No shortage of bullion!

[cdnmetalmetalhead]

http://goldandsilverblog.com/apmex-ceo-says-no-bullion-shortage-0227/

Despite the calls for a major correction by silver bears, the metal remains near all time highs and there have been numerous press reports of a physical shortage of silver based on intense investor demand.
Indications of a supply/demand imbalance in the bullion markets can be seen in many areas. The US Mint has been rationing Silver Eagle bullion coins to its authorized purchasers and earlier this year the Royal Canadian Mint admitted that it was having major problems in sourcing adequate supplies of silver due to high demand. The spot price of physical silver is trading above the price of futures contracts (known as backwardation) and this is an indication of huge physical demand. In addition, earlier this week, APMEX, a major precious metals dealer, offered to buy bullion at a generous premium from its customers and cited "incredible demand" for gold and silver bullion products.
Although APMEX says there is no supply/demand imbalance, they recently increased their buy price for some US Mint bullion products. In particular, they are offering $3 over spot silver for one ounce American Silver Eagles. This is higher than the company's cost of acquisition directly from the United States Mint, which sells the coins at $2 over spot to authorized purchasers.

hmm so is this good news? No bullion shortage, but prices are still flying high.

Imagine if there was a REAL shortage?


discuss.

 

[isaiah58]

Premiums are a percentage of the going market price, so at the end of the day we are not paying any more percentage wise than we were before. As for the higher buy premium, I believe as the seller we pay to ship our items to Apmex. They have to pay more up front that our LCS pays, I'd prefer to just sell to my LCS and have cash in hand today.

As for supplies, I believe that the 5 main distributors for ASE's are sitting on cases. They are forcing the game, thus the dealers are trying to buy outside the distributors, makes sense!!?? The false cries of short supply are just that, the same so called "facts" for low supplies have been in circulation for years.

 

[projack]

Once you see silver on sale in every shopping centre you know there is no shortage.

 

[projack]

The balance looks negative here

 

[Nub Cannon]

that's alot of negatives :O

 

[Stedlar]

As for supplies, I believe that the 5 main distributors for ASE's are sitting on cases..

Interesting. How did you come by that belief?

 

[euphoria]

I do not doubt the possibility of no real shortage as I have voiced in other examples. It has been known for centuries if you artificially create scarcity you can demand more.

However, I am all good for it so long as 'they' don't dump on the market.

A bit like how most of the world is lead to believe the world is over populated, yet every human on earth right now can all fit inside of QLD each with a 1/4 acre of fertile land to self sustain or trade amongst themselves. Too many more examples, yet I will avoid further perceived baiting (i.e. trolling) by encouraging others to (apparently) drift off-topic.

Don't respond to my example, but rather respond to my opinion that I do not doubt. Thanks.

I know you said not to respond, but I actually did not believe there is enough land in queesland to support every person on earth with 1/4 acre. So I actually looked it up and turns out it is correct. There are 6.8Billion people and QLD has 1.73 million square km of land. It works out at 254 square meters for every man woman and child if they lived in queensland. Or just a shade under a block 16mX16m. The Fertile land could be contested as that is for all land in queensland and includes industry, desert and forrest. But that notwithstanding, The point stands and I was actually surprised as I so thought it to be ludicrious. As a side note there is 13.8 million square km of fertile land in the world. Or enough for a block of fertile land of 45m x45m for every man woman and child. And that is fertile land not rubbish land for heavy industry/factories etc. I had no idea/bothered to look it up.


This one is for property bulls. - What land shortage?

 

[renovator]

A quarter acre is 1000 square metres :

 

[goldpelican]

Stay on topic... stay on topic...

Source: Some guy called Lucas

 

[Blockhead]

every human on earth right now can all fit inside of QLD each with a 1/4 acre of fertile land to self sustain or trade amongst themselves

*** EDIT nevermind, other people made the same point ***

...I'm sorry but us humans are vermin, there is no getting around it.

 

[dccpa]

Premiums are a percentage of the going market price, so at the end of the day we are not paying any more percentage wise than we were before. As for the higher buy premium, I believe as the seller we pay to ship our items to Apmex. They have to pay more up front that our LCS pays, I'd prefer to just sell to my LCS and have cash in hand today.

As for supplies, I believe that the 5 main distributors for ASE's are sitting on cases. They are forcing the game, thus the dealers are trying to buy outside the distributors, makes sense!!?? The false cries of short supply are just that, the same so called "facts" for low supplies have been in circulation for years.

That was my theory when I choose coins over bars/rounds. However, AEL Steve researched his records and posted that gold coins do have a 4% premium, but that silver coins were a fixed premium. Still, even ignoring the recent ASE scarcity premium, the premiums are increasing due to higher costs. But overall, the premium on ASE as a percentage of silver price does appear to be declining. Even knowing this fact, I would still choose coins over bars/rounds, but then I was a coin collector as a child and I have a coin bias.