U.S. Mint sold 681K ASE's today

[Large Sarge]

http://networkedblogs.com/KxZ6T

[Serpo]

Any silver surplus seems to be getting gobbled up..............

[Twisted Titan]

Silver is moving as fast as ammo

And for the exact same reason

[Large Sarge]

physical demand is insatiable

this speaks to the "end game" scenario

[Spectrism]

Too bad they only sell to dealers who then mark up the price.

Sure would be interesting to see the chain of transfers.

[mamboni]

It wouldn't surprise me to see the US Mint suspend SAE production one day real soon. The mint now consumes all surplus domestic silver and requires imported silver in the millions of ounces.

[mamboni]

Inventory UpdateUpdate, 4/22/13:
Dear TexMetals Customers:

As you all know, it has been a remarkable (and historic) week in the metals market, with metals prices falling precipitously. In the past two weeks, we have sold over 350,000 ozs of silver and 11,000 ozs of gold, which (as you can tell from our website) has placed an enormous strain on inventory levels, not to mention our loyal staff. As of today, we are completely sold out of silver. The purpose of this letter is to update you on inventory levels and the state of the physical market from our vantage point.

First of all, as our faithful customers know, we are the only bullion dealer in the country that promises to ship orders no later than three (3) business days from receipt of payment*. Our motto is: "If we don't have it, we don't sell it." Or, as one of our traders likes to put it: "we sell metal, not promises." Our business philosophy is strict and logistically quite difficult given the high security of bullion transport and packaging. We firmly believe in the importance of expedited order processing because of the high level of trust our customers place in our company. We are an anomaly in the industry, and we are proud of it.

Before I comment on the state of the market, I want to extend a tremendous debt of gratitude to our vault and shipping staff, who continue to pull 18-hour days (working through the weekends) to meet our commitments to customers. Given the sheer volume of orders, most orders are now shipping on day #3 from payment date, but we are extremely proud to report that, as a company, there have been no logistical disruptions of any major significance. Way to go staff!

The physical silver market is, in a word, ugly. There is no telling at this point when mint inventories will return to normal, but you can be sure it will not happen within the next 8 weeks. Most dealers, at this point, are selling their current customer demand forward, meaning they are selling product they do not presently have, expecting to pull from future mint allocations. Consequently, future allocations will face pressure from today's demand. It is not my intent here to comment on the business practices of other companies, but I will say that no one can possibly predict future allocations at the time. The US mint, for example, releases its allocations weekly, and until then, dealers have no insight into allocation levels. Last week, we turned away business in excess of 100,000 ozs of silver because of stock depletion. However, we stand by the notion that it is better to lose a sale than lose a customer by delaying delivery two months (or more).

Here is what we know about future inventories:

US MINT: Like most government institutions, the US Mint is highly unreliable. This week, we will take delivery of only 13,000 silver eagles. These coins will post for sale on Tuesday, April 23rd, at 8am CST, and ship as early as Friday**. On the week of April 29th, we will offer a minimum of 21,000 silver eagles, which will also post for sale on the Tuesday of the week. Subsequently, based on corporate agreements, minimum weekly allocations will not dip below 20,000 coins. Unfortunately, due to the extreme supply/demand constraints imposed on our business by the shortage of product, we will be offering eagles in monster box form (500 coins) only until allocations exceed demand. Coin premiums will be higher than normal, but our aim is to keep these premiums as far below market rate as possible.

On gold, there is some tightness in the Gold Buffalo series, but as of the writing of this message, Eagles are in fair supply.

CANADIAN MINT: As mentioned in an earlier posting, the Canadian Mint has been under pressure to meet demand because of the small eagles allocations and because of the minting disruption caused by the Wildlife Series last month. It will be weeks before the mint catches up to demand. We will receive, at a minimum, 10,000 silver maples weekly until allocations return to normal. Depending on logistics concerns, these will post either Tuesday or Wednesday on a first come, first serve basis. Like the eagles, we will be offering maples in monster box form only until allocations exceed demand.

