Royal Canadian Mint Hits Silver Supply Shortage, Limits Dealer Allocation

[joboo]

"Last week the U.S. Mint announced that it had run out of its initial production of 2013 Silver Eagles (http://www.goldstockbull.com/articles/us-mint-temporarily-sold-out-of-2013-silver-eagles/) and that new shipments would not be available until late January. At that point, sales are expected to be resumed under an allocation process. The Mint has used an allocation process to ration available supplies amongst their primary distributors in the past, as opposed to allowing the distributors to buy as many as they want or need."

"Confirming this strain on physical silver supplies, just this morning the RCM (Royal Canadian Mint) went on allocation, limiting the quantity of sales of the popular silver maple leaf coin. So now the silver shortage has spread across the continent.

Both dealers and wholesalers are reporting that the supply on maple leaf silver coins is now weeks backlogged. La Casa de Moneda de México (the oldest mint in the Americas) is the only mint in North America left with full supply of 2013 silver coins as of this point."

http://www.goldstockbull.com/articles/royal-canadian-mint-hits-supply-shortage-moves-dealers-to-allocation-status/

http://www.gata.org/node/12162

"It's not that silver isn't available. It seems to be that the mints don't want to buy the metal necessary to meet coin demand, lest they allow the price of silver to be pushed up to jeopardize the government-backstopped price suppression scheme.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc."

[Son-of-Liberty]

How is the Canadian and American mints limiting of production going to decrease the demand for physical silver? Won't private mints take up the slack?

This should be bullish for silver.

[EE_]

How is the Canadian and American mints limiting of production going to decrease the demand for physical silver? Won't private mints take up the slack?

This should be bullish for silver.

Maybe the majority of buyers only buy government coins?
If mints aren't buying silver, demand for silver is down?
Buy stocks instead!

[Large Sarge]

this another webbots hit, for the doubters, he said on jan 20, "Canada will show something significant for silver, this week...."


here it is....

they are shutting down production, in stages....

as well as the industrial shortages

[EE_]

this another webbots hit, for the doubters, he said on jan 20, "Canada will show something significant for silver, this week...."


here it is....

they are shutting down production, in stages....

as well as the industrial shortages

So governments choke off investment demand to supply industry...shortage over.
Silver price drops and investers get discouraged. Very smart!

[osoab]

Who makes the planchets for the RCM?

[General of Darkness]

There's a fucking shortage and silver is going backwards. Left is right, up is down.

[woodman]

There's a fucking shortage and silver is going backwards. Left is right, up is down.

It's a poker game. Call their bluff and buy.

[steyr_m]

There goes my opinion to buy SML's....

I live in the same city as the RCM, maybe I should hijack a silver shipment ;-)

All jokes aside, it can go to the moon at any time -- I think I'm almost set... almost.

[steyr_m]

Hey, 1,500+ posts. Awesome!

Hey, wait a sec.... Mamboni has 1,500+ "thanks" [crap]

[Uncle Salty]

When silver finally explodes, it's going to be mind blowing.

Hopefully there is still a reason to live when it does happen.

[mamboni]

Friday, January 18, 2013SILVER SHORTAGE US MINT HAS SOLD OUT!!!! Price to BEYOND $65???!!!! (http://silver-shortage.blogspot.com/2013/01/silver-shortage-us-mint-has-sold-out.html)

US MINT RUNS OUT of SILVER AGAIN! Price to BEYOND $65???!!!! the price will get extremely high this year. I am surprised to see that not many people are talking about this today. If this were a news story on fox news, people would be buying these 2013 eagles on ebay for 60 bucks already, maybe higher. I just saw one of them go for 44 dollars with 15 bidders a few minutes ago on EBay. Luckily I already got my hands on some, but wow, what a rush this is causing! not to mention that Apple Contractor Claims New iMac Production Delayed Over Silver Shortage! ...FORGET ABOUT THE 6 MILLION EAGLES ORDERED, THE REAL OVER ALL ORDERS ARE FOR 20 MILLION SILVER EAGLES AND GET THIS, THE U S MINT IS NOW REACHING OUT TO OTHER NATIONS FOR THEIR SILVER SUPPLY, BUT THEY WILL NOT ACCEPT U S DOLLARS AS PAYMENT !!! THAT INFO CAME FROM MY INSIDERS !!!


http://www.youtube.com/watch?feature=player_embedded&list=PL85hOmeLutvfot 5-bJ_XdK960_gdMQLHp&v=gBFhGD5WSaI

http://silver-shortage.blogspot.com/

[mamboni]

7 Signs Of An Emerging Silver Shortage

January 21, 2013 | 71 comments (http://seekingalpha.com/article/1122961-7-signs-of-an-emerging-silver-shortage?source=google_news#comments_header)by: Katchum | includes: AGQ (http://gold-silver.us/symbol/agq), PSLV (http://gold-silver.us/symbol/pslv)



Disclosure: I am long AGQ (http://seekingalpha.com/symbol/agq). I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

There are several signs of silver shortages brewing. Investors who have interest in paper silver like (SLV (http://seekingalpha.com/symbol/slv)) or (AGQ (http://seekingalpha.com/symbol/agq)) need to be aware of this as their holdings could blow up in a very short time frame if they don't notice the current shortages in the physical silver market. Today we are seeing massive shortages in silver as Egon von Greyerz points out here (http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/18_Greyerz_-_We_Are_Now_Seeing_Massive_Shortages_Of_Silver.htm l): "We are now seeing major shortages of silver. It's much, much harder to get hold of silver than it is to get gold. As soon as people get silver inventory to sell, it's gone straightaway."

