Guess who is running low on Silver!

[webmaster]

Subject:Guess who is running low on Silver!
By: Jason Hommel, Silver Stock Report

Overview: I've heard that 4 major coin shops on the West Coast of North America were out of 100 oz. bars yesterday; Amark, the largest distributor for Johnson Matthey in the nation, and Tulving, and two dealers in Vancouver. If you include NWT Mint's delivery delays, that's 5. Anoter man emails to tells me that a coin shop in Surrecy, BC is sold out of 1 oz. Silver Coins, and that their phones are ringing off the wall for orders and they can't fill orders for lack of silver.

Link: http://news.silverseek.com/GoldIsMoney/1205981676.php

[Gene Daniels]

Here's what I just received from APMEX:


Due to the OVERWHELMING demand for precious metals, our online ordering system has been unable to keep up with our customers’ needs. We have had to disable the APMEX ordering system to allow us ample time to upgrade our site to accommodate the increased demand. We apologize for this temporary problem. In the mean time, we will be accepting telephone orders for the following items only as we have them available:

What does this mean in light of the price drop we just experienced?

[silverbuggy]

demand is greater than supply at this shop but I think that it wont change anything regarding the overall bearish trend in silver/gold.

btw: their website is down right now.

[Farmer Cotton]

I live in Washington State and have bought gold bullion several times from the Auburn Mint, but have always gone there in person and paid in cash. The people who work there are very professional. It's not some rinky dink coin shop. It's a real working mint. So I read this article last night and freaked out a little because I had just placed (ironically) an order for a monster box (500 ounces) of Silver Eagles. I paid with a wire transfer. I really don't care if it takes 6 weeks to get because I'm going to sit on this for a couple of years. I've had a lot of trouble finding Silver Eagles at coin shops. They're almost always out and many of them charge two dollars or more per piece over spot. I think the Auburn Mint price (for a monster box) works out to about $1.80 over spot. I called the mint this morning and told the bullion seller my fears after reading the article. She was incredibly professional, didn't try to blow me off or get defensive. She said that I could come in and use my wired money to buy loose silver and silver bars and pick it up immediately, but the truth was they just don't have any Silver Eagle ounce pieces and they've been getting flooded with orders. I think the actions of the WA State attorney general are part of a larger design to create a sales tax in WA State for bullion dealers. I think the author of a previous article on goldseek.com might be right: The US Mint ran out of blanks and they're scrambling to fill the massive orders they've had for 1 ounce coins. And in the bigger picture, commodities are falling temporarily because of the Fed's attempt to blackmail us all to jump back into the market. Don't be surprised if silver goes to $100 an ounce in the next year. By the way, I think the author of this article should have called the NWT Mint and asked them how they do business. When a caller locks in a price, they make the order to the U.S. Mint immediately locking in their own price. If the person ordering fails to deliver funds, the Northwest Territorial Mint can't cancel their order from the U.S. Mint. It might take a month to six weeks to get these coins. Believe me, I know how hard it's been to find more than 10 or 20 at a time over the last month in coin shops all over the Pacific Northwest.

Good luck securing your hedge against hyper-inflation.

[aerobat]

I'm not so sure that the dealers are out of silver, or if they don't want to sell it at this low a price.

Could it be that they know (or at least believe) that the price of silver has to rebound fairly quickly, and they don't want to sell their inventory (for which they likely paid more than today's price) at a loss?

It'll be interesting to see if they all suddenly have inventory as soon as the price rebounds.

It's a weird and whacky market.

[acemon]

Originally Posted by aerobat

I'm not so sure that the dealers are out of silver, or if they don't want to sell it at this low a price.

Could it be that they know (or at least believe) that the price of silver has to rebound fairly quickly, and they don't want to sell their inventory (for which they likely paid more than today's price) at a loss?

It'll be interesting to see if they all suddenly have inventory as soon as the price rebounds.

It's a weird and whacky market.

You are brilliant! Of course they will not sell at a loss. If they had to pay $19.00 for their silver on 3-7. Why would they sell at a loss? They will wait until the price goes up.
Suppose these Retail dealers had to buy 50,000 ounces from the bigger dealers and paid $19.00 an ounce. The silver price is now around $17.30 an ounce, If they sold any silver it would be at a loss. Always follow the PROFIT(money) OR lack thereof. Hold off on buying silver at too high of a price, there is no shortage of silver, just a shortage of PROFIT

[Kelly]

That makes a whole lot of sense to me too. However, if that's the case, it sure doesn't bode well for people waiting to buy on the dips, does it?

[Richard]

I'm rather new at this, so I could be wrong...

It would sort of make sense to think they might be holding out, but it's not written in stone that being in ANY business will result in profit.

However, one must remember: these people know well their business and what they might be selling now is stock ordered well ahead of time of the anticipated rush, so they would have paid below the fallen price of this week.

I bought 25 ounces just above spot from a local dealer. On the Tuesday before, though, he gave me a range of between 20-21 and told me that he had just received 1,000 oz. I waited until two days after the Fed rate cut, called and locked in a price and he didn't seem the slighest bit put off over the "loss". In fact, he seemed rather happy to be rid of what he sold me. Not only that but when I called later that day, he had sold all that silver before noon.

Now, I can't see that he would have done that, been in business for some 30 years, and was merely happy to have more room in his vault (presumably to fill again with more profit loss lol)

So I'd say if they're in business, they're in business for a reason and the loss in profits aren't!

[paker]

Originally Posted by aerobat

I'm not so sure that the dealers are out of silver, or if they don't want to sell it at this low a price.

Could it be that they know (or at least believe) that the price of silver has to rebound fairly quickly, and they don't want to sell their inventory (for which they likely paid more than today's price) at a loss?

It'll be interesting to see if they all suddenly have inventory as soon as the price rebounds.

It's a weird and whacky market.

I don't think the dealer I do business with holds out. He simply raises his over spot price he charges for silver and gold. I called yesterday and he still has 1 oz silver bars and rounds.

[gypsybiker45]

Originally Posted by aerobat

I'm not so sure that the dealers are out of silver, or if they don't want to sell it at this low a price.

Could it be that they know (or at least believe) that the price of silver has to rebound fairly quickly, and they don't want to sell their inventory (for which they likely paid more than today's price) at a loss?

It'll be interesting to see if they all suddenly have inventory as soon as the price rebounds.

It's a weird and whacky market.

TADA!!!! ding! Ding Ding!!! you win!