Silver Eagle premiums have fallen from the highs over the past 4-6 weeks. However, 2020 Silver Eagle premiums from the leading online dealers are still averaging nearly $8 per coin. Thus, precious metals investors are still paying an average 45% premium over spot for the U.S. Mint 2020 Silver Eagles.
When the U.S. Federal and State Governments started shutting down the economy at the end of March, demand for silver bullion products surged to record highs not seen in more than five years. In just a few weeks, most of the online dealers saw their silver bullion inventories vanish. And then, with the shutdown of the U.S. Mint and the Royal Canadian Mint, availability of silver bullion products went from BAD to WORSE.
It has taken nearly two months for stocks of some silver bullion products to begin growing again, but many silver bullion products are still not available. If we see another round of shutdowns, due to the “second-wave” of the global contagion hitting the United States, this could cause another surge in silver buying. If so, the two months it has taken to build some silver bullion inventories… could be wiped out again.
Since I started a spreadsheet on the 2020 Silver Eagle buy prices from the top four online dealers, the average premium from this group has declined from $10.97 per coin on May 19th, to $7.98 per coin today. That is a $3 decline in the average premium for the 2020 Silver Eagle.
The RED LINE shows the average 2020 Silver Eagle premium from the top four leading online dealers. The BLUE LINE is the 2020 Silver Eagle premium from CLOUD HARD ASSETS, which I sponsor on this website. As you can see, CLOUD HARD ASSETS continues to provide the lowest 2020 Silver Eagle premium in the group.
Furthermore, CLOUD HARD ASSETS 2020 Silver Eagle premium is even lower than MONEX, which GoldChartsRUs.com uses as a gauge on its website. MONEX is selling Random Silver Eagles at a $5.80 premium per coin. While this is lower than the top four leading online dealers average of $7.98, CLOUD HARD ASSETS is selling its 2020 Silver Eagles for only $5.45 over spot and its Random Silver Eagles at $5.25 over spot.
To get an idea of the change in 2020 Silver Eagle prices over the past six weeks, take a look at the following two charts. The first chart is the 2020 Silver Eagle prices from May 19th and the second chart is for today, June 25th:
May 19th, 2020
June 25th, 2020
Even though the spot price is about 50 cents more today than it was on May 19th, look at how much less the 2020 Silver Eagle prices are from these leading online dealers. CLOUD HARD ASSETS 2020 Silver Eagle prices have fallen the least, because they were selling their coins at a much lower premium than its competitors early on.
You can contact Tom or Dan at CLOUD HARD ASSETS here: PRECIOUS METALS INVESTING.
Americans Will Get Precious Metals Religion: Likely Sooner Than Later
Paul at SilverDoctors invited me to do an interview this past week. It’s been a while since I interviewed with SilverDoctors, so it was nice to get a chance to speak with Paul finally. Unfortunately, the overwhelming majority of Americans are not prepared for what’s coming. They still cling to their 401Ks, pension plans, IRA’s, Retirement Accounts, and so on and so forth.
During this last “SILVER BUYING RUSH,” only a fraction of Americans got involved. However, I see this changing as the Federal Reserve and central banks go ALL-IN to prop up the markets. Wait until we see just 1% more Americans try to buy silver bullion. In my last article, I provided this chart showing the country that invested the most in physical silver over the past decade was the United States:
One reader commented after the article showing that only 2.83 ounces of silver were sold per U.S. citizen over this ten-year period. That’s peanuts. If just 1% of new American investors tried to purchase physical silver bullion, the price would skyrocket as availability would totally dry up. Sure, if the price of silver was much higher, it may motivate sellers to provide more supply, but I wouldn’t be selling any of my silver just to get more Fiat Federal Reserve Notes. I would only sell silver to buy something or to exchange for gold. Those are the only two reasons.
Lastly, it’s going to be interesting to see what happens to the U.S. economy and financial system over the next 6-12 months. I still believe the second half of the year is going to be much worse than forecasted by the FINANCIAL ANALYSTS, who could care less about ENERGY and PRECIOUS METALS.
If you are new to the precious metals market and had questions, Tom Cloud and Dan would be happy to answer any questions.
DISCLAIMER: While Tom offers information about precious metals, you should not take this as investment advice. You should contact a professional advisor and or do your due diligence before making investment decisions.
Also, please read the FULL DISCLAIMER on the PRECIOUS METALS INVESTING page.
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