At USAGOLD, we actively seek out ways to optimize our clients’ physical holdings. One such strategy involves capitalizing on premium fluctuations between different forms of silver bullion. Over time, value differentials exist between 100 oz silver bars – which typically carry consistent and lower overall premiums – and American Silver Eagles (ASEs) – which regularly display greater variations in premiums. Speaking overall, ASEs are more sensitive to the ebb and flow of supply and demand to begin with, a characteristic which is further influenced by nuanced and product specific market conditions like production constraints at the U.S. Mint, availability of coin blanks from secondary mints, or even the time of year. This report explores how to strategically trade ASEs for 100 oz bars and back again as ASE premiums spike and then normalize, showing how stackers can leverage these cyclical fluctuations to increase their total silver holdings over time.
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