Bullion Dealer Exposed the TRUTH About Silver Premiums
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- Опубликовано: 19 окт 2024
- In this video we talk to Jake Haugen from Hero Bullion and he exposes the truth about silver premiums. Precious metals premiums are hard to wrap your head around. When it comes to buying physical silver and physical gold you will likely have to pay a premium over spot. The premium on silver products has many factors surrounding it. Some people think that silver premiums are too high on some products and they are not purchasing them such as the premiums on American silver eagles. Silver Eagle premiums are something that you need to be watching. Silver premiums 2022 will fluctuate and you need to be keeping track of what is going on when you are silver stacking. I am excited for silver stacking 2022 and If you want to get some great prices on physical silver then you need to check out Hero Bullion.
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Topics I cover in this video: silver premiums, premium on silver, silver premium, physical silver premium, premium on physical silver, precious metals premiums, why does silver have a premium, premiums on gold, gold premiums, understanding silver premiums, what are silver premiums, silver premiums explained, physical silver, american silver eagles, silver eagles, silver stacking, silver premiums too high, silver premiums 2022, silver 2022, silver stacking 2022, silver stacking in 2022, silver stacking tips, silver stacking advice, bullion dealer, online bullion dealer, hero bullion
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Look I'm not knocking anyone for conducting their business anyway they want, however it seems kind of hypocritical to make a statement about why we're charged premiums and why they are necessary but if I sell to his company he won't pay me a premium for my physical bullion. Don't advocate for premiums if you're not willing to pay premiums to the very people who keep you in business.
In the first place, "if I sell to his company he won't pay me a premium for my physical bullion" is irrelevant. 'He' is a business with operation expenses. An individual has nothing to compare. I'm not a dealer, btw.
@@imayberight1435 Buy with the aim to sell for a profit, who would have thunk it? BLASPHEMY I SAY
Everyone that is in “business” is in it to make money. To stay in “business”, you HAVE to make money. The trick is not to be greedy and screw people over. Be fair and consistent with your customer and he’ll keep returning for your product.
I have to agree. He still makes out even if he gives you 1/2 of the premium that he charges you. He is still going to turn around & sell it with a full premium. BTW , my local shop always pays me spot with a premium although he only pays a little ( like a dollor) for regular bullion coins). For constitutional last time he gave me 3 dollars over spot. To pay a customer less than spot in this market is just pure greed. Shop around when dealing with coin shops or sell on eBay. You will always get some premium if you do.
I’ve had the same issues. They use many excuses to be greedy and blame it on other factors. Just be fair. Just weights and measures are what God mandates in His holy Word.
New to stacking. I frequent my local coin shop and asked what his price on slicks was. He was just below spot and said his reasoning was because of the cost of melt (outsourced) and his overhead. These fellas are making a living and there is overhead. Find you a good dealer and support that business. Great video!
Welcome- buy at 30 and sell at 22.
Doing bad business to support a shop is not business, it's charity.
I seen constitutional at 9.75 over spot, not a lot of labor or anything for that matter in junk
@@strange-universe It was dug out of the ground and refined ONCE and over 60 YEARS AGO! How many times do you expect the buyer to pay for the 1 time cost of bringing to market 😂
@@strange-universe Na man they just want to make money off it, no excuse on junk silver. Id be ok with it but if YOU want the same premium when selling you wont get it, so the whole thing is BS.
I quit buying silver eagles after the premiums hit 8-12$ over. I'm good on that bs
B.S. for sure!!! I can't understand why anyone needs silver bad enough to pay these kinds of premiums? I would hate starting out that deep in a hole. I pretty much just buy low priced numismatic silver right now, at least the coins have some collectible value besides the silver content, which helps justify me buying them. There's no way I will buy .999 silver bars and rounds at the prices they are asking, just no way at all.
@@jzak5723 yeah but I do think eventually it'll have been worth buying the silver we have bought. At least I got rid of some of my cash so I have some insurance
@@thereignofthezero225
The only way these current prices make ANY sense is IF silver goes to $50 or if the SHTF, but who really knows. I buy silver simply as a savings account, because the money I spend on silver would most likely be blown on something else with no lasting value.
@@jzak5723 well silver hit 50$ ten years ago so I'd say it'll most likely exceed that price point sometime in the future, considering what's going on with the financial system these days.
@@thereignofthezero225
I agree that it will likely hit $50 again, but maybe its just wishful thinking, I'm running out of time, lol.
