US Mint Sells Massive 3.9 Million Ounces Of Silver Coins In First Few Days Of 2013, Triple December's Total

Tyler Durden's picture

Just a few days ago we noted the massive surge in physical gold coin sales from the US Mint, with silver surprisingly lagging. Today, we see an even more dramatic surge in the sales of physical Silver Coins in the first week of January, which in a few short days hit 3.94 million oz, already surpassing the entire December total of 1.64 million ounces. It seems that the paper-to-physical currency rotation is gathering pace even as, or thanks to the trillion dollar platinum coin mercifully ending its 15 minutes of page-clicking, ad revenue infamy. In the secondary market, inventories (via APMEX) of Silver coins remain negligible, if any: American Eagles are available as follows: 2013s may be available 1/18, maybe not; 2012 - 0; 2011 - 0; 2010 - 0; 2009 - 0; 2008 - 0; 2007 - 0; 2006 - 0; 2005 - 0; 2004 - 0; 2003 - 0; 2002 - 0. They do have some 2000, 2001 and 2007, all about $5-6 over spot! It seems ever more people are getting nervous about the impact of currency wars on their "money"... or perhaps just want to make Silver shirts to attract the females?

 

 

 

(h/t Alex Gloy)

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Henry Hub's picture

Yes. You are paying more for less gold with the Eagle. I wonder if the 8.33% non gold is Tungsten?

secret_sam's picture

You do not understand the implications.

When you buy a 1 oz gold coin, you receive 1 troy oz of Au PLUS the added alloying metal for strength.  Go ahead and weigh one of your coins some time.

Tall Tom's picture

You needed to tell him that the weight will be roughly 34 Grams on the American Eagle instead of the 31.1 Grams of a Troy Ounce which is what a Maple Leaf weighs.

 

I am happy that you challenged him. I hope that he learns.

secret_sam's picture

Thanks, you're butterin' me all up, but I never wanted to be too pedantic on the individual level.  I just hope *anyone* can learn something from my shit.

dogbreath's picture

The eagle contains one ounce of gold and some silver/copper? to make it durable.  Maples are very soft and easy to scratch

devo's picture

Gold investors don't care about purity as long as it's 90% or higher. It's why coins like the Mexican Pesos and French Roosters are popular. The 90% gold means you get to buy close to spot (and potentially sell at a high premium if there's a panic).With the 99.99 coins, you have to pamper them so they don't scratch, and if you do recoup the premium it probably won't be as high a % as in a coin bought at spot. This is just make take.

 

 

Argentbilly's picture

Right, it is fun to clean Morgans. Sorry collector's. 

devo's picture

Snarky!

But I think another good buy are war nickels, because they sell under spot, and if there's a silver shortage and panic, people will be buying them at premiums. Might be the best bang for the buck if there's a mania. They're overlooked and undesirable to most people. I loaded up on a few hundred. Forget the "no refinery will take them" theory--who the hell is going to be taking their silver to refineries that buy below spot in a mania or panic? To get full market value, people will be selling them to other people or trading them for goods.

 

GrinandBearit's picture

Great points.  Also they are much more affordable for people with shallow pockets. 

samsara's picture

To get full market value, people will be selling them to other people or trading them for goods

I agree. To me my heavy metal will be a person to person transaction.... AFTER things go to hell. Not to Sell to make paper profits.

AgAu_man's picture

Devo, "Are we not men?".  ;-)

I respectfully take the opposite tack for the following reason:  In a PM world that will be increasingly desperate for Phys-AU, "salting" will increase accordingly.  To mitigate this risk, I prefer to raise that bar for these scumbags, to the point where it's too costly.  Hence my preference for 99.99 or -- better still -- 99.999 Maples with only one source:  the Royal Canadian Mint.  Straight from Canada to US, w/o global/asian detour.

Plus, as a Legal Tender, it canot be 'taxed' or 'confiscated' in the US.  You will have to sort out your own tax implications, if any.

ruffian's picture

Importing anthing less than .995 fine gold into canada or australia (for example) carries a 6% tax. "Four nines" carry no tax...........

devo's picture

^ +1 to both of you above.

