Gold and Silver Bullion Demand Very Robust - Delays and Premiums Rising

GoldCore's picture

Gold and Silver Bullion Demand Very Robust - Delays and Premiums Rising

  • Demand for physical gold this month at “a historically high level” – HSBC
  • Q3 U.S. Mint gold sales set to dwarf those of previous two quarters
  • Supply of physical silver “continues to be tight” and premiums rising
  • China and India demand remains very strong
  • Seasonal Asian buyers to add to demand in coming weeks
  • Dovish Fed bullish for gold

Demand for physical gold and silver in August and September has been exceptionally strong as investors seek a safe-haven from market turmoil, as the global economy slows down and as it becomes clear that the Federal Reserve and central banks generally are slowly losing credibility and ultra loose monetary policies are set to continue for the foreseeable future.

BULLION COIN & BAR PREMIUMS & AVAILABILITY - September 18, 2015

GOLD PREMIUMS AVAILABILITY
Gold Bars (1 oz - Perth Mint) 3.75% In Stock
Gold Bars (1 oz) 4% In Stock
Gold Bars (10 oz) 3.75% Delivery Delay - 5 Days
Gold Bars (1 kilo) 2.00% Delivery Delay - 5 Days
Gold Maples (1 oz) 4.25% Delivery Delay - 5 Days
Gold Eagles (1 oz) 5% Delivery Delay - 5 Days
Gold Krugerrands (1 oz) 4.25% In Stock
Gold Philharmonics (1 oz) 5.00% In Stock
Gold Buffalos ( 1 oz) 5.00% In Stock
Gold Sovereigns (0.2354 oz) 8.50% 2015 In Stock
Gold Sovereigns (0.2354 oz - Pre 1933) 9.00% Not available in volume
SILVER  PREMIUMS  AVAILABILITY
Silver Bars (100 oz Generic) 9.50% Delivery Delay - October 4
Silver Bars (100 oz LBMA - Asahi Refinery) 9% Delivery Delay - Nov 9
Silver Bars (1000 oz) 5.50% Delivery Delay - 1 to 15 Days
Silver Eagles (1 oz) 35% Not Available
Silver Maples (1 oz) 25% Delivery Delay - Unknown

Note: Given continuing and deepening delays for certain popular bullion coins and bars and rising premiums we believe it is important to keep our clients and subscribers aware of the most up to date premiums and availability. The prices quoted are indicative and can change at any time. We continue to be one of the most competitive bullion dealers internationally. The premiums quoted are for smaller orders and there are volume discounts and lower premiums on larger orders.

HSBC described gold demand from the U.S. Mint as being at a “historically high level” which indeed it has been. The bank report that the Mint has sold 322,000 ounces of gold in the first half of this month.

Of this, only 91,000 ounces were made up of Gold Eagle coins – the most popular coin with retail investors – although some market participants believe that some of the stock may be being accumulated by large institutional investors.

And yet, demand for gold eagles is still very strong with demand in Q3 set to dwarf demand of the previous two quarters. With two weeks still to go, total Gold Eagle coin sales have been a staggering 352,500 ounces.

That compares with sales of 146,000 oz in Q1 and 127,000 oz in Q2. So far this year Gold Eagle sales are almost 20% higher than last years total sales of 524,500 oz.

Silver eagle supply continues to be very tight with long delays and a lack of clarity about when supply will be available again. Premiums on Eagles have surged and some are selling for as much as 40% or more than $6 per coin over spot. Dealers report “unprecedented” demand for large silver bars.

