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Silver Eagles Sales Through May Best Since 1986, Turkish Silver Bullion Imports Surge

Tyler Durden's picture




 

From Gold Core

Silver Eagles Sales Through May Best Since 1986 and Turkish Silver Bullion Imports Surge

Gold and silver are lower today despite equities being mixed and Eurozone debt markets exhibiting signs of stress again with Portuguese and Greek bonds being sold with yields rising again despite the latest “bail out” speculation.

 
Silver demand internationally remains very high despite repeated, uninformed talk of silver being in a bubble. It is amazing how analysts who were never positive on silver, even when it was trading at $5/oz, are now experts and claim to know the future price movement of silver and know silver is a bubble.

Analysts who never commented on silver before in their life have suddenly come out of the woodwork to proclaim their wisdom about silver being a bubble. Their analysis is superficial at best and almost entirely based on silver’s recent price movement. The actual fundamentals of the market are completely ignored.

 
A little knowledge is a dangerous thing.

Absolutely nothing has changed regarding the fundamentals of the silver market. The physical silver bullion market is a tiny market vis-à-vis the gold market and the equity, bond, currency and other markets.

The recent sell off, far from being the bursting of a bubble was actually due to Wall Street banks with massive concentrated short positions being involved in a short squeeze that propelled prices higher, unprecedented and dubious margin increases and increasing investment and industrial demand for silver internationally.

 
Bloomberg reports this morning that Turkey imported 25.7 tons of silver in May, up from 61 kilograms in April, the Istanbul Gold Exchange said in a report on its website. This is a huge increase in demand and suggests that Middle Eastern demand for silver, which has not been noteworthy to date, may soon become an important catalysts for higher silver prices.

Silver demand is particularly strong in China and Asia and among a minority but increasingly vocal and influential band of silver advocates who believe that silver is a superior form of money and will help protect people from developing problems in the western and global financial and monetary system.

Bloomberg reports this morning that U.S. silver eagle coin sales through May 2011 are the best since 1986 (see news below). 18.9 million ounces have been sold so far in 2011.

While that may seem like a lot, to put that number in context, it is only worth some $661 million.

Ireland, a small country, may need an extra €50 billion to be made available under the EU/IMF programme to allow it to remain out of the markets for a longer period.

The average daily turnover on foreign exchange markets is in excess of US$4 trillion.

The US has monthly budget deficits of over $200 billion.

(Bloomberg)-- U.S. Mint Silver Eagle Coin Sales Through May Best Since 1986

The U.S. Mint sold 3.65 million ounces of American Eagle silver coins last month and had the best January through May sales since 1986 as prices for the metal almost doubled.   

Sales of the coins climbed 30 percent from 2.819 million ounces in April, taking the total for the year so far to 18.9 million ounces, the mint’s website shows. That compares with 15.2 million in the first five months of last year and is the most ever, according to data going back to 1986. American Eagle gold coin sales fell 0.9 percent to 107,000 ounces last month.

Silver futures jumped as much as 90 percent to a 31-year high in New York between January and April and gold reached a record in May as concern about Europe’s debt crisis, faster inflation, a weakening dollar and unrest in northern Africa and the Middle East spurred demand for a protection of wealth.

Silver then plunged as much as 35 percent as CME Group Inc., the Comex owner, raised margin costs to curb price volatility.

While silver “is beginning to move from the fringes with a little bit more mainstream demand, we’re still far from everyone piling in,” said Mark O’Byrne, executive director of brokerage GoldCore Ltd. in Dublin. “Some are buying purely for the safe- haven demand and are worried about fiat currencies. “

“There’s trust in silver and gold.”

The mint, located in Washington, D.C., said last week that its San Francisco facility will start producing American Eagle silver coins to meet demand at “unprecedented high levels,” and the plant can produce as many as several hundred thousand coins a week. The mint typically produces bullion coins in West Point, while other coins are made in locations including Philadelphia and Denver.

Demand for physical metal helped silver rise in nine of the past 10 years and gold complete a decade of annual increases, the longest run of gains in at least nine decades in London. Investors in exchange-traded products have accumulated about $122 billion of precious metals, according to data compiled by Bloomberg.

