Very interesting discussion. The production was top notch and the information terrific. I was not aware that ASE's had to be minted with US mined silver. I can definitely see a wall right there being hit if not now, in the very near future.
Did they mention that in the video? Haven't had a chance to watch it yet. I was pretty sure that the US origin only applied to gold for AGEs...
I find it interesting that they use the term "stop production" rather than "peak silver production". I would have thought the mints would still have access to silver, just not as much as the punters were demanding. This would lead to an increase in premiums for ASEs that were minted, and an increase in desirability of other countries coins, for example, Canadian Maples, which as far as I know, don't have a limitation of where the silver came from.
Yep, discussed in the vid. They pointed it out as a potential bottle neck in the ASE market as production and sales of ASEs alone are essentially chewing nearly 100% of domestic production.
Well do you remember that article that got pasted here a while back? I recall from it that Kooks were still expensive, even though spot was much less than now. Wish i could find the posting.
Here it is: http://forums.silverstackers.com/topic-5423-nostalgia-from-2008.html In Aussie $, Spot was approx 13, Kook was 29.
Point taken. Although Maloney was probably picking what it cost to buy a single coin, to prove a point. If you buy 20 or 100, they were probably cheaper, as it would be now.
Well there is this, which i think backs you up hobo-jo (unless it's the same chart as SPOT?): http://www.monex.com/prods/silver_eagle_chart.html
My local source ( Houston PM) had a few ( less than 10) SE when I would call them during late 2008, and they were getting $7.50 + over spot. EVERYTHING they had was getting high premiums... even the us 90% junk, @ 20 to 30% over spot. I did manage to get 3 rolls of SE in early 2009 for just $3.00 over spot per coin.
I think what the price desparity shows is the real world disconnection between 'spot' price (ie paper price) and physical. I don't doubt for a second if spot drops to near nothing, getting hold of physical will be very difficult indeed. How many dealers who hold the metal are going to let it go for anything less than they paid for it? I can absolutely believe that in a time of shortage in supply, spot price will really cease to be a relevent indicator of the real world prices you will pay for the physical metal. Oh you might get your ETFs on the cheap, but we all know that scam for what it is, right? But you, me and every other damn stacker out there knows if we see a crash in the spot price - we're ALL backing up the truck to BUY metal and in that sense, it becomes a sellers market simply due to supply and demand forces in effect. Spot price be damned!
Thanks for the link. I love Mike Maloney's work, I can't help but agree with his analysis on this history of gold and silver and the cycles that various assets go through. I also used to live in Vegas and its nice to take a trip down the strip with Mike and David Morgan!
