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“Global Scramble” For Silver - Coins “Hard To Get,” “Premiums Likely To Jump”
Submitted by GoldCore
“Global Scramble” For Silver - Coins “Hard To Get,” “Premiums Likely To Jump”
Silver has had a torrid time in recent months and has fallen nearly 40% since July. In less than four months, it is down from $21.40/oz to $15.45/oz today. Silver is 70% lower since reaching over $49/oz in April 2011. The selling has accelerated in recent days and silver has fallen from $17.20/oz on October 28 and is down 12% in the last week.
There is blood in the streets of the silver market with futures speculators long silver, again having their heads handed to them on a plate and incurring sharp losses. However, the silver sell off has again seen a global scramble for physical silver.
Silver in USD - Year to Date 2014 (Thomson Reuters)
In recent days, there has been a global scramble to acquire silver bullion coins and bars after the price falls according to Reuters. Maple Leaf silver coins are difficult to acquire according to bullion dealers, with the Royal Canadian Mint on allocation from September. There is a concern that supply times will increase and premiums are likely to jump according to Reuters.
“A tumble in silver prices to four-year lows has triggered a global scramble by consumers to purchase silver coins and bars, as the spread between the price of the metal and gold reaches its widest in five years.
Retailers and distributors in Asia and the United States said they were struggling to get supplies of items such as Canadian Maple Leaf silver coins.
While demand for silver has been strong over the last few months, retailers say buying interest soared in recent days as the metal fell towards its lowest since 2010, along with gold.
Demand for silver coins and bars accounted for more than a fifth of total demand in 2013, according to a report by the Silver Institute. A sustained jump in demand should support silver prices, currently at just over $15 an ounce.
The price of silver is currently around 74 times cheaper than gold - the biggest spread since early 2009. Due to its greater affordability, silver sales tend to outstrip gold in volume terms and attract a lot more retail buyers.
The Royal Canadian mint had started allocating, an industry term meaning rationing, its popular Maple Leaf silver coins in September in response to high demand, according to a spokesman.
With the allocation of silver coins in place, the mint continues to produce and take orders for 2014 coins with no anticipated stoppage in shipments, he said.
But retailers are already finding it hard to get hold of the mint's products as they sell out their existing stock.
Some Asian dealers said they have had to pull Maple Leaf coins from their lineup until they get the mint's 2015 products.
In mid-April 2013, silver lost nearly a fifth of its value in two days, tracking a rout in gold, prompting a rush to snap up both the metals at a bargain price.
While the Royal Canadian Mint is rationing silver coins, it has no such system for gold.
The U.S. Mint is not allocating silver or gold at the moment. In June, the mint lifted its ration on silver American Eagle coins that had been in place since January last year as strong demand had depleted silver coin blanks.
The U.S. Mint sold 1.4 million ounces of silver American Eagle coins on Friday alone, the highest daily sales since Jan. 13 when the new 2014-dated coins first became available. October was the fourth highest month of silver eagle sales ever.
The Perth Mint, which runs the only gold refinery in No. 2 gold producer Australia, said it was not facing any supply issues as it usually launches a new line of products from September, unlike the other mints.
"We built up a lot of stock for those releases. So we have quite a few months worth of stock," said Neil Vance, wholesale manager at the Perth Mint.
"If this had been a different time of the year, it would have been a different story."
Silver in USD - 5 Years (Thomson Reuters)
We have seen a significant uptake in demand for silver this week both for maples and philharmonics and for larger 1,000 oz bars. Silver maples are being snapped up by U.S. and Asian buyers as the premiums are lower than that for silver eagles. Silver philharmonics continue to be popular in Europe as they too are less expensive than the eagles and have a similar premium to maples.
Silver coin demand is for both delivery and storage, while bar demand is primarily for bullion storage in Zurich and Singapore. The demand is broad based and coming from both retail investors and indeed high net worth.
