Silver Premiums

[doneybee]

Can someone explain why there is a much larger premium when buying silver from dealers than buying gold? (Percentage wise) I'm new to stacking and don't understand why this is the case. 

[HonestMoneyGoldSilver]

Brand new or "virgin" silver attracts 20% VAT whereas investment gold is VAT-exempt

The cost of manufacturing a silver coin is much higher as a % of the value of the coin than with gold

* American Silver Eagles cost $2.50 to make and the coin costs $26.70 + this premium or + 9.4%

* American Gold Eagles cost $60 to make and the coin costs $2307 + this premium or + 2.6%

 

[TeaTime]

Not sure why a gold coin would be more costly to mint than a silver one... Remove the precious metal element and you would end up with the exact same processes and minting procedures ? Unless i am ignorant of aspects of manufacturing.

The RM are currently selling gold Britannias at a 4% premium and silver (before VAT) at 21%. This appears to be incongruous until you realise the silver premium is pretty modest in reality - £4.50 per coin for manufacturing, logistics etc (bearing in mind the VAT is beyond their control) ..... It only seems high because silver is valued so low. The elephant in the room is how they get away with charging £75 to manufacturer a gold coin versus £4.50 to manufacture the same coin in silver ? 

Or

Gold premiums appear lower because gold is massively over-priced. 

[MBTPSilver]

As others have said, the fixed costs of manufacturing and supply result in a much higher percentage for silver than gold. BBP have a good page on it - https://www.bullionbypost.co.uk/index/silver/why-are-silver-premiums-high/

[doneybee]

Thanks for the replies guys

[Chronos]

Just buy junk silver ...