First off: hi! I listen to Cuthbert Calculus' excellent podcast and found you through that - great to see some of the guests featuring so prominently here. Look forward to speaking to you all.
I wanted to pick brains on the premium for physical silver in the UK as my heart and head are having something of a tussle at the moment. I hold ETFs and leveraged ETFs in both Gold and Silver in my SIPP and other accounts but for the reasons most often put forward have been looking to accumulate physical gold and silver alongside these.
Gold is no problem, low premiums and it all makes sense. Somewhat disappointing how little one gets for the money when you hold it in your hand but I expect to get a lot less soon!
Silver is a different story. I've been looking at the bullion bars Baird have for sale. 500g is the biggest they do with today's price being £208.50. Ignoring the VAT (I'll buy them through my business) this is a 29% premium to the price. To add insult to injury they indicate repurchase terms as 95% of the spot price. That pushes the spread to 37%. This is the lowest premium product and supplier I can find, others are > 50%.
Now, I pay nothing like that premium through the ETFs or would do through GoldMoney etc. but I really really want physical delivery for this portion.
Naturally, I'm not looking to sell this tomorrow and my expectations for silver, like many of yours, render it insignificant but I'm struggling to ignore it.
The justification I'm given for this is that nobody wants physical silver, which I struggle to believe. I'm wondering if this premium is actually illustrating the physical shortage that has yet to feed through to paper? On that basis, there's no premium in physical but an artificial discount in paper. There we go, almost selling it to myself but does anyone have any insight into this that can convince my head that my heart is right!?
Why not buy through GoldMoney and then take delivery. I think you need to have a 1000oz to take delivery, There is no charge for it, but there would be a charge for delivery from the vault.
Why do you want to take delivery? I have a few bars held with GoldMoney and it seems very safe to me, regular audits, which are all accurate, and insurance.