Wow…that was a terrific interview. I learned so much. Y’all’s questions were fantastic. Thank you for that informational video.
If someone suffered paying the premium when they first buy, why should I have to suffer the premium when purchasing second hand?
I don't buy this labor excuse.I have been buying for the last 6 years at spot, but today my dealer charged me $4.38 premium per ounce for generic rounds.I have bought from 2 other dealers over the years who closed shop, who never charged a penny over spot, and also bought rounds back from me at spot.This is either a Con by dealers, or a con by distributors, but, as I said, I have been buying for close to 7 years, and never paid a premium before today.I hope, when I sell my silver back, that I am going to get a premium too.Are these " premium" rip offs going to keep going up? I'm not playing this game.The spot price needs to be the price you pay, otherwise, I need to get the "premium" I paid back when I sell my silver back, otherwise, it is just thievery.Dealers can just say whatever they want as the "premium" for the day, because there is no premium price shown when you look up the spot price.If they are going to try and Rob me, I'm done with PM's.I know the Eagles have always had a premium, but dealers always pay more for Eagles.I never liked the premium crap, that's why I never bought Eagles.I want to pay the spot price that I see on my screen for my rounds, and I want to get back what I see on my screen when I sell back.I don't like complications, there are enough complications in life without adding some into my investment.
this might seem like a stupid question but who would sell to you without a premium unless it was a friend
No way would you get the premium when you sell, so ya it's a scam.
Absolutely agree, the labor excuse is a complete lie. It’s not like there has been some dramatic change in our ability to mine and extract silver. If anything we have gotten better at it because of technology and in theory and the subsequent premium associated with buying precious metals should be going down. These precious metal dealers understand that there is economic issues going on and because of that demand is higher and they can get away with insane premiums. Don’t be fooled don’t be lied to and don’t settle for ridiculous premiums. You won’t ever receive any of that money back when you go to liquidate.
@@pdxeddie1111 I was thinking the same thing
LMAO. "...I have bought from 2 other dealers who never charged a penny over spot..." (and have closed up shop).
You're the man, SD.. thanks for all the info. And you're one of the very few silver RUclipsrs who's always down to earth and friendly.
Shouldn't the premium just be absorbed as part of the supply/demand calculation as opposed to separate from spot though?
It should but the paper silver scams manipulate the market.
Id like to ask him...if they have to sell it for such a high price over spot...because.. you know, all the extra work to make the rounds etc. Then what happens to that when they want to pay you for it when they buy it?
That’s the problem, you as the consumer are expected to pay the premiums. But when you actually go to sell your silver you don’t receive a cent over spot price by most dealers. So you have to buy definition factoring how much you’re paying premium into what you expect to see as a return on your investment. We’re seeing ridiculous things like 100% markup on silver eagles premiums, just to break even on that investment spot price would have to double. The numbers don’t work out. But unfortunately the demand is so high that dealers can get away with scalping and price gouging.
You unpacked a lot of info. Really helpful. Thank you! I learned a lot.
Last few weeks for me
Generic rounds at LCS $32
Roll of Mercury dimes $110
2021 ASE $37
Prices are similar online, but just add tax and often shipping. It's crazy.
At $25 ish spot, we should be stocking up but the premiums are really hurting my desire to heavily stock up....
As of last week my lcs $27
I didn’t see any eagles.
Here in Tennessee we pay 9.25 sales tax. Man that hurts when you go to buy whether online or a coin shop
@@dannymarlin9150 Technically you are just trading currency and it shouldn't be taxed.
@@cknorris3644 exactly! Well in June it was finally removed on bullion purchases. I don't think there are many states left that do charge it now
APMEX already has the new Silver Eagles, pre-sale, really good prices - Happy Thanksgiving tomorrow, greetings from Germany
I don't know why this guy is giving a shady answer. The premium is charged by the dealer. In this case, the beard dude, if he is a dealer I don't know. The labor of minining the silver/gold is priced into the spot. Anything premium is the dealer's fee to keep his lights on.
I agree with the below, when silver eagles hit $30 I quit buying them. Haven’t bought any silver in over a year.
All bullion are above spot with at least 5-6$ per ounce. The Osterreich Philharmonie being the lowest for 27-28$ per ounce
Higher the weight the lower the premium? Is that correct? Thanks for this video!
The same overhead existed before premiums exploded. So that doesn't argument doesn't work.
I think the real answer is that the dealers set the rate to 'what the market will bear'.
