US Mint Reports Unprecedented Buying Spree Of Physical Silver.

[Ponce]

Friday, January 14, 2011US Mint Reports.

US Mint Reports Unprecedented Buying Spree Of Physical Silver.

Image: Woodpile Report
Tyler Durden
Zero Hedge

Three days ago we noted that in just the first week of January, the US Mint had sold 2,221,000 ounces of silver “a number which if run-rated would be an absolutely all time monthly record,” A quick glance at the tally today, shows that something very scary is going on. In the subsequent three days, the number has surged by 50% and has hit 3,407,000 ounces of silver! In just the first 12 days of the month we have already surpassed the total monthly sales of 9 separate months of 2010.

And some additional observations on what is becoming a physical buying frenzy from CoinNews.net:

An increase in 2010 Silver Proof Eagles and record-approaching 2011 Silver Bullion Eagles are the most interesting aspects in the latest US Mint sales report.
The Proof Eagle coins have seen two weekly adjustments since they sold out in late December. The latest brings them up 3,644 to 860,000, which would seem like a natural stopping point. Collectors will have to wait until the July time frame for the 2011 Silver Proof Eagles to make their appearance, according to the US Mint.


http://www.activistpost.com/2011/01/us-mint-reports-unprecedented-buying.html

[Libertarian_Guard]

http://i54.tinypic.com/im0xvp.jpg

[ximmy]

Pay no attention to the report below...
All your silver are belong to us...
Sincerely,
Your Betters...

US Mint Reports January Silver Sales Hit 26 Year High
Tyler Durden's picture
Submitted by Tyler Durden on 01/18/2011 19:40 -0500

When we had last checked on the total silver sales by the US Mint earlier today, the amount given was 3,407,000 ounces, a number which we had earlier speculated would be a monthly record if sales were maintained at the current pace. And as the number had not been updated we assumed that "either buying interest has ceased overnight (unlikely), that the mint is not updating its numbers (likely), or, worse, that the Mint has now stopped selling any form of silver for reasons unknown." Indeed, the result was the likely one, and following a quick check today on US Mint sales confirms that sales have once again surged following the Mint's delayed update. As of today they stood at a whopping 4,588,000, or nearly 1.2 million ounces sold in a few short days. This represents the biggest monthly total sold by the US Mint going back to 1986 when the Mint disclosed its first monthly sales record... And the month is not even over yet. In other words in just the first three weeks of January, the mint has sold more silver than in any month in its history according to its public records going back 26 years.

So the bad news is that while the bulk of Scotia Mocatta's silver bars continue to be sold out (and just the Valcambi 1kg bar is shown as available), the good news is that the kind folks at BullionVault were good enough to advise us that their physical silver inventory is now back and is on line (and contrary to our previous notification, the firm's physical shortage was not in Germany but in England, where its vaults are located) so our England-based readers can go ahead and purchase at will from said location.

[Silver Rocket Bitches!]

Over 4.5 million in 3 weeks. That is astounding.

[ximmy]

Over 4.5 million in 3 weeks. That is astounding.


This is why "current" spot is so ridiculous... pure desperation... Keep buying... ;D

[Serpo]

Funny how it drops in price when nobody can buy any....

[Neuro]

Funny how it drops in price when nobody can buy any....
Yeah! I guess that is what is called overbought conditions. I guess the overbought conditions can remain, for a fairly long time, if there is a steady stream of new buyers entering the market apart from the core old players. I guess that is what constitutes the last phase/run of the bull market. When one day when silver has reached an astounding price, let's say $250/ounce, and the next day it will sell at $500...

[Sparky]

With about 265 million Silver Eagles minted since 1986, there's still not one for every American.

[ximmy]

Pay no attention to the sales figures.
Heed "current" spot
Sell all your eagles now!!! :P

(Kitco News) - Sales of the U.S. Mint’s American Eagle silver bullion coins since the start of the New Year have not only set a monthly record with a third of January still to go, but demand is so strong that dealers say they could be selling even more if not for limited allocations.

Some report that interest in silver coins appears to be outpacing gold coins at the moment, with many favoring the grey metal as a more affordable investment.

The U.S. Mint’s Web site currently shows that 4,588,000 one-ounce coins have been sold so far this month. This is higher than the previous monthly record of 4,260,000 set back in November, said Mint spokesman Michael White.

“It’s insane,” said Jim Hausman, president of The Gold Center, one of the authorized purchasers of Mint coins, which in turn makes them available to the public. “I just can’t believe this demand just keeps growing for Silver Eagles.”

