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physical tightness in gold coin market?

jkrkjkrk Posts: 914 ✭✭✭✭

Following the silver trend which has been in effect for awhile?

If Gold rallied to $2400 / this year... Would premiums on generic DE's fall or rise from today's level?

I'll take the other side.

Comments

  • jmlanzafjmlanzaf Posts: 30,381 ✭✭✭✭✭

    @jkrk said:
    Following the silver trend which has been in effect for awhile?

    If Gold rallied to $2400 / this year... Would premiums on generic DE's fall or rise from today's level?

    I'll take the other side.

    Impossible to say. There's no correlation with the direction. Last summer, the silver price was weak but the physical premium swelled. Then this year, silver dropped and so did the premium.

    I'm sure the premium is tracking physical demand. But that physical demand seems to not directly correlate to the spot price action.

  • VasantiVasanti Posts: 392 ✭✭✭✭

    There are two silver markets, the high volume industrial commodity market which is what spot price correlates to, and the low volume consumer market, which is spot+premium. Gold isn’t the same.

  • Cougar1978Cougar1978 Posts: 7,209 ✭✭✭✭✭

    Generic DE always a popular investment buy. I like MS63 or 64 pieces with good strike and luster, no spots / unattractive toning when shopping for these.

    Coins & Currency both US and World
  • HillbillyCollectorHillbillyCollector Posts: 391 ✭✭✭✭

    @Cougar1978 said:
    Generic DE always a popular investment buy. I like MS63 or 64 pieces with good strike and luster, no spots / unattractive toning when shopping for these.

    Thoughts as to premium on a nice looking generic Saint, MS-65+?

  • jmlanzafjmlanzaf Posts: 30,381 ✭✭✭✭✭

    @Vasanti said:
    There are two silver markets, the high volume industrial commodity market which is what spot price correlates to, and the low volume consumer market, which is spot+premium. Gold isn’t the same.

    Yes and no. There is still a consumer gold market with premiums attached. AU $20s currently carry a $300+ premium. A couple of years ago, the premium was $50.

  • VasantiVasanti Posts: 392 ✭✭✭✭

    @jmlanzaf said:

    @Vasanti said:
    There are two silver markets, the high volume industrial commodity market which is what spot price correlates to, and the low volume consumer market, which is spot+premium. Gold isn’t the same.

    Yes and no. There is still a consumer gold market with premiums attached. AU $20s currently carry a $300+ premium. A couple of years ago, the premium was $50.

    You are correct. I should have clarified that the gold premiums for consumer gold are much, much lower than silver when you look at it as a percentage per ounce. That’s because there isn’t as much of an industrial demand for gold vs silver.

  • jmlanzafjmlanzaf Posts: 30,381 ✭✭✭✭✭

    @Vasanti said:

    @jmlanzaf said:

    @Vasanti said:
    There are two silver markets, the high volume industrial commodity market which is what spot price correlates to, and the low volume consumer market, which is spot+premium. Gold isn’t the same.

    Yes and no. There is still a consumer gold market with premiums attached. AU $20s currently carry a $300+ premium. A couple of years ago, the premium was $50.

    You are correct. I should have clarified that the gold premiums for consumer gold are much, much lower than silver when you look at it as a percentage per ounce. That’s because there isn’t as much of an industrial demand for gold vs silver.

    Agreed

  • rickoricko Posts: 98,724 ✭✭✭✭✭

    Gold will likely continue to rise through this year.... a lot depends on the geo-economic situation. Premiums could increase nicely under certain circumstances. Cheers, RickO

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