We have a new crowd of buyers who think $10 premiums are normal. They buy anything that isn't bolted down. If everybody stopped buying $35 eagles, I am confident you would see those premiums drop like a rock.
" They buy anything that isn't bolted down." That's exactly what's wrong with todays economy. Consumers don't realize they have the ultimate power and set pricing. If no ones buying they can't sell it for crazy prices. But like you said...todays generation will buy anything.
@@cknorris3644
We are looking at a possible collapsing economy and monetary system.. People are panic buying. That's why everyone is charging above spot.
What point is the premium so high that silver is no longer a good buy? For bars I’m seeing 20%. Should that be a deal breaker?
So Jake said the key words "supply chain". U.S. silver eagles start at the mint and they have costs, but they only sell bulk to the six or seven largest distributors "authorized purchasers". Then they in turn sell to the next tier down and the next tier down and eventually to me directly or to a retailer. It isn't obvious how the big guys or even retailers keep track of their inventory so they know how much they paid in SPOT for each portion of their inventory. Do they liquidate as fast as they get it so there is little if any change in SPOT or do some sellers hold back some inventory betting on the SPOT price going up?
Because no one wants to sell it at spot. DUH! Buy a 1000 oz bar and you get close.
But the spot price is that of the .9999 1 ounce metal. The exchange has already factored in the resources required, and now the item has been put on the trader’s table for sell. Now down the supply chain, you can add other overheads, like minting, transport, storage, etc. You can’t put a spot price on an unfinished product.
Premiums on random year silver eagles from JM Bullion were $16.55 over spot if you purchased 20 or more today , May 9 , 2022 .
That’s why you don’t buy right now, economic turmoil is hyper inflating the demand for silver, allowing for dealers to price gouge the premiums. Imagine having to see a 75% increase in spot price just to break even on your initial investment? It’s not a good investment.
If what your saying is true then why does gold have smaller premium it’s from the ground it need to go to a refinery it’s the same process as silver. The real reason is these dealers are gauging the market plain and simple!
Sorry, but mining costs are Included in the spot price.
Silver is still wayyyyy undervalued.
Thanks for the great info.
If you want silver at spot then open a brokerage account, buy silver futures and take delivery. The answer to why you can not get silver at spot is that you can’t personally afford to buy five thousand ounces of silver at a time. If you can then you can definitely get silver at spot.
I wonder if the same principles apply to vendors in Europe, India, and Asia? Eagles are not sought after as much as coins from other mints - especially the Perth Mint - that has super high quality encapsulated scratch free coins.
So if a dealer does not charge premiums, how do they cover the cost of doing business? I always thought premiums were needed by dealers to cover their costs.
Makes sense but premiums should not be 20-30%
A 20 to 30% mark up is in no way justifiable, imagine having to see a 20 to 30% increase in a stock price just to break even. In no other financial investment strategy would this ever be advisable/justifiable.
I just bought 6 Phil’s from hero. Couldn’t find them for less anywhere online or LCS. The only thing that concerns me is if I resell getting low balled by a coin shop.
It’s not about what dealers and LCS are charging for product, it’s all about what they’re paying Joe stacker when he sells.
$14-16 silver eagle premium now. What a scam. If anyone doesn't believe the silver spot is artificially manipulated, the need to open their eyes.
Wow ! Reading these comments the people have spoken. Premiums suck ! Obviously.
But with that said I’ve talked to a few bullion dealers on the phone about how long an item is out in order to purchase a large quantity and they usually say 3-6 weeks .
I’m not advocating premiums I’m just trying to understand them . Sure there making a bit more money when they can . But also if you have a ton of something laying around and it’s not selling well the price drops but if demand is super high and it takes weeks to even get a product then premiums for any product go’s up . Just my understanding of the situation.
But don’t get me wrong I’m in the camp of “boy these premiums suck” knowledge is power arm yourself with some ! To see if buying right now is still a good opportunity for you !
There's always a premium when dealing with middlemen
I understand dealers pricing silver based on supply and demand, but I won't be one of the people paying $10 or more over spot. I don't need it that bad.
@@strange-universe
Yeah, and now all those with Master's are over qualified and you can't get hired.
QUESTION...... Just getting my feet wet with silver buying and purchased 18 tubes of 2021 type 2 eagles. A few folks are suggesting buying the plastic "Direct Fit Airtight 40.6mm Coin Holder Capsules" for each coin to hold down tarnishing, scratching, etc. What say the pros, are the tubes they come in not sufficient to hold down tarnishing and is this added measure really necessary? Would a shiny eagle fetch a better price in 10 years if it is shinier than a slightly tarnished and/or scratched eagle?
