Do you think there's anything to this? ....and Merry Christmas!

jmski52

Since the Mint stopped selling Silver Eagles for 3 weeks, do you think that there's any indication of a physical silver shortage right now? Has anyone heard anything specific? (For those of you who can't wait to jump in and comment on Glen Beck, I didn't listen to him but once this week so this post isn't about him, but I felt compelled to mention him anyway.)

Zero Hedge link

Reading further, one of the comments had this link:

Silver Doctors link

Anyone know who Alasdair Macleod is, and whether or not he has any credibility? He seems to think that there's no physical silver around. I tend to think that when the Mint stops selling Silver Eagles, either supplies are tight or the Mint's Procurement Dept. should be given a negative job evaluation, especially since volume is down about 15% this year from last year.

Any thoughts on this?

Merry Christmas!

derryb

Merry Christmas.

No doubt there is record demand, but I think the mint just sold what they had and shut down 2012 production to get started on the 2013's. Remember, coins have to go to a middle man before they get to you and I. When the mint quits minting/selling in the middle of the year then we will know there is a true silver shortage. Also, speaks volumes for what is the best form of physical silver to stack.

FWIW, Tulving has "Large Quantities Available" of sealed 2012 ASE boxes for 2.49 over spot. I also notice that Tulving is now taking orders for 2013 sealed ASE boxes for delivery to PCGS for grading on behalf of the buyer - first time I've seen this advertised by Tulving. I prefer my ASEs raw and in tubes.

As you know, I have continuously stated that silver will outperform gold, my forecast is the next major upleg will take it to $44, but not right yet.

Eric Sprott: Why Are Investors Buying 50 Times More Physical Silver Than Gold?

bronco2078

At least around here there is a definite shortage of physical to buy at $30. My local guy pulled his stuff last week and only offered up some russian olympic coins to guy that was very persistent . Another guy on the edge of the Boston area quoted me $38 each on ASE's or $37 if I bought 100 . He's not short just stubborn

The only person I found selling was a we buy gold place that hasn't been open yet for 6 months. He had 90% at 23x and I bought a little. He hasn't figured out when to hold out yet but I think he's catching on

Maybe the mint decided to wait out the dip .

jmski52

I wonder if the market is tight enough such that the Mint is now tied in with JPM in banging the silver market at certain times in order to drive the price down so that they can loosen up supplies and get it cheap.

derryb

The mint is not concerned with metal costs, they just pass it on to the customer. It's not like they have competition for American Eagles or are even concerned about competition.

jmski52

They are raising Proof Silver Eagle prices for 2013, even in the face of declining silver prices. That's contrary to their stated policy on pricing.

renman95

Comrade, funny on the GB comment.

OnlyGoldIsMoney

I don't believe there is a lack of physical silver. The current low spot price is contracting supply except at very optimistic premiums.

CaptHenway

Before the metals markets went berserk in 2008, it was normal for us to get a call at the coin shop from our primary distributor sometime in early December telling us that current year eagle sales would be cut off as of such and such a date, and did we wish to order anything before they did?

It was understood that the Mint was going to be stockpiling coins of the next year's date in order to have a large supply ready to ship as of the first business day of the new year.

I see the current cutoff as simply a return to normalcy.

OperationButter

merry xmas. good links jerry