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Thread: shortage of physical gold and silver

  1. #1

    shortage of physical gold and silver

    The US mint and a couple of foreign mints have announced they will not likely be able to meet the demand this year for gold and silver bullion products. This is an indicator of the demand for physical gold and silver.

    I have been noticing the scarcity of supply plus an increased premium over spot on gold and silver coins on some of the major bullion dealers sites. That shows up in lots of categories sporatically and increasingly, where they have nothing available at all, and also a higher premium over spot for having gold or silver in coin form.

    When silver was around $25. an ounce, you could buy rolls of dimes for around $105, but with only a 10% increase in spot, they are now over $150. (I did find one dealer with some rolls of brilliant uncirculated 1955 dimes still priced at $125 so I grabbed those). Canadian silver dollars then were $15, and with a 10% increase in spot, they have jumped over 30% to $20. US historic gold coins are now sometimes available in some categories and sometimes not, but historic European gold coins, with a lower premium over spot, have really disappeared. Belgian 20 francs of the late 19th century used to be commonly available at about $10 over spot, but not lately. Even the Habsburg era gold restrikes, which are still being struck by the Vienna mint, are increasingly hard to find (I like the 1915 restrike one ducat, which is .1107 ounce of gold but usually available at $20 cheaper than current US mint one tenth ounce bullion coins - more gold for less money, how can you beat that?).

    The Reddit / Robinhood attack on a silver ETF has seemed to have spooked the market. What the bullion banks did to fight that has left the physical silver market very narrow on supply, and that momentum seems to have spilled over into gold.
    Last edited by Carolinian; 02-11-2021 at 02:01 PM.

  2. #2
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  3. #3
    I have old proof sets, is it time to sell
    Timeshareforums Shirts and Mugs on sale now! http://www.cafepress.com/ts4ms

  4. #4
    Quote Originally Posted by bigfrank View Post
    I have old proof sets, is it time to sell
    Proof sets value is not that linked to the silver content of several of the coins. It is more the numismatic value.

    I am seeing the shortages gradually get worse of both popular gold and silver coins with the bullion dealers.

    The relationship to the "paper silver" and "physical silver" markets is something I have heard a lot of theories about but do not fully understand. Some people claim paper silver (and gold) is leveraged but others dispute that. However, it does look like paper silver is getting squeezed, too:
    https://www.zerohedge.com/markets/si...ailable-silver
    As I understand it, SLV is the largest of the paper silver funds, and the one that was targeted by the Redditt mob. I would rather have the real stuff, however, as with gold.

  5. #5
    Quote Originally Posted by Carolinian View Post
    Proof sets value is not that linked to the silver content of several of the coins. It is more the numismatic value.

    I am seeing the shortages gradually get worse of both popular gold and silver coins with the bullion dealers.

    The relationship between the "paper silver" and "physical silver" markets is something I have heard a lot of theories about but do not fully understand. Some people claim paper silver (and gold) is leveraged but others dispute that. However, it does look like paper silver is getting squeezed, too:
    https://www.zerohedge.com/markets/si...ailable-silver
    As I understand it, SLV is the largest of the paper silver funds, and the one that was targeted by the Redditt mob. I would rather have the real stuff, however, as with gold.
    I have some not much paper silver, If I recall around the 1920's
    Timeshareforums Shirts and Mugs on sale now! http://www.cafepress.com/ts4ms

  6. #6
    This is continuing. Here is the inventory of two prominent precious metal dealers as to the stock of the most popular and common European coins. On both, EVERYTHING is sold out and it has been this way for days.

    https://www.apmex.com/category/56666...ns-most-common

    https://www.jmbullion.com/gold/gold-...ld-sovereigns/

    On one of these sites, I did manage to get an order accepted over two weeks ago for four Belgian 20 franc Leopold II gold pieces at about $11 over spot, but they emailed and said there had been an inventory glitch and they did not have any. I got rather insistent that they come up with something within the Latin Monetary Union 20 franc / lira scheme as substitutes and fortunately they substituted some Austrian Franz Josef 8 florin / 20 franc pieces.

    US common silver coins are also hit and miss now, although the premium over spot is such that I am not really looking at them as closely.

  7. #7
    Something odd is happening to physical silver prices. If you can find any the premiums are way high. There is an ongoing short squeeze play happening even if Wall Street says there isn't. Spot price for physical has been on the rise. Demand for physical silver is currently unreal. It will be interesting.

    https://www.reddit.com/r/wallstreetb...ly_obvious_to/

  8. #8
    Quote Originally Posted by easyrider View Post
    Something odd is happening to physical silver prices. If you can find any the premiums are way high. There is an ongoing short squeeze play happening even if Wall Street says there isn't. Spot price for physical has been on the rise. Demand for physical silver is currently unreal. It will be interesting.

    https://www.reddit.com/r/wallstreetb...ly_obvious_to/
    I like actual coins, rather than bars or bullion coins, but the premium over spot on US coins has jumped a lot recently. I have found Canadian silver coins can be bought for less premium over spot when you can find them. I especially like the Canadian silver dollars. Canadian coins through 1967 are 80% silver and a dollar is .6000 ounce of silver, an easy figure to multiply to figure silver value. Gold premium over spot has not jumped so much, so I am often more inclined to buy gold when I can find the coins I want. I just found a new source that has some German 20 marks at a good price.

  9. #9
    Quote Originally Posted by Carolinian View Post
    I like actual coins, rather than bars or bullion coins, but the premium over spot on US coins has jumped a lot recently. I have found Canadian silver coins can be bought for less premium over spot when you can find them. I especially like the Canadian silver dollars. Canadian coins through 1967 are 80% silver and a dollar is .6000 ounce of silver, an easy figure to multiply to figure silver value. Gold premium over spot has not jumped so much, so I am often more inclined to buy gold when I can find the coins I want. I just found a new source that has some German 20 marks at a good price.
    I haven't bought anything for a while now. The sdb's are full. Someday someone I know will be smiling when they open our sdb's.

  10. #10
    duplicat
    Last edited by easyrider; 03-02-2021 at 03:59 PM.

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