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June 6, 2008

MEMORANDUM TO ALL AMERICAN EAGLE AUTHORIZED PURCHASERS

FROM: Cathy Laperle
Team Lead, Bullion Program
United States Mint

SUBJECT: American Eagle Silver Bullion Coin Update


The United States Mint has been informed by its silver blank vendors
that the volume of blanks they will be shipping to us in the coming
weeks will be significantly reduced. Specifically, the quantities they
will ship to us during the week of June 9 are expected to be less than
half the quantities they shipped to us during the week of June 2. Our
vendors, however, expect to be able to make incremental increases in
supplies each week thereafter. In the mean time, the significant
reduction in the number of blanks they supply to us will, of course,
directly affect the quantity of coins we can make available for
allocation to our Authorized Purchasers. Accordingly, the United States
Mint will continue allocating American Eagle Silver Bullion Coins per
the process initiated on April 21, 2008.

As you know, in the first six months of 2008 production, the United
States Mint produced more American Eagle Silver Bullion Coins (10.07
million) than we did during the entire 12-month period of 2007 (9.03
million). The United States Mint stands ready to continue this high
level of production as additional blanks become available from our
suppliers.

The United States Mint is making every effort to increase its
acquisition of silver bullion blanks that meet the specifications and
requirements of the law. In our efforts to meet unprecedented demand,
the United States Mint is again preparing a request for proposals (RFP)
for additional silver blank suppliers. Additionally, we are not using
incoming supplies of silver blanks to produce numismatic versions of
these coins (American Eagle Silver Proof and Uncirculated Coins); all
incoming inventory is being used solely for silver bullion coins during
this reduced supply period.

Thank you for your patience and your continued support of the United
States Mint American Eagle Silver Bullion Coin Program.
Click to expand...

http://www.davidicke.com/forum/showthread.php?p=380978
 
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=+2]
[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=+2]Silver has Run Out, Now![/SIZE][/FONT]

[FONT=Verdana, Arial, Helvetica, sans-serif]By: Jason Hommel, Silver Stock Report[/FONT]


[FONT=Arial, Verdana, Helvetica, sans-serif][FONT=Verdana, Arial, Helvetica, sans-serif]-- Posted 20 August, 2008 | Digg This Article | Discuss This Article - Comments: 3[/FONT]


(Just try to find some!)

Silver Stock Report

For a long time, people have been asking me, "When will silver run out?". They know that the world uses up more silver each year (about 850 million ounces) than the world mines (about 600 million ounces), and that existing demand can only be met by selling existing inventory (such as recycling 200 million ounces, or goverments selling 50 million ounces), so it's a natural question to ask. The question is not implying that mankind will be unable to mine any more. Rumor is that there remains at least about 14-16 years of silver in the ground at "current" prices; while at much higher prices, silver mining becomes more economic, and more deposits can be added to that "in ground" reserve number.

So, the question is really just asking, "When will we run out of "excess" above ground silver that can meet the supply/demand gap, so that the price will begin to really take off upwards?" Clearly, the world has silver in supplies above ground, and such silver supplies are dwindling in order to meet the supply/demand gap. About two years ago, the world started adding to above ground silver supplies as silver investors started buying, (and the silver surveys label investor buying as a "surplus". However, silver recycling was still greater than new stockpiling, which continued to deplete overall silver supplies.

[/FONT]
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http://news.silverseek.com/GoldIsMoney/1219250737.php[/SIZE][/FONT][FONT=Arial, Verdana, Helvetica, sans-serif]
[/FONT]
 
Reuters
Mint suspends red-hot Eagle gold coins
Thursday August 21, 4:46 pm ET
By Frank Tang