Silver futures for July delivery traded at $38.17 an ounce on the Comex by 8:06 a.m. London time and are up 23 percent this year. Spot prices touched a record $49.79 in London on April 25.

Gold for August delivery was at $1,533.40 an ounce, after reaching $1,577.40 on May 2. It’s up 7.9 percent this year.

The mint sold 514,500 ounces of American Eagle gold coins so far this year. That compares with 521,500 ounces in the same period last year and 554,500 ounces in 2009.

For some people “it’s getting too expensive to buy an ounce of gold,” and they can buy silver more easily, O’Byrne said.

 

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Wed, 06/01/2011 - 07:33 | 1327880 lubyanka
lubyanka's picture

silver bitchez

Wed, 06/01/2011 - 07:40 | 1327896 wandstrasse
wandstrasse's picture

but.. but ... It takes only $5 to take it out of the ground!

Wed, 06/01/2011 - 07:46 | 1327904 Michael Victory
Michael Victory's picture

Just continue to stack the phiz already.

Vid of the day: MADII Promises Unleashed

 

 

Wed, 06/01/2011 - 07:54 | 1327914 johnnymustardseed
johnnymustardseed's picture

What does it cost to print a $100 dollar bill?

Wed, 06/01/2011 - 07:54 | 1327922 johnnymustardseed
johnnymustardseed's picture

It costs 6 cents to print a $100 dollar bill, I looked it up. Much rather have silver coins. Junk silver is the best deal out there

Wed, 06/01/2011 - 08:05 | 1327939 wandstrasse
wandstrasse's picture

What does it cost to print $100 electronically? Is there a Nanowatt per Microsecond unit?

Wed, 06/01/2011 - 08:41 | 1328028 mayhem_korner
mayhem_korner's picture

Pretty sure the lowest denomination of electronically printed money is $1B.  Cost is about $0.001 in fiat devaluation.

:D

Wed, 06/01/2011 - 07:39 | 1327888 FoieGras
FoieGras's picture

Turkish imports? Wow.

What about Latvian silver imports? Also surging?

Wed, 06/01/2011 - 07:47 | 1327907 Hephasteus
Hephasteus's picture

Hey a little respect for turkey. They have 75 percent of the worlds supply of boron and as soon as the psycho's running this show blow up about 4 nuke plants along the new madrid fault line we are going to need that boron to avert a tremendous ... Oh wait sorry we all die.

Wed, 06/01/2011 - 09:39 | 1328202 Stuck on Zero
Stuck on Zero's picture

You need to pay a visit to the beautiful town of Boron California.  From Wikipedia:

"A large borax deposit was discovered in 1925, and the mining town of Boron was established soon thereafter. This borax deposit is now the world's largest borax mine,[7] which is owned by Rio Tinto Minerals (formerly U.S. Borax). This is operated as an open-pit mine, which is the largest open-pit mine in California. This mine supplies nearly half of the world's supply of refined borates. Rio Tinto Minerals is Boron's primary employer, employing over 800 people."

Wed, 06/01/2011 - 07:58 | 1327928 tmosley
tmosley's picture

Turkish sentiment is indicative of sentiment throughout the Middle East.

They are the most Westernized of those nations, and thus they are the most transparent.  The rest of them are likely importing huge amounts under the table, just like China has been.

Wed, 06/01/2011 - 08:55 | 1328078 Ignatius
Ignatius's picture

I think this is indicative of the sentiment of the masses in a more general way, also.  The 'ancients' have been burned before and perhaps it's in the collective memory.

Wed, 06/01/2011 - 08:04 | 1327933 Arnolds Love Child
Arnolds Love Child's picture

Yeah. Almost 5% of total US production. In May. To one not particularly wealthy country. Buckle up.

Wed, 06/01/2011 - 08:35 | 1328005 cbaba
cbaba's picture

Turkey is not a small country, within global 20 and 3rd biggest GDP growth ( 8% in 2011) in the world after China and India.

People have savings and want to invest.

Important point in this news is the human behaviour not the Country size.

Silver bullion was not comman and available in every dealer for investors in large quantities up until now, only alternative was gold( historically), people saw the last years silver jump from $20's to $49, everybody wants to share this enormous profit, there is a very strong demand to buy silver bullions from investors .