Gold in USD – 5 Days
Silver maples are on small weekly allocations and silver bars are also becoming difficult to source in volume. The release of the 2016 Australian 1 oz silver .9999 Kangaroo, intended to compete with the Eagle/Maple is already in such demand that the Perth Mint is rationing supply to large dealers.
Production on other 2016 silver products has been delayed by the Australian mint to maintain production levels on the Kangaroo due to very strong global demand.
At the same time the traditional months of strong demand from Asia are now ahead of us which will add even greater demand for gold in the coming weeks. In India, gold demand will reach its peak  later than usual this year as Diwali falls in the second week of November.
Premiums for physical gold in China have risen from $4 per ounce to as high as $6 this indicating very strong demand in China. As do withdrawals from the Shanghai Gold Exchange.
The incredibly strong demand for physical precious metals around the world continues to be obscured by institutional selling of futures contracts on the COMEX. The paper or electronic market continues to dominate the spot price for now. But rising premiums and delays for popular bullion products suggests that proper price discovery reflecting real world supply and demand may be at hand.   
However, it is clear both from the enormous demand and from the shortages in the precious metals markets that many investors are becoming nervous about the markets and the state of the global economy.
We advise our readers, as always, to acquire physical gold and to store it outside of the banking system in safer jurisdictions internationally.
Read more on the GoldCore.com blog

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lasvegaspersona's picture

Gold is always available...for the right price. FFS there is over 170,000 tons just sitting in vaults all over the world.

Fukushima Fricassee's picture
Fukushima Fricassee (not verified) lasvegaspersona Sep 20, 2015 7:05 AM

The right price is several thousand dollars a troy north of the paper gold currently manipulated bullshit sticker. Russia, China, S Korea and me all know this.

NoBillsOfCredit's picture

Like anyone who reads Zerohedge doesn't know this? I should not have wasted time commenting on your post except to dissuade others from future worthless comments.

Jungle Jim's picture

So what happens Sunday night? Or Monday?

milking institute's picture

well,the traditional sunday night MONKEY HAMMER ofcourse followed by a strong rebound as allways.  eventually they just have to let it go,the "creature" will be overwhelmend by reality. just like a stock,once it moves,everybody will be chasing at any price... jmho

undertow1141's picture
“It's tough to make predictions, especially about the future.”

Yogi Berra

justdues's picture

UK is full of credit card slaves who would probably take the chocolate bar too. My local guy in Brighton,s Saturday street market has British sterling "junk" pre 1920 coins at 10% above spot and no evidence of people tearing his arm off to get it here

Tegrat's picture

Silver to $3.oo in todays dollars AFTER the reset: http://fofoa.blogspot.com/2015_06_01_archive.html. Better to hold TP than silver.

RaceToTheBottom's picture

Silver is anti bacterial

TP is pro bacterial....

spdrdr's picture

Yes.

Sadly, a fucking windbag, who cannot articulate a reason for silver not screaming beyond any sudden increase in the POG.  His views on Gold are *feasible*, but slicing the dichotomy between Au and Ag, he is intellectually flailing.

Very strange outlook, and when I sniff strangeness, I like to look at surrounding thought patterns.

He doesn't pass the sniff test, I'm afraid.

Womb Service's picture

LOL. In the statist FOFOA magical universe, special market forces will apply to Gold, but not Silver.

The people who read that blog truly are drooling retards.

Latitude25's picture

OK here's the scenario why it could happen,  The economy and industry CRASH.  Industrial demand for silver goes way down.  Miners keep on mining for a while because mine restart costs are high.  Mining supply currently is around 25,000 tons annually.  Investment demand does not keep up with mine supply so price crashes.  Finally mine supply winds down.  Price begins to recover.  If you think this is impossible then you must be a fortune teller that knows the future with certainty.  I don't claim to know what will happen but critical thinking is always healthy, especially when your financial future is at stake.

jeff montanye's picture

one can speculate and one can examine historical evidence. http://www.macrotrends.net/1441/gold-to-silver-ratio-historical-chart

gold has varied between 14 and 97 times the price of silver.  it is currently about 77, rather espensive to silver. 

silver is perhaps 19 times more common in the earth; mines produce about 9 times more silver than gold. most of the gold ever mined is still around; very little of the silver is.

i'll take my chances. 