The tubes are fine, they’re not airtight but will protect them for long term storage. Might tarnish a little inside, but minimal. I only use direct air tights on ones I want to carry around and show off, but still keep fresh. Or for more collectible coins or for gifts. Regular bullion it’s not necessary. Keep a single coin as a “holding piece” so you can touch and hold the raw metal for enjoyment.
No it’s not worth it, you are likely not going to receive a dollar over spot when you go to sell your silver even if they are silver eagles. That’s the unfortunate truth. Unless you plan on selling to a private party who likes numismatic coins or is a collector you will likely never receive the money you paid on premiums back. Your exit strategy needs to account for the fact you will likely only ever receive spot price.
20%, 30% and more on premiums is just too high. Everyone in business gets a mark up or commission, most are less than 10%. Why should your industry be higher?
Spot at 19 the other day- Maybe we should be buying new cars- they drop in value too. Apmex charging over 30. This is good buissiness ?
The problem with Silver premiums I see as an investor in stocks, bonds and real estate is this: After paying the buying and selling premiums, shipping costs, and state taxes you have to damn near have your investment go up at east 50% to break even. Silver just doesn't do that generally speaking. For example, in March 2008 Silver was at $18.30 an ounce.Eleven years later, In December 2019, Silver was $14.15 an ounce. That's a loss of just under 23% in an 11 year period! When you factor in the cost involved with premiums, taxes, etc the loss is much bigger. As of today, June 28, 2023, Silver is at $22.76 per ounce. Since my first date mentioned in 2008, that is an increase of 24%. That is 1.6% per year annualized gain. Again, factor in the buying and selling premiums and the like and that is pretty much no gain. I find the info and conversations interesting. I see "stackers" in general as collectors more than investors. I understand the allure to own precious metals, but I would never view it as an investment. The only road to profitability with Silver is to buy it when nobody wants it and sell it when everybody wants it. The problem is nobody wants to sell, so they hang on until the prize normalizes again.
The main question and what really drive the prices is the "features" market. It is very complicated and that's where you will have your eyes wide open and mind blowing of how silver moves. What the whales are doing not the 1oz market it's the 1000oz market that runs the show.
So if you buy a gold eagle now the price of gold has be be north of $1885 before you can break even when you sell . That’s a lot to ask for isn’t it ?
Exactly right. But because of economic turmoil the demand for gold and silver is high and people are willing to pay the premiums. I would much rather put my money in some other investment at the moment then pay for the hyperinflated premiums of today.
@@felipetejeda7545 what other investments do you like
thank you
Also add in greed as a premium.
Dealers have to pay rent, wages and utilities, so they need to make a profit, so they charge a premium. Understand?
Is it correct that government minted currency coins, when sold, are exempt from capital gains tax, whereas precious metal rounds, bars and other items produced by private mints as well as non-currency government offerings, are subject to capital gains taxation?
No it’s all considered bullion. Cap gains tax applies.
People doesnt seem to understand that Spot prices are not meant for retail lambs buying little amounts of silver. Its price for huge institutional funds and big wholesalers for moving big amounts of silver. If you bought ETF you get to enjoy the small spread, because scale of business is way larger than in physical silver. If you bought physical silver you simply pay for every step that big silver bar sitting in vault takes to move and melt into fancy silver dollar or bullion or mini bar and then moving them to retailers. Therefore you pay huge spread compared to silvers real price. Buying physical silver or any metal is no different than buying tacky jewelry.
This is a good point. Thats why I focus more on low mintage collectable pieces. As a collector I'm fine paying a big premium for unique silver and gold items. I don't expect to make money but its a nice hobby.
Great Video!
flat out BS - i've worked logistics around both 'mining/refining' and 'exploration' - and all these costs you talk about are neither new nor not factored into the equation when defining production scale ...always has been - what's new is the 'transference' of these costs to the backend because quite frankly they've figured out that many are willing to pay it which puts more money in 'their' pockets - same with shops and dealers, if they stand together to charge you more premium, they make more money at the stackers long term expense (everything becomes a popularity contest) - but the moment you want to sell, it's suddenly all about spot ...lol
i've stepped away from coinage over the last year and gone more towards lower cost kilo bars during dips (and i still think the premiums are ridiculous) - try to buy at levels under $3 spot preferring the germania black box bars 250's and 500's being easier trade on the back end (keep them in their box) ...they're cool looking, have security features, and people 'like' them lol... sometimes able to 'trade' the numismatic value out of coins on straight weight
Can you typically even sell at spot? I've been told that most dealers buy at slightly below spot and sell at a 25-30% premium over spot.