NEW YORK (Reuters) - A shortage of American Eagle bullion coins due to soaring demand following a recent sharp retreat in gold prices has forced the U.S. Mint to temporarily suspend sales of the popular coins.
"Due to the unprecedented demand for American Eagle gold one-ounce bullion coins, our inventories have been depleted. We are therefore temporarily suspending all sales of these coins," the U.S. Mint told authorized coin dealers in a memorandum dated on Friday.
Michael White, a U.S. Mint spokesman, said that only the one-ounce 22-karat American Eagle coins are sold out, but the half-ounce, quarter-ounce, and 1-10th ounce coins as well as the less popular 24-karat American Buffalo coins are still available.
"We are working diligently to build up our inventory and hope to resume sales shortly," the Mint said.
Coin dealers from the United States to Canada reported a surge in buying of bullion coins and other gold products since prices plummeted from highs last month. The buying spree contributed to supply fears and helped boost gold prices sharply on Thursday.
Rand LeShay, senior vice president of Los Angeles-based A-Mark Precious Metals, an authorized purchaser for the U.S. Mint, said that there was a big spike in demand for gold and silver coins and ingots after a recent price tumble.
He said that A-Mark currently has no one-ounce American Eagle gold coins for its customers.
"Until the U.S. Mint can supply us with more coins, we won't be able to supply any to our customers," LeShay said.
The move by the U.S. Mint to halt sales caught market participants by surprise as it came at a time when the metal was sharply falling, rather than rising.
In contrast, the Mint needed to allocate its Silver Eagle coins to dealers due to overwhelming demand as the price of silver soared earlier this year.
Produced from gold mined in the United States, the American Eagles have been novel items among collectors and investors since their introduction in 1986. Each coin has a face value of $50 but it is sold by authorized dealers at a premium to the price of gold.
COIN DEMAND SPIKES
Blanchard and Co., one of the largest U.S. retail dealers of rare coins and precious metals, said the American Eagle and American Buffalo one-ounce gold coins are sold out.
"Nobody has the Eagles or the Buffaloes right now. We bought 2,000 ounces late last week, and those were the last 2,000 ounces that we can find in the marketplace," said David Beahm, vice president of New Orleans-based Blanchard.
"If we don't have them, nobody has them," Beahm said. He added that he has been recommending customers to buy the one-ounce Canadian Gold Maple Leaf gold coin instead.
Jon Nadler, senior analyst at top Canadian dealer Kitco, said that the shortage of the Eagle coins could be due to a combination of high demand and a temporary lack of supply in coin blank, which is a flat metal disk used to mint coins.
On Thursday, spot gold surged as much as 3 percent to $839 an ounce, while U.S. gold futures for December delivery scaled a one-week high at $845 an ounce. Gold hit a five-month peak of $987.75 on July 15, and it set an all-time record of $1,030.80 on March 17.
In hindsight, A-Mark's LeShay said that neither the U.S. Mint nor the coin dealers could anticipate the coin shortage.
"This kind of spike in demand is something no one can foresee, and no business runs itself waiting for this to happen," LeShay said.
(Additional reporting by Jasmin Melvin and David Lawder in Washington; editing by Jim Marshall)
 
Show-me said:
All of my normal silver suppliers have suspended sales of ALL bullion including generic rounds and bars. ALL PHYSICAL BULLION SALES SUSPENDED. This is very, very, very unusual.

eBay is the only place to find it and they are very high right now, I guess because all of the normal suppliers have dried up.
Click to expand...
It's those damn Hunt brothers again. :)

Remember this?... http://www.buyandhold.com/bh/en/educ...hunt_bros.html
 
One story I read speculated that some of the supply dry up was due to the SLV ETF, but many other articles and the US Mint claim personal ownership of mint coins as the cause.
 
Also, a few years ago I read about Warren Buffet and Bill Gates both having large positions in physical silver. That is what got me interested, that and the coins that were stored under the Twin Tower when 911 happened.
 
Show-me said:
One story I read speculated that some of the supply dry up was due to the SLV ETF, but many other articles and the US Mint claim personal ownership of mint coins as the cause.
Click to expand...

I'm trying to make sence of this?

If there is a perceved shortage of silver, then why is SLV falling down to new lows? It's almost at it's low of Sep 07?
I understand how the dollar can be beating it down, but still if there is a supply/demand issue shouldn't this take priority over the strength of the dollar?
 
JTH said:
I'm trying to make sence of this?

If there is a perceved shortage of silver, then why is SLV falling down to new lows? It's almost at it's low of Sep 07?
I understand how the dollar can be beating it down, but still if there is a supply/demand issue shouldn't this take priority over the strength of the dollar?
Click to expand...

I wish I understood this one too. Bad thing is the writing was on the wall as Oscar pointed out. I should have listened, but I have a serous addiction to silver. Also, silver never reached the expected highs of many silver traders.
 
Show-me said:
Ask me how you can make money on this.
Click to expand...

Here is the chart we did in early February. We can see prices are now above the previous Head & Shoulders neckline. I took a position in precious metals in March, and thus far I've been very pleased with its performance.

View attachment 8940
 
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JPMorgan, HSBC Sued for Silver Manipulation

The lawsuit, which seeks class action-status, alleges that ” between in or about March 2008 and continuing through the present, Defendants have combined, conspired and agreed to restrain trade in, fix, and manipulate prices of silver futures and options contracts traded in this District on the COMEX division of the NYMEX. Defendants thereby have violated Section 1 of the Sherman Act, 15 U.S.C ¶1. Also during the Class Period, individual Defendants have intentionally acted to manipulate prices of COMEX silver futures and options contracts. Such conduct violates Section 9(a) of the Commodity Exchange Act, 7 U.S.C. ¶13b.”
Click to expand...
http://www.goldalert.com/2010/10/jpmorgan-hsbc-sued-for-silver-manipulation/
 
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