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US Mint Halts Sales, Depletes Inventory Of One-Tenth Ounce Gold Coins
We have been reporting extensively on the terminal disconnect between the paper gold market, which tumbled ten days ago for a variety of reasons, and the physical gold market which one can safely say, has seen a record surge in demand by those who wish to take advantage of the tumbling prices, depleting inventories of gold and silver in virtually all jurisdictions, and leading to the a record purchase of gold in the US mint a week ago as also reported here.
Today, we learn that, as expected, none other than the US Mint has officially run out of small denomination gold coins, in this case One-Tenth ounce American Eagle gold bullion coins. We are confident this incontrovertible proof of soaring retail demand for physical will somehow result in JPM or another bullion bank dumping a few extra thousands ounces of paper/electronic gold or silver to further disconnect the paper price from what is actually going on with physical demand. As for the US Mint, first it's fractions of an ounce: look forward to the mint running out of all bullion denominations in the coming days and week, first in gold, then in silver as well.
From Reuters:
The U.S. Mint said it has suspended sales of its one-tenth ounce American Eagle gold bullion coins as surging demand after bullion's plunge to two-year lows depleted the government's inventory.
This marks the first time it has stopped selling gold product since November 2009, dealers said. A spokesman for the Mint did not return calls seeking confirmation of that milestone.
The U.S. Mint, one of the world's leading gold and silver coin producers, halts coin sales from time to time as it runs out of coin blanks to meet increases in demand.
So far in April, the U.S. Mint has sold 175,000 ounces of American Eagle gold coins, putting it on track to challenge a high of 231,500 ounces set in December 2009.
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While the one-ounce American Eagle gold coins remain the most popular size, year-to-date demand for the one-tenth ounce coins has been up over 118 percent compared to the same period in 2012, the Mint said.
We, for one, can only hope that the idiotic smashdown of spot paper gold continue and the price is sent to $0 or negative, while the last remaining physical ounce in inventory disappears at any price.
At that point the exchanges will have quite a few anxious people to answer to, the second someone demands even one bar in delivery.
Also, learn the words: "forced cash settlement."
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No, I'm serious as a heart attack. it is a horrid thing to contribute to this practice. You should all be ashamed of yourselves
It's ok, we DO need to be aware of the environmental consequences of mining. Coal, Uranium, Oil, Gold, Copper, etc
It is a dirty business. Living our modern lifestyle is a dirty business.
Like consider things like Nigerian villagers scavenging for oil and gasoline by tapping directly into pipelines and causing oil spills and explosions or http://en.wikipedia.org/wiki/Bhopal_disaster or Fukushima, Chernobyl... it isn't just gold.
Whatever, dickwad. I'm sure you live life metals-free.
I had an insight in a quiet moment that the Powers that Be are establishing low average prices for gold and silver for force majeure setlements
@ Seal:
Exactly:
As the paper price and physical price disconnect, the price for paper Gold will be dropping, not rising.
Truthfully, I can't wait to see the day when the paper pimps get their asses handed to them. Wishing bad on people is not my style, but it's not as though those bums ever wished Good on me.
I just bought 10,000 Ag atoms.
They're so adorable!
Supply is not as short as some people think. It is delivery that is lagging. In the meantime this delivery lag is used to charge a higher premium which suits dealers.
The great demand for one tenth of an oz coins is merely a reminder of how broke people have become and how similar to Indian peasants who also scrape enough money together to buy what they can when they can.
Gold will not stage a return to the limelight until things get so ugly that it will be impossible to hide the mess by simply pushing up the DOW and S&P through contrived means.
In the meantime enough gold will find its way onto the physical market to subdue the price even though these people are running their stocks down. They must back up their initial attack otherwise they will be totally exposed.
If everyone bought papaer and demanded delivery, we would all be rich haha, we should all organize.
One will never know the truth until paper sales are banned. The real point of selling paper to buy physical is to expose and to break the backof the fraudsters.
Just got an email from ATS Bullion London offering to buy Krugerrands at 99% spot. Never had that before and Iv'e been a customer for several years now. Just sayin.
A brief revistation of the Hunt Bros and silver might be illuminating. Nice 26 minute discussion at the bottom. Researcher figures that the Hunts might had added $0.70 to the $50 silver price in '79-'80. Notice how silver hasn't even reached that peak from 33 years ago. The reason I brought it up is to share a study in market mechanics. TPTB "popped" that bubble by banning any new long positions in the futures. IOW - you could sell a long future to close out, but no new positions were allowed. The open interest was fixed. With no new blood coming in, the market crashed. Why hold if it can't go higher - besides everybody else will beat you tot he exit if you don't get there first. Where the government got the authority to do that heinous act is a mystery to me. Beware.
So we see the demand rising in the form of Mom&Pop hitting the coin shop for 1/10 oz - and that equals the parabolic blow-off top. But the price in the futures is dropping. How to resolve? Why wouldn't TPTB pull what they did back in '80?That was perhaps 10X more blantant than what they just did - which was very obvious. I don't know. I think that Bernanke et al are in a corner - Big Time.
