silver/gold planchet shortage coming to the US mint?
derryb
Posts: 37,203 ✭✭✭✭✭
Many here well remember the precious metal planchet shortage experienced by the US Mint in 2008 and how it resulted in skyrocketing after market prices for gold and silver limited mintage coins that did get released. The US Mint has already announced it is delaying the production of the 2022 Morgan and Peace silver coins until next year. In addition to already existing world-wide supply chain issues the London Bullion Market Association (LBMA) and the Commodity Exchange Inc. (COMEX), both leaders in the precious metal futures markets, have banned all Russian produced precious metal bars from entering their vaults and will possibly experience physical precious metal shortages. Included in the ban were six large Russian PM producers/fabricators who until now provided approved "ready for delivery" bars to the exchanges' vaults. To gauge the size of the Russian PM market, it exported 51.8 tons of gold in the first quarter of 2021 alone. While US Mint precious metal sources are primarily domestic, any shortage of precious metals could re-direct those metals and leave the mint with another shortage.
In the event the US Mint once again halts/reduces precious metal coin production in 2022, one should stay abreast of PM supply chain issues and be financially ready to drop the hammer on US mint PM products. It could become 2008 all over again with huge after market gains in non-bullion gold and silver eagles and gold buffalos that are purchased directly from the mint. These PM collector coins are the first to be removed in a PM shortage. Bulk bullion coins get the metal first.
Comments
Certainly seems plausible when you look at it. I don't see the Russian sanctions ending any time soon.
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They better fire up those dredges on the "Gold Rush" cable shows!
Yep...Tony should have gotten his Indian Creek water license back and is probably getting the dredge ready right now to run 24/7 as soon as the weather warms up. It's 13 degrees now...supposed to be 30 later in the week! Soon!, Very Soon!
Of course, we won't know until next fall, when the filming they're doing right now is shown on TV.
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Except there is no real sanction unless China and India join in. Otherwise, the gold just moves around the globe via a different route.
Exactly, just like the supposed sanction on oil.
Russia will just sell their oil to China (at a nice discount for China but still very profitable for Russia)
and the rest of the world will just buy the oil that China is not buying because of their new supply from Russia.
In the big scheme of things, as long as someone wants to play with Russia in business...commodities will just move around like a game of three card monte.
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I'm still shocked the world is allowing this to continue.
Of course, much of the US/Europe ban on Russian oil imports is symbolic... but symbols have their own power; maybe helps unify the West against Russia, maybe isn't worth the bother. But we digress from coin things
Here is a coin thing:
With the extreme disconnect between physical and paper that has been in place for many months I doubt the mint can acquire physical blanks at anything close to spot.
They just pass cost on to the buyer. Question is will they at some point not be able to get planchets at any cost.