Silver is down 70% in less than four years as stock and markets have surged to record highs. The gold: silver ratio has surged to a peak of 75.4 this morning, its highest since early 2009, as silver underperforms falling gold. Silver is great value today versus stocks and bonds and indeed versus gold. The smart money accumulates on dips and buys low, to sell high.
* * *
And in case you missed it, read the follow up to this article posted early this afternoon: "US Mint Sells Out Of Silver Eagles Following "Tremendous" Demand"
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me too
Yep. Works until it doesn't, right?
If the spot price isn't the real price then why mention it? Should be a site that posts actual prices outside of the places like APMEX.
APMEX should just drop the spot price completely from all site data. Who cares what the price of FRAUD is.
Spot prices used to be wholesale pricing mechanisms.
These days, fuck knows what they are used for.
Hopefully everyone learned from recent events that there is a reason to hold physical. Despite the current "all is well" status, stock piling over time is a wise policy.
Prices dropping? Great! More bang for the buck.
Worst case scneario? You own an attractive tangible asset.
The lower gold and silver go, the better. I hear the all-is-fine-we're-in-a-recovery crowd scream from the rooftops that only fools and knaves cling to the barbarous relic, so my hope is folks listen up and abandon ship as instructed.
The quicker we can get back to $9 silver and $680 gold, the better. With any luck, there will be several years of cheap accumulation before enough folks figure out the true state of affairs and prices begin to rise again.
I sense you are way more confused than me, and that is saying a lot.
I sense you're completely frustrated the metals aren't rising as you expected.
I hate the false headline. 10K coins available immediately: http://www.gatewestcoin.com/markets.html
I can't buy that volume. I've been happy converting USFRN to metal there.
You have misread the chart, the 10K number is not the amount available, it is the rate you would pay, per coin, if you ordered 10k coins.
That's IF they could deliver them.
I don't think people really understand this basic concept. It was in a movie a long time ago.
Adm. Painter: What's his plan?
Jack Ryan: His plan?
Adm. Painter: Russians don't take a dump, son, without a plan.
+1000 if you can remember the movie.
As for silver, and the Russians, trust me, there is a plan. It just ain't public yet. When you see it in public, it will be too late.
For many years I did quite well in the PM's but they can't stop fucking with that market. I have a stack but I will be honest...I am fucking taking it on the chin here should I sell, but I still have the metal. I can't believe that the cost of mining is profitable. It is just not reasonable to even consider a major much less a junior.
What am I supposed to do? Buy dollars? They want the metal but they are trying to force me out of the game. Fuck that.
I see there are other lost soles.
You are not asking the right questions.Sell or not ? wtf? If you don,t need it don,t sell it...duhhhh
IF it is phys your losses are small compared to mine and many others.
If you need it to live , why did you buy so much ?
As you need it sell it at a loss, just what u need however.
Now you could sell your phys and buy 2016 options of AGQ if you like to gamble and want to make BIG $ or CRASH.
Lost soles? Cheap silver atoms are a shoe-in at today's prices!
"Maple Leaf silver coins are difficult to acquire according to bullion dealers"
Got my stack last week, love the purity of Canadian silver- hard to beat Canadian billion.!
I am hoarding pop corns and soda to watch those fucks shorting precious metals.
“The smart money accumulates on dips and buys low, to sell high.”
Said the company in this Infomercial that is selling coins to you in exchange for your fiat.
A shortage of one ounce coins means this and only this: there is a shortage of one ounce coins.
It says absolutely nothing about silver. The majority of above ground silver exists as large ingots. A Good Delivery silver ingot is 5000 oz. Retail doesn’t buy 5000 oz bars. If it did, it would stop using the term “paper” price and just say either “price” or “wholesale price”.
One ounce coins are the preferred means of purchase of small retail customers. Retail, being retail, pays a premium. Retail pays part of the transport charge of an ingot to the mint. It pays part of the melting charge. It pays for the stamping/minting charge. It pays to ship small lots to the dealer. It pays the dealer’s overhead. It pays the dealer profit. It usually pays for the dealer’s failure to hedge inventory.
