Precious Metals: Spot so Low, Premiums to High

[racer038]

I've been buying the occasional Gold and Silver coins for quite some time.  Have I totally lost it, or is this the highest premiums ever for Gold and Silver American Eagles?  I do not remember anything like this happening during the financial crisis 2008-2010. 

[iam4liberty]

There has never been this level of divergence before.  What happened is Fed lowered rates in a surprised move which spooked paper investors.  They pulled back which caused a drop in the paper price exposing large speculative positions bought on margin.  They therefore had to sell multiples to cover the calls.  Meanwhile, in the physical market demand has way outstripped supply which has manifested in big premiums.

That is the short story.  If you want more details see here:

Silver price beaten down but investors can’t find any, so what’s going on? Peter Hug responds
https://youtu.be/C23V1K4hFlA