If it happens there, it will happen everywhere, in fact it is happening right now in US too, US mint production doubles at every 2-3 years.

 

Wed, 06/01/2011 - 07:43 | 1327897 PaperBear
PaperBear's picture

The lack of demand for the USD and other forms of paper is behind demand for gold and silver.

Convince the brainwashed precious metals bears with this statement and leave the bankster propagandising precious metals bears to their fate.

Wed, 06/01/2011 - 07:46 | 1327900 White.Star.Line
White.Star.Line's picture

When the debt hurricane hits, a few metals strapped to your ankles might keep you from getting blown away. Those purchasing "paper" metals for inflation protection, however, will someday stack their contracts and certificates alongside the FRN's in the wheelbarrow.

Wed, 06/01/2011 - 09:01 | 1328093 Ignatius
Ignatius's picture

People will learn there's a big difference between "it is my intention to pay you" versus "you have been paid."

Wed, 06/01/2011 - 07:44 | 1327905 earnulf
earnulf's picture

That turkish demand is about 750,000 ounces, not much in the overall demand.   However going from 16 kilos to 25.7 tons is one hell of a parabolic demand curve.    If even the turks are hedging their future bets with silver, why shouldn't the average joe stash a few ounces away?

Silver basics are unchanged and the pressure continues to build.

Wed, 06/01/2011 - 07:49 | 1327909 johny2
johny2's picture

Snowball just starting to roll.

Wed, 06/01/2011 - 07:47 | 1327910 PaperBear
PaperBear's picture

It may only take $5 to take out of the ground but there are the funds in the foreign exchange markets that will be looking for a temporary new home very shortly. When the $4 TN a day being traded makes a rush for physical gold and physical silver, feel the transfer of some of the stolen wealth back to those people 'wacky' enough to have some physical silver.

Wed, 06/01/2011 - 08:01 | 1327927 wandstrasse
wandstrasse's picture

my $5 post was just parroting some PM-'bubblists'. Nevertheless it seems to me that the market - which is no market - cares little about fundamentials / supply demand of the traded 'object' or paper or whatever, it just cares about maximising the absurdity of the compensation of the market's owners.

Wed, 06/01/2011 - 07:55 | 1327917 lieutenantjohnchard
lieutenantjohnchard's picture

bought some more silver eagles during the pull back. nothing to worry about. they won't rust.

Wed, 06/01/2011 - 08:25 | 1327977 vocational tainee
vocational tainee's picture

I`m only 300 oz away,from balancing my body weight with it..

Wed, 06/01/2011 - 07:57 | 1327918 johngaltfla
johngaltfla's picture

I'll go a step further on the SAE sales; I have not seen silver move like this since 1980. So whatever the paper clowns on the Street might say, the physical is flying. Some of the ancedotes are of $100K orders from W. Palm Beach being delivered by armored car on a somewhat regular basis down here to the uber wealthy. They know what is coming but play the game to keep the sheep calm.

Wed, 06/01/2011 - 08:14 | 1327952 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

I bough austrian phils on the pull back - cheaper. It will be intseresting to see what happens with eagles over the next 2 years. I believe they can only be minted from US mined silver - which is a limited supply of a commodity already in limited supply...crazy premiums coming soon??

as an aside, I have a growing fondness for turkey and the turks. The foods great, the chicks are hot, and they've thrown off that backwards muslim worldview. Good on them for getting their greasy hands on some silver too.

Wed, 06/01/2011 - 10:30 | 1328475 Watauga
Watauga's picture

"[T]hey've thrown off that backwards muslim worldview."

I beg to differ, if only because "they" encompasses a whole lot of people, many of whom are hard-line Islamists who have embraced, more than ever before, "that backwards muslim worldview" of a Caliphate, Sharia law, and tyrannical, religious despostism.

Invest in Turkey at your peril. 

Wed, 06/01/2011 - 22:42 | 1331309 Lord Koos
Lord Koos's picture

I have a growing fondness for silver not minted by the USA.

