What's with the high premiums on gold in Europe?

Discussion in 'Gold' started by TreasureHunter, Mar 30, 2020.

  1. TreasureHunter

    TreasureHunter Well-Known Member

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    Coininvest.com is selling 1 oz bars with around +250 USD premium per ounce:
    https://www.coininvest.com/en/gold-bars/fine-weight-1oz/?change=1&curRate=dollar_rate

    If you order one, that'll be just under 2,000 $ with all the transaction fees and transportation costs added.

    CelticGold.eu has everything sold out besides a handful of well-overpriced silver "special edition" coins.

    Are there any other European dealers with a decent stock and acceptable price?
     
    Last edited: Mar 30, 2020
  2. GoldenEye

    GoldenEye Well-Known Member Silver Stacker

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    US Mint has uncirculated 1oz Gold Eagles at US$2,140, and they're "currently unavailable".

    usmint.gov.png
     
  3. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    Some mines are shut... and is the bullion part of US mint even essential?

    Id imagine the gold/silver minting part of Perth Mint isnt essential either

    Much like Valcambi, Pamp and RCM
     
    Last edited: Mar 30, 2020
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  4. TreasureHunter

    TreasureHunter Well-Known Member

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    About 10 days ago I heard a rumor about Pamp's factory/mint having had issues with the Corona virus, reason why they shut it down (for a while).

    I also heard about "interruptions" regarding the transportation of Perth Mint bars from 'Stralia to Europe.

    I am guessing the super rich are buying it up and/or the dealers are pretending that they don't have enough bars/coins.

    The most annoying of this is the OBSCENE PREMIUM.

    Which mines are shut down?
     
  5. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    newmont in canada, some mid caps in South africa and all over the world etc. some will continue some wont for whatever reasons

    super rich aren't buying physical gold, since they wont pay the premiums, there is a reason they are super rich. They will buy paper gold or sit in cash or have great managers making them a killing on other distressed assets.

    Its only small time retailer buyers who are paying the premiums and being sucker punched by the local dealers all the way to the bank
     
  6. TreasureHunter

    TreasureHunter Well-Known Member

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    Let's become super rich
     
  7. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    It might just be the new price of gold!
     
  8. TreasureHunter

    TreasureHunter Well-Known Member

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    Not yet. If people can't even get their hands on them...

    I'm thinkin' prolly the merchants are elevating premiums to diminish the increased demand.

    If Corona decides to keep it lower (not expecting it for May, but some say perhaps during the summer it might decline), then perhaps we could have "normal price" gold.
     
  9. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    If premiums are this high I'm sure spot will follow. Same with silver.
    Once buy time for gld hits it will be off.
     
  10. TreasureHunter

    TreasureHunter Well-Known Member

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    I think premiums could potentially go down if spot doesn't increase, if the economies don't start collapsing (yet) - this year, if the surge of demand for gold goes down and if the mints are able to deliver more than enough gold to the dealers.

    This happened in 2013, 2014, when gold has remained highly expensive, despite the serious correction.

    After a number of months, the prices went down to a "normal" level with just slightly above spot.

    I think that this could be a temporary unrealistic spike. Also due to much higher demand and lower supply (with supply chains affected).
     
    Last edited: Apr 1, 2020

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