URGENT: GOLD & SILVER SHORTAGE UPDATE
If this account is accurate then it appears that the shortage isn't with Gold, but our ability to meet demand in a timely manner.
We have some damage control information from Forbes.com:
"Gold Coin Shortage
Heather Struck, 11.25.09, 12:15 PM EST
Don't worry, there's not a shortage of gold, just of equipment for coining it in the U.S.
The United States Mint has a gold problem. As demand for precious metal in the futures indexes and in physical gold bullion coins increases as the dollar weakens, there's been a run on the Mint. Don't worry, there's no shortage of gold. It's just that the Mint doesn't have the resources to make it into coins due to outsourcing and budget cuts decades ago.
The problem lies in manufacturing the blanks. The blank planchets are not made at the Mint, which hasn't had the production capacity for this stage of the minting process since the budget cuts of 1981. The Reagan administration began using private companies, which process and ship the blanks to the Mint's West Point, N.Y. site for stamping and engraving. Today there are three refineries that supply planchets to the Mint: VennerBeck Stern Leach in Rhode Island, Sunshine Minting in Idaho and Goldmark in Perth, Australia
Though some have taken the shortage of gold coins to mean a shortage of gold in general, folks in the industry say it's not a worry. The Gold Bullion Coin Act, which put the coin programs in place in 1985, stipulates that the gold must be mined in the U.S. Johnson Matthey ( JMPLY.PK - news - people ), the London-based company that refines most of the gold that is mined in the U.S., says, "there is no shortage of gold" coming out of the ground these days.
The Mint's Oct. 6 announcement that it would not produce any gold "proof" coins this year is testament to its diminished capabilities. Even 5,000 proofs for the 2009 edition of the American Eagle coin series would offer a limited number to collectors that would still be a particularly rare year for the coin. When questioned by Coin World, a collectors' trade publication, about what would be the first skipped year in two decades for the American Eagle gold coin series, the Mint responded that they were just following the law, which is "to produce bullion coins in quantities sufficient to meet public demand."
The demand for gold bullion being 860% higher than it was a year ago, the Mint has found itself filling that demand with all the gold blanks that it can get its hands on. It is difficult to say how many licensed coin dealers are telling their customers they don't have what they need, but earlier this year, Ute Wartenberg Kagen, executive director of the American Numismatic Society, said she was asked by an investor how one could buy 10,000 coins (they are sold in ounce quantities and three fractional versions below that, at a price that is slightly above market value).
Gold bullion coin prices are normally nothing near the rare coin trade, in which the right coin can sell for anywhere between $50,000 and $1 million, but this year Treasury's business coin program is already selling at the explosive rates. In 1986, nearly 1.8 million ounces of gold bullion were sold. The Mint reports having sold 1.1 million ounces by the third week of November this year."
We have some damage control information from Forbes.com:
"Gold Coin Shortage
Heather Struck, 11.25.09, 12:15 PM EST
Don't worry, there's not a shortage of gold, just of equipment for coining it in the U.S.
The United States Mint has a gold problem. As demand for precious metal in the futures indexes and in physical gold bullion coins increases as the dollar weakens, there's been a run on the Mint. Don't worry, there's no shortage of gold. It's just that the Mint doesn't have the resources to make it into coins due to outsourcing and budget cuts decades ago.
The problem lies in manufacturing the blanks. The blank planchets are not made at the Mint, which hasn't had the production capacity for this stage of the minting process since the budget cuts of 1981. The Reagan administration began using private companies, which process and ship the blanks to the Mint's West Point, N.Y. site for stamping and engraving. Today there are three refineries that supply planchets to the Mint: VennerBeck Stern Leach in Rhode Island, Sunshine Minting in Idaho and Goldmark in Perth, Australia
Though some have taken the shortage of gold coins to mean a shortage of gold in general, folks in the industry say it's not a worry. The Gold Bullion Coin Act, which put the coin programs in place in 1985, stipulates that the gold must be mined in the U.S. Johnson Matthey ( JMPLY.PK - news - people ), the London-based company that refines most of the gold that is mined in the U.S., says, "there is no shortage of gold" coming out of the ground these days.