We have large orders in place now for 100 oz RCM bars (1-2 weeks out).

On gold, the Canadian Mint is behind on its production of gold maples, but we expect to have more in stock Thursday or Friday of this week.

PERTH MINT: The Perth Mint is the only government mint (Australia) that runs its operation like a business. It is one of the primary reasons we promote Perth so heavily. The Perth Mint has swiftly and dramatically increased production to meet demand, and therefore supplies of Perth Mint 1 oz and 10 oz bars, as well as Kangaroos, are in very large supply. We have at least two gold shipments due to arrive this week. If there are any supply constraints, it may appear on fractional gold coins, but it will be only a temporary disruption.

The Perth Mint, unlike the USM and RCM, does not produce a silver monster box. However, we have 15,000 ozs of 10 oz Kookaburra and Kilo Koala coins due to arrive on Tuesday, April 29th.

TEXAS ROUNDS: We sold out of all 50,000 Texas Rounds from our initial mint run in four (4) days. We have another 25,000-30,000 rounds being minted this week, and subsequent runs will continue every other week indefinitely.

MISCELLANEOUS: We have large orders in place with Golden State Mint for buffalo rounds and 1 oz silver bars due to arrive in the next two weeks. The junk silver market for 90% coins is completely depleted, and we are only able to source supply at the present time from customers selling back to us (which are few). We have orders in place for 10 oz NTR bars which we anticipate receiving next week.

We are restocking gold in the next two days, and slowly restocking silver over the course of the next 7-10 days. Be advised that, in some cases, we are selling product faster than we can keep it in stock. Please be patient with our staff if we sell out of the product you want. I reiterate: "If we don't have, we don't sell it."

In conclusion, some have asked me the question: "How can I take advantage of silver at these low prices if you are out of stock on everything?" My only suggestion would apply to those with some trading experience. One option is to buy SLV or Silver Contracts for a short interval at the price point you want, and then sell that position the moment we have physical supply to sell. In this way, you can lock in your spot and buy yourself time until the physical market offers your product.

I would like to personally thank all of our loyal customers for helping us become the fastest growing bullion dealer in North America.

Sincerely,

Jason Kaspar,
CEO, Texas Precious Metals

*Receipt of payment, not date on which you order.
**Assuming we receive payment in a timely manner.

[Sparky]

Too bad they only sell to dealers who then mark up the price.

Sure would be interesting to see the chain of transfers.
This is a great point that we sometimes forget when we hear about these ASE sales. Most of these sales are uncirculated (not proof) coins bought by distributors, right?

[Spectrism]

This is a great point that we sometimes forget when we hear about these ASE sales. Most of these sales are uncirculated (not proof) coins bought by distributors, right?

There are only a handful of dealers allowed to by from the mint.
You need deep pockets.


American Eagle Silver Bullion Coins are sold in bulk quantities to business firms approved by the United States Mint which have met the qualifying criteria discussed in Section V below. Approved firms can purchase in the following quantities: - A minimum of 25,000 ounces of silver. Purchases above the minimum must be in 500-ounce increments, the standard packaged quantity.


There is no maximum order quantity.

- However, the United States Mint reserves the right to sell less than the minimum quantity, impose a maximum order quantity and suspend all sales at any time as circumstances warrant.


http://www.usmint.gov/consumer/SilverAPRequirements.pdf

[mamboni]

I've been monitoring SAE sales on Ebay and prices have definitely been climbing of late. One can sense a real urgency in the bidding. No doubt this reflects LCS and on line dealers having no inventory. I'm seeing common date uncirculated SAEs consistently fetching $37-41. That's a premium of $14-18 over spot! Can you say silver rush?

[milehi]

I've been monitoring SAE sales on Ebay and prices have definitely been climbing of late. One can sense a real urgency in the bidding. No doubt this reflects LCS and on line dealers having no inventory. I'm seeing common date uncirculated SAEs consistently fetching $37-41. That's a premium of $14-18 over spot! Can you say silver rush?

