Why I'm Finally BUYING Silver Eagles Again!

The American Silver Eagle is certainly the most iconic and most popular silver bullion coin in the entire world, yet for the last couple of years I have been telling people on this very channel that I am not stacking them. That opinion, however, is beginning to change, because I am indeed starting to stack silver eagles once again, and today I'm going to talk to you about exactly why I am buying silver eagles again, so let's get into it, but before we do, don't forget to subscribe and help us continue to grow. My channel is sponsored by SDbullion.com. New customers can get their first order of gold or silver at spot by going to sdbullion.com forward slash new. I'm sure there's going to be people watching this video right now that don't actually like silver eagles, and that is totally fine, I have no problem with you having that opinion, but regardless of that opinion, regardless of the fact that you may or may not like them, there is no denying the fact that the silver eagle is the most stacked silver bullion coin in the entire world, and it's not even close. The silver eagle far and away outranks every other silver bullion coin out there as far as minage and demand, there's no doubt about it. Now because of the demand for silver eagles and their popularity, they do command what's called a higher premium, even when you go to sell them, if you were to walk into a coin shop right now, even if it's only a dollar more, it depends on the shop, even if it's only a dollar more, you are certainly going to get more for your silver eagles, assuming they're in BU condition than you would, say, a generic one ounce silver buffalo like this one right here. Now the reason for that is because that demand means that they are more likely to sell a silver eagle to the customers walking into the store than they are to, say, a one ounce silver bullion round. However, that was not always the case, and in fact, our story begins all the way back in February of 2021. Now if you've been stacking for at least a few years, you probably realize what I'm about to tell you, but February of 2021 was the beginning of what was called the silver squeeze. Now the silver squeeze was a quote unquote movement that started on Reddit with a Reddit group called WallStreetSilver that was basically a bunch of guys from WallStreetBets that moved over and created their own Reddit, and their goal was to squeeze the price of silver. Now to do that, what they attempted to do was buy up the supply of every silver coin out there. So they got a bunch of people together and said, hey, let's buy every physical ounce of silver currently available on the market so that people will have to take delivery on their paper contracts to create more silver product for people to sell and purchase, and therefore, we will see the skyrocketing price of silver. It will get to where we believe it should really be. Many people said 50 an ounce, many people said 100 an ounce, there were some crazy people out there saying $1,000 per ounce, whatever, but whatever they thought the ultimate end game was going to be as far as spot price is concerned, their goal was to squeeze silver to go higher than where it is today, and where it was then, and I think we all know how that turned out. Now full disclosure, I myself was actually on board with the silver squeeze for at least the first couple of weeks, I was excited about the billboards to increase awareness about silver stacking, so on and so forth, but I quickly saw what was happening, and I quickly turned sour on the entire situation. And I want to say probably faster than most people did, because what I saw happening wasn't the silver price going up, it wasn't the silver price going up at all. In fact, it jumped a little bit Sunday evening when the markets opened, but it dropped back down really quick. What did, however, get affected was the premiums. Now a premium, as I kind of already hinted at, is how much you pay over spot to get a silver coin. So for example, if spot price is $25, and you have to pay $30 to get a silver eagle, you are paying a premium of $5, in other words, you are paying $5 over spot. Now of course the idea is that when you sell your silver eagle back, you retain some of that premium. So yeah, you may have paid $5 over spot to get it, but like I said earlier, you're going to get $2 or $3 back versus getting $0 or maybe $0.50 back over spot for your one ounce buffalo round when you go back to sell it. But when we saw the premiums for silver eagles go as high as they did, that no longer really became the case. Now a perfect example is if we look at the silver premiums going back just 2023 alone, we can get into 2022 if we wanted to in 2021. But there was a time in 2023 that I actually tracked, I did a video on May 8th of 2023 where I showed two online retailers selling one ounce silver eagles for $20.99 an ounce over spot. At the time I recorded that