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Silver Coin Sales At US Mint Soar To Highest In Two Years
It never fails: any time there is a dump in precious metals through their paper representation (GLD, SLV, or futures) typically as a hedge to a rally in the dollar (because last week Japan materially increasing its fiat monetary base was also somehow negative for gold and silver) or to meet margin demands from cross-asset liquidation, demand for physical PMs soars confirming yet again that any connection between paper prices and physical demand no longer exists.
Whether it is China buying every ounce of gold it can find (whether to facilitate Commodity Funding Deals or to meet pure consumer or central bank demand), or US consumer rushing into retail outlets, the surge in physical metal buying is there like clockwork. Such as US Mint silver orders. As reported on Friday, sales of American Eagle silver coins by the U.S. Mint jumped 40 percent in October to the highest in 21 months, defying a slump in New York futures to the lowest in more than four years.
Sales surged to 5.79 million ounces, the most since January 2013, the month that set an all-time high at 7.5 million, Bloomberg reports. "Today, sales jumped 33 percent in one of the busiest times this year", Tom Jurkowsky, a spokesman at the Washington-based mint, said in an interview. Last month’s total was 4.14 million.
“We saw demand surge over the past two days,” Michael Kramer, the president of New York-based MTB Inc., a dealer authorized to purchase coins directly from the mint, said in a telephone interview. “Business was almost triple than what it has been over the past few months.”
Logically, as a result of the surge in physical demand, silver futures for December delivery dropped 1.9 percent to close at $16.106 an ounce on the Comex in New York. Earlier, the price touched $15.635, the lowest for a most-active contract since Feb. 25, 2010.
Because when it comes to precious metals, thanks to the BIS and the central banks, Paper beats Rock every time.
The flipside, of course, is that continued selling of paper metals provides buyers of physical metals with ever lower entry prices, even if, or rather especially if it means, that quite soon, if not already, most gold miners will be selling gold below production cost as we showed back in 2013.
Needless to say, it would be quite fitting of the New Normal for gold (and silver) miners to suffer a cascade of bankruptcies, ultimately leading to zero physical extraction of precious metals even as the relentess naked shorting of gold and silver paper pushes the price of the metail to triple digits, or lower.
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The open interest in silver is still the most interesting story... there are some strong hands out there who aren't going to give up.
This is Gresham's law at work folks... Paper PMs get dumped and Real PMs get bought. I'm still stacking and still not worried. These fuckbags can knock silver down to a $1 and gold to $100 i'm never going to sell and i'm not going to quit buying because why? Because FUCK THEM that's why! Reality catches up to everyone at some point... i'll gladly wait and keep thumbing my nose at the fuckers while I do!
im with you silver.......but boy it aint as easy as it looks......thats why i hate them
me three...
Throw me in too. It hurts on ozs bought higher but I keep on buying. One day fiat will fall flat and metal will once again be King.
"These fuckbags can knock silver down to a $1 and gold to $100 i'm never going to sell and i'm not going to quit buying because why? Because FUCK THEM that's why!
preach bro..preach.
If every working person in N. America would go out and buy just one silver 1oz coin each paycheck and them hold them in a safe place, refusing to sell, no matter what happens. That would be something like 150 million+ ounces sold every month. What would happen to GS's and MS's shorts then?
If you really want to screw those guys that's what you do.
My gold toof is becoming cheepa and cheepa.
Just keep Stackin. It will all be better when it's over.
It seems that PM can be used in Utah and Arizona(?) as a medium of exchange if a vendor can be found to accept it. So the logic of stacking in case the SHTF is that paper would become worthless -- Weimered -- and then PM would be used as an alternative of exchange ... which sounds good, but if few people have PM or understand their worth.
I'm just trying to think through this. Imagine a hyperinflationary scenario. You have a nice shiny pile of PM and need something -- food, for example, after your stores run low. Who will take it? If food becomes precious, then the trading would be in food, not PM: I'll give you a cucumber for your gold, and then starve? I don't think so.
Seems to me that the thing to do, if you really, really are convinced that society will implode and hyperinflation is inevitable, is to hord FOOD. Then, exchange your surplus food for gold.
When things slowly straighten out, you'll be thin but rich in PM.
how long will you cucumber last before it goes bad ???....The ones at Shop Rite barely last until the checkout line right now !!!
Rather than investing in food: invest in the skills necessary to produce your own food. Who cares if a cucumber goes bad after a few days; just compost it!
Buy the land, equipment necessary and start producing food now. It takes time to build up the local knowledge and skills for your area. Climate, soil type and water supply is variable, so "book knowledge" is not enough. Learn to save your own seeds and become as self-sufficient as possible.
The only problem is, you may have to defend it.
But you can"t put a dozen eggs in your wallet.....
I think PMs will be accepted by vendors should hyperinflation occur, and will have an integral part of barter town. Lets say you have raised a goat to swap. I'll give you 100 chickens for it. But you don't need 100 chickens. So you take Xoz of my silver, which you can then barter for 1 chicken, a knit cap, some bees' wax candles....
You're gonna need a bigger boat. [/Chief Brody]
20 years ago the U.S. Mint sales for October were 1/4 million at a spot price of around $5. Soon enough there will be 1/2 billion
Silver Eagles in hiding... not including Maples and generics. That's a big ass deep physical money supply... Big enough to form a viable currency with. I'm happy to keep my investments increasing during the decline. I don't owe anyone dollars so I need a prudent way to save for the future and I prefer it to be out of the Enron/.com system since I don't trust or believe in it.