@@robertgreer3106 - you approach acting like you don't know what you doing and some will yes, offer less than spot ...simple, walk away - know where your going first, call ahead, and don't waste your time - i typically steer clear of pawn shops, but who knows where your at and or where you'll need to go ...larger markets tend to have better deals - 10/15% is typical on silver and 5/10% on gold (higher when dealing with numismatic transactions), although smaller markets will tend to ask more ...educate yourself and again call ahead - i get my best deals buying off co-workers and friends of friends (but again you'll need to know what your looking at) just looking to get fast cash - most importantly to always keep in the back of your mind ...why your stacking to begin with, your objective, and that "nothing" is "worth" more than spot - what are you willing to pay beyond worth?? lol
i recently traded a small firearm for a co-workers stash of 'junk silver' at 15x face (in a $24/25 spot market) ...kept my ammo for future barter (like a good little prepper, lol) - look up the math on that, educate yourself on such transactions ahead of time ...then scout potential barter partners through your everyday acquaintances... if you get good at this you can preform quick transactions on the cuff landing great opportunities (just make sure your just as good at spotting fakes, lol)
@@gorioecho9789 you are doing great - love hearing these stories. Any thoughts on the "big box" on-line stores (APMEX, JM Bullion, etc.)? That's where I got started and why I am questioning the decision to pay a "delivered" price of $33-$36/oz for silver.
@@robertgreer3106 - why in the world would you purposely by 'bullion' at 33-36 when spots at 22-25? makes no sense - i don't buy coins, i buy bullion because that's how the average retailer is going to buy it back off me - rounds and bars at the cheapest price offered, and personal trades when they can be found - APMEX is too pricy, JM is ok some of the time, but only at order's over 200, only through e-check, and again only rounds and bars - shop around on the big box's, catch the deals, and already know what you want and what you'll pay for it - "be picky and patient" - cheapest one ounce rounds, ten ounce bars, not too big to barter, not too small to have outrageous premiums (calculate 'everything' to the ounce for comparisons against current spot, in order to gauge the purchase) - gold i stick to bars at nothing less than 10g (PAMP is my normal goto), unless i run into personal trades at around spot - i'll also occasionally pick up placer but you really have to 'understand' what your buying when you do that - even have a few pieces of jewelry bought at less than spot based on metal only at grade, again you have to be able to test and know what your dealing with
@@gorioecho9789 I think you are confirming that the "game" is to buy closer to spot, however it cannot be denied that dealers have to make a profit, and it doesn't matter if that profit is 10% or 30%, you are by definition under water *immediately* after purchase (if you look at it from an investment standpoint) which is not unique to silver (buying 5% front end loaded mutual funds does the same thing - starting you off under water). Buying physical silver as an investment has to be looked at beyond a pure dollars and cents standpoint which I get. Appreciate the shopping tips!
no one mentions you pay a premium and some state hit you for taxes also now your really paying to much
I was a bit taken aback when I went to buy some silver this year. The way I look at it is the premium and the spot price is the price of the silver now and I bought because I believe it will be higher than $30 in the near future and I specifically focused on coins minted during these years where the premiums were high thinking that they will continue to hold that premium because everyone paid that price for those. I didn't invest as much as I would have if not for the premiums because it will take a lot longer before I could even make a profit.
Nice thinking...
I asked my LCS how much would he pay for silver eagles, he said spot plus a couple of dollars when he was selling the same for $30 per coin. Sorry I’ll hold.
I’m buying under the same premise but I’m watching my LCS’s to see how they respond to a rising spot. Premiums should not be a percentage of spot but a function of the cost of doing business. For example, if energy cost rise, increasing overhead, then I can see a necessary increase but other than that I will not give them my business.
I’m in the HVCA business and I would not survive if I priced each job out based on the rarity of the work I am performing or the prestige of the product that I am installing. This is what seems to be happening in the PM world.
Isnt the labor intrinsically included in the price!?
so who are the authorized purchasers...that's a bit vague...Jamie Dimon or joe blow...but silver products have a sales tax component...denomination valuated silver is money, so no sales tax...blame the states looking for revenue streams...
$4.00 or $5.00 dollars above spot is a ripe off.
