Wall Street Silver: Did A Billionaire Buy $50 Million In Silver Eagles?

As inflation rages on, investors are looking for ways to protect their wealth. Historically, precious metals have been a key part of that. Gold is typically most valued for its durability and portability.

Silver is often seen as an add-on to that theme. It has the added advantage of being valued at a level that makes sense for smaller transactions. While metals prices haven’t moved higher with inflation recently, there are some signs of strong demand for physical metals.

One recent story making the rounds is that a billionaire out of Texas has put in a buy order for $50 million in precious metals. Interestingly, rather than paying for low-premium 1,000- or 100-ounce bars, the buy has mostly been for American Eagle coins.

These one-ounce coins typically carry a high premium over the spot price of silver. Typically, they trade at a premium to one-ounce coins made by the mints of other countries.

Meanwhile, the buy has been so large that it could only cover 900,000 American Eagle coins. Deliveries are going out into August. And the lack of a clear delivery schedule from the US Mint is pushing premiums for Eagles even higher. The rest of the purchase price is going toward “junk” silver coins and pre-1933 US gold.

Investors looking to buy silver right now may want to look at larger weight denominations. That’s because the huge demand for one-ounce coins right now makes them somewhat overpriced.

To hear the full story of this billionaire bullion buy, click here.