video, spot was $25.80. That means the premium on a silver eagle was over 80%. You are not, under any circumstance, going to get that premium back, and especially today. However, as I said at the beginning of this video, I am starting to stack silver eagles once again because we are finally seeing the premiums for silver eagles come back down to where it makes a lot more sense. Now take a look at this listing right here. This is on our sponsor SD Bullion's website, but SD Bullion right now has a sale on silver eagles. You can get 2023s for just $3.99 over spot. That is brand new American silver eagles. That is $17 an ounce lower than the premium from those two retailers I talked about back in May. Now if you're going to tell me that, oh, you're just picking out the worst ones just to make an example, the cheapest retailer back in May 8th of 2023 was $14.94 over spot. That means that today, these silver eagles are almost $11 per ounce cheaper premium than they were back in May of this year, and to be honest with you, $4 an ounce over spot is around where it was pre-silver squeeze. Sometimes you would get deals for $3 or $3.25, but on average it was around $4 an ounce over spot for an American silver eagle before the silver squeeze even happened. And once again, we are seeing those numbers get back to where stacking silver eagles actually makes sense once again. Now during that silver squeeze time, what I was doing was looking for the lowest premium silver I could find. I was looking for kilo bars because the premiums on those were lower. I was looking for deals on one ounce buffalo rounds. I was looking for deals on one ounce bars. I was looking at 10 ounce silver bars. But every time I went to add to my stack, I looked at silver eagles and I looked at the premiums and like I already said, they didn't make sense at all. In fact, I covered that. I covered, I did a video where I did a spreadsheet showing how hard it would be to recover the premium and how much more important it would be to just continue to add more silver to your stack during those incredibly high premium times. But again, with silver eagles coming down to a level of normalcy that we saw pre-silver squeeze and I do believe that in 2024 they're going to continue to be lower premiums. In fact, I do believe, and just so you know, I don't generally predict prices, but this isn't spot price I'm predicting. This is just premiums and market. I see 2024, I see the premiums on silver eagles and other silver products in 2024 continuing to return to normal, to the normal that we saw pre-silver squeeze of 2021. Now you might be asking yourself, if the premiums get down so low, are you going to continue to get a premium back for the silver eagles? Well, there's no doubt that coin shops need to make money. So if they're only selling silver eagles for four over, then they're probably not going to give you more than a dollar or two. But that is a significant difference between back during, you know, 2023, 2022, the silver squeeze back in February of 2021. That is a significant difference than, you know, buying a coin for, let's just go with the lowest spot price or the lowest premium that we saw at $15 an ounce, and then selling it back for five or $6 an ounce of a spot. That's certainly a much bigger difference than what you will look at today. In fact, if you look at this, this is a local coin shop who advertises their prices online just to give you an idea. If you look at their American silver eagle, common gems, they are right now paying at 25 at 50 per ounce. When spot price is 2380, that is a dollar 70 over spot. If you look at their 2023s, they're actually paying 26. They are paying at $2 and 20 cents an ounce over spot. When right now you can buy these things for just three 99 over spot. That is a very fair spread because you have to remember that online retailers, local coin shops, so on and so forth. They can't do the job for free. There is overhead, there are costs, and the coin shops have to make money to stay open and to stay in business. But again, now that we are seeing the premiums on these beautiful silver coins get back down to where it makes sense to stack them again, I am now starting to add silver eagles back to my stack. Now I'm not telling you that's what you should do, but that is certainly what I am finally doing thanks to those premiums returning to normal. Let me know, however, what you're doing in the comments. I may not respond to every comment that I see, but I do read the very high majority of them, and I look forward to seeing your comments down below, so leave them down there if you wouldn't mind. Also, I'm going to put a video above me where I called around coin shops to find out what they would pay me for my one ounce gold eagles. If you want to see what coin shops are offering me, that's the next video you should watch right now. Thank you guys so much for watching. I really appreciate it, and we will see you next time.