Silver Squeeze?

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Kingfisher
Gold Member
I checked the premiums for silver eagles on some of the reputable dealer websites and the premiums are around 40%. The silver eagles are being offered for over $30 despite the spot price at around $21.50. That's way too high of a premium no matter what your investment time frame is.

So for right now I believe the best option is to buy PSLV. Once the premiums go back under 10% then it would be a good option to sell PSLV shares and buy physical.
 

NoMoreTO

Ostrich
Premiums have only gone up since the March 2020 when the pandemic began. Part of what we are seeing is the de coupling of price between holding the physical, and owning an ETF such as PSLV. (I own both)

If "hyperinflation" becomes real, then any returns in an ETF or similar instrument, will likely be taxable. You'll be paying tax on alot of inflation. Where you win with an ETF is your point of entry. I looked into reimbursing PSLV and you have to have alot of silver to actually receive a redemption.

If demand increases for physical silver, the premiums will only go up as the price goes up. The physical could run away on the spot price via the "premium". In theory dealers should be able to buy some large bars and smelt them down into small bars for resale, I've seen a little of this at one dealer, but then you're buying a funky generic silver vs. a recognizable name/ national mint. The outside benefit of silver

So far Silver has been a doldrum investment for me, I've moved from the excited silver enthusiast to the long term prepper with a little silver stashed away.
 
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MRAll134

Pelican
I am seeing a large increase from the online silver supplier that I usually order from. Silver has increased 40% in price, in just a few weeks. There is a message about "large volume of orders" and shipping times. The premium price and the market price are two very different things, now.
 

C-Note

Hummingbird
Gold Member
If it's true that that the metals market, including precious metals, follows copper values, then this may be a temporary decline in mining stock valuations and may also be contributing to the lack of a decline in the premiums for silver bullion. The price of copper YTD peaked in May (4.76), but its current price is 4.20 and has held fairly steady over the past few months. As an example, Capstone copper Mining (CSFFF), of which I own some shares, has bounced around between 3.60-4.50 since the end of April, but has always recovered within a day or two of hitting 3.60.
 
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