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Albert Sung is the author of the Katchum Macro-Economic Blog, monitoring breaking economic news from a day to day basis. He started investing in 2008 because of the economic crisis and holds a masters degree in chemical engineering. Previously, he worked several years as a process engineer at... More
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  • Junk Silver Premiums Skyrocket 3 comments
    Apr 15, 2013 11:44 AM | about stocks: SLV

    I am starting to monitor the premiums every day, you can find the charts here:


    With the 10% smack down of silver today, owners of silver are in a deep hole now. But there is some light at the end of the tunnel. The premiums on junk silver skyrocketed to 25% (Chart 1). That means that the physical market is ignoring the futures market. So, buy more!

    Some of the junk silver bags are even sold out on APMEX.

    (click to enlarge)

    Chart 1: Junk Silver Premium

    The premium on the First Majestic Silver shop on silver jumped to 25% too.

    (click to enlarge)

    Chart 2: First Majestic Silver premium on silver

    APMEX premiums skyrocket to 20% (Chart 3).

    (click to enlarge)

    Chart 3: APMEX Silver Premium

    Meanwhile, Shanghai silver premiums are going to a high of 5% (since I monitored it) and 1% for gold.

    I don't think these premiums are sustainable at all.

    Disclosure: I am long AGQ.

    Stocks: SLV
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Comments (3)
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  • dieuwer
    , contributor
    Comments (2977) | Send Message
    Not surprised at all. At the depths of the 2008 meltdown, you could not buy any gold or silver for the paper price without a huge mark-up.
    15 Apr 2013, 10:13 PM Reply Like
  • Katchum
    , contributor
    Comments (615) | Send Message
    Author’s reply » The difference is, we're not melting down this time. Stocks are at all time high.
    16 Apr 2013, 11:44 AM Reply Like
  • dieuwer
    , contributor
    Comments (2977) | Send Message
    Not stocks, gold.
    17 Apr 2013, 10:35 AM Reply Like
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