A Major Refiner/Wholesaler Temporarily Pausing the Purchase of Alloyed Silver (.925, 90%, 40%, etc.)

KJB

New to posting to the forums. Thought I'd start here. Received an email this evening that a major refiner/wholesaler has suspended the purchase of 90%/40%, etc. What do you think about this? I plan to hold my 90%, but others looking to offload might be in a pickle. This likely verifies that many 90%/40% coins are being melted as we speak (not a surprise). I was hoping to sell some 90% in the coming week but given this news will look for alternative outlets. What are your thoughts on this?

Edited the discussion title to more accurately reflect their language, which is a temporary pause. They did technically suspend the purchase of alloyed silver, but they could start purchasing again soon. I imagine when they do they'll see lots of people waiting in line to sell and this might happen all over again.

MsMorrisine

can you post the text of the email?

KJB

Dear Customer,

As you may be aware, the silver market has recently experienced record-high pricing and volumes, leading to industry-wide backlogs in processing.

In response to these conditions, "we" will temporarily pause purchases of Sterling, Scrap, and Junk (i.e., 90%, 40%) silver, effectively immediately. In response to these extraordinary market circumstances, our commitment is to continue supporting your business through all means possible - including by continuing to BUY & SELL nearly all .999+ Silver Bullion products through our Mint & Trading department, etc., etc.

derryb

They are overwhelmed with the amount of junk silver piling up in their vaults. This will not dampen demand from those wishing to buy silver and hold it.

PerryHall

Why not identify this "major refiner/wholesaler"? Is it some kind of secret?

jmski52

Who is this major refiner? If they are buying & selling .999 silver bars & coins, it doesn't sound like they are going out of business.

Since there has been a silver supply deficit for 5-7 years, the only reason I can think of for a refiner to stop taking junk silver is that they are getting out of the refining business. You would think that this is a heyday for refiners.

coastaljerseyguy

They are just sticking with the .999 purchasing for now since its the easiest & cheapest to process & melt into bars, and it meets their current demand for silver. But when it runs out, they want the junk too.

softparade

@coastaljerseyguy said:
They are just sticking with the .999 purchasing for now since its the easiest & cheapest to process & melt into bars, and it meets their current demand for silver. But when it runs out, they want the junk too.

If they have the room and capital they would be taking it.

KJB

Brian at Vermillion Enterprises has a video out this morning that discusses this issue, as well as other major wholesalers or refiners who might not be taking any alloyed silver as well. I haven't called my local shops for price discovery of 90% silver yet. I know many shops base their buy prices on the wholesalers/refiners, and if the wholesalers/refiners are paused, and shops are inundated, I'd imagine it could become hard to sell 90% unless it is heavily discounted.https://youtube.com/watch?v=_EeCIKkmpPU

Edited to add that it's Elemetal that isn't taking alloyed silver products. Brian of Vermillion Enterprises states he's heard that others, including Asahi might not be taking any either.

DrBuster

Elemental. Reddit post: https://reddit.com/r/Silverbugs/comments/1o2r6a3/large_us_refiner_halts_scrap_buying/

jmski52

Thanks for the info. If Elemental is that significant and it sounds like they are - it does appear that there's a glut of 90% being sold at the retail level, which accounts for the discount from spot on the sell side.

Since silver is still silver, and since there is a worldwide supply shortage going on 5 to 7 years, this looks like the refineries are trying to supply Comex 5,000 oz. delivery contracts at a higher rate than can be obtained by refining 90% and scrap.

It points to world industrial and investment demand still outstripping supply of good delivery bars. Since LBMA is almost depleted of silver that is eligible for delivery, it seems to be only a matter of time before the low hanging fruit (.999) disappears and higher premiums return to the 90% and scrap sources. This ballgame is just getting started.

Remember that LBMA has traditionally been the main venue for silver delivery and that significant deliveries from Comex are a relatively recent phenomenon. Lease rates in London for silver have recently jumped from around 1% to all-time highs over 10%, which means that nobody wants to lend their stock out and that the bullion bank shorts in London are being squeezed.

Although these developments point toward higher prices, I wouldn't discount the ability of the bullion banks to continue to thrash around in the market, trying to protect their short positions. Much higher volatility will certainly be the result.

Only buy what you intend to hold. Leveraged bets and paper trades are just too risky in this market.

blitzdude

@jmski52 said:
Thanks for the info. If Elemental is that significant and it sounds like they are - it does appear that there's a glut of 90% being sold at the retail level, which accounts for the discount from spot on the sell side.

A Gutter glut? Who woulda thunk? RGDS!

P.S. No glut over at the SLV and Momma's IRA is smoking. She just went from retiring in 10 years to retire today if she so chooses. THKS!

golden

The same thing happened during the Hunt brothers run up.

ms71

@golden said:
The same thing happened during the Hunt brothers run up.