Wed, 06/01/2011 - 08:13 | 1327953 Captain Planet
Captain Planet's picture

does anyone have info to a reliable silver/oil price chart over the last say...1000 years?

Is anyone putting together the foundations for a price index valued in gold/silver?

Is that needed? Or will trade just be too localized to have global prices anymore?

Anybody catch the story of farmers in Wisconsin selling their John Deers' for Magnus the Ox?

http://www.dailymail.co.uk/news/article-1385193/Take-bull-horns-Farmers-...

Wed, 06/01/2011 - 10:36 | 1328500 Fiat2Zero
Fiat2Zero's picture

I've started a site that has some functionality in this area: www.truesilverprice.com. It's nascent at this point, but I'll be adding to it steadily as time permits.

There are a few realtime graphs that are interesting at this point:

1. "True Silver Price" - this is the average of prices of generic silver products scraped from websites of silver providers. There is a scraping/matching engine that allows me to easily add more products to scan. One goal is to get this to at least 100 vendors, which should be a reasonable sample.

2. "Premium" - shows the current premium above spot.

Even with the 15 or so products scanned right now it's useful. Another interesting graph shows volatility of Comex versus true silver price. You can clearly see Comex is a great deal more volatile than the actual price.

The site will eventually be a hub supplying information for "the common man" about silver ownership. It would be great if eventually people could stop watching the kitco graphs and watch these graphs (the kitco graphs may be great for traders, but they're horrible for the small investor). I'll be improving things until they are stable and rigorous enough that they're reliable.

Wed, 06/01/2011 - 22:48 | 1331318 Lord Koos
Lord Koos's picture

Nice work & a good idea.  It should be very easy for you to find 100 precious metal dealers online, however in my experience my local coin shops can always beat online retailers with lower premiums on generic silver.  It would also be nice if there was a chart that show the historical relationship between COMEX price and real physical price... even if it only went back a year or two it would be possible to see when the divergence started to really take off.

 

Wed, 06/01/2011 - 08:37 | 1328026 fiftybagger
fiftybagger's picture

The run to 50 from 21 and subsequent pullback to 32 was a "breakout".  Silver will run to 4 digits.

Silver For The People:

http://www.youtube.com/user/BrotherJohnF?feature=mhee

Wed, 06/01/2011 - 08:44 | 1328047 Long-John-Silver
Long-John-Silver's picture

The Comex clearance sale continues........

Wed, 06/01/2011 - 10:46 | 1328552 Fiat2Zero
Fiat2Zero's picture

Exactly. I pray for one more big dip so I can load up. Unfortunately, despite the now non-stop price manipulation, the price doesn't want to go below $36.

The pressure is building though as the developed world, dealing with double digit inflation (e.g. food inflation in China), is taking their meager wages and piling into silver. They don't make much, but when 30-40% of their income goes into savings (that is, silver), it puts a floor under the market.

KEEP BUYING THE PHYSICAL MATEYS, BRING FULL CANNONS TO BEAR ON THE COMEX AS WE COME ABOUT!

Wed, 06/01/2011 - 08:53 | 1328064 Math Man
Math Man's picture

The Turks are buying!

Yippeee!

That will save the market!

Never mind that silver is still in a massive surplus and the only thing pushing it up is investment demand. Which is now in the hands of the Turks....

ETFs keep dumping, but as long as the Turks are buying, I'm sure everything will be fine...

The idiocy of silver investors knows no bounds. Have fun back at $20, bitchez.

Wed, 06/01/2011 - 09:03 | 1328090 vocational tainee
vocational tainee's picture

so what? Got most of it at 8-10..

Wed, 06/01/2011 - 09:19 | 1328137 FriedEggs
FriedEggs's picture

Whats your motive?

24/7 on a fuckin message board...ripping apart hard working honest people -fighting the good fight.

Why? Why is it a joke when good people are trying there BEST to work this puzzle out?

 

Fried(e)

Wed, 06/01/2011 - 11:04 | 1328687 Bay of Pigs
Bay of Pigs's picture

There are some really sad people that post here. 

Boastful, stupid, arrogant, lacking in understanding, limited in knowledge, having no compassion, narrow minded, spiritually dead...

