Perth Mint sales record - 2.5 million ounces - rationing now in effect

SpacePete

SpacePete

Well-Known Member
Silver Stacker
No idea if this is official, but it is mentioned in a Reuters article:

Silver-coin shortage shows bright side of precious metal collapse

NEW YORK/LONDON/SINGAPORE, Sept 30 (Reuters) - The global silver-coin market is in the grips of an unprecedented supply squeeze, forcing some mints to ration sales and step up overtime while sending U.S. buyers racing abroad to fulfill a sudden surge in demand.

The U.S. Mint began setting weekly sales quotas for its flagship American Eagle silver coins in July because it can't meet demand, and the Canadian mint followed suit after record monthly sales in July. In Australia, the Perth Mint sold a record of more than 2.5 million ounces of silver this month, nearly four times more than in August, and has begun rationing supply of a new line of coins this month, a mint official said.

"Silver demand is absolutely through the roof," said Neil Vance, wholesale manager at the Perth Mint. "There seems to be a bit of frenzy as people think there is a shortage of silver. But in fact it is a (crunch in) manufacturing capacity."

While demand has risen in response to the slump in spot prices to $14.33 an ounce in late July and its subsequent drop to fresh six-year lows below $14 an ounce in August, mint officials also said they were caught out by the sudden interest in coins. In July, the U.S. mint halted sales for almost three weeks after running out of "blanks", which are used to make coins.

Some investors like to own physical metal to protect from volatility in other assets, particularly currencies and stocks, and to hedge against geopolitical and economic upheaval. The CBOE Volatility index, or VIX, of U.S. stocks - popularly known as the "fear index" - briefly jumped to its highest since January 2009 earlier this year.

At the U.S. Mint in West Point, New York, where the American Eagle is made, the plant is operating three shifts and paying staff overtime, a spokesman said.

The Austrian Mint, which has begun allocating sales of its Philharmonic silver coins, has increased production of silver blanks after higher-than-expected demand in July and August, a spokeswoman said.

In his 35 years of dealing precious metals, Roy Friedman, vice president of sales and trading at Manfra, Tordella & Brookes, one of the biggest U.S. wholesale coin dealers, said he could not recall seeing a squeeze in supplies of North American silver coins spilling over to coins made in Austria and the U.K. to the degree seen this year.

...

PLUNGING SILVER

Still, the rush of coin buying has failed to offset a years-long silver rout by institutional and retail investors betting on further gains in the dollar, U.S. equities and an improving U.S. economy.

Prices have fallen 7 percent this year, are on track for their third yearly loss and down by 70 percent from all-time highs of $50 hit in April 2011.

Holdings in the silver-backed exchange traded funds, , which were popular with investors during the financial crisis that followed the collapse of Lehman Brothers, sank to below 518 million ounces this week, their lowest in almost three years.

For now, however, coin dealers are riding the wave. Bullion dealers around the globe who typically offer next-day delivery are now taking silver coin orders several weeks out.

"I don't expect things to get better until next year," said Gregor Gregersen, founder and director of retailer Silver Bullion based in Singapore. (Reporting by Marcy Nicholson in New York, A. Ananthalakshmi in Singapore and Jan Harvey in London. Editing by Josephine Mason and John Pickering.)

More: http://www.reuters.com/article/2015/09/30/silver-collectors-idUSL1N11Y1FM20150930
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Wow!

Seems plausible. I know dealers here in Sydney are finding buy backs very scarce, seems like less people are selling.

Round 50c use to be seen by the bucket load and a couple of dealers always had some, not anymore... seems like Sammy has cornered the market. Stackers have certainly soaked these up.
 
Yes, silver Kangaroos are now on allocation. The Australian retail price for a 250oz box is now cheaper than the US wholesale price. Buy up.
 
the share market crash from three days ago was triggered by comments from an analyst in London. Yet the announcement there is a supply shortage world wide with silver does nothing to the price?
 
hiho said:
the share market crash from three days ago was triggered by comments from an analyst in London. Yet the announcement there is a supply shortage world wide with silver does nothing to the price?
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How do you know it did nothing to the price? Maybe the spot price would be significantly lower if it wasn't for the shortage.
 
hiho said:
the share market crash from three days ago was triggered by comments from an analyst in London. Yet the announcement there is a supply shortage world wide with silver does nothing to the price?
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Yes it did.
It forced it down!

:P
 
I am more interested to know if PM will bring on more capacity in order to satisfy the retail silver market.

At this point in time, Perth Kilobars are difficult to get a hold of in Melbourne and Sydney, forcing those wanting to buy into ABC or PAMP. I am hearing end of October or into November for delivery.

Roo's are available but the demand is high.
 
They just *did* add more capacity. Whole new building with a new minting production line, came online a few months ago.
 
Great News this retail shortage ! I'll race out buy up big again......................................................Next year.
 
There's no real shortage, everyone is just queuing up. Otherwise this would actually be driving prices higher. Prices aren't higher, they still seem the same if not a little lower, you just have to wait for the product. I'm curious as to why prices aren't going higher...
 
Miloman said:
Wow!

Seems plausible. I know dealers here in Sydney are finding buy backs very scarce, seems like less people are selling.

Round 50c use to be seen by the bucket load and a couple of dealers always had some, not anymore... seems like Sammy has cornered the market. Stackers have certainly soaked these up.
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Hi Milo, Of course the dealers buy backs are scarce. They are only going to offer spot price. So once the customer notices that the premium has been jacked up alongside a LOW SPOT PRICE pay out not many will off load. That's why buy backs are as scarce as a virgin on prom night....

Cheers
 
Miloman said:
Wow!
. seems like Sammy has cornered the market. Stackers have certainly soaked these up.
Click to expand...

Make me an offer I can't refuse. Selling all my fifties to replace with new ones.
 
silversearcher said:
Miloman said:
Wow!

Seems plausible. I know dealers here in Sydney are finding buy backs very scarce, seems like less people are selling.

Round 50c use to be seen by the bucket load and a couple of dealers always had some, not anymore... seems like Sammy has cornered the market. Stackers have certainly soaked these up.
Click to expand...

Hi Milo, Of course the dealers buy backs are scarce. They are only going to offer spot price. So once the customer notices that the premium has been jacked up alongside a LOW SPOT PRICE pay out not many will off load. That's why buy backs are as scarce as a virgin on prom night....

Cheers
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I recall Ainslie was buying back silver at above spot recently not sure if they still are.
 
Apmex is buying back above spot, too..! :rolleyes:

14291_apmex_s2_horse.jpg
 
Just more hype.
The PM even say this is "(crunch in) manufacturing capacity".
If everyone wants to run and buy up large then your choice , of course:)
If i was given an ozt of gold every time i have heard about a (misleading) shortage in the last 4 years i would be able to pop out and buy a new house.
This thread will be great to look back on in 6 months and see who was right , and who lost or made money on this proclamation.
 
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