Our friend Sean of SGTReport.com has released an interview with Jeff Nielson of Bullion Bulls Canada regarding the growing silver shortage, and the massive 7.4 MILLION ounces of silver eagles sold in January alone, a record. The US Mint can’t keep up with demand for PHYSICAL and neither can the Royal Canadian Mint which produces the .9999 Silver Maple Leaf. Whereas the outright fraudulent SLV etf seems to have no problem magically adding 572 TONS of physical metal to its supposed hoard, literally overnight. Like the US government’s GDP number fraud, it’s all an illusion – built on outrageous lies.
SGT’s full interview with Jeff Nielson on exploding silver demand and physical shortages is below:
2013 Silver Eagles Are IN STOCK and As Low As $2.79 Over Spot at SDBullion.com!
http://www.youtube.com/watch?feature=player_embedded&v=N9lGMbHFRi8
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Tick, tick, tick…
Has US Mint suspended ASE sales again?
http://www.usmint.gov/mint_programs/american_eagles/?action=sales&year=2013
How often are the figures updated?
Uncle Ben can expand the above ground dollar supply faster than Silver can be dug out of the ground or recycled. The mint is dragging its feet with the production of rounds but there are other places to feed.
He brought up an important point, that it’s the Dealers buying all the Silver and they are charging premiums to sell to us and creating the shortage by cleaning out the mints.(Do you notice all the stores have AE’s now) This is why I stack 90% coins and rounds straight from the mining companies and mints and bypass the AE dealers.
Now it seems the banks are heading straight to the mines to get their silver, now those premiums may well start rising. Sheeeee
Keep Stacking your PM’s, Ammo, Guns, Food as it’s getting closer to the collapse.
At least someone finally explained that there really is no shortage of silver eagles. The dealers I’ve inquired with all have plenty of silver eagles to sell.
Food for thought on why I recommend ASE’s…
There are several states considering legislation to amend the legal tender laws and reclassify American gold and silver eagles as spendable money. The idea seems a bit remote now, but when the financial system breaks down that is exactly what I expect will happen. Thinking this through that means gains on gold and silver eagles will not be taxable, because money is not taxable. That will be huge.
All other bullion would remain subject to significant capital gains tax rates. Expect the Federal Gov’t could even enact a windfall profit tax on bullion. Why would this happen? Physical gold and silver are the money of TPTB and someone is purchasing all the gold and silver Eagles and the old pre 1933 Constitutional gold. Banks and gov’ts buy the big bars, but they play in a different league. TPTB and elite individual are putting their own net worth into ASE’s, GSE’s, and $20 gold pieces. The above interview even said someone is buying ASE’s and it’s not the guy on the street.
ASE’s carry a premium, but in the end it’s probably where you want to be. Comments…
I would agree. Eagles already are legal tender and can be used for transactions for their face value. Therefore, you can legally buy something from someone as long as they agree to sell you their item for the face value of the eagles. If the IRS found out they’d probably take you to court if they felt you were trying to avoid taxes but it is legal.
Well, if the hundreds of billions fleeing the lower FDIC insurance rates or the bond markets are buying bullion, it makes sense the authorized dealers are clamoring for any bullion coins from the Mint. Their buys from the mint is the shortage.
Here are the usual suspects.
comparegoldprices.com/
@Marchas45 I am not sure if there is some artificial supply constraint by dealers, but am willing to believe it. I know of one miner that sells direct, which others would you recommend?
@Thomas
Nice like. thx.
Coin and bullion dealers are a make or break business based on turn-over. Those dealers would not be buying a lot of ASEs if they were not pretty sure that they could turn them over quickly and make a decent profit.
“maples are soft and squidgy”
Not sure what this means in the context of a coin, but… an ounce is an ounce is an ounce. ;-)
Well I got my hands on silver, 5kg taking delivery tomorrow. Really a shortage or just under estimating the demand for trinkets?
I do like ASE’s though, maples are soft and squidgy. Britannia’s rock nice and solid. Although not any more they have moved over to 999 from 958 silver. Oh well stick to my numismatics and bars.
If there is a shortage I got a sweet supply. Bring it on
Which would you rather have:
1oz of silver @ 38.00 each (ASEs)
1oz of silver @ 31.72 (at the moment) generic rounds or “junk” (dimes, quarters, halves pre-1965)
Bottom line: Count your wealth in OUNCES, not dollars. End of story, right?
@silverrrrr Right On. End Of Story for me anyway. Bartering will be sweet with my, dimes, quarters, halves and dollars. Big purchase will use my AE’s, Rounds and Bars. WTSHTF there will be no premiums an oz will be an oz. Keep Stacking any type of Silver.
Remember, variety is the spice of life. In a SHTF situation, having lower-denomination silver like junk Roosevelt or Mercury dimes will be advantageous in case one needs to make a relatively small purchase.
(Unless you really want to buy a dozen eggs with one of your Silver Eagles.
But @Marchas45, will an oz truly be an oz? If I have goods to sell, then I may just be choosy and accept ASE’s & Junk Silver, while refusing generic Silver bars & rounds that I am not familiar with.
Something to think about…
@Mammoth that’s why the variety. Lol But an Oz is still an Oz.
Hey Woolly, first, I have chickens so I don’t need to buy eggs….
