Physical Silver Premium Over Spot

Updated 8/13/20 @ 9:10 AM

This chart shows the physical silver premium over spot based on the prices from GoldPrice.Org and the Ebay Dealer Price for a roll of 20 Silver Eagles (selling in quantities of more than 10). The first data point is my last purchase of a 20 roll of Silver Eagles back in August of 2019 when the premium was only 13.47%.

Current Premium (8/13/20 @ 9:10 AM): $8.79/33.46%

UPDATE 1:10 PM: Physical premium is now $8.65/31.76% (not reflected in graph).

Bullion Exchanges is lowest price dealer selling in quantities of more than 10.

UPDATE 8/10/20 @ 7:45 PM: The previous low-cost dealer, MCM, does not show any coins for sale at previous prices (now MCM is offering 20-coin lots at $772.40) so the premium increased. DBS Coin is the lowest price dealer now.

UPDATE 8/10/20 @ 10:05 AM: The decline in premium has continued since 8/5/20. MCM has 48, 20-coin lots for sale @ $747.80/each (2015), 16, 20-coin lots @ $752.80/each (2013) and 19, 20-coin lots @ $764.00/each (2016). After that there are plenty of other dealers offering 20-coin lots for under $800.00.

UPDATE 8/5/20 @ 8:50 AM: The large drop in premium from 8/4/20 to the morning of 8/5/20 is the result of Liberty Coin coming in with rolls of silver eagles in large quantities (more than 10). We will see how long it lasts. I say that because the next available offer ($769.00) is from MCM which has almost 200 rolls of eagles available for sale but with a delayed delivery date (8/24/20). After that you have to pay $826.14 from Bullion Exchanges because it is the next dealer selling in quantities over 10.


IMPORTANT DEVELOPMENTS IN THE PHYSICAL SILVER PREMIUM MARKET

  • There was a large jump in premium from the evening of 5/20 to the morning of 5/21. This is because DBS Coin (which regularly undercuts the market price) was no longer selling in quantities over 10. Bullion Exchanges was the lowest price until the evening of 5/21 when DBS Coin, again, undercut all competitors.
  • On 5/26/20 @ 1:30 DBS Coin was no longer selling in quantities over 10 – Bullion Exchanges was the least expensive selling in quantity at this point. This is why the premium jumped back up above 50%.
  • But this was not to last. DBS came back in on 5/27 and the premium is back below 50%.
  • As of 5/29 in the afternoon DBS was no longer selling in quantity – now Bullion Exchanges is.
  • On the morning of 6/1/20 the premium went below 45% but then jumped back up in the evening because Bullion Exchanges was no longer selling in quantities more than 10. DBS had lowest cost in quantity until the afternoon of 6/3/20. Now it is Liberty Coin.
  • On 6/8/20 DBS again had the lowest cost until 6/15/20 when Bullion Exchanges took the lead.
  • The physical silver premium broke below 40% on the evening of 6/16/20.
  • Bullion Exchanges was the least expensive dealer (in quantity) beginning 6/19/20 until DBS (briefly) took the lead on 6/22/20. Bullion Exchanges is, again, the lowest cost.
  • The physical silver premium broke below 35% on 6/25/20.
  • DBS was lowest cost again on 6/30/20 (morning) but then Bullion Exchanges undercut them. Briefly on 7/1/20 Liberty Coin had the lowest cost but now it is DBS again.
  • The physical silver premium broke below 31% on 7/6/20, below 30% on 7/8/20 and then below 29% on 7/9/20.
  • The physical silver premium jumped from 25% to almost 35% on 7/21/20, but by the next morning it was lower than it has ever been – 24.20%. Modern Coin Mart (MCM) is offering a price well below all other competitors. The next least expensive offer is Liberty Coin at a 29.85% premium.
  • On 7/22/20 the physical silver premium jumped back into the low 30% range. MCM was all sold out and the lowest cost dealer is now Bullion Exchanges.
  • On 7/23/20 the physical silver premium went back into the 40% range.
  • There was a very large surge in premium on the afternoon of 7/29/20 (to 47.20%) because the low cost dealers only had 10 or fewer 20-coin lots for sale. Bullion Exchanges had 6 lots of 2020 Eagles @ $674.86/each and DBS had 10 lots @ $677.97/each. Bullion Exchanges also had 9 lots of random date Eagles @ $680.44.
  • DBS came back in as lowest price dealer on the morning of 7/30/20 so the premium declined back to the low 40% range.
  • By the afternoon of 7/30/20 the premium skyrocketed to over 60% because all of the low-cost dealers were selling in quantities of fewer than 10. Lowest cost at 3:30 PM was Bullion Exchanges. Availability @ 3:30 PM: DBS – 4, Bullion Exchanges (2020) – 3, Bullion Exchanges (Random Date) – 8, Bullion Exchanges (2001) – 2, APMEX (2020) – Limited quantity available.
  • DBS came in with quantity on the evening of 7/30/20 @ $657.03 for a lot of 20 coins and this brought the premium back down into the 40% range. Bullion Exchanges only had 2 lots of 2020 coins @ $657.64 and only 7 lots of random year coins @ $663.00. After that you could find Bullion Exchanges with only 2 lots of 2001 coins @ $712.97. But then APMEX had limited quanitities of 2020 coin lots @ $753.55. Finally, Bullion Exchanges had more than 10 lots of 1987 coin lots @ $757.83.
  • On the morning of 7/31/20 DBS was back below 9 lots so the premium, once again, jumped above 60% – that is until Bullion Exchanges started selling in quantity later in the day. Also Liberty Coin came in with lower prices which lowered the premium later in the day.
  • By late Monday morning on 8/3/20, all low cost dealers were selling in limited quantities. I had to go the second page of Ebay results to find the lowest cost. This accounts for yet another spike in physical silver premiums to almost 60%. Liberty Coin did have 10 lots available at 12:15 PM ($667.41) but my rule is that a dealer must have more than 10.
  • Here is the breakdown of availability for 20-coin silver lots from Ebay at 7:55 PM on 8/3/20: Bullion Exchanges 5 available @ $665.91, DBS 10 available @ $666.65, Liberty Coin 8 available @ $667.89, Bullion Exchanges limited quantity available @ $674.05, Bullion Exchanges 2 available @ $729.65, APMEX 7 available @ 769.37.
  • The large drop in premium from 8/4/20 to the morning of 8/5/20 is the result of Liberty Coin coming in with rolls of silver eagles in large quantities (more than 10). We will see how long it lasts. I say that because the next available offer ($769.00) is from MCM which has almost 200 rolls of eagles available for sale but with a delayed delivery date (8/24/20). After that you have to pay $826.14 from Bullion Exchanges because it is the next dealer selling in quantities over 10.

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