Engelhard Silver Bullion Premium to Spot Silver

With the current suppression of silver I think it's time to monitor the premium to see if a real shortage is actually building up.

Some analysts are saying the premium on silver could start going up. Let's see if it really does.

One of the best ways is to use the Engelhard bullion price, which can be found here:

http://apps.catalysts.basf.com/apps/eibprices/mp/

Table 1: Engelhard Industrial Bullion Prices

I have subtracted the Engelhard silver bullion price by the spot silver price and then divided the result by the spot silver price to get a percentage. I have bad news. The premium is trending down. This means there isn't really a problem with supply or any sign of decoupling.

Chart 1: Silver Premium Engelhard bullion to spot silver

If there were a problem with supply or a decoupling between physical and paper silver, the chart would be more like this:

Chart 2: Spot Silver Premium

I'll continue monitoring this so that investors can have the breaking news when the premium starts going up.