The Mint's Oct. 6 announcement that it would not produce any gold "proof" coins this year is testament to its diminished capabilities. Even 5,000 proofs for the 2009 edition of the American Eagle coin series would offer a limited number to collectors that would still be a particularly rare year for the coin. When questioned by Coin World, a collectors' trade publication, about what would be the first skipped year in two decades for the American Eagle gold coin series, the Mint responded that they were just following the law, which is "to produce bullion coins in quantities sufficient to meet public demand."
The demand for gold bullion being 860% higher than it was a year ago, the Mint has found itself filling that demand with all the gold blanks that it can get its hands on. It is difficult to say how many licensed coin dealers are telling their customers they don't have what they need, but earlier this year, Ute Wartenberg Kagen, executive director of the American Numismatic Society, said she was asked by an investor how one could buy 10,000 coins (they are sold in ounce quantities and three fractional versions below that, at a price that is slightly above market value).
Gold bullion coin prices are normally nothing near the rare coin trade, in which the right coin can sell for anywhere between $50,000 and $1 million, but this year Treasury's business coin program is already selling at the explosive rates. In 1986, nearly 1.8 million ounces of gold bullion were sold. The Mint reports having sold 1.1 million ounces by the third week of November this year."
URGENT: GOLD & SILVER SHORTAGE UPDATE
Letter From APMEX:
Dear XXXXX,
The United States Mint has suspended sales of gold and silver yet again. 2009 has seen an unprecedented demand for the 2009 Gold American Eagles and 2009 Silver American Eagles as investors have clamored to secure their assets and protect their wealth against the rising tide of inflation.
This suspension in sales is temporary as the U.S. Mint continues to produce these highly sought after coins. At APMEX, we have a very limited supply of both 2009 Gold American Eagle and 2009 Silver American Eagle coins in stock and ready to ship. Buy your gold and silver bullion coins now while they are still available in the marketplace.
Mint shortages have traditionally caused a significant increase in premium – however, at APMEX, we still have these coins available at very reasonable prices. Buy your gold and silver coins today before market conditions change more and prices are driven up from excessive demand.
The news from the U.S. Mint comes on the heels of the recent news of gold's all-time highs. It seems like every day, gold reaches a new high! Already this morning, gold reached $1,186.30 per ounce as investors continue to react to major financial news about gold.
News like this will only drive demand and prices higher, and supplies lower. Get your 2009 Gold American Eagle and 2009 Silver American Eagle coins at APMEX while we still have a supply to meet our customer's needs.
Buy your gold and silver online today at www.APMEX.com!
Respectfully,
David McCarty
Director of Marketing
American Precious Metals Exchange
Dear XXXXX,
The United States Mint has suspended sales of gold and silver yet again. 2009 has seen an unprecedented demand for the 2009 Gold American Eagles and 2009 Silver American Eagles as investors have clamored to secure their assets and protect their wealth against the rising tide of inflation.
This suspension in sales is temporary as the U.S. Mint continues to produce these highly sought after coins. At APMEX, we have a very limited supply of both 2009 Gold American Eagle and 2009 Silver American Eagle coins in stock and ready to ship. Buy your gold and silver bullion coins now while they are still available in the marketplace.
Mint shortages have traditionally caused a significant increase in premium – however, at APMEX, we still have these coins available at very reasonable prices. Buy your gold and silver coins today before market conditions change more and prices are driven up from excessive demand.
The news from the U.S. Mint comes on the heels of the recent news of gold's all-time highs. It seems like every day, gold reaches a new high! Already this morning, gold reached $1,186.30 per ounce as investors continue to react to major financial news about gold.
News like this will only drive demand and prices higher, and supplies lower. Get your 2009 Gold American Eagle and 2009 Silver American Eagle coins at APMEX while we still have a supply to meet our customer's needs.
Buy your gold and silver online today at www.APMEX.com!
Respectfully,
David McCarty
Director of Marketing
American Precious Metals Exchange
URGENT: GOLD & SILVER COINS MAY BE IN SHORT SUPPLY
The extent can't be estimated very well but there are reports rolling in that Gold Krugerrands are in short supply and wholesalers are waiting on the South African Mint to ship out more and the US Mint is either out of or having huge difficulties keeping up with demand of Silver American Eagles.
