Dealers like Money Metals, SD Bullion, JM Bullion and Apmex saw unprecedented demand this weekend.
Silver retail sites have been overwhelmed with demand for bullion and coins, suggesting that the frenzy that rocked commodities markets last week is spilling over to physical assets.
Dealers such as Money Metals, SD Bullion, JM Bullion and Apmex said over the weekend they were unable to process orders before Asian markets opened due to unprecedented demand. . Buying continued on Monday, with both cash and futures surging above $ 30 an ounce.
“Almost all of the physical money is gone in terms of live inventory,” said Tyler Wall, president and CEO of SD Bullion, in an interview with Bloomberg TV. “Right now we’re seeing the premium – the cash price you pay to get real physical money into your hands – is skyrocketing. Most of the content on our website is at least 30% better than their place and we cannot buy them for much less than that at this time from our wholesalers. “
Phones were ringing constantly at Swiss dealership Gold Avenue, CEO Alessandro Soldati said.
“The demand was 10 times on a typical Sunday yesterday, and today I would say six times,” he said on Monday. “Everyone is calling us saying, ‘I want to buy gold and silver as soon as possible. “”
Retail traders, inspired by the Reddit posters, broke into the silver market last week and managed to push up the prices of physical metal, silver miners and exchange-traded funds. Spot prices, silver futures on Comex and the largest silver exchange traded fund, iShares Silver Trust, all climbed more than 5% on the week.
Premiums are expected to rise quickly, according to Apmex, which said it was seeing a significant increase in costs and warned it would likely take an extra day or two to fill orders. On Saturday alone, he added as many new customers as he usually adds in a week.
According to Everett Millman of Gainesville Coins in Florida, premiums on American Eagle silver coins have jumped to nearly $ 5, down from a normal level of $ 2 over the past three days. His company’s website has a notice that says orders are taking longer than normal to fill.
“It absolutely motivates more people to not just jump on the bandwagon with Redditors,” Millman said over the phone. It also “reinforces the bias that holding physical money is a safer investment than speculating in the stock market.”
What’s unusual this time around in the physical silver market is that “everyone has increased their premiums,” according to Millman. Normally, some retailers may offer lower premiums.
Sales of silver coins last month at the US Mint jumped 24% from a year ago to 4.775 million ounces. This marked the highest for a January since 2017, according to data from the Mint’s website on American Eagle silver coin sales.
There are also signs that investors are holding onto the money they have, rather than trying to take a profit.
“Now we don’t see anything, no single offer, which is scary,” Peter Thomas, senior vice president of the Zaner Group, said by phone from Chicago. “Everything we sell, people own. There is no influx of metal.
The surge in demand has also spread to Asia.
“We have seen an unprecedented demand for physical silver,” said Gregor Gregersen, founder of Singapore-based dealer Silver Bullion Pte. “The demand is wide and deep, as we have witnessed both a record number of orders and new orders of record size in the past 24 hours.”