Home Precious Metals

High premiums hindering mint's procurement of silver

derrybderryb Posts: 36,025 ✭✭✭✭✭
edited March 26, 2022 1:40AM in Precious Metals

Disconnect between paper price and physical price to impact mint's purchase of silver.

"31 U.S. Code § 5116(b)(2) states in part, “The Secretary shall not pay more than the average world price for silver under any circumstances. As used in this paragraph, the term ‘average world price’ means the priced determined by a widely recognized commodity exchange at the time the silver is obtained by the Secretary.”

Law also requires mint to strike monster box bullion ASEs to meet public demand. Look for collector versions of silver ASEs, as well as other silver products to be in short supply or non-existent this year.

The decline from democracy to tyranny is both a natural and inevitable one.

Comments

  • cohodkcohodk Posts: 18,501 ✭✭✭✭✭

    From the article....

    The federal government has a strong interest in holding down silver (and gold) prices as a major tactic to minimize the interest rate it pays on its $30 trillion of debt

    So silver controls interest rates?

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • bronco2078bronco2078 Posts: 9,961 ✭✭✭✭✭

    Sounds like an excuse to raise the price ;)

  • fastfreddiefastfreddie Posts: 2,697 ✭✭✭✭✭

    @cohodk said:
    From the article....

    The federal government has a strong interest in holding down silver (and gold) prices as a major tactic to minimize the interest rate it pays on its $30 trillion of debt

    So silver controls interest rates?

    "Since investments in silver are not made to get a current return, some investors will opt for interest payments in the place of long-term appreciation of silver holdings. Therefore, silver’s market prices generally have an inverse relationship with the level of interest rates, similar to the strength of the dollar."

    It is not that life is short, but that you are dead for so very long.
  • jmski52jmski52 Posts: 22,269 ✭✭✭✭✭

    Law also requires mint to strike monster box bullion ASEs to meet public demand. Look for collector versions of silver ASEs, as well as other silver products to be in short supply or non-existent this year.

    If they can't procure enough silver to produce enough silver eagles to fulfill demand, how does that prohibit the Mint from producing the higher margin collector coins?

    Either way, they aren't meeting the demand for silver eagles.

    So silver controls interest rates?

    Note that the statement includes gold. Price suppression of silver and gold is a tactic. It's manipulation, not total control. The Treasury/Banking Cartel both understand the mechanism quite well.

    Problem is, they've run out of buyers for their bonds, so they have to run a backdoor operation doling out money to their friends & family under the guise of war, and buying Treasuries with imaginary newly-created money by issuing debt that you and I are targeted to pay off.

    It's way beyond ethical or moral or honest.

    silver’s market prices generally have an inverse relationship with the level of interest rates,

    Not necessarily. I don't believe that the relationship between interest rates and silver prices has a very strong correlation. Maybe I'm wrong, but the historical stats would have to prove it.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • derrybderryb Posts: 36,025 ✭✭✭✭✭

    @fastfreddie said:

    @cohodk said:
    From the article....

    The federal government has a strong interest in holding down silver (and gold) prices as a major tactic to minimize the interest rate it pays on its $30 trillion of debt

    So silver controls interest rates?

    "Since investments in silver are not made to get a current return, some investors will opt for interest payments in the place of long-term appreciation of silver holdings. Therefore, silver’s market prices generally have an inverse relationship with the level of interest rates, similar to the strength of the dollar."

    Keeping the dollar strong is why there is a desire to keep PM prices weak.

    The decline from democracy to tyranny is both a natural and inevitable one.

  • rickoricko Posts: 98,724 ✭✭✭✭✭

    It is my feeling that there is a geo-economic bomb that is tick, tick, ticking away.... Maybe it will be defused before it blows.... Maybe not. Cheers, RickO

  • TwoSides2aCoinTwoSides2aCoin Posts: 43,760 ✭✭✭✭✭
    edited March 26, 2022 6:39AM

    @cohodk said:
    From the article....

    The federal government has a strong interest in holding down silver (and gold) prices as a major tactic to minimize the interest rate it pays on its $30 trillion of debt

    So silver controls interest rates?

    Actually , that snippet reads like the government. They can't manage the money they make. Plus their premiums on the silver they mint is hugely profitable. I think the bank should get out of government and the government should get out of banking. They're evil, together. Caused by manipulation.

  • derrybderryb Posts: 36,025 ✭✭✭✭✭
    edited March 26, 2022 7:54AM

    @jmski52 said:
    Law also requires mint to strike monster box bullion ASEs to meet public demand. Look for collector versions of silver ASEs, as well as other silver products to be in short supply or non-existent this year.

    If they can't procure enough silver to produce enough silver eagles to fulfill demand, how does that prohibit the Mint from producing the higher margin collector coins?

    Either way, they aren't meeting the demand for silver eagles.

    The bullion eagles were created by the law that requires them to be produced to meet demand. Collector versions are an option for the mint, the law does not specifically require them. Look for mint to eliminate/reduce the collector versions as well as other non-mandate silver coins if they can't meet bullion demand.

    The decline from democracy to tyranny is both a natural and inevitable one.

Sign In or Register to comment.