Expect Precious Metals Shortages During The Next Crisis!

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Emanance

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"Bron Suchecki, who's in charge of strategy for the famed Perth Mint, is warning all precious metals investors that the next crisis will lead to heightened precious metals demand so expect shortages and mint rationing. This is exactly what happened in 2008, and the next crisis could very well be worse. Interestingly, the shortages emerged not from a shortage of raw materials, but due to a lack of fabrication capacity. The blanks or planchets that are required to stamp coins are in limited supply. There aren't a lot of producers around the world, and they have been known to invest large amounts of capital towards ramping up production. This is due to the market's unpredicatable demand curve and the high costs of expansion. The result is that the distribution system works great in times of regular demand, but it quickly breaks down when demand spikes. Remember, we told you it was coming."

Audio Interview & Source:

http://financialsurvivalnetwork.com...ious-metals-shortages-during-the-next-crisis/
 
Black_Sun said:
For anyone with a PMDS, this is irrelevant.
Click to expand...
Does that mean PMDS customer will have first dib on metals over them being sent to be manufactured by the retail arm?
 
thatguy said:
Black_Sun said:
For anyone with a PMDS, this is irrelevant.
Click to expand...
Does that mean PMDS customer will have first dib on metals over them being sent to be manufactured by the retail arm?
Click to expand...

Perth Mint refine approx 300 tonnes of gold each year, so you can have confidence in their gold supply. And if there is NO PHYSICAL available for anyone for 2 weeks, then a PMDS holder just telephones and says, "I'll buy x number of ounces of unallocated gold."Its brought on the spot. Then if you want it delivered to you, you say, "And please fabricate it into 1 oz coins and send to me." And they'll say, "There'll be a 2 week delay sir... blah blah blah." What do you care? You already own the gold which you purchased for a pittance. Meanwhile, non PMDS holders are told, "There's nothing for you..."

I believe I read somewhere, might be Perth Mint blog, that the Perth Mint will place orders for Account holders (PMCP/PMDS) requests for fabrication ahead of somne other orders. But even if they didn't, so what. You are the owner of cheap gold/silver.
 
That was a quick pick up. In that interview I was sort of covering the material in this discussion http://forums.silverstackers.com/topic-16585-perth-mint-10oz-and-1kg-bars-not-available-page-4.html

The summary text "invest large amounts of capital towards ramping up production" I think got mixed up, what I was saying was WHILE production has been expanded, it is not enough.

When push comes to shove, Depository clients will get preferential supply for collection requests as we have a legal obligation to make delivery whereas we don't have a legal obligation to sell coins to someone off the street, so to speak.
 
PMDS = Perth Mint Depository Service, although they have recently changed it to Perth Mint Depository Program (PMDP) so it "fits" better with the Perth Mint Certificate Program (PMCP), both of which are in the Perth Mint Depository (PMD) division, which also operates Perth Mint Gold (PMG) on the ASX. Confused? Try working here, where staff use abbreviations like PMS, PEX, WAM, GCA, CD.

I'll be impressed if anyone who can work out what those last five mean.
 
bron suchecki said:
Try working here, where staff use abbreviations like PMS, PEX, WAM, GCA, CD.

I'll be impressed if anyone who can work out what those last five mean.
Click to expand...

PMs - How Perth Mint staff communicate.
PEX - Perth Exchange. Where people who work at the Perth Mint find new friends. Johnny who works the crucible met Janelle from Reception on PEX.
WAM - Famous 80's band Perth Mint staff listen to when banging out 1oz Koalas.
GCA - Gold Cartel Association. As in, "Ron, the GCA are on the phone, they want to know why you haven't responded to their question on your blog."
CD - Where the WAM music lives.
 
rbaggio said:
bron suchecki said:
Try working here, where staff use abbreviations like PMS, PEX, WAM, GCA, CD.

I'll be impressed if anyone who can work out what those last five mean.
Click to expand...

PMs - How Perth Mint staff communicate.
PEX - Perth Exchange. Where people who work at the Perth Mint find new friends. Johnny who works the crucible met Janelle from Reception on PEX.
WAM - Famous 80's band Perth Mint staff listen to when banging out 1oz Koalas.
GCA - Gold Cartel Association. As in, "Ron, the GCA are on the phone, they want to know why you haven't responded to their question on your blog."
CD - Where the WAM music lives.
Click to expand...
ROFL that was brilliant
 
I have read here before on the forum that in past cycles physical silver was hard to obtain with spot low.I see a few sellers over the last week on here as spot is coming off?

