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Why such a high premium on silver coins?


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Hi, I’m a relatively new stacker. Been wondering why is there such a high premium on VAT free silver coins compared to gold coins? The gold coins I’ve bought have had a 4-7% premium. The VAT free silver coins is more like 25%. Is this the norm or does it fluctuate over time due to supply and demand or other reasons?

Been offered to buy 100 silver eagles from 2014 approximately 25% over spot by a local dealer. It’s more or less the same price I paid from an online dealer for 100 VAT free philharmonics from 2021 incl shipping. Can’t figure out if its a good deal or not.

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31 minutes ago, bf109 said:

Hi, I’m a relatively new stacker. Been wondering why is there such a high premium on VAT free silver coins compared to gold coins? The gold coins I’ve bought have had a 4-7% premium. The VAT free silver coins is more like 25%. Is this the norm or does it fluctuate over time due to supply and demand or other reasons?

Been offered to buy 100 silver eagles from 2014 approximately 25% over spot by a local dealer. It’s more or less the same price I paid from an online dealer for 100 VAT free philharmonics from 2021 incl shipping. Can’t figure out if its a good deal or not.

Yeah the premiums do add up. 

With the 25% added on these what price does that leave a coin? 

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2 minutes ago, Erolroller said:

Yeah the premiums do add up. 

With the 25% added on these what price does that leave a coin? 

Approximately 26,2 euro pr silver eagle. The price was offered last week before the drop in spot price.

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1 hour ago, Fadeingstar said:

I think it is because silver is a fraction of the price of gold so there are still production costs/distrubtion costs aswell as the dealers making a profit aswell which need to be factored into silver.

Makes sense.

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For you as an end customer it shouldn't make a difference if the price is higher by certain % than spot due to VAT, or premium, no? The reality is that most silver is subject to VAT in one way or other, that's why you can't expect seeing premiums comparable to gold. In theory, Estonian dealers should be able to sell silver with premium % similar to gold. But in practice this is currently not the case. Why should they be 20% cheaper than all others? It is normal that they set their prices just slightly lower than market and keep the premium as profit.

However, you may sometimes see silver sold at low premium - if someone bought it for cheap in the past, they may be happy to sell it to you for current higher spot without requesting 20%+ premium, especially if condition of coins is not perfect anymore.

Regarding your specific question, just search the internet for current prices. E.g., German dealers currently sell 1oz coins at cca. 19% over spot. So consider what is more important to you - with local dealer you can actually see coins before purchase and don't need to pay for shipping. The silver bullion market is very transparent so it shouldn't be difficult to determine if it's a good deal, or not.

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17 hours ago, bf109 said:

Approximately 26,2 euro pr silver eagle. The price was offered last week before the drop in spot price. 

I see what you mean. That's quite an increase. 

When the spot prices increases in the future im hoping to sell some of my stack (175 Maple leafs) for around that price. Then when it takes a dip buy more. 

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