It is pretty quiet right now but we are still making coins, stocking up on 2013 coins for the launches. I'll be doing an interview with Kerry Lutz Finanical Survival Network today on coming coin shortages if we get mass market move to PMs
Interesting to see that the 2013 Koala date has been moved forward a month (Dec 2012 release) - last year there was ~6 weeks when the mint was not able to accept wholesale orders for 1oz silver coins, simply because the Dragons and Kookaburras had already sold out. So with 1m Kookaburras, and earlier Koalas, this will help mitigate any shortages - assuming that the 1.3m combined mintage of Snakes/Kookaburras is sufficient for Sep/Oct/Nov demand.
For reference, in this interview I cover some of the things discussed in this topic http://financialsurvivalnetwork.com...ious-metals-shortages-during-the-next-crisis/
Thanks Bron - no-one can complain that they haven't been warned to stock up on PMs now before any potential rush! In addition, by you completing the interview and warning the world, is this a hint that you believe we may have another run on PMs in the not too distant future?
No, I wish I did know when the next big crisis will be, I was prompted to contact Kerry Lutz after hearing an interview he did with miles frankin business where Andy said the same thing about coming shortages in a side comment, I felt it needed some more explanation and exposure.
I listened to the interview this morning Bron, nice work. It was interesting to consider the 2008 backlog with barely 1-2% of the population in demand. Could you imagine even 10%? You won't get your hands on physical at any price I'd think for a very long time. Just another reason why a long physical, cost average strategy still remains the best overall strategy for a stacker IMHO.
See http://forums.silverstackers.com/topic-29274-materion-discontinuing-silver-stacker-bars.html Private company looks at silver bar business and says forgetaboutit.
Bumping this thread Bron, How many tons/ounces of silver does the Perth Mint hold in unallocated? Is it possible for you give a general break down of what percentage is held in 1000oz bars, 1kg bars, coins etc? ( I realise that you probably wouldn't "hold" 1kg bars or coins per say, as soon as they are made they become stock which then moves out the door). Cheers, Alex.
Demand is generally pretty crappy right now, the lack of price action has resulted in a drying up of new investors into the market although existing holders aren't really selling, which is good. We don't reveal the breakdown between gold and silver held, but with a combined total of under $3 billion, there is a sizeable amount of silver. Demand in Depository for allocated silver is mainly 1000oz bars so that is what we stock, but mostly the silver backing the unallocated is in semi fabricated forms rather than finished product, which as you note we are constantly churning and sending out the door.
Sounds like the perfect environment to buy more PM while everyone is focusing on irrelevant issues like will the ECB lower rates by 0.25% or some other meaningless gesture. The real issue is they are all bankrupt have nowhere to go except to depreciate their currency further !!! So the move is not straight up or down but we all know what the end result will be and its not a happy tale.
My next question was going to be, in quiet times like this wouldn't it be prudent to covert all those 1000oz bars into 1kg and 10oz bars for stock but with depository demand, it doesn't sound like there is much room for stock pilling? IF you do then you will get caught short on 1000oz bars? How about reopening the silver unallocated options to give you guys room to accomodate for this?
We are running some large quantities of smaller silver bars to cover us if demand returns for out the door business, but most storage business is 1000oz bars as they want cheapest oz for the money. We still have too much unallocated, can't see that reopening any time soon, unless people start selling it up.
