week alone, which is five times our usual sales volume. To put things in perspective, that is equivalent to 650 monster boxes of silver. Other metals that we offer such as gold and platinum are experiencing similar demand spikes. When a product experiences increased demand amid falling prices, shortages are the natural consequence. To address the shortage, an increasing number of suppliers and virtually all bullion dealers have raised their premiums, sometimes drastically. Despite the increase in sales premiums, most dealers are still buying metal from their customers around or below spot rates. This means that spreads at some dealers typically reach 40%, even exceeding 100% in some cases. While we at Silver Bullion are unable to keep premiums low on the sell side while preserving supply, we have raised our buyback prices. This ensures that holders of metal on a whole enjoy the strong increases in premiums for their physical bullion. Readers can visit our site for updated buyback rates here The Bigger Picture This is an important opportunity for our peers in the industry on a whole. We need to collectively show the markets that physical bullion dealers can reliably make our own prices in time of crisis. By adjusting both sell and buyback premiums to reflect physical supply and demand, we would essentially create a market driven physical price. Only in this manner can we partially detach the physical market from the highly leveraged paper markets. We are working around the clock to ensure that our products remain in stock during these exceptional times.