I understand that physical may be hard to secure even with spot low however there seems to be heaps of it around at present with spot lower.

Do we have lower to go yet to see the supply dry up?
 
rbaggio said:
bron suchecki said:
Try working here, where staff use abbreviations like PMS, PEX, WAM, GCA, CD.

I'll be impressed if anyone who can work out what those last five mean.
Click to expand...

PMs - How Perth Mint staff communicate.
PEX - Perth Exchange. Where people who work at the Perth Mint find new friends. Johnny who works the crucible met Janelle from Reception on PEX.
WAM - Famous 80's band Perth Mint staff listen to when banging out 1oz Koalas.
GCA - Gold Cartel Association. As in, "Ron, the GCA are on the phone, they want to know why you haven't responded to their question on your blog."
CD - Where the WAM music lives.
Click to expand...

Gold Club Asia
Welcome to Gold Club Asia :lol:
 
Kawa said:
I have read here before on the forum that in past cycles physical silver was hard to obtain with spot low.I see a few sellers over the last week on here as spot is coming off?

I understand that physical may be hard to secure even with spot low however there seems to be heaps of it around at present with spot lower.
Click to expand...

It seems more to do with speed of fluctuations of price rather than the absolute price level.

If spot suddenly dropped tomorrow to $20, you would find physical pretty difficult to get hold of for a while.
Those dealers willing to sell at the new market price get cleaned out in a day.
Those dealers not wanting to make a loss hold on to their stock, hoping the price will bounce back up again quickly.
People that were planning to sell hold off hoping for the price to bounce back up.

But if the price stayed down at $20 for a couple of months then that would become the new normal and supplies would start up again.

Although spot has been dropping for months there is no problem getting hold of physical - that is because it has been gradually falling.
 
For anyone who cares

PMS = Perth Mint Shop (over the counter stuff in Perth)
PEX = Perth Mint Exhibition
WAM = West Australian Mint
CD = Coining Department
GCA = GoldCorp Australia (this is the division that runs the online and telephone sales and numismatic coins)
 
bron suchecki said:
For anyone who cares

PMS = Perth Mint Shop (over the counter stuff in Perth)
PEX = Perth Mint Exhibition
WAM = West Australian Mint
CD = Coining Department
GCA = GoldCorp Australia (this is the division that runs the online and telephone sales and numismatic coins)
Click to expand...
For others who care;
WLIH=We live in hope.
SSS=Stessed silver stackers
PSGU=please silver go up
MMP=more money printing
WAR=we are stuffed
WTF,LOL
 
Emanance said:
"Bron Suchecki, who's in charge of strategy for the famed Perth Mint, is warning all precious metals investors that the next crisis will lead to heightened precious metals demand so expect shortages and mint rationing. This is exactly what happened in 2008, and the next crisis could very well be worse. Interestingly, the shortages emerged not from a shortage of raw materials, but due to a lack of fabrication capacity. The blanks or planchets that are required to stamp coins are in limited supply. There aren't a lot of producers around the world, and they have been known to invest large amounts of capital towards ramping up production. This is due to the market's unpredicatable demand curve and the high costs of expansion. The result is that the distribution system works great in times of regular demand, but it quickly breaks down when demand spikes. Remember, we told you it was coming."

Audio Interview & Source:

http://financialsurvivalnetwork.com...ious-metals-shortages-during-the-next-crisis/
Click to expand...

And yet, even though there were two month delivery lead times, it didn't move the price of silver at all in 2008/09. there was no price spike to reflect the demand pressures in the investment market and the apparently constrained supply. It was very interesting as an investor participating and not at all what one would expect. But then the reason was it wasn't the raw material that was in short supply, only the blanks for coins. Although I recall delays on bars as well.

So is the point here that there may be physical delays, but don't necessarily interpret that as a resource availability issue? But if the price does move, what would it mean?

Does the price just come down to the paper markets and the manipulations of it by TPTB?
 
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