With the increase in cost to mine, silver, wouldn’t that alone drive the price higher
Premiums are out of control and with something that moves so little like Silver you will never get it back. I have been buying for decades and we didn't always have the crazy premiums. It was around a dollar or less for "premium coins" like the Silver Eagles at dealers. Problem is small dealers are far and few between now so we are left with big corporate greed mongers.
if the premiums are too low and competitors come in and buy you out doesn't that suggest a shortage? If there's plenty out there as the spot price suggests then shouldn't someone just keep buying and selling to these guys until they cry uncle? Unless there's not as much as they claim at least not in investment retail but once there does become a shortage won't mints go and buy more from the comex?
Just picked up 4x silver ounces from my local shop,only charged me $1 over spot!!
Couple of months ago I was getting constitutional silver at 20 x face. This month I had to pay 23 x face
Dealers offer me spot price and they sell it for spot + 10. His argument of high PM due to silver digging, refining, printing and shipping doesn't make sense. As buyers, we pay for shipping or cost to drive to LCS. Call it what it is, "a mark up", don't dance and justify with bunch of BS. I stopped stacking because of overly charging PM.
Why can't we just even the playing field and buy direct from the mint as consumers and skip this authorized dealer BS. Let the general public only pay a few dollars over spot for silver eagles. I think the middle men should be eliminated. I just don't think it's fair that a bullion dealer can buy a silver eagle for a few dollars over spot turn around and sell them for $18 or more over spot it's just insane. I think the mining companies and the mints that make the coins should be the one that make the profit off it. Why put a middleman in to just Jack the price up? Just to create jobs? I'm genuinely curious on this
I asked myself the same thing why can't we just buy directly from the places these dealers buy from. Too bad if they don't get to be the middleman and make money they need to find something else to do
This is an older video so I hope someone sees my post and responds. I’m new to this and just trying to figure it out so does the massive amount of leverage in Ag from ETFs like SLV and other derivatives cause the paper price for Ag to be artificially low? I recently noticed that premiums on 1,000 oz bars (which IMO should represent spot) was about $3. If so shouldn’t (paper) spot +$3 be the price of PHYSICAL Ag? If so shouldn’t we deduct that $3 from the premium and add to spot when calculating the premium %? Thanks
Premiums are just greed by sellers to make more money. used the mining of the silver as example. Well,that silver is $0. The Spot price or market price is what it cost to refine,Mine,etc. You don't pay $25.15 or whatever spot it to the earth to get the silver from the ground. Be like going to billy bobs grocery store and they add whatever price they want to the price listed on the box/can/bottle when you checkout just because they can.
At Silver Dragons I was really mind blown on videos you post about bullion dealers, and comments on their premium but just last night you were auctioning 50.00 to 75.00 over spot. As a stacker from one side in the beginning till now obviously on the other side you’re just the same as dealers. I’m not hating on your hustle but it seems you’re on both teams. If I was Silver Dragon and wanted to show love to my followers I would’ve done all but now with a few bucks over spot just to show appreciation to your followers.
I am sorry, but a lot of what was said to justify the ridiculously high premiums that exist is nonsense. It is nothing less than gouging. Mining, refining, etc, are already incorporated into the Spot. The big volume retailers buy at below spot, and mark it up, add on their premium, to sell it at retail to the public. There is no limit on how high they can choose to set their premiums. What they are doing is gouging, plain and simple.
Welcome to a true free market! The spot price is NOT the price of physical silver. Spot is the manipulated electronic price. An ounce of silver is what someone is willing to pay.
@@jeffo.31 Of course Spot is not simply the physical price of the metal. I never said it was. But, it is a factor in the determination, or as you correctly note, the "manipulated electronic price." The point is, on top of that manipulation, you have the additional manipulation known as the "premium".
Mn charges 7percent when you buy coins not bars.
"Silver is hard to get out of the ground."
I was under the impression that most silver production is a byproduct of the copper mining & refining process - no?
True
Bought bars from Franklin Bullion 3.75 over spot on 10 oz bars.
Is hero bullion a good company to stack with
Ok. Started charging sales tax recently.
I work at a coin shop. We have seen close to a 50% drop in the amount of people selling to us. People are just buying hand over fist. Anything they can get. Our boss is good at getting more inventory, but when we have to buy from secondary market wholesalers, it costs more than what we'd pay a customer selling us silver. So our inventory costs more to get and therefore, costs more to the customer.
