Is anyone actually paying these crazy premiums on 1oz coins atm?.

Discussion in 'Silver Coins' started by PatKnowall, Jul 30, 2020.

  1. Silver Soul

    Silver Soul Well-Known Member Silver Stacker

    Joined:
    Jun 23, 2010
    Messages:
    2,007
    Likes Received:
    468
    Trophy Points:
    83
    Location:
    Thailand & WA
    Over the years from 1983 to 2020 I have paid my fair share of premiums for 1ounce rounds! Is it a crime to ask premiums for what I own in physical silver rounds to people that want a slice of my nest pie? Not that I'm a seller yet :rolleyes:
     
  2. Boyscout

    Boyscout Well-Known Member Silver Stacker

    Joined:
    Nov 1, 2014
    Messages:
    2,438
    Likes Received:
    1,331
    Trophy Points:
    113
    Location:
    Sydney
    Not at all, you are not making anyone buy anything unless they want to. They wont buy unless your price is fair compared to what else is available

    We all pay premiums for lots of things not just PMs.
    Its a Fact of life
     
    Silverling likes this.
  3. Silver Soul

    Silver Soul Well-Known Member Silver Stacker

    Joined:
    Jun 23, 2010
    Messages:
    2,007
    Likes Received:
    468
    Trophy Points:
    83
    Location:
    Thailand & WA
    Op must realise that when silver is in a squeeze premiums will skyrocket, so it's simple don't buy. Also keep in mind that the squeeze on silver is getting tighter over time so expect those premiums to go alot higher. Have a plan young fella and stick to it
     
  4. fishduck

    fishduck Active Member Silver Stacker

    Joined:
    Feb 14, 2018
    Messages:
    214
    Likes Received:
    109
    Trophy Points:
    43
    can i ask how you are basing silver to go back to $26 an ounce (my question has more to do with direction rather than the price itself)? Is it from a fundamental or technical perspective?
    Because if it’s fundamentals, the fundamentals are saying that central banks all over the world are printing money like there’s no tomorrow and as a result should naturally show up in prices, first gold then silver most likely.

    Also, prices for silver pre-COVID did not price in COVID so you have to understand that this is the market pricing this in.
    And COVID is not the only problem, there is the bigger problem of what will happen to the economy after all this and the aftermath of the US elections and what the next President will do, both are determined to print more money as far as I’m aware.
    once COVID is over, do you expect conditions to go back to pre-COVID levels that warranted that price, and even back then there was a lot of talk about how undervalued silver was.

    From a technical perspective, there’s the gold price and the silver price and the gold/silver ratio (I won’t get too much into it here as it would take too much space), where for example the 20 day EMA for the silver chart is currently above $26Aud, which acts as good support (if that breaks that’s another story though). From the technical side, there’s also the possibility that price drops will be scooped up.
    Also, the gold price in US dollars is looking close to $2000 an ounce and would most likely break it sooner or later (this can be said to be a technical play to break the 2k psychological barrier), if this happens, can I ask why silver would go down and not go up? Or at least move sideways?

    We might get a pullback, we might not get one. But would the pullbacks be enough to change the direction of the metals? If I flip the question to you and say that silver went up instead of going down due to the fundamental and technical points I made, then was that $43 dollar silver coin cheap or expensive?

    There is also the nice factor that even if silver went down to $26 and below, there is no guarantee that anyone would sell it at that price either, or whether there would be sufficient supply and whether you would be able to get your hands on it (at least silver is being sold at $43 at the dealers, if it goes down to your $26 price target, would there be any silver available at the amount you want? What scenario do you prefer?). Dealers/individuals might ask for a higher premium to make up for the price fall so for you to buy at $26, silver would have to sufficiently go below that price if you factor in premiums.

    There are several factors in play and while I’m not saying it can’t happen, I would like to ask how and in what scenario you think silver will go down long term given the points I made above.
     
    Last edited: Jul 30, 2020
  5. fishduck

    fishduck Active Member Silver Stacker

    Joined:
    Feb 14, 2018
    Messages:
    214
    Likes Received:
    109
    Trophy Points:
    43
    And this second post I’m making is not directed to you but for the people who say that you need to take paper profits and quickly sell when you anticipate price drops, if that’s the case, you are MUCH better off buying and selling at the GLD and the SLV than trying to do that in the physical market, as you won’t pay the premiums and would be able to sell at market price whenever you like.
    If paper gains are the end goal, you are MUCH better off doing that than having to procure, hold, store and guard your physical from individuals and organisations.
     
    Last edited: Jul 30, 2020
    Holdfast, STKR, Silverling and 2 others like this.
  6. leo25

    leo25 Well-Known Member Silver Stacker

    Joined:
    Jun 8, 2010
    Messages:
    3,417
    Likes Received:
    1,672
    Trophy Points:
    113
    Location:
    Sydney
    10oz bars have always had higher premiums. Stick with1kg, they are very stable in prices.
     
  7. SilverJJ

    SilverJJ New Member

    Joined:
    Aug 15, 2019
    Messages:
    22
    Likes Received:
    10
    Trophy Points:
    3
    Perhaps the high premiums are an indication that market participants expect the spot price to rise in the near future to the extent that premiums fall back in line with historical norms i.e. without the price of coins needing to fall.
     