Yikes! This is why you should establish a relationship with your brick and mortar. Still only a buck over spot for 1oz generics around here, but sadly, the honey hole is dry right now.

[mamboni]

2013 Silver Sales Totals





Month

One
( oz. / #coins )



January

7,498,000
7,498,000



February

3,368,500
3,368,500



March

3,356,500
3,356,500



April

3,068,000
3,068,000



Total

17,291,000
17,291,000

[mamboni]

If a Tree Fell in the Woods… (http://blog.milesfranklin.com/if-a-tree-fell-in-the-woods)

Author : Bill Holter
Published: April 22nd, 2013
Tweet (http://twitter.com/share?url=http%3A%2F%2Fblog.milesfranklin.com%2Fif-a-tree-fell-in-the-woods&text=If%20there%20was%20no%20silver%20to%20be%20ha d%2C%20what%20would%20one%20ounce%20be%20worth%3F% 20%23silvershortage%20via%20%40MilesFranklinCo&related=&lang=en&count=horizontal&counturl=http%3A%2F%2Fblog.milesfranklin.com%2Fif-a-tree-fell-in-the-woods)


If a tree fell in the woods and there was no one around, would it make any sound? Or wait, a better question is, if there was no silver to be had… what would one ounce be worth? And of course, what would one ounce of gold be worth if there was none to be had? No, really, what would it be worth? Would it be worth what the “COMEX” says it is worth? More? Less? About the same? Nothing? Priceless? 1,500 cans of tuna fish and some toilet paper? 1,500 rounds of ammo? A pack of chewing gum or a car? Think about this question, what would an ounce of gold or silver be worth?

Do you wonder why I am asking you these questions? Simple. Because we are soon (I think very soon) to find out the answer even if you are not asking it! We already know that an ounce of silver is not worth the $23 that COMEX says it’s worth. No. Buyers, investors, and scared fiat rabbits are paying more… 30% more for the real, hold in your hand “stuff” that COMEX is so badly underpricing. Let me go back to the beginning. What is an ounce of gold or silver worth if and now when an ounce is not available? What is it worth if, God forbid, the government loses its mind and makes Constitutional money “illegal?” But wait, here is an even better question: If gold and silver were to become “illegal/outlawed” in the US but not overseas, then what would they be worth?

I know, lots and lots of questions but no answers, right? I am asking these questions because I want you to think for yourself. What does it mean when China, India, Australia, Europe, the US and others are displaying serious shortages of silver? And now gold has become tight also. What does this mean? Why is the stuff disappearing? Why now? Supply hasn’t shrunk but the demand side has been turned on like a light switch! Demand was brisk coming into this price crash and it was steadily increasing. In the past (with the exception of late 2008), price hits actually did work to some extent in slowing demand through “fear.”

This I believe has now changed. “This” being what it is exactly that people are afraid of. In the past, price swoons would work to lower open interest on the paper markets and make people think twice in the physical markets. I believe that this latest (and most blatant of all) manipulation will be seen as the last straw because a “run” on metal is in progress. This “run” has the potential of turning into an all-out sprint. Physical supply absolutely MUST hit the markets and hit them fast if this is to be avoided. The markets (worldwide) must be supplied and “calmed” or an all-out bank run will result.

The fear now is not owning precious metals and being “scared” that the price will go down. No, the fear now is systemic. The fear now is that your bank account gets raided like the Cyprus/template/example. The fear now is the “government” wherever you may be, fails or defaults. The fear now is that your central bank does a monkey see monkey do with the Bank of Japan and decides it’s a good thing to double money supply. The fear now? In a nutshell is a result of everyone, everywhere being fed a morning noon and night diet of lies that of course never panned out. People have eyes, ears, lives and experiences on their own, the “green shoots” around every corner propaganda has been proven completely false and hollow.