Has it not occurred to anyone after three years of down drafts in silver that the following pattern repeats over and over? A downdraft occurs. Retail increases its small lot purchases in response to the falling price. Retail snaps up the bulk of the already-minted one ounce coins. Coin manufacturers begin to melt large bars so as to produce more one ounce coins, but there is a lag. Confused retail buyers mistake a one ounce coin shortage for a silver shortage. Dealers take advantage of retail buyers’ confusion. Unhedged dealers who purchased inventory at higher prices try to recapture their costs by widening the premium. With time, new one ounce coins are produced and hit the markets. Premiums come in. Rinse and repeat.
I know what the writer of this article is selling, but what are you selling?
I've seen your posts over the years at various different forums and the timing of your appearances seem to be most uncanny and the tone of your posts are always the same. Defending the old order against any form of radical change.
I wonder why that is.
So what you are saying is that you’ve had your butt handed to you by the PM markets since 2011, and you resent anyone trying to explain why. Thus, you create a straw man. I must be a 322 33rd Degree Freemason Bilderberging Bohemian Grover, because I haven't slurped the same Kool Aid as you.
How ironic that the few folks who stated back then that the Promoters were full of shit are the targets. Go back and look at all the old ZH threads and comments. The Promoters either willfully misled the PM sheeple, or were just plain ignorant of reality. The damage is the same. What you call “uncanny” I call common sense. $48.50 to $15.20 suggests which of us was/is right.
What about 100 oz bars? A few years ago, I tried to convert my 100 oz silver certificate from TD, into physical and I was told that they didn't have any silver - at all. Yet I was still being charged storage fees.
How'd you even get stuck with that kind of paper in the first place?
I read about the story that came out about a sick woman in Toronto, Ontario that wanted to pull her silver out, and was told that they didn't have it. I thought I'd test the story, rather thanrely on second hand accounts in the media.
I warn all of my friends, and family who will listen - that the banks are selling shit, and can do anything they want with their money. One day they wll wake up, and it will all be either gone, or worthless.
Retail matters in silver, not so much gold. Silver is only a 15 billion a year market while gold is an 80 billion a year market. Most of the silver is used up and not recycled. It is a smaller market with smaller hordes. Most scrap was drawn out in the late 70's and 80's. It never did show up again on the last run to 50. Paper traders don't see it this way. But the only change in the land of coins and a lot of bars these days is the premiums keeping them at the 20ish range. The paper traders broke the market. It is now useless for real hedging. Dealers unable to hedge will have to ensure a profit other ways, just like in a real market.
People ask why these trolls care, why do they concern themselves with the welfare of the stupid, stubborn 'bugs'.
The simple truth is that they are trying to shake out some stacker silver. They tell us we should buy high and sell low. Cut your losses and all that. Sell..... c'mon, SELLLLL..
The bullion banks seem to need what you have. They are stomping out ASEs and Maples by the ton. They are in big trouble. These banking shills are just a small part of the psyop going on around us.
Don't sell dick. Fuggeddabout it. Relax. You were right when you bought that stack, and you are right now.
They're full of shit.
(BTW, am I the only one that no longer trusts US mint products? These government/banking people are liars and thieves, yet nobody ever assays an Eagle.)
Specific Gravity on an Eagle is easy. Gold can be replaced with Tungsten as densities are similar.
With Silver it is not possible.
IN 6 months silver will be $5 an ounce with a premium of $995 per ounce.
Why are people complaining?
Assuming that the minting process contains no tricks {genuine bar bullion bought, converted to coin at the correct weight and assay, coin sold out again at a premium, inventory period kept both short and hedged}, then the business of minting coins is a straightforward way of raising money for the taxpayer.
Considering all the complicated schemes governments get involved with (that go wrong) I would be delighted if governments confined their activities to ventures of this nature.
Watson
The only people who are fretting over this, are the fools who went long using margin accounts.
Silver's been on sale at silvergoldbull no problem.
Load 'er up