Latitude25's picture

What you say about the gold to silver ratio is 100% true yet here we are at a ratio that makes absolutely no sense.  This proves that for that reason and many others we are truly in uncharted territory historically.  Never has there been a worldwide economy so interdependant on the verge of total collapse.  A wise person would hedge any bet including in PMs.

Rhal's picture

It is much easier to make TP than silver. Silver has more uses that TP. 

A preppers' list will have TP about 3 places below silver. 

83_vf_1100_c's picture

  Push come to shove a 10 0z bar would make a great butt scraper and with some cleaning is reusable. antimicrobial properties and all. Note to self, after the SHTF be wary of trading for brown encrusted silver.

TongueStun's picture
TongueStun (not verified) Sep 19, 2015 11:58 AM

There are 4 different 100 oz bars available at JMB, all in stock, and all with a lower premium.

Rektors's picture

I went to Kitco in person last week and picked up a few one ounce Australian Silver Spiders....I asked the teller if they had any monsterboxes behind the counter....nope. I got the impression that something has changed, a sense of urgency that physical is the way to go. I will kick myself if I wake up one day and find that ALL of their silver is on back order (and never to be filled again at a reasonable price). To my wife: let me buy more!

messymerry's picture

[To my wife: let me buy more!]

You forgot to say, Pleeze,,,

;-D 

NotApplicable's picture

Local coin store guy just bought some ASE monster-boxes yesterday and was given a 12 wk delivery time. $20 apiece for the privilege, too.

Midas's picture

I have a suggestion for my fellow stackers.  Avoid paying premium if you can.  $6480 dollars spent on ASE at $20 a pop takes 324 ounces out of the system.  The same money spent on Johnson Matthey 100 oz. bars takes 400 ounces out of the system at $16.20 per ounce.  I have bought and sold silver many times, and there is nothing easier than selling a JM bar.  Nobody cares about year, condition, or packaging.  It is money.  The funny business with the comex won't stop until the system is drained of silver.  Why let the US mint slow it down with their allocations and delays?

NoWayJose's picture

100 ounce bars are the best way to get cheap silver and in a 'stable' world they are easy to re-sell. I wouldn't put all my PMs into bars because there are plenty of scenarios where junk and Eagles would be better. A mix of all three is a good idea. With silver premiums so high, gold Eagles are not a bad choice either. The spread between buy and sell is usually under $40 - an easy move for gold.

PlayMoney's picture

The place i buy no longer offers the discount for 10 monster boxes. Delivery estimated 2 months also. I don't like the big bars in case i actually need to spend/trade it. Gold eagles my next purchase, has been mostly silver.

Midas's picture

I do recommend everyone have some junk silver, but if you don't already have it you are probably too late.  I don't think I could buy that stuff at $5.00 over spot when I used to be able to buy it at spot or even under sometimes.  Why is it called junk if you have to pay so much for it?  Pretty soon it will be too late to get 1 ounce generic rounds, and then it will be too late to get 100 oz bars.  Price will go down more and all those sages that said they were going to wait for the bottom will find there is nothing available at the bottom, and they will be left scratching their bottom.

spdrdr's picture

$5.00 over spot?

Heh! It only costs $5.00 to dig it out of the ground!

{Channelling Meth Man here}

numapepi's picture

Which would you rather have... a silver 10 oz bar or a candy bar?

 

https://www.youtube.com/watch?v=bYhTFz_SGw0

TheReplacement's picture

When I see videos like that I almost wish I lived in that neighborhood - free gold and silver for walking down the street.  On the other hand, I'd have to live in that neighborhood with THOSE morons.

undertow1141's picture

The San Diego area is 90% mindless vapid people and the cashless homeless. 

RaceToTheBottom's picture

The premium table matches what I track.  I look at 1 KG gold bars and they have changed from 1.95-2.2% a week ago to 2%-2.2% Premium.  Granted KG prices will prob show least premiums...