Falling Silver Eagle Premiums But Are More Bullion Shortages Ahead?

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.


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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15 Comments on "Falling Silver Eagle Premiums But Are More Bullion Shortages Ahead?"

  1. Buy the premium dip!

    BTW, There is a kick-ass X22 Report, JUST OUT, titled:

    Message Received, Gold Is The Standard, New Standard Is Coming – Episode 2208a


  2. Justin Moore | June 25, 2020 at 6:17 pm |

    We see a silver coin and bar investment chart . I wonder if jewelry is added to the silver and bar investment , would USA still be at the top or would India surge past USA?

  3. Silver delivery dates have been pushed back again.

    Sydney Australia dealer: estimated late July, perhaps later due to 2nd wave of corona.
    Melbourne Australia: late August or later again due to covid.

    Unobtainium – “This little gray rock sells for over $20 million a kilo.”
    Silver – This shiny scrap sells for a pathetic AUD$30 an ounce but you can’t find any.

    • I just checked Sydney dealer prices at 2.45pm Sydney time Friday. One large dealer near Martin Place has ‘Roos @AUD 32.40 pre-order & Krugers @33.40 in stock.

      Another dealer closer to Wynyard has Eagles @38.76, Maples @33.06, Roos @31.56 & Krugers @33.06. All in stock. All above prices are for 100+ coins.
      Silver spot right now is AUD 25.74

      I’m a bit of a newbie to PM’s but am I correct in thinking a bit under $6 premium is reasonable deal for Roos?

      • Anonymous1000 | June 26, 2020 at 5:12 am |

        Compare those prices against those available at the Perth Mint. Maybe have a look and compare the price of the ‘Monster Box’. Buy which ever is cheaper on the day.

  4. Silvrwllwn | June 26, 2020 at 3:50 am |

    There are two worlds of silver and there will always be.

  5. TruthisYourRight | June 26, 2020 at 8:39 am |

    If people new that silver is money and fiat is not, then they would not hesitate to exchange it, if silver was available!

    The larger population of people are not privy to an education which includes the knowledge of fiat debts.

    The special interest groups are fully aware that fiat debts do not have to be repaid and are unenforceable in a criminal law court.
    This is why the banks have created administrative courts,(govt obeys) to deal with debts in fake fiat banknotes and are run by corporate officials who follow the orders of the bankers and not criminal law.

    Criminal law courts recognize only debts in money of account or sterling silver. Recognizing an administrative courts authority on your part is voluntary, thus fiat debts never have to be repaid.
    The admin. courts authority is limited to threats by mail, which are returned ‘Addressee not recognized, No contract’!

  6. I have a question about the amount of silver sold to Americans. How do we know Americans bought 929 million ounces of silver. I have family in Italy and they have been buying American Silver Eagles as well. Those Eagles left the United States. How do you verify Americans hold this silver or gold just because it was sold here does not mean it stayed here.

    • Correct. I am not american but have some eagles.

      • I know a lot of the investment silver and gold is bought from outside the USA.
        I appreciate your feedback I knew they were not the only ones but people don’t talk about it.

    • Mehmet Çelenk | June 26, 2020 at 2:46 pm |

      You are right. To my knowledge, Silver Eagles are respected and highly sought after items worldwide. I live in Turkey and have collected Silver Eagles for years. I can safely say that the premiums are higher here than in U.S. ASEs have always been demanded and frequently appear in auctions.

  7. Mehmet Çelenk | June 26, 2020 at 2:51 pm |

    Steve, your analyses are excellent and have taught me a lot of important facts. Thanks a lot.

    srsroccoreport.com is the best PM website.

    • Mehmet Çelenk,

      I am glad that you find some of the information on the website interesting. I don’t believe there are many precious metals that understand the importance of ENERGY on the entire economy and financial system.

      Also, I didn’t know you were located in Turkey. How difficult is it for you to obtain Silver Eagles there?


      • Mehmet Çelenk | June 27, 2020 at 4:09 am |

        (Sorry for my late reply. Due to time zone difference).

        Steve, currently it is very difficult to find an ASE in a dealer. The only way to obtain them is to enter internet auctions. Even then, you can only find a few.

        Meanwhile, Turkish State Mint has stopped sales of ALL commemorative silver coins indefinitely since April. No official could tell how long this will last. There can only be two reasons:

        1. The Mint has been unable to obtain silver bullion for its operation.


        2. The Mint expects a big rise in silver prices soon. (Which is considered the more probable cause).

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