I remember one experience from that run-up in late 1980. My dad took me to a local coin shop. He asked the owner about the silver craze. The owner said he was ruing having lost $7,000 the night before our visit. Said he stayed late and got rid of all the silver he had taken in, sold it to others on the teletype system they all had back then. Said he had to do it because he couldn't afford to take the risk of a big price drop. Said he made some money on it, but he would have made $7,000 more on it if he had held off until the next morning. (for context, $7,000 in 1980 is roughly equivalent in purchasing power to something over $27,000 today)

tyler267

Here is another one.

To Our Valued Customers,

has proudly served the precious metals community for nearly 60 years. Over that time, we’ve navigated many turbulent markets and changing conditions. Please rest assured that, as always, we are adapting and doing everything possible to meet your needs while continuing to provide the industry-leading service you expect from us.

Market conditions in silver refining and spot pricing are changing rapidly. As of this morning, one major refiner has temporarily paused acceptance of alloyed silver, and another has limited its intake. In addition to existing refining backlogs, the price spread between the London and New York markets has widened to approximately London +$2.50—a notable shift from typical conditions, where London pricing is usually at a small discount.

These market factors have led to refining limitations and extended settlement times industry-wide, and we are experiencing the same challenges. For Friday, October 10, we will be purchasing only .999 fine silver. We will reassess this decision over the weekend as market conditions evolve and provide an update Monday morning.

Please note that different companies hedge and price their purchases differently, which can result in varying spot prices and spreads. For transparency, our current silver spot pricing is based on December COMEX futures, with a bid of DEC –0.10 and an ask of DEC +2.75. These figures may change as the market continues to move.

Finally, we want to emphasize that gold purchasing and pricing remain unaffected. Settlement and turnaround times for gold continue to be prompt and unchanged.

We sincerely appreciate your understanding and partnership as we navigate these fast-moving market conditions together.

1630Boston

@ms71 said:

@golden said:
The same thing happened during the Hunt brothers run up.

I remember one experience from that run-up in late 1980. My dad took me to a local coin shop. He asked the owner about the silver craze. The owner said he was ruing having lost $7,000 the night before our visit. Said he stayed late and got rid of all the silver he had taken in, sold it to others on the teletype system they all had back then. Said he had to do it because he couldn't afford to take the risk of a big price drop. Said he made some money on it, but he would have made $7,000 more on it if he had held off until the next morning. (for context, $7,000 in 1980 is roughly equivalent in purchasing power to something over $27,000 today)

I was in a coin shop in Worcester, MA at that time and remember what you talk about and the teletype.
boston

jmski52

Here is another one.

To Our Valued Customers,

has proudly served the precious metals community for nearly 60 years. Over that time, we’ve navigated many turbulent markets and changing conditions. Please rest assured that, as always, we are adapting and doing everything possible to meet your needs while continuing to provide the industry-leading service you expect from us.

Will you kindly let us know which refinery this one is?

MsMorrisine

lots of secret names

suspicious

MsMorrisine

is there a national treasure involved? secret handshake

TwoSides2aCoin

Can’t kill a werewolf with .900 or .925. You need the pure stuff.

ADG

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

Elemetal - all alloy silver and 1-5 oz .999 silver

Metalor - all silver for rest of 2025

MsMorrisine

@ADG said:
Elemetal - all alloy silver and 1-5 oz .999 silver

Metalor - all silver for rest of 2025

i'll be making phone calls

MsMorrisine

@tyler267 said:
Here is another one.

To Our Valued Customers,

has proudly served the precious metals community for nearly 60 years. Over that time, we’ve navigated many turbulent markets and changing conditions. Please rest assured that, as always, we are adapting and doing everything possible to meet your needs while continuing to provide the industry-leading service you expect from us.

Market conditions in silver refining and spot pricing are changing rapidly. As of this morning, one major refiner has temporarily paused acceptance of alloyed silver, and another has limited its intake. In addition to existing refining backlogs, the price spread between the London and New York markets has widened to approximately London +$2.50—a notable shift from typical conditions, where London pricing is usually at a small discount.

These market factors have led to refining limitations and extended settlement times industry-wide, and we are experiencing the same challenges. For Friday, October 10, we will be purchasing only .999 fine silver. We will reassess this decision over the weekend as market conditions evolve and provide an update Monday morning.

Please note that different companies hedge and price their purchases differently, which can result in varying spot prices and spreads. For transparency, our current silver spot pricing is based on December COMEX futures, with a bid of DEC –0.10 and an ask of DEC +2.75. These figures may change as the market continues to move.

Finally, we want to emphasize that gold purchasing and pricing remain unaffected. Settlement and turnaround times for gold continue to be prompt and unchanged.

