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Gold Coin And Bar Shortages Likely To Lead To Rationing
Today’s AM fix was USD 1,246.00, EUR 911.89 and GBP 757.86 per ounce.
Friday’s AM fix was USD 1,232.25, EUR 906.53 and GBP 750.78 per ounce.
Gold climbed $18.70 or 1.52% Friday, closing at $1,247.10/oz. Silver rose $0.56 or 2.86% closing at $20.13/oz. Platinum climbed 14.85, or 1.1%, to $1,428.10/oz and palladium rose $5.99 or 0.8%, to $739.10/oz. Gold was up 0.87% and silver was down 0.15% for the week.
Today's gold prices continued last week's rally, strengthened by a disappointing U.S. jobs number which creates doubts about the strength of the U.S. economic recovery.
Gold in U.S. Dollars, 1 Year - (Bloomberg)
The Perth Mint's Bron Suchecki has written an interested blog post regarding the real risk of gold coin shortages and rationing happening again:
The extraordinary demand for precious metals coins following the 2008 global financial crisis caught the minting industry by surprise, resulting in never before seen coin rationing and shortages.
It seems not much has changed, with recent reports that the UK Royal Mint ran out of 2014 Sovereign gold coins due to "exceptional demand", as well as the continuation for over one year of an allocation program first put into place early 2013 by the US Mint on its ever popular silver Eagle bullion coins.
While these recent events have been limited to specific coins, with availability of other leading bullion coins like the Perth Mint’s gold Kangaroo not affected, it does seem to indicate that worldwide minting production capacity is still unable to meet demand surges.
However, it is little appreciated that the bottleneck in the global coin minting process is blank (planchet) manufacture. This is a far more complex process than simple stamping of a coin, particularly around purity and accurate weight control.
If you dig deep, you will find that many of the coin supply problems come from underestimation of demand and the resulting exhausting of blank inventories. Often, blank suppliers are mints themselves and can face conflicts where they earn more by prioritising blanks for internal use rather than supply externally. Running higher blank inventories is often not an option, due to the cost of funding the high dollar value of the inventory.
How high coin premiums can go when coin demand overwhelms production capacity - (Sharelynx)
Notwithstanding the capacity expansion by blank suppliers over the past five years, in my opinion there is no way the industry can meet the demand that would occur were precious metals to see even a small bit of interest from the mass market. While cast bars are a lot easier to make and refiners are much more casting production capacity, I am not even sure if it could meet sustained mass market demand.
For now 2008 style shortages and rationing don't seem to be on the horizon but the fact that the UK and US Mint are having supply issues on a few of their product with metal prices at these low levels is an indicator that as prices rise and (re)attract investor interest, shortages and rationing may become a reality of coin buying life again.
The interesting and informative blog post can be read here.
This is another reason why is you are considering buying coins or bars in volume for delivery or bullion storage in Zurich or Singapore, it is best not to wait.
“Don’t wait to buy gold and silver. Buy gold and silver and wait.”
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You forgot to address the most important issues --- if the Fed is not involved with this --- then why are they not crushing it?
Very obviously they could make this go away in two seconds - if they wanted to.
And bull fucking shit the MSM is following this because it's a good story. The MSM follows and writes WHAT IT IS TOLD TO WRITE.
If the US govt and Fed did not want the MSM on this story --- you can fucking well be sure ---- it would be like a tree falling in the woods where there is not a person within a 1000 miles.
You are WRONG. You are so fucking WRONG that you are dangerous
The MSM is almost dead. I read somewhere that google alone brings in more advertising revenue than all of the print media. Yes there is no such thing as an unbiased MSM outlet but either way, they still need to print stories that will bring in revenue. I can't think of one advantage the Fed would have in backing bitcoins. But I can think of several reasons why it is poison to them.
" if the Fed is not involved with this --- then why are they not crushing it?
Very obviously they could make this go away in two seconds - if they wanted to."
--
Try to walk into a US bank and buy bitcoins. Try to sign up with a foreign bitcoin exchange. They won't touch an american with a ten foot pole (no offense to my tall Polish friends). I think the Fed is biding its time and one day they will unleash holy hell on bitcoins. I have no idea if they will succeed. BTC is a serious threat to the US dollar and it's not owned by any country or its government.
I disagree with some of your comments:
100% tracking same as now - incorrect. Cash is not trackable.
100% tracking...oops, you repeated yourself.
Cannot be devalued - this is called faith, since clearly you don't know.
Instant starvation impossible - famous last word. Once again, this is faith.
Cash isn't trackable per se. But where do you get cash from? A bank or an ATM? That part is definitely stored.
Hard to see how BTC can be called safe and non-trackable when the FBI can track it to Silk Road and seize $200 million worth.
Keep in mind that RAM scrapers are more sophisticated and effective than ever. That suggests there is NO real security anywhere, since by intercepting the data flow in the CPU, they don't have to decrypt. The CPU can process data only in machine language.
I fully expect that BTC will solve problems and get better. I fully expect that hackers and governments will raise the ante. If I can't touch it, I ain't got it. But that's just me.
INDEED.
There is a solution, that each such computer be subjected to a dead-man switch of sorts that fries it - ruining any such intercept as it must be cooled or attacked on the spot - but who does this?
Just about no one.
If you can touch it, it can be taken away. The safest store of wealth ever invented is a Bitcoin brain wallet, a secret you can remember forever, which is required to unlock a wallet stored redundantly on computers all around the world.
and if you need a grid it can be taken away faster than things you can touch,
therefore stick with things you can touch.
gone is gone - b1tco1nz does not has the immunit33z to this.
If you can touch it, it can be taken away. The safest store of wealth ever invented is a Bitcoin brain wallet, a secret you can remember forever, which is required to unlock a wallet stored redundantly on computers all around the world.
And like gold, bitcoin has been money for thousands of years to survive the test of time.
Well I can hide a gold coin on multiple places arround the world too under the ground, cemented inside walls, under water, (be creative) and keep the secret inside my brain too. So I dont need some overvalued bitcoin.
@mijev
For the sake of argument, cash is not very "trackable" if you constantly deal in cash.
For instance, if you cashed your paycheck every payday and kept your cash outside the system or, if you sell something privately and only accept cash, I fail to see how your purchases are then tracked.
The bank (or government) would have a record of you having received X amount of cash, but that's it. Remember, they know how much your paycheck is either way (whether direct deposited or taken to them to cash).
But other than that it is good to go right?
Whichever idiot junked you for that comment is a complete moron...
I'm sure pornstar was one of the three(so far)
Site needs a bot/ sock puppet filter.
Rationing of food, toilet paper or any other product is a sign of central planning, not market forces. Visit Havana some day and wait in line for an hour for a 2 cent dish of ice cream. It's way underpriced so everyone wants it.
They can't sell gold at that price and that is why they are having shortages.
sorry for the double post...
we'll see also if the allocation of ASE is enough considering the demand in January....
http://zysites.com/silververitas/
Cuba can't even manage a simple trainservice from Havana to Santiago.
read the recent book called Slow train to Guantanamo
What the Say say?
Markets clear. Non-markets meanwhile, require rationing.
WARNING: Internet argument below. Drink up and join in!
You stackers a f*cked - bacteria makes gold!
http://www.nature.com/news/gold-digging-bacterium-makes-precious-particles-1.12352
Yep... it makes Gold from.... Gold. You can pull it from sea water as well.
http://goldfever.com/gold_sea.htm
If you find the right biochemical pathway I will buy stock in your "mine".
I just keep stacking for my children and grandchildren. They will thank me one day and call their papa a very wise man.
I just pray for no boating accidents because of our treacherous waters.