Is this normal?

[Slam]

So i started buying 1oz britannia 2021 silver tubes 25 coins at the start of March of this year.

Beforehand I was watching the price in Jan/Feb. Mainly the royalmint site. In jan/feb time im sure it was around £630 for a tube then a week later I checked and it was around £730 (Couldn't believe and thought I must of dreamt it for that price of £630). I got some for around £710 in early March anyways. Yesterday I saw the price was at £700 and today I see it at £785. So quite possible it wasn't a dream.

Now wondering is that normal?

I mean the spot price hasn't jumped, it was near the same spot price yesterday, I assume the premium just rose again so now its defo not the time to buy from royal mint.

In fact i saw an article that premium prices are normally around 12-20% spot price but obviously we not in normal times so at the moment we looking at 35-45% premiums. Has it ever been this high? (Cant seem to find history of premium price and overall price.)

Thanks

 

 

[AppleZippoandMetronome]

This has been the norm for just over a year now. In early March 2020 silver tanked and dropped to below £10/oz. That event seemed to happen just before a notable shortage occured in physical bullion products. The dip probably didn't help the shortage as anyone who was online in the morning had a hell of an opportunity to fill their boots. I bought nearly 100oz that morning and my spreadsheet tells me I was buying Britannias for just under £12/oz.

Apart from the silver price dropping March 2020 was also when a lot of countries started locking down and the various mints around the world were not immune from this. A number of them stopped producing bullion products or slowed down their production massively. This led to real shortages right at a time when a lot of people were likely looking for somewhere safe they could put their money. Laws of supply and demand meant runaway premiums. The premiums haven't normalised since. They dropped through 2020 as supply problems sorted themselves out but they never went down to what they were prior to March 2020. I should think the swings you've observed have just been moments where the supply wasn't meeting demand.

[Slam]

Thanks for that, I am so new into it I feel I rushed into buying, however learning more and more everyday about spot price, premiums, VAT etc.

damn, that £12 a oz would of been nice. Was that including spot, premium and VAT? If so that is one hell of a price for only last year considering prices now. 

 

 

 

 

[Stackermatic]

Some bullion dealers buy weeks or months in advance, so you are paying a historic price for them. Same thing happens with petrol and diesel at the pump - often different to the oil market price trends.