Silver bullion demand drives 1 oz American Eagle premium to $4
The poor man gold has really taken off. And people want American Eagle Silver Dollar. New York spot price closed today at $37.42, and that was Bid. Close to 3% jump over yesterday close makes silver bullion quite pricey. The demand, however, is just unreal. I talked to a few dealers today and everyone of them said that phones are ringing of the hook with significantly more requests for silver than for gold, while the US Mint can't make enough and there is 3- to 4-week shipping delay.
One of normally the most reasonable bullion dealers now charges $4.20 premium over the spot on 1 oz Silver American Eagle. APMEX offers them at $3.99 over the spot if you buy 500 coins. The problem is not just the Mint, but the very high price of gold which makes silver so much more affordable and attractive, as well as the realization that silver is an industrial metal and a paper money alternative.
Such a spike in premium happened before, but was more or less short lived. This time it may last, because there are many more factors and reasons in play, that drive the silver bullion demand and premium up, and will sustain it for a longer time. We will explain those in another post.
You should consider 1 oz Canadian Silver Maple Leaf instead of American Eagle. More reasonable premiums can still be found, around $2.80 over the spot, but they will not last much longer. Maple Leaf Silver dollars have .9999 purity instead of .999 of American Eagle and also carry face value of $5 CAD instead of just $1 USD. That can prove handy in hard times, especially for those living close to Canadian border.
Wed Mar 23, 2011 11:03PM | Copyright: www.bad-credit-advisor.com | More in Gold Investing | Comments (0)
Recent Entries
- Capital One Secured Credit Card to Improve Credit Score - Review
- How to get approved for mortgage - loan approval help
- Spouse average FICO credit score is higher?
- Why average credit score?
- Getting mortgage after bankruptcy - go FHA
- Debt settlement and how it affects credit score
- Debt settlement with Citibank
- Can I settle with credit card company with no late payments?
- Credit card limit lowered, credit score goes down
- Gold price will rise in 2011
