Let me start by telling you that this has been a topsy turvy week. With the whole Reddit #wallstreetbets playing out in so many different ways, and then the quick switch in focus to another massively shorted commodity in silver (which took prices above $30 on paper before falling back to below $27), this has been a wicked couple of weeks.
Let me bring you up to speed on options.
Many of you reading this will know all too well the predicament that most North American dealers, both big and small, find themselves in today. Silver prices are on the precipice of exploding higher for so many good reasons, yet there is almost nothing available for purchase anywhere? Well, this is not entirely true.
The Royal Canadian Mint reports a multi-week delay on shipping for any of its 2021 products, and they indeed have no concrete availability date yet announced on new supply. This delay bodes well in the medium to long-term as prices will naturally move higher when supply constrictions occur. But for now, the only place you will find high prices are in the premiums charged on anything that is physically available for delivery.
The U.S. Mint has returned to allocation, reducing, and limiting the number of coins released to the dealer network weekly. The imbalance between supply and demand has already pushed wholesale premiums roughly .75%-1.25% higher on gold bullion coins and bars and approximately +2.5%-4.5% on silver bullion coins and bars since the start of 2021.
How can we still acquire physical bullion and benefit from knowing that it is a tangible product that can be taken for delivery anytime we want? Well, this is why we offer bulk bullion at Delta Harbour Assets.
Bulk bullion refers to bullion products held through our bulk bullion custody service and represents an interest in non-allocated bulk bullion holdings. It is NOT a certificate, grant or endowment convertible to bullion. It is real, physical bullion held in a vault under your name.
Bulk bullion holdings include various bar and coin brands and bullion sizes, maintained at major institutions (please ask about our Storage Relationships). Customer holdings can be traded in 1-ounce increments. Delta does not trade short positions, futures, or options, and we do not lease bullion.
Bulk bullion custody holdings offer customers a flexible and cost-effective way to invest in gold and silver. Holding positions in bulk bullion form improves liquidity and provides fair pricing in all market conditions. Of course, upon payment of applicable differences in premiums, shipping and handling fees, customers can convert their bulk bullion holdings to allocated specific types of bars or coins and take delivery at any time.
Owning bulk bullion means you derive all of the benefits of ownership, but without the high premiums, such as those in the silver market right now. At a later point in time, when premiums come back down, you can choose to convert your holdings into a different bar or coin type, having forgone the cost of the high premium altogether.
For more information, please visit our website www.deltaharbour.com or give us a call at 1-888-335-8645.
Yours to the penny,
Darren V. Long