silver/gold planchet shortage coming to the US mint?
Posted this elsewhere but may be of interest to the stackers as well:
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.
Of primary concern is how the "new" pandemic in China and escalating armed conflicts will affect long term world-wide supply chain issues. Will it cause producers of all raw materials to reduce/eliminate exports in order to keep the "goods" at home? Are we going to witness a "de-globalization" when it comes to a nation"s valuable raw materials and what impact will it have on other countries who depend on them to supply those goods? I suspect the answer is even higher prices and painful shortages.
"Do you hear alarm bells ringing? Neither do I. And that’s a huge problem." - Simon Black