Investors are buying Silver Bullion at such elevated levels, premiums are spiking higher, while wait times for many products are now reaching 4-5 weeks. I spoke to Dan at Cloud Hard Assets today, and he said that silver was hard to find, pushing investors into smaller fractional official gold coins.
With the escalation of the Russian-Ukraine War, economic sanctions are setting the stage for a major recession, especially if energy prices continue higher. And, they will likely do so. Even though we may see a correction in the oil price when the Russian-Ukraine War ends, the dynamics of the ENERGY CLIFF will still come back to haunt the global economy in the following years.
Thus, in times of crisis, investors buy physical gold and silver. Again, Dan, manager of Cloud Hard Assets, said it was very difficult to access silver, which has pushed investors into buying 1/10 & 1/4 oz official gold coins. Wait times for many official silver coins are 4-5 weeks.
For example, the top dealers have again pushed the Silver Eagle premiums back up to $15 above spot… UNREAL. If you look at the chart below, you can see how the top dealers compare to Cloud Hard Assets:
I went to APMEX and SD Bullion to compare prices and wait times for the 2022 Silver Eagles. While APMEX stated they had some product, it was only 3,522 oz, or 7 monster boxes. SD Bullion showed availability by March 31st. I can assure you if you want to buy a significant amount of Silver Eagles, you will have to wait 3-5 weeks.
Regardless, the top Four Dealers are charging $2.5-$5+ more for 2022 Silver Eagles than Cloud Hard Assets. This was the same during the peak buying period during the Pandemic in 2020. Cloud Hard Assets charged much lower premiums for its bullion products than the leading dealers.
Now, while bullion premiums will rise due to the “BOTTLENECKS” and the “INABILITY” to increase supply, we may start to see more fireworks in the Gold & Silver wholesale bar market due to the LBMA & CME banning six Russian gold and silver refineries.
As I have been repeating for quite some time, FIREWORKS in the Silver Market will happen FIRST in the Silver ETFs. Russia produces about 42 million oz of silver a year, and now this supply won’t be heading to London or New York. Thus, we could see more tightness in the wholesale market via the Silver ETFs.
Why? Because Institutions control approximately 80% of the markets’ funds. So, when Large Institutions move into silver, the only realistic place to access silver is in one of the Silver ETFs. And no, most Institutions do not favor the Sprott PSLV ETF over the iShares SLV ETF.
Why? Sprott PSLV has 3.5 Times less silver and 10 Times less notional daily trading volume than the iShares SLV. This many in the precious metals community tend to overlook. If I am a Large Institution, I will not put in $500 million or $1 billion in a Silver ETF with 10 Times less the daily notional trading volume.
This is INSTITUTIONAL INVESTING 101… whether we like it or not or want to continue Belly-Aching about the supposed Fraud called JP Morgan’s SLV ETF.
BEST WAY TO BUY GOLD & SILVER…
The best way to buy Gold & Silver is from dealers who provide better value by “Dollar Cost Averaging.” Unfortunately, investors tend to buy more when there is FEAR or PANIC in the market. Thus, Fear & Panic pushes prices and premiums higher. I am not a proponent of buying during these periods… IF and only IF, you DO NOT own any metal.
It is better to add to one’s metals holdings during price declines and falling premiums. But, again.. for those who DO NOT OWN any metals, it would be wise to acquire some.
Lastly, U.S. Gold Eagle sales are stronger than Silver Eagle sales. Here are the Silver-Gold Eagle Ratios for the following Months:
SILVER-GOLD EAGLE RATIO:
JAN 2022 = 28 to 1
FEB 2022 = 17 to 1
MAR 2022 = 8/1
Now, compare the 23/1 Gold-Silver Eagle Ratio for Full Year 2021. In times of War & Panic, investors tend to buy more gold. But, I see this changing in the future when more investors move into silver to take advantage of a much lower price and realization that there really isn’t that much more Gold than Silver Investment Stocks in the world.
You can contact Tom, Dan, or Jade… Click here: CLOUD HARD ASSETS. You can also call (800) 247-2812.
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