Silver coin premiums to climb as US Mint supplies ease

The premium charged by wholesale dealers for American Eagle coins from the U.S. Mint may rise to 17 percent from 14 percent yesterday, said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. The mint has said that weekly allocations will ease.

Goldman has said precious metals will slump 15 percent this year with silver dropping to $17.50 an ounce in 12 months. Yesterday, the mint said 89 percent of this week’s quota of 3.58 million 1-ounce silver coins were sold following a halt in sales on Dec. 9 because of a lack of supply. Futures have climbed 8.9 percent from a five-month low at the end of 2013.

“The market is tight,” McGhee said in a telephone interview. “The drop in prices has made silver coins very attractive.”

On Jan. 8, the mint said that the quantity of coins in weekly allocations “will be much lower” than this week. Michael White, a mint spokesman, declined to comment on a specific figure. In December, sales were 1.2 million ounces.

Read More: www.mineweb.com/mineweb/content/en//mineweb-silver-news