First, the most important indicator for the physical market are silver sales at the U.S. Mint. In mid December 2012, they shut down the sales of American Eagles for about 3 weeks. Then they started selling silver coins again on the 7th of January 2013. Investors started with a buying frenzy of 4 million silver coins in just one day. As of yesterday, the U.S. Mint had sold 6 million ounces of silver coins. That's already equal to the amount of silver that has been sold the entire month of January 2012. But the U.S. Mint announced several days ago that they are again suspending the sale of silver coins (http://www.zerohedge.com/news/2013-01-17/us-mint-out-silver-coins-suspends-sales). That's how crowded the physical silver market is. Sales will continue on the 28th of January 2013.




http://static.cdn-seekingalpha.com/uploads/2013/1/19/saupload_untitled.png



Table 1: January 2013 Silver Sales (18 January 2013)





Second, on that first day of silver sales at the U.S. Mint, the trading volume on the Shanghai Gold Exchange's 99.99 gold physical contract shot through the roof, hitting a record of 19,504.8 kilograms, after double-counting transactions in both directions.
Third, we see that the premiums on Silver American Eagles for APMEX (American Precious Metals Exchange) are soaring to $4 for a single ounce of silver (Figure 1). This is a 4/31 = 13% premium over the spot price.




http://static.cdn-seekingalpha.com/uploads/2013/1/19/saupload_untitled_1.png



Figure 1: APMEX 1 Oz Silver American Eagle (http://www.apmex.com/Category/160/Silver_Eagles___Uncirculated_2013__Prior.aspx)





To give you an idea of historic premiums: at the end of 2010, we had a silver price of around $27/ounce and the APMEX premium (http://www.goldstockbull.com/articles/silver-supply-shortage-2/) was $2/ounce over spot. This is a 7% premium. Mid 2011, we had a silver price of $48/ounce and the APMEX premium was $5/ounce over spot, which is a 10% premium. Today, we have a 13% premium and I think this will keep going up. Investors need to closely monitor this premium when they are holding paper silver to see if shortages are building up.


Fourth, we can see these premiums for Silver American Eagles go up on eBay, with prices going from $38/ounce to even $60/ounce, while the spot price is only $32/ounce (18 January 2013).





(click to enlarge)http://static.cdn-seekingalpha.com/uploads/2013/1/19/saupload_untitled_2_thumb1.png (http://static.cdn-seekingalpha.com/uploads/2013/1/19/saupload_untitled_2.png)



Figure 2: American Silver Eagle (EBAY (http://seekingalpha.com/symbol/ebay)) (18 January 2013)






Fifth, we saw yesterday that Apple Inc. (AAPL (http://seekingalpha.com/symbol/aapl)) has seen delays (http://www.silverdoctors.com/is-ted-butlers-silver-panic-imminent-apple-contractor-claims-new-imac-production-delayed-over-silver-shortage/) in its new 21.5″ iMacs, which were announced on the 23th of October 2012 (http://www.neowin.net/news/apple-announces-new-imac). There are production problems occurring at this moment due to a shortage in silver in China. This silver is used extensively in these iMacs. The delay of these iMacs is already spanning a period of 3 months to date.
Sixth, on Wednesday 16 January 2013 (http://www.gotgoldreport.com/2013/01/slv-reports-very-large-silver-metal-holdings-add.html), the iShares Silver ETF has bought a huge amount of silver in the amount of 571.63 tonnes of new silver (183,378,092 ounces) in just one day. That's a 5% increase of silver holdings (Chart 1).





(click to enlarge)http://static.cdn-seekingalpha.com/uploads/2013/1/19/saupload_untitled_3_thumb1.png (http://static.cdn-seekingalpha.com/uploads/2013/1/19/saupload_untitled_3.png)



Chart 1: SLV Silver Holdings (http://www.gotgoldreport.com/2013/01/slv-reports-very-large-silver-metal-holdings-add.html) (Got Gold Report)






Seventh, just a week ago (http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/10_Swiss_Gold_Refiners_Overwhelmed%2C_Major_Delays _In_Deliveries.html), Swiss gold refiners (who are the world's gold hub) announced that silver's counterpart, namely gold, had major delivery issues due to large gold bullion demand. As 70% of the world's gold transits through Switzerland's refiners, this event shouldn't be ignored.



Conclusion:

There are now countless indicators that silver demand is exploding while the silver supply should be dropping due to the low price of silver at this moment. I pointed out this supply issue due to increases in marginal cost of production (marginal cost of production currently $30/ounce for silver) in this article (http://seekingalpha.com/article/1102041-while-gold-supply-peaks-gold-is-headed-higher). If we do get a significant increase in delivery time in physical silver, the first person to go public with this would be Eric Sprott as he pointed out here (http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/12/2_Sprott_-_We_Will_Go_Public_If_They_Dont_Send_Us_Our_Silver .html): "As you know, I've always hoped we can't get that last bar (of silver) because we'll publicize it. But so far the silver has come in." So, the most prudent thing investors can do now is just buy physical silver (PSLV (http://seekingalpha.com/symbol/pslv)).

[Twisted Titan]

I said it before I see a massive Vault up with Silver this year

Going maybe as high as 60+ and then get slammed into the 30's ( maybe even crack the high 20s)

But Think it will settle into the 40's and that will be our new base line going forward.


Nations wanting to repatriate their Gold is DEFINATELY a game changer.

[Neuro]

I see the cornerstones of a mania forming being laid down...

[Nomoss]

Tag.. so how soon??
Thanks for the info.