Curious what you guys would be paying for silver right now. Say buffalo or generic rounds, 10oz or kilo bars, maples, eagles...over spot on everything?
@@well.thy.one. 5 cents over spot on rounds. I think we're paying around 2.50 over on eagles.
@@well.thy.one. most things are a little over spot.
Have you tried to treat your customers well?: I mean pay them more: your shop is ok to pay that price to wholesalers, but reluctant to pay the same to the customers? $2.50 for a coin that have $10 premium when sold? you are just too generous, my friend.
@@afanasya we've been in business for 63 years. Our customers know us well and come back day after day. Our prices are better than every other store in town both ways, and our retail prices are better than literally every big website out there. 👍And unlike most places, we have thousands and thousands of ounces of product.
Old silver coins that has had their labor paid time and time again have some high premiums. Seems that way.
The premiums are way way too much. But hero bullion is the best. A grate company with good pricing thanks hero bullion. JM bullion is gone crazy with thar pricing. We should all stop buying silver eagles LOL. Silver is such a nice thing to hold.
So...you want to sell your stuff. You price your stuff at a rate that you make money on. Since it's lower than your competition they buy you out. You've made the profit you were willing to sell at...so I'm failing to see the downside here. The argument falls flat on it's face. It's not about being forced to raise your price because of competition...it's about you aren't making as much as they are.
Yup
🗽I HAVE READ EVERY COMMENT AND THE ONE WORD MISSING IS SPECULATION
I use speculation when I see the price over spot for Eagles go from $3 to $8 to $5 to $10 to $6 to now $13.....wow
That's hard to believe. Cost of the silver production should be not reflect on the spot price. Bullion Dealer wants to get all your money from our pockets in order to tell all the buyers have to pay variable premium. I don't mind to pay more for jewelries price on sliver, but not the bar or coin. If all these Bullion Dealers agree to pay back for all original premiums that we paid before and collect our siliver coin and bar plus spot price, I have nothing to say. There should have option to buy silver such as sand form or unregular form of the pure silver. Selling the pure silver on bag by weight not the coin or bar. I believe buyers should more enjoy to buy them without any premiums from trustable dealers. Now, the markets are controlling by the selfish dealers hold the unfair prices. No matter spot price is going down, they are increasing the premiums on the bullion. However, they don't agree to pay back any premiums for you when you sells your bullions to them. That's is joke for all bullion investors.
Plus we have to pay tax on silver and gold.
Pay a premium over spot to buy, offered less than spot when selling. Dealer is the only winner!
Let’s go Brandon
I started stacking earlier this year. And man I am learning ALOT.
One thing I've learned is, keep a stack of cash aside for the day premiums drop, as well as your jaw lol.
I keep kicking myself, I had a chance to buy 5oz Bars for $122.19 about a month ago.... Today those same bar's are at $143.59. And I just watched it go up and up.
Spot price $25 ,silver eagles $36 that's 35-38% premium... moving forward, premium will keep going up.. spot price up, premium up, spot price down, premium still up... either ways, the dealers are just sucking us up... we needs to be very careful when buying silver. I stack based on the lowest premium i can find at that point of time. and when silver spot price is way too high, i will not chase it... Buy on dips and DCA buying..
Doesnt DEMAND COVER the spot price, I must be missing some thing
So when we sell to coin shops we should demand a premium on top of what they offer?
🗽THERE ARE TWO WAYS TO SELL -- ONE IS FAST TAKE WHAT YOU ARE OFFERED -- THE OTHER IS SLOW HOLD OUT FOR WHAT YOU WANT
the governments are making to many commemoratives and limited additions, they are ruining the hobby- just concentrate on buying junk silver or regular bars. yes I bought a few collectable pieces but they are getting to expensive, no way can you ever sell some of this for a profit. I do like some of the historical coins.
Maybe the premiums are going up because of all the RUclips videos on silver.
Did you dig it out the hills
Works the same in the cannabis black market haha
I think I'll go listen to some music, lol.
Very informative video gentlemen. Thank you all.
Just wait. The premiums will go down
Right now we should be paying about $200 for an ounce of silver if the bullion bankers weren’t holding the price down, so if I have to pay $6 over spot to get an ounce of silver today then I’m fine with that. Silver is way way underpriced.
Way more then that “true value” is about an acre an oz
I believe it is under valued as well 🔥🐉
Ok, do this math problem. Put $25 in an investment paying 5% annually which would be the current CPI and find out how many years it takes for your investment to be $50. I calculated 2035. Do the same for 10% if you think that is the legitimate inflation rate and see what you get. I'm calculating 6 to 7 years, so no way does silver get to 100 or 200 dollars per oz in my lifetime. I'll be happy to see 30 again.
