demand for physical taking its toll
Forum: Ask Trapper
- demand for physical taking its toll
Silver Demand Soaring: Premiums Skyrocketing, APMEX Sold Out of 90% Silver Bags
Yesterday we reported that the Perth Mint’s 1/2 oz Lunar Series silver coin sales are up nearly 40 fold from 2007-2008.
With silver hovering in the mid-upper $20′s after the latest raid coinciding with last week’s FOMC speech by Bernanke, demand for investment silver products has been absolutely soaring, particularly demand for fractional products such as 90% silver coins.
The industry’s largest online retailer APMEX is now COMPLETELY SOLD OUT of 90% silver bags.
APMEX has drastically raised their prices (on the silver they expect to receive in 10 days on July 6th) on 90% silver to $1.59/oz over spot for $100 face value bags and $1.45/oz over spot for $500 face value bags.
As we have inside knowledge of the wholesale silver market via SD Bullion, we can attest that the wholesale inventories of fractional silver, particularly 90% coins are rapidly evaporating with numerous wholesalers completely out of inventory and are substantially raising premiums daily.
SD Bullion still has a limited inventory of 90% silver available in both $100 face and $500 face value, and we will continue to leave our price as low as .79/oz over spotwhile our supplies last.
Many silver investors have been remaining on the sidelines in hopes of ‘backing up the truck’ should silver decline further to long term support near $20-22, with some speculating the metal could even fall to $15. Experienced stackers and silver investors can attest to the fact that physical silver will likely not be available under $25 should paper prices dip to $20-$22, and it is highly unlikely physical silver will be attainable for even $20 should paper silver decline to $15.
In the depths of 2008 when silver’s futures prices touched $8/oz, physical investment metal could not obtained anywhere for under $12-$13 an ounce- nearly 50-60% premiums to paper futures market prices!
As most of our readers are aware, silver is such a small market that if a mere $1 billion attempted to purchase physical silver right now the price would double to triple overnight.
The sudden rise in silver premiums and vanishing supply is indicating that some deep pockets are likely entering the market at these extremely low prices and sucking up all available inventory.
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