Hunt Brothers Sacrificed to Save the US Dollar - Mike Maloney interviewed by Alasdair Macleodhttp://www.youtube.com/watch?v=T_11xc_fbRc
Today they're using shorts because it lets them manipulate the market more severely than limiting longs.
The answer is in your description, they froze longs to cap open interest, with shorting there's (in theory) no cap to the number of naked shorts they can put into the market, and do it on margin no less. So in reality they're already pulling far more than what they did in '80 -- and have been for a decade or more. They've let the paper game get so much bigger than the supply all they can do is crash paper, not physical. This is the key. Because the physical is spread so thinly among so many, the paper and physical markets simply divorce.
The Hunt Brothers did futures and stood for delivery, and then the COMEX busted the terms. Basically it was a default. This is really no different than a MF Global move, or settling for cash. The difference is that back then, they could put pressure on IMIC by limiting the size of contracts as a way to stop the loss of physical supply, and since IMIC had cornered the market, they were the ones that got hit hardest. Today they've taken out a bunch of margin traders, but have shown that physical holders are "strong hands," which is another indication that paper =/= physical. Indeed now downward moves are driving physical into the strong hands!
There's no way out for the CBs, or more realistically, the bullion banks. The leased gold has been sold to generate some cash and suppress the price. Now they can't get that gold back cheaply, no matter how they try. At the country level, mines can be nationalized, and they could attempt siezures but it's doubtful it would work -- most of the claims on physical are already other banks! If the nationalize the gold, the BBs are still fucked, the only way to save them would be for the nationalized gold to be sold to them at artificially low prices, so they could pass it back into the CB's physical holding. But if this happens, new physical isn't available on the market, and the real price goes up. Again, no way out.
It's a virtual certainty at this point that COMEX will go bust, probably within six months. So expect the paper market to very, very weird. We'll have another MFG, forced cash settlements or some other glorified version of failure to deliver, except it'll likely be permanent and no one besides the Fed will play with paper. Real metal buyers/sellers won't use futures prices at that point.
Excellent analysis. Thanks.
The country snoozed when Timothy Geithner wrote a chack to Goldman Sachs for the puts it held against AIG for which AIG could not make good. That broke my heart and filled m with fear. Zombie nation. I expect/hope that when the tide goes out on the BBs there will be some outrage.
Excellent post Seek!
You have a knack for distilling the essence of the subject in an easily comprehensible manner.
Ever think of loaning your talents to FOFOA?
So let me get this straight
You are gonna the BTFD all the way to $1
hmm..
Ok
What happens when you go to zero and the OSAMA confiscates it???
Boy now wouldn't that be a fucking black swan.
It is just possible that the party is over for now??
I mean 12 years and you still cry about JPM>>>
Jesus Christ they would be broke by now...
Right on cue, another infamous ZH gold and silver troll hits the board. Too fucking funny...
If only gold miners are smart enough to mint their own coins, then they can capture the premium and make money> Sprott should have started his own mint. But they are too lazy and too stuck in their ways. Bunch of Losers all these gold Board members.
I am personally putting my own mint together, and co-incidentally, plan to only strike 1/10th oz 22k coinage. (Same as ASEs) Question, what premium would y'all be willing to pay for no-name coinage? See, I need to make something above spot, and with no recognized hallmark, I'm not sure I can sell anything. I pretty much need to do this for export purposes from the country I'm mining in, or sell at a bad discount...
Just wondering...
Just got my confirmation call.... another 26 lbs coming my way..........
That 13 years of nite skewl reely payed of!
My father forwarded me this update from a dealer in TX about stock levels and anticipated future inventories...
Just an excerpt:
"As you all know, it has been a remarkable (and historic) week in the metals market, with metals prices falling precipitously. In the past two weeks, we have sold over 350,000 ozs of silver and 11,000 ozs of gold, which (as you can tell from our website) has placed an enormous strain on inventory levels, not to mention our loyal staff. As of today, we are completely sold out of silver. The purpose of this letter is to update you on inventory levels and the state of the physical market from our vantage point."
https://www.texmetals.com/us-mint-silver-eagles-allocation
It's amazing the amount of dumbasses here who can't understand why the smaller denomination coins sell out first.
I am ashamed to be associated with these folks whom others would call Americans
I just down arrowed this post w/o bothering to explain why it is wrong........
lmao@Dumbasses
i have used tulving over the years. completely honest and reliable. his first name is hannes, by the way. and you only have to work with him after normal hours or on weekends.
uncle harry schultz recommended a stash of 1/10 oz eagles some years ago. he thought that they could be used for everyday transactions when fiat currency either became radically devalued/unavailable or became replaced with a different color fiat at a frightening replacement mutliple[say, 100:1].
i suppose it is how one decides to pay tulving that governs delivery. with a wire transfer, your bullion will be shipped overnight within 3-4 days.
with a paper instrument[check], it could take 2-3 weeks.