From the US Mint Webpage:
"Update: Due to the continued, sustained demand for American Eagle Silver Bullion Coins, 2009-dated American Eagle Silver Uncirculated Coins will not be produced." (link)
Krugerrand Sources:
Gold Krugerrands Run Out
We will keep you posted as more information comes in.
From the US Mint Webpage:
"Update: Due to the continued, sustained demand for American Eagle Silver Bullion Coins, 2009-dated American Eagle Silver Uncirculated Coins will not be produced." (link)
Krugerrand Sources:
Gold Krugerrands Run Out
We will keep you posted as more information comes in.
BullionStacker.Com - A Growing PM Trading Community
Many people are wondering how they can get into the precious metal market, many people want to know how they can sell their holdings of Gold, Silver, and Platinum; and others just have an interest and want to talk about it. This can all be done at one place, and I must say that it is outstanding.
BullionStacker.com is a fairly new community formed by a group of friends that got tired of how a lot of other forums were managed. It was started with the idea of having a place for people that are serious and passionate about precious metals and give them a no-hassle place to buy, sell, and trade their Gold, Silver, and Platinum. I became a member a few months after it was founded and I have completed many successful trades/sales and have not yet had a problem outside of the USPS being slow, and unresponsive.
What sets Bullionstacker.com apart from other forums? Their main rule is to use common sense; meaning that they don't have a rulebook thicker than your precious metal holdings, they don't charge you for buying, selling, and trading, they have a feedback system in place, and they have a very active membership base. The members will also keep you alerted to hot deals found on eBay, other websites, and in magazines which has provided great buying opportunities, some of which were under spot!
If you are looking for a great precious metal community to learn, to grow, to buy, to sell, to trade, to teach, or to just hang out be sure to check out the guys at BullionStacker.com.
Disclosure: I receive absolutely NO compensation in any way by writing this article, or endorsing the forum at all. I am just a member of the forum that wants to share the opportunity.
BullionStacker.com is a fairly new community formed by a group of friends that got tired of how a lot of other forums were managed. It was started with the idea of having a place for people that are serious and passionate about precious metals and give them a no-hassle place to buy, sell, and trade their Gold, Silver, and Platinum. I became a member a few months after it was founded and I have completed many successful trades/sales and have not yet had a problem outside of the USPS being slow, and unresponsive.
What sets Bullionstacker.com apart from other forums? Their main rule is to use common sense; meaning that they don't have a rulebook thicker than your precious metal holdings, they don't charge you for buying, selling, and trading, they have a feedback system in place, and they have a very active membership base. The members will also keep you alerted to hot deals found on eBay, other websites, and in magazines which has provided great buying opportunities, some of which were under spot!
If you are looking for a great precious metal community to learn, to grow, to buy, to sell, to trade, to teach, or to just hang out be sure to check out the guys at BullionStacker.com.
Disclosure: I receive absolutely NO compensation in any way by writing this article, or endorsing the forum at all. I am just a member of the forum that wants to share the opportunity.
A Case For Stockpiling: Should Food Be In Your Portfolio?
I know, it sounds weird to think about but should you consider food in your portfolio? Not companies that produce food like Conagra and Kraft, but actual literal, bust open the can and heat it up food. I am being slightly facetious as I know it is not considered an investment by any orthodox standard, but think about it. It has all of the fundamentals stacked against it: Increasing wages, increasing transport cost, increasing population, scarcity, susceptible to natural disaster, inflation, and the slightest disruption in the supply chain and the price shoots up nearly over night!
Consider: very few cities are well equipped for food production. Nearly the entire population depends on large truckloads of food to be delivered to super markets on a daily basis! Consider all of the above examples such as scarcity, susceptibility, and it is a surprise that crises do not occur on a daily basis in the same places. What am I getting at? Well, in case you have been asleep at the wheel, America is not getting more stable.
Just yesterday the FDIC admitted to being in the red by 8.2 billion, droves of people watch FDIC.gov every Friday to see if they have won the "How many banks will fail tonight" bet, Eliot Spitzer just called the Fed a ponzi scheme, China is angry at our fiscal policy, senators are calling for Timothy Geithner to step down, California is basically printing their own currency, Iran and Israel are going at one another like Spy vs. Spy, Gold is at new highs, 14.1% of ALL US mortgages are either in foreclosure or delinquency, and half a million Americans lose their jobs each month. If you think that sounds stable then I will have a drink of what you're having.