A side of it I hadn't thought of.

ziggy59's picture

Actually they contain a troy oz of gold.... They are not .999 but weigh more than an oz to allow for the % difference due to metal mixture

Lord Of Finance's picture

My local coin dealer said things are getting real hot. The same goes true with all dealers he knows. The heat has hit the street. Fewer sellers, many more buyers. Has not seen this level of buying since late 08 into 09. When the silver snow stops evaporating in the upper atmosphere and starts reaching groundlevel, then you know not only is the dip over but a stronger surge is underway.

devo's picture

PMs got ahead of themselves in '11. After a year and a half of consolidation (and absorbing three QE programs), the next leg up is justified. I think gold $1800 and silver $37-40 by year end. I think what has everyone worried is a possible deflationary event where PMs get taken down with everything else. Besides that, there isn't much risk.

forwardho's picture

I have not done calculations yet, but it looks like almost $3 of silver was bought to $1  of gold. How can ratio remain 55/1 when people are buying 3x (in actual dollars spent) silver to gold.

So much for supply and demand economics working.

Silly me, I forgot we are no longer teathered to that pesky reality thingy

Dr. Engali's picture

The precious metals will be like .223 ammo or full capacity magazines . They are easy to get now , but there will be a moment when .. Poof .. all supply will be gone. If you're not stocked before then you will be screwed.

Overfed's picture

That's why it pays to accumulate that stuff before there is a panic!

AgAu_man's picture

DOOR #1:  If you bought paper-AU at, say, $1600 or less, then this might be a really good time to convert to Phys.  And I suspect that many/most are doing this, to mitigate counter-party risk.

DOOR #2:  If, on the other hand, you bought paper-AU at $1700 or more, then you're probably frustrated at the current price -- as it's preventing you from converting to Phys, if you don't want to take a cash-loss.  If the price goes back up to >$1700 levels, you can probably do it then, but you worry about the risk of not getting any Phys by then.  For you the quandry/dilemma is:  Take a USD loss now and have AU in hand, or preserve USD on books but risk getting locked out of AU supply.

DOOR #3:  Of course, in the lucky event that paper-AU goes to $1800, then you can convert and, depending on quantity sold, might even get some extra bullion/coins for free.  Odds?  Not that good, I suspect.

LET'S MAKE A DEAL GUY:  Decisions, decisions.  Your Jim-Rickards-brain says what?  Door, 1,2 or 3?

yogibear's picture

Watch for the Wall Street boys with Washington's help and the Fed pull some shenanigans.

When it comes to money, nobody beats Wall Street.

 

Son of Loki's picture
Man, 70, and 15-year-old married in Saudi Arabia

 

(CNN) — A 70-year-old man married a 15-year-old girl in Saudi Arabia, human rights workers confirmed on Tuesday. The 15-year-old was sold to her husband for $20,000, according to the report.

CNN interviewed the man, who said the girl’s parents sold her to him for the equivalent of $20,000. The marriage came to light when the man complained to a local official, saying the girl’s family had taken her back and he’d been ripped off. He refused to provide his name to CNN.

 

http://myfox8.com/2013/01/08/man-70-marries-15-year-old-in-saudi-arabia/

akak's picture

He should have paid for her with his credit card --- you can always challenge bad deals that way.

AgAu_man's picture

The 'fucking' (pun intended) French Nobility did not have this 'fucking problem'.  They had the "Droit de Signeur" laws in the Middle Ages:  http://en.wikipedia.org/wiki/Droit_du_seigneur.  "First dibs" on the virgin on her wedding night.

If, perchance, an offspring was sired, then the 'bastard' (word used correctly) would enhance the woman's odds of receiving material benefits from the Signeur -- compared to the women hit with the Ugly Stick.  That's why many women hated beautiful women:  Primal, day-glow green envy.

It just occurs to me... What if a Nobleman (French, English, German or Italian) got a Jewish servant girl pregnant?  Given that the Jewish lineage is traced through the maternal line, would the Jewish child now not have 'noble' roots?  Roots/connections which could be 'leveraged'?.

In Charles Dickens' Victorian England, where Nobility and Bankers would 'shag' their female staff, and the pregnant girl had to give up the infant to orphanages for adoption, a lot of 'orphans' were assumed to have 'noble' roots.  Hence Dickens' idea for Oliver Twist, where it appealed to nobility that 'well-bred' children would naturally rise to the top -- having their father's superior genes.  He made a fortune with his "We are naturally more noble" themes in his books.  Offspring from more "favored" mistresses usually ended up as Civil Servants -- which ended up being a symbiotic relationship for both parties, i.e. the nobility/Lords and the Civil Servants who could sometimes rise to great heights.

