UnderSpot Report: Liquidity Returns, But Premiums Continue to Erode
March 10, 2026
After weeks of severe settlement delays and strained refinery capacity, the physical bullion market is beginning to normalize operationally. Several dealers are reporting dramatically improved payment timelines, with at least one major refiner returning to next-day settlement, a sharp improvement from the multi-week delays that had become commonplace.
However, while the liquidity crunch appears to be easing, the pricing environment remains weak. Premiums across both gold and silver continue to drift lower as the market digests the recent surge in spot prices.
Spot Snapshot (Time of Writing)
Gold: $5,207.60 (+1.39%)
Silver: $88.82 (+2.22%)
Platinum: $2,235.00 (+2.71%)
Palladium: $1,666.00 (-0.36%)
After yesterday’s heavy selling pressure across the metals complex, markets have rebounded modestly this morning. Even so, the volatility in the paper markets continues to ripple through the physical bullion trade.
Gold Market: Premium Compression Accelerates
One of the most striking developments is the weakness in secondary market premiums for common gold bullion products.
On current dealer sheets, 1 oz Gold American Eagles are now bidding around 99% of spot, a level rarely seen during periods of strong bullion demand.
Other major sovereign coins show similar softness:
- Gold Maple Leafs bidding around 99% of spot
- Krugerrands around 98% of spot
- Generic gold bars roughly 99% of spot
In normal market conditions, these products typically trade at or above spot in dealer markets due to persistent retail demand and tight supply. The shift to discounts suggests wholesalers are comfortable with inventory levels and are no longer aggressively competing for supply.
Silver Market: Still Heavy
Silver remains the weakest segment of the physical bullion market.
Recent dealer sheets show:
- Generic silver rounds around $2 under spot
- 100 oz bars around $0.50 under spot
- COMEX bars as low as $5 under spot depending on settlement terms
Even sovereign products are showing signs of softness:
- Silver Eagles bidding roughly $1 over spot
- Silver Maples around $0.25 over spot
These are significantly lower bid premiums than what the market experienced during the recent run-up.
The takeaway is clear: dealer inventories remain elevated and the pipeline of metal flowing into wholesalers has not yet fully slowed.
The Current Reality
The situation today looks very different from the liquidity panic that dominated the market earlier this year.
Then:
- Refiners were weeks behind on payments
- Dealers struggled to move metal downstream
- Some buyers stopped purchasing entirely
Now:
- Settlement timelines are improving
- Metal is moving through the pipeline again
But the trade-off is clear.
Liquidity is returning…. but premiums are paying the price.