Wed, 06/01/2011 - 09:24 | 1328148 johnnymustardseed
johnnymustardseed's picture

Let me know how you do when the propped up stock market blows up. They wouldn't be lending to banks at a quarter of one percent if everything was alright. Hope your family loves the taste of worthless paper cause no body will barter with you for that

Wed, 06/01/2011 - 10:52 | 1328579 Fiat2Zero
Fiat2Zero's picture

The stock market won't blow, it'll be flat in nominal terms (but a disaster in real terms, i.e. when priced in _any_ commodity).

Ben B. won't let his one "achievement" slip away since he's already signaled he's going all in (+3T on a 11T debt).

Zimbabwe had the best performing market out there in nominal terms.

Of course by that point, silver will be $500 and ounce and you won't be able to find any.

Wed, 06/01/2011 - 09:24 | 1328157 CD
CD's picture

OK, the party is now official, MethMan is in the house. How's them $30 SLV shorts working out for you these days, mate?

Wed, 06/01/2011 - 09:31 | 1328184 theMAXILOPEZpsycho
theMAXILOPEZpsycho's picture

silver at $20...???!!!

try going to any dealer and buying on that day...good luck.

Don't you realise, we want the price to go down - so we can buy more of it??

Wed, 06/01/2011 - 09:55 | 1328294 SilverDosed
SilverDosed's picture

+ infinity

Now is the time to stack, lower prices just mean more for less. Long physical bitchez.

Wed, 06/01/2011 - 10:40 | 1328515 Fiat2Zero
Fiat2Zero's picture

Math Man,

Get ready to have your sorry ass handed to you. But keep churning out your JPMorgue backed invective (don't worry, I checked, the PayPal credit _will_ be deposited this week for your efforts, just keep those posts coming).

Ben Bernanke ignited inflation in the developing world, and now poor people will have their revenge by buying silver. It's poetic.

But keep throwing out your pathetic, information free rants. They're extremely entertaining for the rest of us (we need the comic relief).

Wed, 06/01/2011 - 11:29 | 1328838 tmosley
tmosley's picture

$34 is da top!  Da top I telz ya!

Also, need I remind you that today is June 1st?  If I recall correctly, you said $20 silver THIS MONTH.

Wed, 06/01/2011 - 09:08 | 1328106 speedy
speedy's picture

I don't think the zero after junk will stay that way for long :-)

by Math Man
on Wed, 06/01/2011 - 08:53
#1328064

 

The Turks are buying!

.........

 

The idiocy of silver investors knows no bounds. Have fun back at $20, bitchez.

  • flag as junk (0) 

  •  

    Wed, 06/01/2011 - 14:59 | 1329771 RockyRacoon
    RockyRacoon's picture

    I do like your avatar(s).

    Wed, 06/01/2011 - 09:57 | 1328300 adonisdemilo
    adonisdemilo's picture

    The Turks have more sense than you, Math Man.

    If there was oversupply why are JPMORGUE shorting the crap out of it.

    What else pushes up prices other than investment demand smart ass?

    27+ tons, not a really big number, but it could be enough for JPMORGUE to short Turkey. 

    Wed, 06/01/2011 - 10:35 | 1328479 Watauga
    Watauga's picture

    Vote for best avatar on this thread.

    Wed, 06/01/2011 - 10:52 | 1328603 Fiat2Zero
    Fiat2Zero's picture

    The revolt of the people against the world kleptocracy has begun. The buying of silver as a means to protect against inflation, and just as importantly, "stick it to the man," will spread just as the protests have spread.

    As soon as the US common man wakes up to inflation, you won't be able to find the physical.

    Thu, 06/02/2011 - 07:22 | 1331719 Urban Redneck
    Urban Redneck's picture

    "Bloomberg reports this morning that U.S. silver eagle coin sales through May 2011 are the best since 1986 (see news below). 18.9 million ounces have been sold so far in 2011.

    While that may seem like a lot, to put that number in context, it is only worth some $661 million."

    While 18.9 million ounces of U.S. silver eagle coins may not seem like a lot, to put that number in context- the Comex currently has less than 30 million ounces of silver available for future delivery to all its customers and the year is less than half over.

     

    Do NOT follow this link or you will be banned from the site!