{"id":169456,"date":"2020-04-27T16:16:12","date_gmt":"2020-04-27T20:16:12","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=169456"},"modified":"2020-04-27T12:16:36","modified_gmt":"2020-04-27T16:16:36","slug":"should-i-buy-silver-now-or-wait-for-lower-premiums","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/04\/should-i-buy-silver-now-or-wait-for-lower-premiums\/","title":{"rendered":"Should I Buy Silver Now or Wait for Lower Premiums?"},"content":{"rendered":"
April 27, 2020<\/div>
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By Money Metals News Service<\/b><\/p>\n

The silver futures price is near $15.50 per ounce but good luck buying the white metal anywhere near that price (with one notable exception discussed later).<\/p>\n

The inventory of low-premium retail coins<\/a>, rounds<\/a>, and bars<\/a> mostly disappeared in a matter of days when fears over COVID-19 pricked the bubble in global equity markets back in March.<\/p>\n

Buying demand increased 5-fold and sellers all but vanished. Mints and refiners producing new products were unable to bridge the widening gap between supply and demand, and premiums exploded higher.<\/p>\n

Today the lowest premium product available for delivery \u2013 the 10 oz silver bar<\/a> \u2013 is sold at approximately $3.50\/oz over the paper futures market price. The higher premiums on some coins \u2013 especially the Silver Eagle<\/a> \u2013 are giving investors pause.<\/p>\n

\"Vault<\/a><\/p>\n

The question is whether or not to buy now or wait for better pricing.<\/p>

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Before we examine that question, we should point out that investors who don\u2019t need physical possession of their metal don\u2019t have to make this difficult choice.<\/p>\n

We have two options for people who want to buy silver today, near the current paper price; Vault Silver<\/a> and 1,000 ounce silver bars<\/a>.<\/p>\n

However, anyone who wants delivery of silver now does have to make a choice. The key consideration is when supply will once again be plentiful relative to demand.<\/p>\n

These are the challenges to bringing more supply of retail coins, rounds, and bars to market:<\/p>\n