A shortage of silver and gold coins has caused suppliers to increase the premiums charged to several times what they were making before the pandemic, this according to Peter Hug, global trading director of Kitco News.
“The wholesalers are arguing it’s a supply and demand issue, and as far as the old saying goes, you make hay when the sun is shining,” Hug told Kitco News. “The big wholesalers make relatively incidental spreads on Eagles, both gold and silver.”
Under normal market conditions, coin wholesalers may make 10 cents an ounce on silver Eagles to their dealers and $2 or $3 on their gold coins. Currently, they are able to increase their spread by five to ten times, Hug said.
Silver prices traded slightly lower on Friday, down 16 cents an ounce.