Premiums Rise and Delivery Delays Increase on Silver Coins and Bars

Silver bullion coins are continuing to see rising premiums and delivery delays due to continuing very robust demand and a lack of supply of all silver bullion coins.

Premiums on silver eagles have been creeping up since mid-May (see chart below) and wholesale premiums have risen from 14% in May to over 25% this week. Silver eagles remain probably one of the best proxies for silver coin demand and also of investment and store of wealth demand for silver.

The U.S. and Canadian Mints are rationing supply and wholesalers are waiting on allocations. For a second week in a row, the U.S Mint has reduced its weekly allocation of silver eagles – limiting sales of the silver coins since their return after temporarily selling out in July.

The allocation this week fell to 750,000 eagles, which is a large over 7% reduction at a time of high demand and delivery delays in the market. Last week’s allocation dropped by 19% to 809,500 coins from the prior week’s supply of 1 million coins. The opening week of September also saw a rationing of just 1 million coins.

These weekly inventories have been snapped up almost immediately. In the last two weeks, all available Eagles were bought in just two days.

BULLION COIN & BAR PREMIUMS & AVAILABILITY – September 25, 2015
GOLD	PREMIUMS	AVAILABILITY
Gold Bars (1 oz – Perth Mint)	3.75%	In Stock
Gold Bars (1 oz)	4%	In Stock
Gold Bars (10 oz)	3.75%	Delivery – 1 to 5 Days
Gold Bars (1 kilo)	2.00%	Delivery – 1 to 5 Days
Gold Maples (1 oz)	4.25%	In Stock
Gold Eagles (1 oz)	5%	In Stock
Gold Krugerrands (1 oz)	4.25%	In Stock
Gold Philharmonics (1 oz)	5.00%	In Stock
Gold Buffalos (1 oz)	5.00%	Delivery – 1 to 2 Days
Gold Sovereigns (0.2354 oz)	8.50%	2015 In Stock
Gold Sovereigns (0.2354 oz – Pre 1933)	9.00%	Not available in volume
SILVER
Silver Bars (100 oz Generic)	9.50%	Delivery – October 20
Silver Bars (100 oz LBMA – Asahi Refinery)	9%	Delivery – Nov 23
Silver Bars (1000 oz)	5.50%	Delivery – 1 to 10 Days
Silver Eagles (1 oz)	34%	4 Weeks
Silver Maples (1 oz)	26%	4 Weeks
Silver Kangaroo 2016 (1 oz) – Call to order	22%	Delivery – Oct 7

Note: Given continuing and deepening delays for certain popular bullion coins and bars and rising premiums we believe it is important to keep our clients and subscribers aware of the most up to date premiums and availability. The prices quoted are indicative and can change at any time. The premiums quoted are for smaller orders and there are volume discounts and lower premiums on larger orders.

The shortage of silver coins is due to continuing robust demand and a lack of supply of silver bullion coins. It is primarily due to a lack of coin minting capacity and of actual coin blanks or planchets.

At the same time, it should be noted that premiums are not far above the level seen in 2013 when they went over 22%. Indeed, at the height of the financial crisis in late 2008, premiums on silver eagle coins surged over 70% (see chart below) due to sharp fall in the silver price after the Lehman collapse and the very high silver demand seen at the time.

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