We sincerely appreciate your understanding and partnership as we navigate these fast-moving market conditions together.

is this metalor?

islemangu

Today "Deep Backwardation" with Silver was first time heard.

dcarr

@MsMorrisine said:

@ADG said:
Elemetal - all alloy silver and 1-5 oz .999 silver

Metalor - all silver for rest of 2025

i'll be making phone calls

.

I looked for, but did not find, any official announcement from either company about this.

.

tyler267

@MsMorrisine said:

@tyler267 said:
Here is another one.

To Our Valued Customers,

has proudly served the precious metals community for nearly 60 years. Over that time, we’ve navigated many turbulent markets and changing conditions. Please rest assured that, as always, we are adapting and doing everything possible to meet your needs while continuing to provide the industry-leading service you expect from us.

Market conditions in silver refining and spot pricing are changing rapidly. As of this morning, one major refiner has temporarily paused acceptance of alloyed silver, and another has limited its intake. In addition to existing refining backlogs, the price spread between the London and New York markets has widened to approximately London +$2.50—a notable shift from typical conditions, where London pricing is usually at a small discount.

These market factors have led to refining limitations and extended settlement times industry-wide, and we are experiencing the same challenges. For Friday, October 10, we will be purchasing only .999 fine silver. We will reassess this decision over the weekend as market conditions evolve and provide an update Monday morning.

Please note that different companies hedge and price their purchases differently, which can result in varying spot prices and spreads. For transparency, our current silver spot pricing is based on December COMEX futures, with a bid of DEC –0.10 and an ask of DEC +2.75. These figures may change as the market continues to move.

Finally, we want to emphasize that gold purchasing and pricing remain unaffected. Settlement and turnaround times for gold continue to be prompt and unchanged.

We sincerely appreciate your understanding and partnership as we navigate these fast-moving market conditions together.

is this metalor?

No its Jack Hunt

MsMorrisine

Updated Customer Notice October 10th, 2025 - JHCB Suspends All Silver Scrap Purchasing Indefinitely
October 10, 2025

To Our Valued Customers,

Jack Hunt has proudly served the precious metals community for nearly 60 years. Over that time, we’ve navigated many turbulent markets and changing conditions. Please rest assured that, as always, we are adapting and doing everything possible to meet your needs while continuing to provide the industry-leading service you expect from us.

Market conditions in silver refining and spot pricing are changing rapidly. As of this morning, one major refiner has temporarily paused acceptance of alloyed silver, and another has limited its intake. In addition to existing refining backlogs, the price spread between the London and New York markets has widened to approximately London +$2.50—a notable shift from typical conditions, where London pricing is usually at a small discount.

These market factors have led to refining limitations and extended settlement times industry-wide, and we are experiencing the same challenges. For Friday, October 10, we will be purchasing only .999 fine silver. We will reassess this decision over the weekend as market conditions evolve and provide an update Monday morning.

Please note that different companies hedge and price their purchases differently, which can result in varying spot prices and spreads. For transparency, our current silver spot pricing is based on December COMEX futures, with a bid of DEC –0.10 and an ask of DEC +2.75. These figures may change as the market continues to move. Find Dec Silver quote here: https://www.cnbc.com/quotes/@SI.1

Finally, we want to emphasize that gold purchasing and pricing remain unaffected. Settlement and turnaround times for gold continue to be prompt and unchanged.

We sincerely appreciate your understanding and partnership as we navigate these fast-moving market conditions together.

Warm regards,

The Jack Hunt Team

https://www.jackhunt.com/

blitzdude

Last I heard my clicker worked and wall st wanted my SLV. LOL cant even sell physical gutter. CRZY WRLD!

tyler267

So, a few years ago, there was plenty of silver but a shortage of both planchet making and minting capacity, demand drove premiums way up until the mints increased capacity. Now its refining capacity, what do you think the result is going to be until the refineries up capacity.

tincup

@blitzdude said:
Last I heard my clicker worked and wall st wanted my SLV. LOL cant even sell physical gutter. CRZY WRLD!

Absolutely crazy world! Who'da thunk it??

jmski52

So, there's a shortage of good delivery bars in London, record backwardation between futures and cash, lending rates have spiked, SLV has no eligible stock to lend, and Jack Hunt is focused only on melting and re-casting (not really refining) .999 silver so that their major customers can rent space on cargo jets to take advantage of the arbitrage between New York and London in a big hurry.

Interesting times.

asheland

We were dealing with this Friday at the shop i work at, we got the email from Elemetal as well.

I won’t name our distributor that we use in Ohio because I’m not sure if the owner of the shop would like that or not, but I can tell you it’s the same situation with him as well.