Finally it looks like the “fear” has morphed from what “they” want you to be afraid of into REAL fear. Human instinct is taking over and when it comes to emotions, fear is a far greater emotion that greed ever could be. This “fear” that I am speaking of is, yes you guessed it… the fear of NOT owning precious and in your hand metals! This is a worldwide phenomenon that began a long time ago but went terminal a week ago Friday. “Price” seems to have exposed “supply.” The old saying goes, “There is no rush like a gold rush.” This saying always speaks to greed. The coming gold rush with its roots in “fear” will be unlike anything before it because in reality it will be an all-out, all-encompassing global bank run! We will look back and see very clearly that the “system” itself was flawed and what caused its own demise. …of course you will hear “Who coulda’ seen it coming?” The people making a run on the physical markets, that’s who! People are finally waking up.

[willie pete]

This is a great point that we sometimes forget when we hear about these ASE sales. Most of these sales are uncirculated (not proof) coins bought by distributors, right?

No, what these 10-12 national distributors are buying, for the most part, are business strikes (Monster Boxes), the uncirculated and proof versions are sold mostly through the Mint's website to the public...on a side note; The U.S. Mint (http://www.usmint.gov/) in April has sold 153,000 ounces of American Eagle Gold coins, the highest in almost three years, after futures prices started the week by plunging the most since 1980.
Sales have more than doubled from March and surged sevenfold from a year earlier, data on the Mint’s website (http://www.usmint.gov/mint_programs/american_eagles/?action=sales&year=2012)showed. The amount for all of May 2010 was 190,000 ounce.

[Sparky]

No, what these 10-12 national distributors are buying, for the most part, are business strikes (Monster Boxes), the uncirculated and proof versions are sold mostly through the Mint's website to the public....

Incorrect. From the U.S. Mint Web Site: "Aside from the proof version, the United States Mint does not sell American Eagle Bullion coins directly to the public."

http://www.usmint.gov/mint_programs/american_eagles/?action=american_eagle_bullion

[willie pete]

Incorrect. From the U.S. Mint Web Site: "Aside from the proof version, the United States Mint does not sell American Eagle Bullion coins directly to the public."

http://www.usmint.gov/mint_programs/american_eagles/?action=american_eagle_bullion

Nope, you misunderstood my post, the Mint only sells Proof & Uncirculated versions of the American Eagles, unless they've suspended sales, otherwise the Bullion Strikes go to the distributors, currently the Uncirculated version of the ASE Dollar coin set is being repriced

[mamboni]

Jim,

More evidence. This morning I purchased a silver eagle monster box from an online company. The company notified customers (yesterday) that they would be putting silver eagles on sale this morning at 0800 CST.

Later in the day a salesperson for the company told me that they sold out (26 monster boxes) in 10 minutes after opening (one per customer). This is an online store, however, the salesman said they had people lining up at 0730 outside their business! Unheard of.

This online store will only offer items for sale that they (physically) have possession of. And, (virtually) all coins are "out of stock." The company has never seen anything like this and neither have I.

Get ‘em while you can!!


CIGA Marty

[mamboni]

Nope, you misunderstood my post, the Mint only sells Proof & Uncirculated versions of the American Eagles, unless they've suspended sales, otherwise the Bullion Strikes go to the distributors, currently the Uncirculated version of the ASE Dollar coin set is being repriced

What's the difference between an uncirculated SAE and a business strike SAE, as the latter are also uncirculated?

And whomever your avatar is, I want her. Is she Hungarian? The gorgeous eys and strong cheekbones just scream Hungarian darling!

[JDRock]

Silver is moving as fast as ammo

And for the exact same reason
you beat me to it! ALOT of the investors I buy with are all getting the same story- pay for it now, and delivery maybe in 4 months. Remember folks, FOOD is next! "they" have their ammo and tanks, the camps are built,staffed and ready....the final straw will be an overnight food shortage that will bring the sheep AND the armchair commandos to their knees.