Back in 1996, coin sales for the entire year bottomed at 3,466,000 ounces, the Mint’s Web site shows. “And they do that now in 20 days,” Hausman said.

David Morgan, independent precious-metals analyst with Silver-Investor.com, pointed out that the demand for silver coins has skyrocketed in the last few years, in particular. “Silver Eagles have become kind of the premier silver investment,” he said.

Mint sales for 2010 are listed at a yearly record of 34,662,500 ounces. This tally is more than triple the 9,887,000 sales from 2007, when precious-metals were already well into a decade-long bull market.

“Whatever comes in goes out the same day,” said Terry Hanlon, president Dillon Gage Metals Division, another Mint authorized purchaser. “We’re moving massive quantities, with noticeably bigger interest in silver than gold right now.”

Some of the interest in silver is because one ounce, around $27.70 as of mid-afternoon Thursday, is more affordable for many investors than one ounce of gold around $1,350. “In general, people are becoming more comfortable owning silver and recognizing silver as a good alternative to buying gold,” Hanlon said.

American Eagle gold bullion coins so far in January have totaled 75,500 ounces, which is down from 85,000 in the same month a year ago, according to the Mint Web site.

January naturally tends to be a strong month for silver-coin sales as the government starts minting coins for a new year, Morgan and Hanlon said.

“There is always a big surge from not only investors but also collectors,” Morgan said. They then store coins “untouched” in “pristine condition” as they wait for silver prices to rise or for the collector value of the coin to increase. This includes secondary dealers who obtain boxes of 500 coins.

“But this (current strong sales) goes way beyond the normal seasonal buying,” Hanlon continued.

Gold and silver both rose during 2010 on investment demand due to factors such as sagging confidence in paper currencies, European sovereign-debt issues, worries that fiscal and monetary stimulus efforts will eventually lead to inflation, and geopolitical concerns such as tensions on the Korean Peninsula. Silver has the added benefit of increased industrial use whenever the economy recovers.

Hausman said the allocation he has been able to obtain from the Mint has been declining in recent weeks, adding that his full allocation for this week was “snapped up in a heartbeat.” In “normal conditions,” he said, he can order whatever he needs, up to a few hundred thousand. However, his most recent weekly allocation was 135,000, in turn down from roughly 175,000 the week before, in turn down from approximately 260,000 the prior week.

“We have no idea next Monday morning whether we’ll be offered 150,000 coins or 50,000 coins,” he said. “If it keeps dropping like it is, there will be a major shortage again and you’ll see the premiums skyrocket.”

Dealers could be selling more 2011 coins if they were available, although it’s hard to quantify just how much since it also hinges on factors such as whether other distributors are sold out.

“If you just took the Silver Eagles, we could probably be selling a minimum of 50% more than we are doing right now,” Hanlon said...

http://www.kitco.com/reports/KitcoNews20110120AS.html

[ximmy]

Pay no attention to China's appetite for silver
... trust spot price... :P
Red alert!!! Get out of silver now!!!
China had to import 111,736,512 troy ounces of silver last year, a mind-numbing reversal from exporter to importer in only five years.

Chinese Silver Demand Surges Incredible Four Fold in Just One Year
21 January 2011

Gold is flat and silver marginally lower despite dollar weakness this morning. Some market participants are blaming the precious metal sell off on speculation that China may take more monetary action to curb surging inflation. This is unlikely to be the reason for the sharp selloff, rather it looks like another paper driven sell off in the futures market by leveraged players on Wall Street with various motives.

The fact that silver is again in backwardation at the front end of the curve suggests that tightness in the physical bullion market continues and may even be deepening. Indeed, the massive increase in silver bullion demand from China (confirmed overnight - see below) suggests that silver’s bull market remains very much intact despite becoming overvalued in the short term towards the end of 2010.

Surging inflation in China, India, wider Asia and much of the world is of course positive for gold and silver as it will likely lead to an even greater appetite for the precious metals in order to protect against the ravages of inflation and the further depreciation of paper currencies...

It is particularly seen in China’s huge appetite for precious metals and this is only being appreciated gradually. Many in western markets and finance continue to not realise the profound changes and long term ramifications of China’s emergence as a global superpower.

The world has changed and we are not reverting to the financial, economic and geopolitical conditions of the late 20th Century...

Gold is increasingly unaffordable to the “man in the street” in China and wider Asia and this is leading to increased purchases of silver as a store of value, rather than gold. With the price of gold set to remain high in the coming years, this will continue.

http://www.goldcore.com/goldcore_blog/chinese-silver-demand-surges-incredible-four-fold-just-one-year