Interesting times indeed!

derryb

as long as there are more buyers than there are sellers the music will continue.

jdimmick

Word is out everywhere, both the folks we ship too called fri and told me they stop taking flatware, and 40% for the forceable future. They would still take 90, but at a heavy discount. I herd one company is overleveraged by 1/2 billion dollars waiting on processing for delivery.

jmski52

Word is out everywhere, both the folks we ship too called fri and told me they stop taking flatware, and 40% for the forceable future. They would still take 90, but at a heavy discount.

If it can be bought at a discount to spot, it might be a good time to be buying 90% silver now because there is a finite amount of .999 coins and bars that will become available - and when that source dries up, refiners will be back to wanting 90% and scrap silver.

Not everyone will be liquidating .999 coins and bars without a significant rise in prices, and an annual supply deficit averaging 200 million ounces/year will eventually become a predominant factor in the silver market.

Hang tight. It's not even remotely over.

RedneckHB

I think some folk may have warned that the ability to sell could become problematic.

So jmski, would you take that 225 offer if spot was 300?

jmski52

So jmski, would you take that 225 offer if spot was 300?

You haven't been paying attention, have you?

RedneckHB

@jmski52 said:
So jmski, would you take that 225 offer if spot was 300?

You haven't been paying attention, have you?

Paying attention? Haha. I knew it would happen.

MsMorrisine

ok

no calls necessary

jmski52

Paying attention? Haha. I knew it would happen.

Coho, I have an idea!

Why don't you buy some bonds and short silver? After all, the Fed is going to lower rates, which will make you some money, and obviously you don't think that silver has much potential.

Let me know how it goes..........................

RedneckHB

@jmski52 said:
Paying attention? Haha. I knew it would happen.

Coho, I have an idea!

Why don't you buy some bonds and short silver? After all, the Fed is going to lower rates, which will make you some money, and obviously you don't think that silver has much potential.

Let me know how it goes..........................

You are probably the last person I would take advice from. After all you sold gold/silver and bought solar panels a year ago.

And you missed one of the greatest stock market runs of the last last century.

Eeek!!!

Besides hunting season is around the corner and I got other things to do.

jmski52

After all you sold gold/silver and bought solar panels a year ago.

Yup, I found a way to offset the huge tax liability I had from some gold I bought in 2004 and took advantage of a 30% incentive to buy solar.

And you missed one of the greatest stock market runs of the last last century.

And I'm still riding the greatest precious metals run of all time that has outperformed stocks for the past 25 years.. Thanks for your interest.

RedneckHB

@jmski52 said:
After all you sold gold/silver and bought solar panels a year ago.

Yup, I found a way to offset the huge tax liability I had from some gold I bought in 2004 and took advantage of a 30% incentive to buy solar.

Govt welfare.

And you missed one of the greatest stock market runs of the last last century.

And I'm still riding the greatest precious metals run of all time that has outperformed stocks for the past 25 years.. Thanks for your interest.

But not over the last 20 when you got out of stocks.

No, thank bonds for the interest.

taxmad

@RedneckHB said:

@jmski52 said:
After all you sold gold/silver and bought solar panels a year ago.

Yup, I found a way to offset the huge tax liability I had from some gold I bought in 2004 and took advantage of a 30% incentive to buy solar.

Govt welfare.

As are child tax credits, SALT deductions, mortgage interest deductions, 401Ks, Deferred Comp, company provided health insurance and preferential capital gain tax rates.

blitzdude

I'm rich! Well, if I could find someone to buy all this darn gutter metal. LuLZ! THKS!

coastaljerseyguy

So if London is short not sure why US refiners are not demanding more physical silver to make up the shortage. Not sure if the physical delivery can't cross the LBMA - COMEX exchange warehouses and shipping the cargo to London probably incurs quite a cost.

blitzdude

@coastaljerseyguy said:
So if London is short not sure why US refiners are not demanding more physical silver to make up the shortage. Not sure if the physical delivery can't cross the LBMA - COMEX exchange warehouses and shipping the cargo to London probably incurs quite a cost.

Makes you wonder eh? Fake Newz?? RGDS!

coastaljerseyguy

Think I got the article from Bloomberg who is usually reliable. The backwardation of spot to Dec futures is also fact. But agree doesn't seem to make sense.

RedneckHB

Saw a video where a dealer is now quoting Comex prices rather than spot. Paper prices rule?

TwoSides2aCoin

They can’t be major refiners if they’re not refining. I refine that junk. Aqua Regia, baby.

RedneckHB

@taxmad said:

@RedneckHB said:

@jmski52 said:
After all you sold gold/silver and bought solar panels a year ago.

Yup, I found a way to offset the huge tax liability I had from some gold I bought in 2004 and took advantage of a 30% incentive to buy solar.

Govt welfare.

As are child tax credits, SALT deductions, mortgage interest deductions, 401Ks, Deferred Comp, company provided health insurance and preferential capital gain tax rates.

And for one to condemn then condone is hypocritical.