Silver premium over spot jumps, silver jewelry sales are up
The situation with a silver premium dealers charge over spot is reminiscent of that in 2008. But this time, it looks much more serious and sustainable. Good news for dealers, bad news for those of us who are looking to buy. In the fall of 2008, silver premiums charged by wholesalers like APMEX or Kitco on Silver American Eagles went as high as $5.80 USD over the spot. Read Silver coin and bullion premium is sky high if you need to refresh your memory. The spot price was around $10.50.
Right now the silver spot price is $35.20. The best deal you can find on Internet for a single Silver American Eagle coin is somewhere around $39.80. Unless you want to buy 500 coins. Then you are looking at around $37.80. Still a nice premium of $2.60 over the spot. One dealer which was very reasonable in terms of premiums but has a hefty minimum purchase requirement, just raised its over the spot premium to $3.60 per coin.
Silver premium over spot also jumped for Canadian Maple Leaf Dollar, 10oz and 100oz bars, and silver rounds. Still people buy and buy. So this tells me that the silver prices are not coming significantly down and every dip in spot price should be treated as buying opportunity. Evidently, supply and demand ratio is not very beneficial for buyers. That brings the 2010 silver jewelry sale figures. They increase quite robustly, just like gold jewelry sales as described in Gold bubble? Not so fast - gold jewelry demand grows despite high price
The review that was conducted with close to 340 retail jewelers that represent 4,000 stores showed the following - 52% of jewelers says silver jewelry sales increased between 11% and 25% and 28% saw an increase over 25%. And you know what those jewelers liked the most? The 57% profit margin on silver jewelry, just like the dealers like their over the spot premiums.
Fri Mar 4, 2011 10:03AM | Copyright: www.bad-credit-advisor.com | More in Gold Investing | Comments (0)
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