Gold & Silver coin premiums have fallen a bit recently because this is typically the slowest time of the year for the retail bullion industry. However, official coin premiums continue to be extremely elevated compared to normal prices before the pandemic shutdown. For example, Silver Maple Leaf premiums were typically no more than $2 per coin, but the current average for the leading online dealers is $7+.
IMPORTANT NOTE FOR SILVER & GOLD SUBSCRIBERS: I had planned to put out a Silver Member article today on the growing problems with California’s Grid, but will likely post that early next week. It seems as if they will have to BEG & BORROW for additional electricity from outside sources in July & August, or will be suffering BLACK or BROWNOUTS. I will be posting this article early next week. Instead, I wanted to post this Gold & Silver Coin premium update for all Members.
Furthermore, I will be doing a Gold Member Advanced Mining Stock Chart Update on Saturday and will be out of town on Sunday. Typically, I like to put out the Silver Members Metals & Market Update on Sunday, but that will have to wait until Tuesday.
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Okay, let’s get back to Gold & Silver Coin premiums. As I mentioned at the beginning of the post, while we see a bit of a drop in premiums, they are still quite elevated. Furthermore, according to GoldChartsRUs.Com, if we look at MONEX premiums, they seem to be rising again. MONEX premiums are less than the large online dealers because their prices are based upon putting metal directly into their storage system. Thus, MONEX premiums posted are not reflective of metals SHIPPED to your home. However, they are a good guideline to see overall changes in the market.
Gold Coin Premiums
Here are the MONEX Gold premiums, starting with the Gold Philharmonics. After the big spike during the Pandemic shutdowns, the Gold Philharmonic premiums fell and were only 3.5% at the beginning of 2021. However, they spiked back up over 5%, fell a bit, and are now trending higher once again, over 5%. This could be due to two of the four large online dealers that I check do not have availability of ANY Gold Philharmonics. And the average Gold Philharmonic premium from the two dealers that have product is 6%.
The next is the Gold Maple Leaf coin premium, which shows the same trend as the Gold Philharmonic.
Interestingly, the Gold Krugerrand premium on MONEX has jumped the past few days to nearly 5.5%.
Of the four dealers I check, one did not have any stock of Gold Krugerrands, and the average premium of the other three was 5.6%, very close to the MONEX premium shown above.
If we look at the premiums of the three gold coins above, they seem to average from 3-3.5% from 2011-2019. Today, they are at 5%.
Silver Coin Premiums
For the silver coin premiums, let’s start with the Silver Eagle. Even though the Silver Eagle premiums are elevated because the U.S. Mint has switched over to a New Design, and hasn’t sold any new product in two months, the New Silver Eagle premiums are still very high. MONEX Silver Eagle premiums have increased to 27%.
Here is the MONEX Silver Philharmonic premium, which has been steadily rising over the past month to 18%
The MONEX Silver Maple Leaf premium increased to 16% and has remained there.
Now, if we look at the Four Leading Online Precious Metals Dealers’ average premium for the coins below, we can see that they range between 20-42%. These figures are based upon buying less than 100 coins.
Now some dealers have lower sale prices, and other dealers are even higher. The New Silver Eagle Design released in July (1-3 weeks depending on dealer) shows an average premium of 42% for the group. The Silver Maple Leaf average is 27%, followed by the Silver Krugerrand (21%), Silver Kangaroo (21%), and Silver Philharmonic. APMEX seems to have the highest overall premiums of the group.
Here is the list of Dealers, 1) JM Bullion, 2) SD Bullion, 3) APMEX, & 4) Money Metals Exchange. While there are several other online dealers, these tend to be the highest volume sources.
Now, I contacted Dan and Tom at Cloud Hard Assets to provide their most recent premiums on these same coins, and Dan responded today with the premium percentages shown below:
Cloud Hard Assets is charging a much lower premium for Silver Maples than the other online dealers. Also, they provide a bit lower premiums on the Krugerrand, Kangaroo, and Philharmonic. While Cloud Hard Assets premium is a bit higher on the new Silver Eagles, Dan told me they would likely get an update next week that may be even lower.
I’d imagine there will be a lot of buying of the New Silver Eagle Designs when they finally are released. Furthermore, if we do see weaker silver prices, this will likely motivate more physical buying as precious metals investors realize the problems in the Financial System haven’t been fixed since the 2008-2009 crisis and are only going to get worse as time goes by.
Lastly, it’s important to understand that investing in precious metals is something that should be done over a period of time or by Dollar Cost Averaging. Some may be smart and time when the metals prices are at lows, but one thing we should do… IS NEVER SELL OUR PHYSICAL METAL. We continue to ACQUIRE or HOLD our physical metals until we need to buy something in the future. When the ENERGY CLIFF really starts to hit, that is when it will be CRITICAL to own physical precious metals.
We sponsor Cloud Hard Assets at the SRSrocco Report because they have the lowest prices and best services. For example, Tom Cloud provides all clients the protection of putting their funds in an ESCROW ACCOUNT until the metal is shipped. Thus, clients’ funds are protected if there isn’t the metal to be shipped. Not many dealers provide this service.
Next week, I asked Tom Cloud to provide a Precious Metals Update on the Industry. If you have any questions you would like me to ask him; please leave them in the comment section.
If you want to contact Tom or Dan at Cloud Hard Assets, you can do so at the link here: CLOUD HARD ASSETS.
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