Am I allowed to show an avatar pic of my massively manly member? I assure you it's almost as impressive as the size of my scrotum, which has been characterized as extremely swollen by members of the medical community, even though I consider it's size to be just about three times normal....
Did I mention that Iactually know the difference bt. than and then, as well as the meanings of yore, your and you're?
Quiz me on what they're their and there mean.......
Fuckin' stupes.......
I mock thee!
Any analysis of gold that doesn't factor in in a major way the overwhelming influence of corrupt manipulation by bullion banks and the the Fed, as well as very strong demand from central banks and now individuals world wide, is hardly an anlysis at all.
The anlysis is only good in so much as bullion banks and the Fed will play to them in their manipulation of the market.
However what is missing in the anlysis, and clearly revealed by demand rising because of a crashing of the price, is that over manipulation with a fake product to a too low position meets the reality of supply and demand, and that further downward manipulation intensifies that problem and heightens the risk of explosion upwards, not downwards.
Markets were not going down because freem market activity, because there were big players wanting to exit gold/silver. They were going down because of huge dumping of paper. And to rely on govt provided data when it is they most interested in corrupting the market is fairly ignorant.
So the big problem for the bullion banks now and the Fed is that there is an global acceleration of sucking up physical gold and silver off the market, which will increase with current prices and if they tank the prices further.
Tanking gold to 1000 would smash global supply as mines go into maintenance only mode or shut down, central banks and big pocket people will suck up that much more physical. It is clear now that the buying will far out weighs the selling the lower they make the price. Paper selling increases physical buying.
At the end of the day these banks will have to cough up the physical, or buy it off the market at much much higher prices, or force settlement in cash...for the paper market.
cut-n-paste w't no personal analysis? BORING
Stackers worldwide begging for another smash.
I'm enjoying this.
@ Vincent:
I do agree that another smash is coming. The big question is, how many stackers will get scared out of their positions?
do you enjoy how the ZH "authors" skirt around Paul Craig Roberts, yet pretend the idea is an original one?
I do, but I can see obvious manipulation.
True "stackers".........ZERO
Watchers of "the ladies" of :the view" many.............
@ Startedstackin':
Define "True stacker".
Scared, none. But they'll be really pissed off as they (we) just burned all of our FIAT for the time being.
Yeah it's coming courtesy of the Obowel Movement and Ben Bernanke.......
Enjoy you moments of glory while I enjoy the price of my Physical PMs once the reset begins.........
Ironically then if the bullion banks and Fed wanted to control the physical market they would have aided the rise of the gold and silver price and played their games at a higher level.
So that's not what they did through qe1- qe4ever?
My dealer has plenty. Just pull up, honk and tell him you want a teenth.
from the sound of things, you meant "my deeler"
More proof the little guy is going to get slaughtered on the next leg down. There is a reason why 1/10 oz coins are out and not 1kg bars.
Gold will hit $1200 oz this year maybe lower.
I'm waiting for paper gold to hit $0. Care to explain to me how is this going to have any adverse impact on my wealth?
Interesting, so if gold is a nothing forget about it item, why the Fed coordinate the most extraordinary 500 ton dump of paper gold? $20bn in a few hours.
There is a lot of fear there behind the scences for them to do that sort of thing.
It means there is a acute shortage of physical metal available....and to make matters worse dumping the price just increased the physical buying, making shortages of gold/silver much worse.
So in a market where the 'product' is becoming harder and harder to acquire and those that really need to get their hands on a lot because of their super short positions, cannot, unless they go out and buy it for real.
1980s Central banks were not buyers. Now they are acquiring in the hundreds of tons a year. 1980 the US, Europe did not have to go inot exponential fiat creation to stay afloat, or have $1trillion+ deficits that Guaranteed vast money printing into the future.
In an environment where the US must create $1trn+ fiat every year ...diluting the currency continuously.....well in that environment gold will have a 20 year snooze?
This isn't 1980s, the domestic and global fundamentals are vastly different, and this time there is no way out for TPTB on their economies...they are stuffed. Their only solution is to print. Every one of the other options are unspeakable for them.
So in their desperation and corruption they may think dumping more paper gold will help their cause, but the reality of global and fiat fundamentals simply means more physical will disappear from the market and supply become even more of a problem.
The price of gold has fairly closely followed M2.
Over 1,900 random year 1/10th oz gold eagles available on Apmex right now! Get them before the goldman sachs confiscates them argghhh!!! and over 1,990 2013 1/10th oz gold eagles available as well.
so that's 4,000 or so right off the bat. Sure if you want they can find some monster boxes of them for you as well.
Keep thinking all the physical gold in the world... it's gone!
If the price of gold goes up everyone rushes to buy before it goes up more. If the price of gold falls everyone rushes to buy at bargain prices. If the price of gold stays the same for any length of time everyone loses interest.
They should halt sales of bitcoins
good pr