I like the current market conditions too. Just watch for debasement. I think debasement of bullion coins is definitely coming.
http://en.wikipedia.org/wiki/Roman_currency#mediaviewer/File:Decline_of_...
I doubt that's going to happen. There are those that are allways at least one step ahead of the idiots in office, and those behind the idiots.
First, buyers will switch to bars.
Second, buyers will purchase alternative coins from other countries that are not debasing their coins.
Third. If the coins are less than 100% the market will value them accordingly. If they're 50% PM then the price will reflect that.
Don't do what the typical politician does. They continually underestimate the intelligence of the investors. While I agree that the average citizen of the US is ill-informed, has poor reasoning and has been indoctrinated by the corrupt school system and entertainment/news media. Do not assume everyone is like that.
I'm not underestimating the intelligence of the average investor. It isn't all that easy to actually test the metallurgic content of the coins, and it would be quite easy to drop a 99.9% silver coin to, say, 95% purity, without altering its appearance, or its properties too much. You would probably need a laboratory to test the metallurgic content properly, and most tests would damage, or deface the coin itself.
Eventually someone, somewhere would wise up, of course, and the information getting out there would destroy the mint's reputation but you know.. desperate times and all that. Note, probably worth paying a decent premium and buying in bulk at a bullion dealer with a solid rep. I guess.
Edit: However, far more likely, I suppose, would simply be for the mint to cease issuing 99.9% pure coins, and to reduce the content visibly in the event of a supply shortage. Reissue an 85% silver bullion coin for instance. If that were the case it would be priced in accordingly by most investors.
Hiding the metallurgic content would be the only true way to scalp seniorage.
This one is my favorite. Its sounds so familiar. But hey, what could go wrong?
Ensuring That Our Financial System Remains Strong Reinforcing the Housing Finance Framework
Economic Action Plan 2013 will implement changes to limit the use of portfolio insurance and prohibit the use of any government-backed insured mortgage as collateral in securitization vehicles that are not sponsored by Canada Mortgage and Housing Corporation.
Mortgage insurance is a significant component of Canada’s financial stability framework, and also serves to facilitate Canadian homebuyers’ access to mortgage credit. This is especially true where homebuyers make a down payment of less than 20 per cent of the purchase price of the property as federally regulated lenders are required by law to obtain mortgage
insurance on these high loan-to-value mortgages. This insurance is backed by Canadian taxpayers.
Consistent with actions taken relative to high-ratio mortgages since 2008, the Government will implement new measures related to insurance of portfolios of low-ratio mortgages.
Financial institutions significantly increased purchases of portfolio insurance during the financial crisis because pools of insured mortgages were more easily used in bank funding vehicles, particularly Canada Mortgage and Housing Corporation (CMHC) securitization programs. More recently, financial institutions have used portfolio insurance for new purposes,
such as capital and liquidity management.
With the financial crisis well behind us, the Government is amending the rules for portfolio insurance to increase market discipline in residential lending and reduce taxpayer exposure to the housing sector. The changes will include gradually limiting the insurance of low-ratio mortgages to only those mortgages that will be used in CMHC securitization programs. In addition, the Government intends to prohibit the use of any taxpayer-backed insured mortgage, both high and low ratio, as collateral in securitization vehicles that are not sponsored by CMHC. These measures will restore taxpayer-backed portfolio insurance to its original purpose of allowing access to funding for mortgage assets. The Government will consult with industry stakeholders on implementation details and the timing of these measures.
I am a buyer when:
Silver @ $5
Gold @ $550
Palladium @ $200
For this debt super cycle to end, there needs to be a blow off top in the USD. The USD will be the last one standing until it itself implodes. Bringing gold to $5000 an OZ.
We are many years out.
Metals pricing the coming depression!
I agree with posters above, there doesn't seem a way for them to confiscate gold and silver in private hands; so they must be happy to cast the paper fools adrift. Maybe they aren't part of the family.
They are certainly not going to be able to stop China, India and the rest of the world (except the European cowards) buying all the physical they can, so presumably they are going to make everyone pay in gold for all these weapons everyone is going to need.
Either that or they are going to default on the $18 trillion by going straight to an SDR currency locked to the dollar, and just bypass gold altogether. That will also mean no cash anywhere, everything on a plastic card, and then its all over. Slavery for all, Spartcaus.
So keep buying in the meantime.
Why don't the fuckhead central planners ever smash something like Intel? I would love to buy Intel at 5x earnings, below book value, etc.
Don't own stock in those gold miners at the left end of the last graph.
ok.
Gold and silver are NOT currently bottoming.
There is no REAL practical shortage of metals from the big online dealers like Provident.
WAIT to buy gold and silver physical.
Gold should bottom around $900-$950.
now we can only lose $16 per coin
Been buying silver since I read Ted Butler's book in 2001.
Never sold any precious except to exchange gold for silver and vicey versey.
Silver hit it's peak on my birthday at $50.
Made a big swap of silver for gold that day.
I am watching the gap now.
May be exchanging that same gold for silver soon.
Nice.
SECRET BAILOUTS FOR CANADIAN BANKS
Most Candians argue with me, ( always, they should read more here!)
3 of Canada's banks borrowed more than they were worth to stay afloat, meanwhile the Gov lied to the public!
https://www.youtube.com/watch?v=9K_N0uOXkQA
Bail in's will come in the next melt down!
When the SHTF, silver will soar back to $49/oz and most likely very much higher. As much pressure as many nations are putting on the petro dollar + the purposeful devaluation of the dollar by the Fed, some of these commodities are good stores of wealth that should reflect the gradual devaluation of currency by the Fed.
It's inevitable but timing it is a bitch.