Acre of land I am more the willing to pay that 👍
@@christophergreyson6953 Silver comes out of the ground at a 1:9 ratio with gold. Gold is around $1800…1800/9= $200 silver. Silver is underpriced.
Here we go again. No silver stock 😂😂😂
Let me say this: I will take quality product over the length of time it takes to deliver. I will take safety of delivery over time. Of course price is a factor, and I notice that unfortunately HB doesn't have a massive spread of choices but they are clearly well picked for fair prices. Had zero problems with Haugen and all prices were totally fair for how the market has been for this year.
I think the premiums are just making the people that sell it to you rich
Maybe if you have to sell some of your silver a person should go on Craigslist or something like that and meet somebody in person 2 sell your silver too. Yes the coin dealers are making a lot of money. And you have to watch what they say. I had to sell some seal silver a dealer said we'll wait till tomorrow because the prices were fluctuating quite a bit that day to see if we couldn't get me a better price when I came in he said he would give me 23 and that's what he said the day before he lied. The price was running 23 point 35 an ounce and he used Kitco. We all know kitko sells 10 to 15 cents lower then what then what the bullion dealers have silver spot priced at.
@@janemortz8148 just take eagles for example they're like 10 to 13 over last time I looked why wouldn't you sell them to somebody that wants to buy silver and then you can sell them to him for four or five over and he saves money and you make more money than going to the dealer
Good video I learned a lot.
Let me put it this way. Premiums belong in the jewlery selling world because jewelers are artisans who take time to create a piece of art (usually one of a kind) and of course a premium belongs there for the time and effort of the jewler. But when it comes to bullion, why is there a premium? The sellers didnt create each coin or bar by hand and they certainly arent one of a kind pieces of art. They are machine pressed by the thousands. So why is there a premuim? This is why I say it is arrogant and pompous to charge premium for bullion. Charging premiums as if the sellers did something spectacular with the metals LOL Premiums are STUPID
The U.S silver eagles blanks come directly from the Sunshine mint which mean you’re paying for the stamp from the U.S mint which make zero sense. It’s smarter to by a Sunshine round over a U.S Eagle coin.
it is cheaper for the rounds for sure but people love the eagles especially for self directed IRAs 🔥🐉
Isn't the whole point of having PMs to not be a part of the government controlled system? Ira = wtf
@@SilverDragons47 The Sunshine rounds are also approved for the IRA’s. Just because our corrupt government stamps their design on the blanks doesn’t make them better that a Sunshine generic round.
I could be wrong but I believe the US Mint has sophisticated minting equipment and technology that costs millions of dollars compared to private mints so that's perhaps part of the reason why Eagles cost more.
@@patrickmurphy8222 LOL
This was excellent information delivered extremely well! It will help me to explain how this industry works to my friends and family much better now! Thank-you!
awesome thanks for watching! 🔥🐉
@@SilverDragons47 agreed, great info, thanks Dragon.
The US mint has done an utterly abysmal job making ASEs to demand the last couple months. Almost like they’re trying to ease pressure on the delivery exchanges...
🔥🔥🔥🔥
Great video. Answered alot of the questions I had on the high premiums. I've only been stacking a little over a year and the rising premiums prevent me from stacking as much as I would like.
Avoid eagles. Get maples and brittannias and generic like sunshine mint buffalo rounds or sunshine mint eagle rounds. Or 5 or 10 oz bars. Much better value to build weight. And just as good.
@@GlennShook This is The Answer.
So the real question is: If silver go's to $100 spot, from about $28 now - I bet the dealers will just raise their buying premiums proportionally, so us poor silver stackers don't make much gain?? What do you guys Think??
$28.00? Spot has been jiggling around between $24-25.00 for the last month or so.
It's $25.10 atm.
It amazes me how much people are complaining about paying markup over spot.
How about opening your own shop. You can buy and sell at a rate that you feel is in favor of the collectors and stackers. Keep in mind your fixed and variable cost of running the business, and also the fact that you have a personal life that necessitates a roof over your head and food in your tummy. Oh yeah, if you have any dependants, they want a roof over their head and food in their tummies as well.
I appreciate my dealer. If he closed his doors, I would go to my backup dealer and pay more. Even then, I'd appreciate that his doors were open to go to.