I even recall some program on the History Channel, about A. Hitler's family... where one of his female ancestors got pregnant by her Jewish master in Vienna, who then threw her out when he found out.  As he could not afford to have his reputation tarnished (had she stayed), or his costs increase.  Maybe it was AH himself.  Would explain why AH had such a primal and burning hatred for them:  "Urtrauma" (Primal Trauma) that he never overcame.  Different kind of PTS (Post-Traumatic Stress).

 

secret_sam's picture

I don't see the relevance.  Did he pay in silver?

lakecity55's picture

HECK, HE PAID IN GOLD OR OIL!

Lmo Mutton's picture

And he can have sex with her for up to 6 hours after she is dead.

Stormtower's picture

And this just in.......

http://ca.news.yahoo.com/mf-global-judge-nixes-customer-groups-bid-depos...

Corzine won't be deposed.............of course no one could see this coming.

toomanyfakeconservatives's picture

Gee... absolute records on gun purchases and Silver Eagle purchases.

 

The AR15/AK47 sold-out craze won't last long. There ain't gonna be no ban and prices will come down drastically. Silver... I'm not so sure about.

GubbermintWorker's picture

Respectfully disagree about no bans comin down the road.  We no longer live in a constitutional republic, remember? Haven't for some time.

JohnGaltsChild's picture

So, why is paper silver trading at 30+ and physical selling for 40 on eBay?

CitizenPete's picture

one is spot price and the other is physical priced at spot plus premium and fees and if your stupid enough to pay it - commission - as well

dunce's picture

There is a line in one of the Omar Khayyam poems about what does the wine seller do with the money he gets for his juice. It makes me wonder what do the peple buy with the money they get from PM. i think back in Omars day there was no fiat currency in the wine trade.

GubbermintWorker's picture

I am thankful for my dumbfound stubborness to keep all my silver.

Doug Eberhardt's picture

 

Sales of Precious Metals are always high at the beginning of the year. The reason is all of the gold dealers buy them and turn them into "First Strike" or "Early Release" coins they get slabbed by PGCS allowing them to mark them up and get more commissions from investors.

No one will care about your shiny coins should we get to the point in time where precious metals are considered money again. The gold and silver content value will trump such numismatic value (or potential value). Sure, the rich may hold onto their very rare coins, but for the average investor in metals, they are better off with buying coins that are as close to spot as possible.

There's a reason why these gold dealers advertise so much on mostly right wing television and radio shows like Hannity, Levin, etc. and on the internet with Beck; they can afford to! Most of the listeners don't have a clue what they are buying but trust the person on the phone because Glenn Beck tells them he does business with them! He doesn't tell his listeners that the gold company he recommends has a shrine built to him at their headquarters.

 

GubbermintWorker's picture

Gee, I could have gotten my gold and silver from the same place Glenn Beck does!?!?!

Guess I was too cheap and went the ebay route a few years ago....using Bing cash back and ebay bucks....wow, talk about buying below spot.

lakecity55's picture

Hot Damn. This is gonna be good for my miners!

Keep Stackin!

deerhunter's picture

Junk silver dimes melt value for the day was 2.24,  I bought some at LCS for 2.29 is that a decent price?  New to the game.  Thanks

secret_sam's picture

You were totally chumped and lost almost everything in that deal, but I'll give ya $1.07 each to ease the pain.

Monedas's picture

What about Monedas' suspicion that the US Mint looses money on it's PM coins .... by normal accounting standards and all things considered ?  Anyone got a fix on that possibility ?  Will they have a bottleneck if sales really get brisk ?  If they were really making money, and not being subsidized by the tax payer, they would gear up rapidly to cash in on higher sales ? Time will tell !

Cheek's picture

There really isn’t any reason to wait to buy 1 oz silver bullion, silver bars, Gold Buffalo coins, American Silver Eagle coins, or any other gold and silver investments.  These precious metals are increasing in value.  So protect your wealth by converting your cash into silver and gold by going to http://www.57gold.com.