Saturday, April 20, 2013

Silver Availability Survey - high commissions and no 2013 silver eagles

There are reports of severe bullion shortages at the Hong Kong and Dubai precious metals exchanges.  A quick survey of 3 North American internet coin dealers shows that silver availability is currently restricted.

Coin Dealer A:
1oz Silver American Eagle 2013
These items are on a slight delay. We expect to be able to ship these items by April 30th or sooner.
 
1oz Silver American Eagle Random Year, 2012, 2011, 2010, 2009, 2008Alert me when more come in 
1oz Silver American Eagle 2007, 2006, 2005, 2004$6.49 over spot
1oz Gold American Eagle 2013 
$74.99 over spot 
Advertised buy price for 1oz Silver American Eagles $26.98 

Coin Dealer B:
"The product, 1 oz Silver American Eagle, you have selected is temporarily unavailable in your region."This Dealers webpage allowed the user to enter an order for Silver Eagles.  The above message appeared after logging in to my account and viewing my 'shopping cart'.
Advertised buy price for 1oz Silver American Eagles: $25.79
 
Coin Dealer C:
1oz Silver American Eagle 2013
"Eagles Delayed 6 weeks"
Advertised buy prices for 1oz Silver American Eagles: $26.75
Advertised sell prices for 1oz Silver American Eagles: $29.08

Precious Metals Market Prices at Close Yesterday (Friday):
Kitco Gold Index - KGX
Did gold really go up 14.40?
Find out why the gold price changed
 
New York Spot Price
light
 MARKET IS CLOSED
(Will open in 45 hrs. 11 mins.)
 
  
Metals
Date
Time
(EST)
Bid
Ask
Change
Low
High
Buy goldGold Charts
 GOLD
04/19/2013
17:15
1406.50
1407.50
+14.40
+1.03%
1391.10
1410.40
Buy silverSilver Charts
04/19/2013
17:15
23.29
23.39
+0.01
+0.04%
22.83
23.62
Buy platinumPlatinum Charts
04/19/2013
17:13
1425.00
1431.00
+6.00
+0.42%
1414.00
1435.00
Buy palladiumPalladium Charts
04/19/2013
17:00
675.00
681.00
+8.00
+1.20%
666.00
684.00



In summary, at 3 large internet coin dealers gold is immediately available.  Silver Eagles are mostly out of stock.  The premium above spot for the few Silver Eagles in stock is high: $6.49 per ounce or 28%.  Some silver rounds and other coins are immediately available.  I could not find any available 100 oz bars.

Why are the coin dealers offering around $26 for a Silver Eagle when an ounce of silver cost only $23.39?  Certainly the US mint which produces the Silver Eagles charges more than the 'melt value'.  Is the US Mint's mark-up really that much?  I will post on that question soon.

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