GOLD

BAJJERFAN

At what price point will we see a feeding frenzy for gold coins AGEs, Leafs, etc. that we are seeing now for silver coins?

derryb

A gold price that drastically changes the gold to silver ratio. The lopsided silver demand is most likely a result of silver's price compared to that of gold.

Pokermandude

I'd guess around $600/oz. A number we will probably never reach. There are extremely adequate supplies of gold bullion available.

Overdate

$20 an ounce for sure!

cohodk

Do you really think there is a "feeding frenzy"?

I'm sincerely interested in your opinion as that might avail investment ideas. Any supporting or anecdotal evidence of this frenzy would be welcomed.

gsa1fan

To the misinformed Au is stacked by many more and takes up much less energy to tote. The Ag bugs are just a more vocal crowd

Now when county's central banks stack Au that should be all proof one needs as to which PM to stack

BAJJERFAN

<< <i>Do you really think there is a "feeding frenzy"?

I'm sincerely interested in your opinion as that might avail investment ideas. Any supporting or anecdotal evidence of this frenzy would be welcomed. >>



Unless you think the APs are buying up all of the ASEs and whatever else is hot and just sitting on them instead of selling them, there has to be strong demand for them. The mint is allocating a million coins per week so that's about 83,500 coins per AP or 167 MBs assuming equal allocation. They have to be going somewhere or someone is hoarding at $2 over.

From the article I linked this morning in the Silver Eagle thread.

"Silver demand is absolutely through the roof," said Neil Vance, wholesale manager at the Perth Mint. "There seems to be a bit of frenzy as people think there is a shortage of silver. But in fact it is a (crunch in) manufacturing capacity."

Where do you think it's going? Or is the whole thing a fiction of someone's imagination? I do believe that there seems to be strong demand for ASEs.

AP Jack Hunt has a ship date of 10/23 for ASEs. Their sell price for a MB is $5 over. Not sure what they'd charge for 50 MBs. Obviously it would be less.

gsa1fan

Does the Perth mint still make the ASE planchets? The US mint is making the 2016 ASE's by now I'm sure.

BAJJERFAN

<< <i>Does the Perth mint still make the ASE planchets? The US mint is making the 2016 ASE's by now I'm sure. >>



I believe that the U. S. Mint has now 4 or 5 suppliers. Does it still hold that the silver must be of U. S. origin?

derryb

<< <i>Does the Perth mint still make the ASE planchets? The US mint is making the 2016 ASE's by now I'm sure. >>


The US mint has two suppliers for silver eagle blanks - Sunshine Minting and Leach/Garner.

cohodk

Thanks Bajjerfan. Even your link mentions supply constraint rather than excessive demand though. If the average demand is 4 million units, but supply is only 2 million, then it would seem demand is very strong, when that really isn't the case.

I'm seeing some technical developments that I like, but would really like to see more anecdotal evidence.

The increase in premium looks to be more short lived than sustainable.

BAJJERFAN

<< <i>Thanks Bajjerfan. Even your link mentions supply constraint rather than excessive demand though. If the average demand is 4 million units, but supply is only 2 million, then it would seem demand is very strong, when that really isn't the case.

I'm seeing some technical developments that I like, but would really like to see more anecdotal evidence.

The increase in premium looks to be more short lived than sustainable. >>



Unanticipated demand can pressure supply at times. The supply chain can move only so fast to meet demand. Whether demand is at frenzy levels, who knows. Obviously some/many are using the supply constraints to jack up premiums which so far doesn't seem to have deterred demand. Whether it's sustainable or not, who knows.

Back around the beginning of April, [SDBullion who is NOT an AP AFAIK] was offering ASEs at $2.25 over spot any qty. They ran this for at least 2 months if not longer IIRC. So supply was adequate to over supplied with spot at around $17.15 on April 1. So it goes. It seems telling that places like Sunshine Minting and the U. S. Mint don't want to increase capacity by adding equipment, machinery, etc. instead being content to run longer hours and more days as needed.

rawteam1

There is no significant demand of Eagles as this game has been played before, it has happened every year before new year eagle comes out, but this time sooner and the smarts have changed the game by selective release of product, there's no significant demand at all or buy price would be 5-6 over and sell higher... But they get to sell to people who can't comprende what's goin on at a huge premium cause they have to make money, that's green jeans...

cohodk

<< <i>

<< <i>Thanks Bajjerfan. Even your link mentions supply constraint rather than excessive demand though. If the average demand is 4 million units, but supply is only 2 million, then it would seem demand is very strong, when that really isn't the case.