So, by stocking up on non-perishable food, you could avoid inflation, the additional transportation cost (fewer grocery trips), panic buying during disaster, waiting for trucks to bring stuff in, and a few other things that make this proposition look mighty tempting. It is just an idea to consider.
Consider: very few cities are well equipped for food production. Nearly the entire population depends on large truckloads of food to be delivered to super markets on a daily basis! Consider all of the above examples such as scarcity, susceptibility, and it is a surprise that crises do not occur on a daily basis in the same places. What am I getting at? Well, in case you have been asleep at the wheel, America is not getting more stable.
Just yesterday the FDIC admitted to being in the red by 8.2 billion, droves of people watch FDIC.gov every Friday to see if they have won the "How many banks will fail tonight" bet, Eliot Spitzer just called the Fed a ponzi scheme, China is angry at our fiscal policy, senators are calling for Timothy Geithner to step down, California is basically printing their own currency, Iran and Israel are going at one another like Spy vs. Spy, Gold is at new highs, 14.1% of ALL US mortgages are either in foreclosure or delinquency, and half a million Americans lose their jobs each month. If you think that sounds stable then I will have a drink of what you're having.
So, by stocking up on non-perishable food, you could avoid inflation, the additional transportation cost (fewer grocery trips), panic buying during disaster, waiting for trucks to bring stuff in, and a few other things that make this proposition look mighty tempting. It is just an idea to consider.
FDIC: You're Money Is Insured, Really It Is!
The FDIC is officially broke (not much of a surprise) with -8.2 billion dollars. This just after Sheila Bair made this video assuring everyone that their money is safe and sound. To be fair, at the time of that video the FDIC had roughly 10.4 billion in their fund. So, let's assume that the fund rate of decline would continue at 50% of that amount over the next year. The fund would roughly have: -26,800,000,000. So, this should have you wondering: how is my money insured? Any rational person would surmise that they are backed by the full faith and credit of the US Government!
That doesn't sound like an unfair shake, and it's true too! So all is well right? Wrong. What is the full faith and credit of the US Government worth? Treasury Direct has that answer: -12,011,838,881,463.68. That is negative twelve trillion dollars. So if the FDIC is insuring your money but they are out of money, and the US Government is backing the FDIC, but they are out of money, then that begs the question AGAIN: how is MY money being insured? I can't answer that question for you, and I'm sure few others could provide a correct answer.
That doesn't sound like an unfair shake, and it's true too! So all is well right? Wrong. What is the full faith and credit of the US Government worth? Treasury Direct has that answer: -12,011,838,881,463.68. That is negative twelve trillion dollars. So if the FDIC is insuring your money but they are out of money, and the US Government is backing the FDIC, but they are out of money, then that begs the question AGAIN: how is MY money being insured? I can't answer that question for you, and I'm sure few others could provide a correct answer.
ICE Cancels "Impossible" DXY Trades
So ICE cancelled 4,000 contracts earlier this morning (11/20/2009) but they also cancelled similar contracts that occurred on 11/3/2009. Specifically they cancelled 8,000 on 11/3/2009. I find it ironic that two sets of "impossible" trades occurred this month. Could it be that the investors on 11/3/2009 got shut down so they tried to sneak in under the radar at half the number of shares?
Could this be a sneaky way for some traders to spread a broader message of what is going to happen in the future (I know, wishful thinking)? All I know is that the cancellations that occurred cost people money, and we should continue to watch this story as it develops because there could be a lot more meaning to this then is first apparent. Tread carefully my friends, there are some mighty big forces at play here.
Zero Hedge: ICE Cancels DXY Trades After "Impossible" Action Moves Index 9% Higher, $ Plunge Enforcement Team Arrives At Crime Scene
Could this be a sneaky way for some traders to spread a broader message of what is going to happen in the future (I know, wishful thinking)? All I know is that the cancellations that occurred cost people money, and we should continue to watch this story as it develops because there could be a lot more meaning to this then is first apparent. Tread carefully my friends, there are some mighty big forces at play here.
Zero Hedge: ICE Cancels DXY Trades After "Impossible" Action Moves Index 9% Higher, $ Plunge Enforcement Team Arrives At Crime Scene
