Silver Coin Premiums Set To Climb On Reduced Supply
GoldCore
GoldSeek.com
Tuesday, 14 January 2014
Increasing demand for U.S. silver coins is set to send premiums to the highest since October according to Bloomberg.
The premium charged by wholesale dealers for American Eagle coins from the U.S. Mint may rise from 14%. The mint has said that weekly allocations will be reduced despite very strong demand so far this month.
Yesterday, the U.S. Mint said 89% of this week’s quota of 3.58 million silver eagles were sold following sales that were stopped on December 9th because of a lack of supply.
Sales of silver American Eagles rose to an all-time high of 42.675 million ounces in 2013. Purchases jumped to a monthly record in January 2013, and the mint suspended business for a week because of a lack of inventory.
The silver bullion coin market is tight with strong hands refusing to sell and mints rationing supplies. Silver’s sharp fall is seeing the smart money continue to accumulate silver coins while supply is available and premiums still relatively low.
Separately, the Perth Mint has announced that they have sold out of their silver bullion coin – the one ounce 2014 Australian Kookaburra.
Silver has climbed 8.9% from a five-month low at the end of 2013.
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