I'm seeing some technical developments that I like, but would really like to see more anecdotal evidence.

The increase in premium looks to be more short lived than sustainable. >>



Unanticipated demand can pressure supply at times. The supply chain can move only so fast to meet demand. Whether demand is at frenzy levels, who knows. Obviously some/many are using the supply constraints to jack up premiums which so far doesn't seem to have deterred demand. Whether it's sustainable or not, who knows.

Back around the beginning of April, [SDBullion who is NOT an AP AFAIK] was offering ASEs at $2.25 over spot any qty. They ran this for at least 2 months if not longer IIRC. So supply was adequate to over supplied with spot at around $17.15 on April 1. So it goes. It seems telling that places like Sunshine Minting and the U. S. Mint don't want to increase capacity by adding equipment, machinery, etc. instead being content to run longer hours and more days as needed. >>



The key to maintaining price is constraining supply. I really want to see some kind of increasing demand, but so far it seems elusive. I have a feeling physical demand will finally show increases when paper price increases.

BBN

I'm also thinking the silver/gold ratio is why silver is in demand. Not gonna lie, though. At my local B&M where I buy a lot of my PMs, I can go up there any day, any time and load down on all the ASEs, rounds, and 90% I want. He has piles of it. Gold bullion, not so much.

BAJJERFAN

<< <i>I'm also thinking the silver/gold ratio is why silver is in demand. Not gonna lie, though. At my local B&M where I buy a lot of my PMs, I can go up there any day, any time and load down on all the ASEs, rounds, and 90% I want. He has piles of it. Gold bullion, not so much. >>



Nobody wants gold in your area? Or there are better places from which to buy it?

BAJJERFAN

<< <i>

<< <i>

<< <i>Thanks Bajjerfan. Even your link mentions supply constraint rather than excessive demand though. If the average demand is 4 million units, but supply is only 2 million, then it would seem demand is very strong, when that really isn't the case.

I'm seeing some technical developments that I like, but would really like to see more anecdotal evidence.

The increase in premium looks to be more short lived than sustainable. >>



Unanticipated demand can pressure supply at times. The supply chain can move only so fast to meet demand. Whether demand is at frenzy levels, who knows. Obviously some/many are using the supply constraints to jack up premiums which so far doesn't seem to have deterred demand. Whether it's sustainable or not, who knows.

Back around the beginning of April, [SDBullion who is NOT an AP AFAIK] was offering ASEs at $2.25 over spot any qty. They ran this for at least 2 months if not longer IIRC. So supply was adequate to over supplied with spot at around $17.15 on April 1. So it goes. It seems telling that places like Sunshine Minting and the U. S. Mint don't want to increase capacity by adding equipment, machinery, etc. instead being content to run longer hours and more days as needed. >>



The key to maintaining price is constraining supply. I really want to see some kind of increasing demand, but so far it seems elusive. I have a feeling physical demand will finally show increases when paper price increases. >>



So do you think the mint is in a "catching up" mode as opposed to a "keeping up" mode?

BBN

<< <i>

<< <i>I'm also thinking the silver/gold ratio is why silver is in demand. Not gonna lie, though. At my local B&M where I buy a lot of my PMs, I can go up there any day, any time and load down on all the ASEs, rounds, and 90% I want. He has piles of it. Gold bullion, not so much. >>



Nobody wants gold in your area? Or there are better places from which to buy it? >>




Oh, no. He just never has any gold bullion. It goes quick when it comes in. He doesn't purchase any online and only buys what comes in from customers. He does purchase Silver Eagles from the mint but that's it.

TwoSides2aCoin

Bought some. Sold some. Graded some. Listed some. Melted some.

Lather, rinse, repeat. Do something with it everyday. I just don't need to talk about it.

ricko

Played with some... looked at some others.... bought none, sold none.... Cheers, RickO