Supply Shock in Precious Metals Markets
Funny, cos that's the 2 asset classes I pretty much specialize in, lol.
Anyway, the precious metal markets are going nuts these days. You wouldn't be able to tell from the charts though.
The charts print the "market price", which is a very different price from the "physical price".
The physical price is what you would actually pay to hold it in your hands and take it back home.
From vague memory, the "physical premiums" are as follows:
Gold coins 1oz - 3-4%
Gold bars 100g - 2-3%
Gold bars 1kg - <2%
Silver coins 1oz - 15-20%
Silver bars 1kg - 10-15%
Well, now things are getting crazy because of the supply shock.
Is it due to mints closing? Transportation grid locks or halts? Rehypothetication (1 bar with multiple onwers booking it as theirs) blowing up?
Who knows. I sure as hell don't.
But what I do know is that this has led to physical premiums soaring through the roof.
Silver coins are going at MINIMUM 60% premium over market prices, to 80% for the coveted American Eagles.
Gold coins are going for 7-15% depending on their mint, and this is on top gold spot prices being at ALL TIME HIGHS in SGD.
Hey, do you guys know anyone that is sitting on a ton of Gold and Silver?
Oh wait. I am. HAHA.
You can look back at my posts, but I roughly bought all my silver between $20-25 SGD per oz and all my gold between $1600-1800 SGD.
If I could book the premiums that are happening now, that would mean my WORST purchase returns from Silver is 50%+ and for Gold is 40%+.
My best would be 90% for silver and 60% for gold.
And all while stocks are still down ~40% across the board. With more probably pain to come.
I might go over to my secret hiding spot now with my shovel and dig up my precious metals now.
Yo ho ho.
Yes and might I remind you that I am that stupid crazy person that invests into no cash flow assets lmao.