UPDATE – 7/21/20 – 8:47 CST – As of this moment, a mere 36 hours after original publication silver and gold have exploded to the upside. Silver Eagles, 2020, are now selling, (CC / PP) for an average of $32/ounce up from $29.10 While Gold Eagles are selling for (CC / PP) for $2,065 up from approximately $2,010. The 1/4 ounce AGE is selling north of $549 per coin or said another way $2,196 an ounce.
End of Update.
It’s been about a month since we have looked into acquiring freshly minted white shiny and we were unpleasantly surprised by what we found. Silver and gold have both jumped by close to 10% since we last looked. This is great if your looking to move silver or gold back into the market, but not so good if you’re looking to remove either the white or yellow shiny from the market.
With most of the people acquiring gold / silver using some type of electronic payment – credit card, debit card, PayPal and the like, we focus on that level of pricing. This represents the highest cost of acquisition at most, if not all, online precious metals dealers. The cost that is charged them for digital transaction is passed on the end user – that’s you and me. While the cost are going to be lower for using a check or bank wire most people do not use this form of payment. This is why we focus on credit/debit card and PayPal payment pricing.
The last metal we acquired was a 1910 quarter eagle in XF condition. We picked up at a pawn shop for $500. Yes, that was high, but the built in premium on these coins is difficult to get away from. You can look them up on eBay or your favorite online dealers website and, if they are in stock, you will find they carry a heavy premium. Why? Because of demand for these coins and they are of low mintage. Two things that actually make a market – supply and demand! The very basics of free market capitalism.
When skipping around several online dealers this morning looking at ASE’s (American Silver Eagles) it was a bit of a shock to find legacy coins out of stock and a slight delay in delivery of the 2020 ASE. The average cost was approximately $29.10 from the “big three”, with APMEX, of course, being the highest and SDBullion beating the pants off everybody else. You can get “random year” ASE’s from APMEX and SDBullion but I did not see them available at JMBullion (maybe overlooked them, so, be sure to check it yourself to be 100%).
If we look at gold, AGE’s (American Gold Eagles) we find the same thing. The “big three” all have AGE 1 ounce coins all of them listed above $2,000 per coin. The “random year” 1 ounce coins seem to be in good supply and offer a discount to the 2020 current year. Currently, there is a sale going on that puts all three of the dealers we reviewed with about $20 one to the other. Once again, SDBullion is leading the way with the lowest cost per coin.
Some of the fractional gold – i.e. 1/2 ounce, 1/4 ounce and the like – seems to be short supply with at least one of the dealers waiting on a shipment from the U.S. Mint.
All-in-all if you haven’t started to stack, it’s not too late – it will never, ever be too late – it will simply be a matter of pain. With today’s economic environment – everything collapsing – it may be a good idea to consider stacking as much as possible. OR if you are a stacker you can never, ever have too much.
What we have been saying since December 2017 is now unfolding right before our eyes. A few days ago we were $14 dollars from breaching the COMEX (as reported by KitCo) average annual high of $1,670 for gold. With today’s move we should shave a few more dollars off that number. We see the exact same thing with silver. We forecast that silver would begin moving this year but the real move would be in 2022 – with an explosion over the coming year of several dollars to the upside. Our forecast – for silver – has been, and remains, mid to upper $30’s by 2023 for COMEX silver. The only question at this point is – what will silver actual be once the charts begin moving much, much higher? With the complete disconnect we see today – COMEX precious metals and PHYSICAL precious metals – we believe PHYSICAL silver reaching into the $40’s will be a no brainer come 2023.
