{"id":22441,"date":"2020-07-19T09:05:59","date_gmt":"2020-07-19T15:05:59","guid":{"rendered":"https:\/\/srsroccoreport.com\/?p=22441"},"modified":"2021-09-17T11:19:15","modified_gmt":"2021-09-17T21:19:15","slug":"chart-of-the-day-gold-eagle-premiums-back-to-normal-while-silver-eagle-premiums-still-high","status":"publish","type":"post","link":"https:\/\/srsroccoreport.com\/public\/chart-of-the-day-gold-eagle-premiums-back-to-normal-while-silver-eagle-premiums-still-high\/","title":{"rendered":"CHART OF THE WEEK: Gold Eagle Premiums Back To Normal While Silver Eagle Premiums Still High"},"content":{"rendered":"

An interesting dynamic is taking place in the precious metals bullion market.\u00a0 While the premiums for Gold Eagles have fallen back to near-normal levels since the global pandemic hit during mid-March, Silver Eagle premiums are still close to their highs.<\/p>\n

According to GoldChartsRUs.com, using Monex’s prices for Gold and Silver Eagles, the premium for the coins jumped in April due to the surge in bullion demand and the shutdown of the U.S. Mint.\u00a0 However, as the world’s largest gold refineries came back online and as the U.S. Mint was able to resume production, the premiums for Gold Eagles fell considerably at the end of June and beginning of July.<\/p>\n

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However, even though Silver Eagle premiums have come off their highs in April and May, they are still quite elevated:<\/p>\n

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In using Monex’s price data, the premium for Gold Eagles is 3.8%, while Silver Eagles are at a whopping 27%<\/span>.<\/strong>\u00a0 Now, here are a few interesting points about Monex’s price data.\u00a0 Monex provides very low premiums versus the typical leading online competitors.\u00a0 However, there is a catch when dealing with Monex.\u00a0 First, the premiums quoted are not for 2020 coins, even though one may receive that year.\u00a0 Secondly, they try to get people to use their service that offers even cheaper premiums if you don’t take delivery and store it at their facility.\u00a0 This seems suspicious to me that they can offer such low premiums compared to the market.\u00a0 So, buyer beware.<\/p>\n

For example, I looked at the 2020 1 oz Gold Eagle premiums (based on buying 1-9 coins), and I found they ranged between 5.7%-6.6%, with a simple average at 6%.\u00a0 So, you can see that the leading online dealers are charging about a 6% premium for 2020 1 oz Gold Eagles vs. 3.8% for Monex.<\/strong><\/span>\u00a0 Moreover, when Monex’s Gold Eagle premiums were much higher in April-May, so were the leading online dealers.<\/p>\n

Regardless, Gold Eagle premiums have come off their highs while Silver Eagle premiums are still elevated.\u00a0 If we look at the following chart, using Monex’s price data from the charts above (approximations), Silver Eagle premiums are only $0.44 less than what they were from their peak.<\/p>\n

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Monex’s Silver Eagle premiums peaked at $5.75 and are now at $5.31.\u00a0 So, we haven’t yet seen Silver Eagle premiums return to their normal $2-$2.10 per coin<\/strong><\/span>.\u00a0 Again, when Monex’s Silver Eagle premium peaked at $5.75 per coin, the average leading online dealers were charging an average $10.97 over spot in mid-May.\u00a0 I have set up a spreadsheet that shows the prices and premiums for the four leading online dealers versus CLOUD HARD ASSETS<\/strong><\/a>, which I sponsor on this website.<\/p>\n

Here is a chart showing the 2020 Silver Eagle premiums for June, and including July 17th:<\/p>\n

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As you can see, the four leading online dealers’ average 2020 Silver Eagle premium was 59% on June 1st or $10.81 per coin versus 37% premium offered by CLOUD HARD ASSETS<\/strong><\/a> or $6.70 per coin.\u00a0 What a difference in premiums… eh?\u00a0 Investors could have saved one heck of a lot of money if they SHOPPED AROUND.<\/p>\n

Towards the end of June, the average 2020 Silver Eagle premium from the four leading online dealers fell to 42% on the 30th of the month versus 30% for CLOUD HARD ASSETS<\/strong><\/a>.\u00a0 And, at the close on Friday, July 17th, the leading four online dealers’ average 2020 premium fell to 41% ($8.03 per coin) versus 27% ($5.25 per coin) from<\/strong><\/span> CLOUD HARD ASSETS<\/strong><\/a>.\u00a0 These prices are based on buying 1-19 coins.<\/p>\n

Due to high demand and still limited supplies, the premiums on Silver Eagle coins remain elevated.\u00a0 I contacted Dan at CLOUD HARD ASSETS<\/strong> <\/a>this week, and he told me they continued to be very busy with 60% of sales in silver bullion and 40% in gold bullion.\u00a0 These percentages are based on sales volume, not on troy ounces.<\/p>\n

The South African Mint Sold A Lot Of Silver Krugerrands Since Mid-March<\/strong><\/h3>\n

Since its initial release in 2017, investors have been able to acquire 1 oz Silver Krugerrands; however, the mintages were low.\u00a0 But, since the global pandemic caused bottlenecks and shutdowns, there were a lot of Silver Krugerrands available for wholesalers and dealers.\u00a0 Thus, we may see the production and sales of Silver Krugerrands in 2020 jump versus 2019.<\/strong><\/span>\u00a0 According to the 2020 World Silver Survey, the South African Mint produced 3.6 million oz of Silver bullion, mostly Silver Krugerrands.\u00a0 It will be interesting to see their sales figures this year.<\/p>\n

I put together this chart showing the four leading online dealers 2020 Silver Krugerrand prices vs. CLOUD HARD ASSETS<\/strong><\/a>.\u00a0 These prices are based on purchasing between 20-99 coins.<\/p>\n

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As you can see, CLOUD HARD ASSETS<\/strong><\/a> is still offering the best prices for 2020 Silver Krugerrands.\u00a0 Surprisingly, one of the largest online precious metals dealers in the industry continues to charge the highest premiums on its silver bullion coins.\u00a0 I find this quite interesting because the notion that high volume sales translate to lower prices doesn’t seem to be the business model here.<\/p>\n

CLOUD HARD ASSETS<\/strong> is a smaller operation and runs a very tight ship, which is why they try to offer the best deals for investors.<\/p>\n

You can contact Tom or Dan at CLOUD HARD ASSETS<\/strong> here:\u00a0 PRECIOUS METALS INVESTING<\/strong><\/a>.<\/p>\n

Tom Cloud has been in the precious metals business for 46 years, since 1973.\u00a0 He has a lot of experience in the precious metals industry and understands the gold and silver market better than most dealers in the industry.<\/p>\n

If you are new to the precious metals market and had questions, Tom Cloud and Dan would be happy to answer any questions.<\/p>\n

DISCLAIMER:<\/strong>\u00a0 While Tom offers information about precious metals, you should not take this as investment advice.\u00a0 You should contact a professional advisor and or do your due diligence before making investment decisions.\u00a0\u00a0<\/em><\/p>\n

Also, please read the FULL DISCLAIMER on the PRECIOUS METALS INVESTING<\/strong><\/a> page.<\/p>\n

If you are new to the SRSrocco Report, please consider subscribing to my:\u00a0<\/strong><\/span> SRSrocco Report Youtube Channel<\/strong><\/a>.<\/p>\n