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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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  • Precious Metals Premiums Down 3 comments
    Mar 20, 2014 12:24 PM | about stocks: GLD, SLV

    I find it a little worrying for precious metals investors that the premiums in gold and silver are so low. I would refrain from buying gold at this particular moment, wait for the dip.

    Silver coin premiums are down.

    Junk silver is down.

    (click to enlarge)

    Shanghai silver premiums are down.

    (click to enlarge)

    Shanghai gold premiums are negative.

    Gold coin premiums have been falling.

    Stocks: GLD, SLV
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  • The_Hammer
    , contributor
    Comments (5152) | Send Message
    why are lower premiums worrisome? The time to consider to buy is when premiums are low, trades below cost of extraction and sentiment is negative. There is a credit crunch in China right now. PMs may be at risk of short term price volatility as an asset to sell to cover loans. Premium on silver coins. There are a number of silver coins. eagles maples (recognized currency) always have a higher premium vs bullion coins. also china is changing the gold standard to 0.9999 not the old 0.999. 24k vs 22k. look at CEF, trading at nearly a 5% discount to its nav. good times to be ready to buy on any major dips below mining costs per ounce.
    20 Mar 2014, 03:47 PM Reply Like
  • Katchum
    , contributor
    Comments (615) | Send Message
    Author’s reply » If high premiums mean that there is a shortage because everyone buys, then low premiums mean that nobody is interested in buying and that prices are too high.


    You could say that when nobody is buying then people will come in to buy, which marks a bottom...


    The reality though is, that when premiums are low, then the price will go down. Look at the second chart.
    20 Mar 2014, 04:48 PM Reply Like
  • Katchum
    , contributor
    Comments (615) | Send Message
    Author’s reply » Premiums have come up a bit now, wait a little bit longer and you can start buying again.
    25 Mar 2014, 05:36 AM Reply Like
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