Precious Metals Update

Precious Metals Update
Many of you are already aware of the current shortage of physical silver. It’s tough to find dealers who have any supply, and when you do it’s next to impossible to find it for less than $5 over spot. Silver Eagles are trading at $13 over spot on one of the largest online seller’s site, and that is if you buy a full box of 500 coins! Even 100-ounce Bars are selling for nearly $6 per ounce over spot.
Platinum has surged ahead over the past week and is currently well over the $1200 spot price. This metal has been in deficit for several years and we are finally seeing the effects. Increased demand from China is helping fuel prices as their year-on-year auto sales have surged 30%. This demand stokes demand for platinum in automobile catalytic converters. In addition, platinum is a main catalyst for the ever-expanding hydrogen energy sector which is being invested in as a “green” energy source. We are seeing an uptick in investment in fuel cell technology; fuel cells are an alternative to electric “plug-in” vehicles and are especially attractive for large vehicles. Platinum is critical for these fuel cells.
Platinum is 30 times rarer than gold but is currently 33% cheaper than gold. 
Supply of physical platinum is also tight. Platinum Eagles are all but nonexistent on the market at the current time and platinum bars and other coins have limited supplies available.
Gold continues to be king when it comes to sales. It is incredible to me how many first time buyers are entering the market. I have never seen such a large percentage of new buyers in my nearly 40 years in the business. Not a day goes by that I don’t hear someone say they want to get their money out of the bank, stock market or just feel the need to “protect” some of their money with gold. Some of these people are in their 70’s and older and have just taken the plunge into precious metals. I believe this is a great sign for the market. It is just like what is happening with cryptos such as Bitcoin and Etherium. People are putting money into new and different investments, which is gold for many of them.
Tesla has stated in its latest annual report that the company has included Bitcoin, gold and other assets to its possible investment holdings.
Bitcoin has come close to hitting $50,000 this week as Tesla bought $1.5 billion of it. Could gold be next?
Eagles and Maple leaf gold coins are still in short supply but available at slightly higher premiums than normal. 
I always keep my eye out for relative bargains in metals, especially when the coins we usually recommend are priced higher than normal, as they are right now.
You may remember shortages were common last year before the metal’s prices took off.
Below are the best priced gold, silver and platinum bullion coins and bars.

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  • Nick Grovich