Mints Scouring America for Raw Silver

[ximmy]

Mints Scouring America for Raw SilverThe big spike in investment coins, rounds, and bars is almost certainly behind the unusual delivery activity at COMEX warehouses.
Sources indicate mint and refinery demand is largely responsible for this “jumping [of] the queue” and off take of 1,000-ounce bars. The silver is needed for manufacturing into smaller retail products currently in very short supply.
Some major precious metals depots around the country, such as those in Los Angeles, completely ran out of all forms of pure silver last week, and mint owners are scouring the country to lock up the silver they need to keep production running.
The scenario is deeply frustrating for mints that should be having a heyday in this period of high demand.
However, if mints can’t readily get their hands on the raw silver needed for production to run at full tilt, orders could get backed up for weeks or even months.
The retail and wholesale market for silver is tight as a drum and shows no signs of loosening. Another spike in demand may clean it out completely.

http://goldsilverworlds.com/investing/silver-investment-demand-is-draining-the-vaults-of-comex/

[burningleg]

Econ 101: price drops because demand has dropped which means there is excessive supply

Yet what we are seeing is the physical market can't keep up with the demand (particularly silver). When you have 100:1 paper to physical, you can distort the market as much as you delight. Until that one day you can't. Own and hold physical gold/silver. One day (could be very soon) they won't be able to keep up this magical farce.

[madfranks]

Econ 101: price drops because demand has dropped which means there is excessive supply

Yet what we are seeing is the physical market can't keep up with the demand (particularly silver). When you have 100:1 paper to physical, you can distort the market as much as you delight. Until that one day you can't. Own and hold physical gold/silver. One day (could be very soon) they won't be able to keep up this magical farce.

It will happen eventually, and when it does, spot price for metals will shoot up 10, 20, maybe 50x.

[ximmy]

Retail Gold & Silver Demand Surged 135% since June,
365% More First-Timershttps://www.moneymetals.com/news/2015/08/05/gold-silver-demand-000746
Top National Dealer Releases Startling Sales Figureshttps://www.moneymetals.com/uploads/content/1651516514.jpg

Public demand for gold and silver coins, rounds, and bars suddenly skyrocketed since mid-June – particularly among first-time customers – to multiples of earlier demand levels, according to Money Metals Exchange, a national precious metals dealer in the U.S.
From June 16 to July 31, Money Metals Exchange experienced a 135% surge in gold and silver sales over the prior 45-day period (which was representative of the early months of 2015). Since June 16, the number of first-time customers rose even more dramatically, with 365% more new purchasers than the prior period.....


Many government and private mints, including the U.S. Mint and the Royal Canadian Mint, have been unable to keep up with demand and have either temporarily halted silver sales or rationed out their insufficient supply of silver coins.
Private mints have scrambled for raw silver (https://www.moneymetals.com/news/2015/08/03/investment-silver-demand-000745) to keep production running at full tilt. Major national depots, such as Los Angeles, have run dry while some users and investors sought physical delivery of silver (and gold) from Comex warehouses.
Premiums (i.e., amount paid above the metal’s melt value) have risen (https://www.moneymetals.com/news/2015/07/13/silver-shortage-000734) on all silver products except 100 and 1,000 ounce silver bars, and delivery delays have lengthened as suppliers and retailers scramble to fill orders.
“We’re seeing more buying interest than at any time since the 2008 financial crisis. If we see a further spike in demand, the whole supply chain could be cleaned out,” said Gleason. “In that event, customers will face long lead times and limited product choices. Gold supply is showing some signs of strain, but silver could become completely unavailable.”






May 1 - Jun 15
Jun 16 - Jul 31
Increase


Total Sales ($)
$11,943,241
$28,041,070
135%


Silver (Oz Sold)
369,268
797,711
116%


Gold (Oz Sold)
4,645
12,929
178%


First-Time Orders
598
2,778
365%


Repeat Orders
9,069
9,839
8%

[1970 silver art]

One things for sure........Demand for silver in my local area is strong and has been since spot went under $15.00. Even some of the higher premium silver is getting bought up by stackers.