  8. Grizzly

    Grizzly Active Member

    Joined:
    Dec 14, 2018
    Messages:
    122
    Likes Received:
    92
    Trophy Points:
    28
    Location:
    Perth
    People must be buying them because they are sold out already. I saw Britannias on the BullionNow site a few days ago, now they are gone. I saw Philharmonic coins yesterday, or the day before, now they are gone too. So yes, people are buying them because they are selling out.

    Supply and demand in action, supply is limited, demand is high.
     
    Boyscout likes this.
  9. shinymetal

    shinymetal Well-Known Member

    Joined:
    Oct 29, 2012
    Messages:
    1,550
    Likes Received:
    389
    Trophy Points:
    83
    Location:
    victoria
    All their koalas are gone also... I can't remember if they said they had 2000 or 5000 of them in, and 100 KG koalas, all gone.
    A lot seemed to disappear very quickly, almost like 1 person decided it was time to get in and brought the lot up.
     
    Boyscout likes this.
  10. Boyscout

    Boyscout Well-Known Member Silver Stacker

    Joined:
    Nov 1, 2014
    Messages:
    2,438
    Likes Received:
    1,331
    Trophy Points:
    113
    Location:
    Sydney
    :D

    Anyone want some Koalas?

    Only kidding, i wish i could BUZZ the crap out of something that size but sadly no:(

    I did manage to place an order for a Monster Box of 2020 Brittanias so at least that brought me a little happiness:)
     
  11. STKR

    STKR Well-Known Member Silver Stacker

    Joined:
    Aug 19, 2019
    Messages:
    955
    Likes Received:
    1,522
    Trophy Points:
    93
    It's promising to see so many newcomers entering the PM arena.
    Yet value is subjective. If you are just entering into PMs now, you could easily see the opportunities and won't have the negative influences of remembering a time when prices were much lower. Many longer term stackers have put on the brakes in regard to their purchases, likely because they have their own idea of what 'good value' is for certain PM's - based on past performance.

    But, you know how the message goes! "Past performance isn't a reliable indicator of future performance".

    I think it's very possible that this could be the beginning of a multi-year bull run for PMs, and when the market finally turns back and finds a bottom, the supply and demand fundamentals will be much stronger on the upside.

    Look at Mexico for silver. Mexico produces approx 6,000 tonnes of silver per year, yet known reserves are 37,000 tonnes. At the current rate of production, Mexico only has 6 years before it's knows reserves are gobbled up. Shit is about to get very real for Silver in the next 10 years IMO.
    Not because of inflation, not because of speculation, but because it's a precious metal in high demand from industry and supply is limited.
     
    Last edited: Aug 1, 2020
  12. shinymetal

    shinymetal Well-Known Member

    Joined:
    Oct 29, 2012
    Messages:
    1,550
    Likes Received:
    389
    Trophy Points:
    83
    Location:
    victoria
  13. alor

    alor Well-Known Member Silver Stacker

    Joined:
    Jun 16, 2011
    Messages:
    9,058
    Likes Received:
    2,128
    Trophy Points:
    113
    Location:
    Pulau Alor ;)
    ahead start, fire is coming for the koalas
     
    Boyscout likes this.
  14. shinymetal

    shinymetal Well-Known Member

    Joined:
    Oct 29, 2012
    Messages:
    1,550
    Likes Received:
    389
    Trophy Points:
    83
    Location:
    victoria
    Thank you kindly, I do consider myself a bit of a meme smith.
     
    STKR and Boyscout like this.
  15. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

    Joined:
    May 25, 2018
    Messages:
    2,395
    Likes Received:
    1,383
    Trophy Points:
    113
    Location:
    Singapore
    Is this FOMO?
     
  16. shinymetal

    shinymetal Well-Known Member

    Joined:
    Oct 29, 2012
    Messages:
    1,550
    Likes Received:
    389
    Trophy Points:
    83
    Location:
    victoria
    I'd say it's more a case of people getting on the train as it's leaving the station.
     
    STKR, Boyscout and sgbuyer like this.
  17. Millennial Engineer

    Millennial Engineer New Member

    Joined:
    Apr 19, 2020
    Messages:
    20
    Likes Received:
    6
    Trophy Points:
    3
    Im happy paying 20/25 dollar premiums for 2 to 3 of the low mintage coins from Perth Mint from secondary sellers. With the justification if that i like the designs and believe if things stay "normal" the design of the coin it self should sell for a higher premium in the future.
    Some of the Silver Shield coins are 20 AUD over spot with shipping and paying by credit card.
    I started off with a lot of basic bullion with hardly any premium.
     
  18. slavaja

    slavaja Well-Known Member Silver Stacker

    Joined:
    Oct 3, 2010
    Messages:
    1,051
    Likes Received:
    679
    Trophy Points:
    113
    Location:
    Melbourne
    To me 1oz coins are not worth it even at normal premiums. If you want smaller size stick to junk such as pre decimal and round fifties. Low premium all the way.
     
    sgbuyer and shinymetal like this.
  19. shinymetal

    shinymetal Well-Known Member

    Joined:
    Oct 29, 2012
    Messages:
    1,550
    Likes Received:
    389
    Trophy Points:
    83
    Location:
    victoria
    I will pick up 1 or 2 of something really nice that I like occasionally. But most of my stack is just whatever I can get as cheap as I can get it, and then there is spoons... but that's another story.
     
    Boyscout likes this.
  20. SteelHand

    SteelHand Well-Known Member Silver Stacker

    Joined:
    Aug 26, 2019
    Messages:
    453
    Likes Received:
    354
    Trophy Points:
    63
    Location:
    Perth, WA

    [​IMG]
     

Share This Page