Posted on 02/02/2021 8:24:23 PM PST by blam
With The Fed printing money ‘out the wazoo’, monetizing COVID relief package debt as fast as Congress can pass the bills, demand for bullion was already surging. However, the last week or so, on the heels of the Reddit-Raiders taking aim at Silver, demand for silver (and gold coins) has exploded…
Sales of U.S. gold bullion coins rose 258% in 2020 while silver coin demand was up 28%, the U.S. Mint said Tuesday.
Which has led to bullion dealers running dry of stock and physical premium to paper silver prices soaring to record highs.
And now, courtesy of Reuters, we have an answer to the shortage.
The United States Mint said on Tuesday it was unable to meet surging demand for its gold and silver bullion coins in 2020 and through January, due partly to pandemic-driven demand and plant capacity issues.
…
Heavy buying has continued in 2021, it said, squeezing supplies, which had already been tight as the coronavirus affected production.
The last time the US Mint ‘admitted’ its inability to meet demand was in June 2010.
And the reaction in precious metals was…
Trade accordingly.
The mint has restricted or suspended sales so many times I cannot even count. They will start minting again when they can obtain blanks.
This is a temporary retail bubble that will soon settle down. The (paper) silver manipulation has gone on for so long with the full govt support they have seen it all, and know how to deal with it.
you cannot squeeze the house when the house can change the rules at any time.
however the retail supply chain is as depleted as the toilet paper aisles were a few months back, and premiums are stupid on everything.
I am sure everything will normalize in a month or two with the price about 25 and normal premiums.
There’s no way I’d invest in silver or gold right now.
I consider this a bubble. It will pop > IMO.
Honestly, if society collapses, or we hit a period of hyper inflation, 9x19 Parabellum might be more useful as currency than gold or silver.
Looks like the dealers will have to start paying a premium to the public to obtain silver if they want to stay in business. Overall, it’s a bullish situation and could be explosive if the public figures out that the silver ETF’s are not their friend. Only physical buying will end the corrupt paper market which has around 250 times the amount of silver than there is actual silver.
There are billions of dollars (face) of junk silver that can be melted into bars, rounds, and American Eagles. Expensive to melt and process, so they won't do it unless they have to. The big dealers like APMEX can pay mints to mint new rounds and bars a lot cheaper than they would have to pay the public. The mints can get all the silver they need without going to the public.
If you can’t hold it, you don’t own it....
Nothing feels better than a 100oz silver bar in your hands...well, maybe a 400oz gold bar feels better ;-)
Barter will be vogue. Particularly should electricity become unreliable. No ATM, no fuel, etc.
Early on, stock whiskey cigs and I suppose mary jane! Maybe non-perishables.
The mints are working at whatever capacity they have.
It is not expensive to get rounds minted. The old man Pawn Guy did it... last time I checked it was .59 per round but that depends on purity of the bars you give them.
The us mint is different, they do not make blanks, that is contracted out based on demand estimates and have a long lead time to get extra ones.
Junk silver is not .999 and while there is some above spot it is not melted down anymore
Dealers near me have always paid over spot for eagles
I prefer a box of ammo.
It has far more practical value and will work as currency when push comes to shove.
Only a hundred million new worldwide investors buying 10 ounces a year would alleviate your fears. That would exceed total mine production as it stands now and silver isn’t a corn crop. A lot of it ends up in landfills every year. So lets do everyone a favor and help drive up the price so people could recycle those discarded products in order to end that practice. There is only so much silver to be mined.
Btw, if the miners increasingly sold their product directly there would be reduced Comex inventory for end user manufactures. Then they would be forced to sidestep Comex and enter the free market. That would be quite a site!
I just bought a bunch a few days before this madness. It went up, it went down. Im holding it for the long haul. I always bought a little each month but decided to spend my whole year’s “gambling” budget in January. The reason is the “green new marxism deal” on the horizon with Chomo Joe. Silver goes up, it goes down. It hasn’t even kept up with inflation since 08. I do think it will go up with inflation now with the massive spending and soon to be solar mandates. But, if not. The nieces and nephews get a kick out of a silver ounce in their stocking at Christmas.
Wanna trade?
I paid a some laborers in silver. Worked out great.
I have loads of silver coins.... Mostly all worn out.,. So silver value only...
What do y’all think I should do?
Ammunition is *already* there for those who've had it on the shelf for > 12 months. It's been an *excellent* performer for those inclined to sell (of which there are few).
If one wants to know the *real* value of silver, as expressed in dollars, one simply has to look at the selling price on eBay, which is an honest market. Look only at those sellers with high ratings.
I already did, and yesterday the average asking price among sellers with good reps was about $37/oz, with outliers here and there. The $26+ you hear cited by the talking heads is pure fantasy land.
Silver has been suppressed by 'paper silver' for years, so I doubt we're near bubble territory yet (IMHO).
Consider this .. as I type this, Bitcoin is at $36k, and that you cannot even touch. When silver is in a bubble I expect it to move up to at least $200. That's when I would be tempted to sell any I might have (and I'd probably still want to hold some back to hedge against hyperinflation).
How long has it been since you tossed 2 or 3 silver rounds about in your hand? I can assure you that when you do, you lose all respect for what we call "money" today.
Smells like deflection, to depress the price of GME??
Leave it as be. It is easier to claim face value at customs with coins. Whereas bars and rounds will be evaluated for their weight value
About $34 for coins and $32 for rounds at jmbullion.
https://www.jmbullion.com/2021-1-oz-british-silver-britannia-coin/
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