Did The System Collapse?
LAST GRAPH UPDATE: 2/27/21 @ 12:00 NOON EST.
Spot Price (Goldprice.org): $1,734.78
Physical Price (Ebay Lowest Buy Now Price From Dealer Selling Multiple Coins in quantities of more than 10) – Bullion Exchanges: $1,944.42. NOTE: Pre-sales for future delivery are not counted.
Dollar Premium: $209.64
Percentage Premium (Physical/Spot): 12.08%
Premium for second lowest price dealer selling in quantity – Liberty Coin: $216.33/12.47%.
RECENT DEVELOPMENTS IN THE PHYSICAL GOLD MARKET
- UPDATE 2/18/21 @ 8:30 PM EST: The physical dollar premium has remained above $200.00 since 2/3/21. In addition, the physical percentage premium has been in the high 11% to low 12% range since that same date. All the while, the spot price has declined from about $1,835 to $1,760. Interesting …
- Update 2/10/21 @ 2:00 PM EST: From 2/3/21 @ 12:10 PM EST to 2/10/21 @ 2:00 PM EST there was only one dealer selling in quantities of more than 10 coins: APMEX. Now Liberty Coin is offering Gold Eagles in quantity. It appears as if the shortage may be letting up a bit.
- UPDATE 2/8/21 @ 7:10 PM EST: There is still an apparent shortage in the physical gold market. Not only is there still only one dealer selling Gold Eagles in quantities over 10 coins (APMEX), but the premium has spiked above 12% after hovering in the high 11% range since late 2/4/21.
- UPDATE 2/4/21 @ 9:35 AM EST: The shortage in the physical gold market that manifested yesterday continues. Also, I should note that the physical premium is now above 12%
- UPDATE 2/3/21 @ 12:10 PM EST: Something may be happening under the surface of the physical gold market. For the first time since I have been keeping records there is only one dealer selling in quantities of more than 10 coins.
- UPDATE 1/29/21 @ 10:15 PM EST: Physical gold premium is back above 10%
- Update 1/20/21 @ 8:30 AM EST: Physical gold premium dipped below 9%; however, in the evening it moved back above 9%
- UPDATE 1/18/21 @ 10:30 AM EST: Physical gold premium moved back above 10% in the morning and then by the afternoon it was back in the mid 9% range.
- UPDATE 1/13/21 @ 12:00 NOON EST: Physical gold premium moved below 10%.
- UPDATE 1/12/21: Something may be up. The physical gold premium spiked above 9% on the morning of 1/12/21 and then by evening it had broken through 10%.
- Since 8/20 the physical gold premium has remained in the 7-8% range. Clearly, physical premiums have remained subdued since the Corona virus scare.
- The premium first went below 7% on 6/24/20 and remained there until it went below 6% on 7/1/20. It remained in the low 6% area until gold and silver started rising toward the end of July. The premium is now above 8%.
- The premium went below 8% for the first time on 6/8/20. It danced above and below 8% for the next week or so until on 6/17/20 it settled firmly below the 8% threshold.
- The premium went back above 9% on 5/31/20 but didn’t stay there long as the very next day it dipped below.
- On the afternoon of 5/26/20 Pinehurst Coin offered a “daily deal” which brought the premium back under 10%. The “deal” continued into 5/27 when Liberty Coin undercut Pinehurst bringing the premium even lower It has now dipped below 9%.
- On the morning of 5/25/20 the premium went back above 10%.
- On 5/10/20 the premium percentage went below 10% and, despite a brief move back above (on the mornings of 5/12/20 & 5/13/20), it is now back below 10%.
- Since 5/6/20 the premium percentage has been below 11%.
- On 4/29/20 the premium percentage fell below 12%.
- On 4/29/20 the premium price fell below $200.00 per ounce and has remained there since.
- The physical premium hit a high on 4/21/20 – $232.27/13.77%
- Notice in early April that there were several large dips in premium. These were daily dealer specials which have not appeared since.
Ebay Coin Dealer Comparison
The chart which appears below shows how the Ebay (physical) price of gold differs between the lowest vs. the second-lowest cost dealer. The 90 Period Moving Average (in red) is hard to interpret but I noticed that there are certain times when this differential spikes up. I don’t know if this is an important number but I decided to include it so that visitors to this site can keep track of it.
1/12/21 is a good example. The percentage differential spiked up above 1.8% early in the day and this was followed by the physical gold premium moving above 10% by evening. Interesting …
The gap you see in the chart is the result of a short period of time when there was only one Ebay dealer offering coins in quantities of at least 10.
As of 2/27/21 @ 12:00 NOON EST the percentage differential is: 0.39%.