In 2022, the demand for silver reached an all time high, with more than 1.242 billion ounces, according to a recent survey conducted by the Silver Institute. While registered mining output for the year totals only 835,900,000 1 billion ounces, leaving a deficit of at least 406 million ounces removed from custodial vaults, such as COMEX for the year.
While investor demand for silver bullion continues to rise at a steady pace, total global demand for the shiny metal rose more than 38% as the globally economy begins to recover from the pandemic.
The US Mint continues to struggle during periods of high demand due to ongoing supply chain issues plaguing domestic planchet suppliers.
Premiums on current year American Silver Eagles continue to skyrocket, ranging from as low 57% to as high as 82% over melt value.
Coins from other sovereign government mints continue to sell in large numbers, with 1 oz silver Noah’s Ark coins from Armenia having low premiums alongside silver Philharmonic coins from Austria and King Charles Britannias.
Investor demand continues to drive up prices for physical silver bullion. Supply chain disruptions at the start of the pandemic led to depletions of wholesale and retail bullion inventories resulting in the prices of physical bullion become far removed from following the paper price.
Overall, the bullion market for investors is likely to see further divergence between the price of physical metal and the paper futures price if the supply chain issues persist.
For now, the absolute lowest prices for 1 oz silver rounds can often be found in random year and secondary market listings. Random 10 oz silver bars continue to be the best value and be an investor favorite for those looking to stack with bulk purchases.
Premiums on gold coins and bars offer the lowest premiums for precious metals buyers. Poured gold kilos can be found with premiums below 1%. A few online retailers are offering low premium vintage gold coins such as the Austria 4 Ducat restrikes and 20 francs gold coins being popular amongst fractional gold stackers.