We investors tend to speak of silver prices as a single, immutable metric. However, there are actually several different ways to calculate the price of silver. Most people, when they speak of the price of silver, are referring to the published electronically-traded COMEX silver index.
A rush to stocks helped silver prices plummet more than 70% between 2011 and 2015. The listed price I am referring to is, of course, the COMEX price. Buying physical silver always carries a price premium, as physical silver has transportation and storage costs associated with it. Generally speaking the premium for owning physical silver is large, and the COMEX price lags behind it significantly, and this lagging is not due to actual demand for the metal.
Low silver prices and increased consumer awareness have seen demand for physical silver skyrocket. The United States Mint even ran out of Silver Eagles in the middle of 2015, unable to keep up with investor demand. Why were silver prices still falling when investor demand for the physical metal was at an all-time high?
Upcoming Shortage of Physical Silver?
Low electronic silver prices have helped cause investors to ditch stocks in silver mining companies, despite the large investor demand for the metal itself. Many of these mining companies have seen their stock prices plummet along with the per-ounce price of the metal they are mining. Many companies went bankrupt, others have scaled drastically back on their silver mining operations. Combined with sustained silver demand, this can mean only one thing: the supply of physical silver will continue to shrink.
The gap between the low electronic price of silver and the higher premiums already being carried by physical silver products cannot stay far apart for long. Rising demand and shrinking silver supplies will eventually cause a correction in the market, seeing even electronic silver prices exploding upward.
CBMint is proud to be the industry leader in offering cheaper silver and gold bullion prices than any of our competitors. We always strive to be the best online bullion dealer, and to that end we are rewarding our customers by offering strong discounts when the buy bullion in bulk, specifically gold and silver rounds and coins. Here are the types of bulk discounts CBMint is offering:
CBmint is offering both mint tubes and monster boxes of gold coins, both of which have a large discount over buying gold coins individually. Purchasing American Gold Eagles and Canadian Gold Maple Leafs is cheaper when done in bulk. Though the price of gold is, naturally, far higher than that of silver, volume investors who purchase substantial amounts of gold over the year may instead benefit from buying tubes or monster boxes of gold coins, thereby earning the volume discount that applies.
Large discounts apply when buying silver coins in bulk, as well. Sovereign mints generally package silver coins in hard plastic mint tubes of 20 or 25 units — these we sell direct to our customers, at a discount. Also available are Monster Boxes of silver coins, usually containing 500 units. Commonly purchased are Monster Boxes of Silver Eagles and Silver Maple Leafs. Customers who buy Monster Boxes of silver coins from CBMint receive an even steeper discount.
Not to be left behind, private mints also usually ship their new silver rounds in mint tubes and monster boxes. Again, we apply steep discounts to bulk purchases of silver rounds, allowing investors to save a significant sum of money when buying silver rounds online in bulk. Both silver round mint tubes and monster boxes have bulk discounted pricing.
In the future, to maintain the CBMint reputation of being the best place to buy silver and gold online, we plan to negotiate further with various mints, in order to obtain more bulk pricing options. We look forward to adding even more products into our discounted categories, allowing you, our valued customers, to buy gold and silver as cheaply as possible!