Second, when silver is “up there”, it won’t matter which silver is in your pocket (to the receiver). The ONLY one who it will matter to is YOU…if you paid a ridiculous premium for it. But of course, after silver hits , say $50, you should ALREADY have all the silver you’ll ever need. Because when the SHTF, an ounce of silver will be an ounce of silver regardless if its a pre-65, generic round, ASE, bar, etc. Now, that said, you certainly can add a “vig” to your AEs, but when it comes to buying/bartering, the other party is just interested in SILVER, screw what is written on it…Capeesh. If I’m offering an ounce of junk at a spot price, your AEs will be staying in your pocket. Right? KEEP FUCKING STACKING !!!!!!
“(Unless you really want to buy a dozen eggs with one of your Silver Eagles.”
My plan is to be the guy who us SELLING a dozen eggs… now, whachugot? lol
Agree on the US 90% silver coins, though. I’ve got Roosies and Mercs, quarters, halves, and dollars, ASEs, Maples, 5-oz. SilverTowne bars, and a few assorted commemorative 1-oz. bars and rounds. Love the JFK halves and Morgans.
It would be interesting to see how ASE and junk bullion will be regarded once silver hits a price high mark. I use rounds to pay for services both as a reason to use silver to pay for services or goods at just about my original buy price. It’s both to make some capital available since my FIAT stack is pretty low and it’s also to introduce some friends and others to the monetary aspect of silver.
If it comes to the time when silver goes into strong and common use because of its enlarged value, with a price per oz well in excess of the buy price, I’d like to see the IRS or other tax grabber tell us we have to account for the capital gains on silver we use for basic purchases OF ANYTHING.
I am absolutely firm in the statement that I will never pay taxes on the value of real money no matter how much it has increased in relation to the dollar or my original purchase price.
The price of everything we buy is based in dollars and every product or service has embedded in it tax costs that ranges from 50-75% of the basic item itself. Just the act of buying anything from a can of beans to a doctor visit is woven full of taxes at every level of production Enough is enough.
Hard to say what the Gov’s official attitude will be if the SHTF. In fact, it will be hard to say what, if any, national government will still be around. I can easily see a situation where the national government survives but is a mere shadow of its current self, state governments are smaller but stronger, and local governments are the strongest of all… at least in terms of how they affect us directly.
As to silver, it will all be useful. How “money” is defined then will be an interesting question. Coins minted by national governments have a pretty good chance of being defined as “money”. We could also see some “border creep”, where Mexican silver coins are used as money in at least the US SW, Canadian silver coins are used as money at least along the northern tier of US states, and US silver coins used as money in both parts or all of Mexico and Canada.
Not so sure about bars and non-government produced rounds. US 90% silver coins have been and remain money, although they are officially limited to their face value when used as money. In any kind of private transaction, the parties involved are free to set prices and values as they see fit… for now, anyway. Who can say what will change in the future? About all we can say is that we will all be living “in interesting times”!
So the .gov says not to manipulate that photograph of the Prez allegedly firing a gun?
The last time I checked, that freedom had not been legally taken away from Americans.
Now, THAT is freakin’ hilarious! :-D
@Mammoth
Just beautiful!
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Strap this on your sore asses bankers!!
578 tons of silver added…which brokerage that deals in physical is going to fail and JPM made off with their inventory?
The simple fact remains…..Shortage of Silver is not reflected in the physical market place.
Currently, there seems to be enough silver to satisfy demand unless one is buying in LARGE quantity as Eric Sprott does for his PSLV fund. Dealers and individual buyers seem to be having only minor difficulty in finding and buying the silver they want. The two things that I have noticed that are related to this are that premiums have moved up on silver in general, such as on ASEs and US 90% silver coins, and that many of the on-line dealers are “out of stock” on many of what used to be common items, especially the various US 90% silver coins. Makes me wonder if there has been some “recycling” of US 90% coins into purified silver for ASEs and / or Maples.
Also, we need to remember that the world silver production IS about 60 million ounces a month, so if this or that bullion bank or ETF needs to refill their vaults with 15-20 million ounces of silver, the production capacity IS out there to do it. Another question that bears some scrutiny is, “Can the miners afford to sell their silver at the current prices?”.
I liked Eric Sprott’s idea for the miners to stack some of their own silver and hold out for higher prices. That makes a lot of sense IF the miners can do it. Mining looks like a pretty cash-hungry type of operation, so they might need to sell all they can to pay their bills and keep the mines running. If not, then banking some of their output could make a lot of sense.
@Ed_B nailed it with this: “My plan is to be the guy who us SELLING a dozen eggs… now, whachugot? lol”
Exactly! Same here, plus the veretables & fruit that I grow. And I will be more likely to accept KNOWN silver such as pre-1965 ‘junk,’ and .gov mint bullion like ASE’s than generic rounds. Got that, @silverrrrr?
Indeed so, Mammoth. I have a decent green thumb of my own, so growing a large garden is a great option here as well. I had my 1st garden in several years last summer and it worked out really well. It was small but very productive. The green beans, Yukon Gold potatoes, summer squash, tomatoes, and cukes did especially well. Next summer I will start canning and drying stuff for the winter.
We don’t have our place in the country yet but are shopping for one. Would like to find a few acres with a creek on or next to it so we can have a fish pond. Add some chickens, rabbits, a small orchard, and a LARGE garden, as we should do pretty well, come what may.
Yes, US 90% silver coins are recognizable and would make good barter items. The 1 oz. bars and rounds would be good too. Those of us who know how to check them out via visual inspection, with a magnet, and for proper density can usually tell if they are fakes, so I am not too worried about them.