And I believe that is indicative of the state of the economic climate. Individuals are attempting to get into precious metals, but they believe gold is too high. I believe they’re purchasing silver because they understand the fundamentals for owning gold also apply to silver. They believe the profit possible is better in silver, too. This has really produced the supply for gold better than it's for silver right now, and a lot of that has to complete with price.
You will find only 5 significant mints - U.S., Canada, South Africa, Austria and Australia. Yes, there's a Chinese Mint along with a couple Swiss Mints and some private refiners, but they amount to very small in the overall scheme of issues. We’re in a scenario exactly where the mints are limiting the choice and raising the premiums, and this really is occurring at a time when many people own no bullion. As it becomes more apparent that individuals want bullion rather than paper dollars, I believe you will see premiums go parabolic and supply gets even tighter.
There's no secondary marketplace. Completely none. Nobody is selling back something, a minimum of not to us. Believe about that: if this was a conventional investment and your portfolio went up 100% in the last year, like silver has, you’d believe some investors would take some earnings and ride the rest out, but nobody’s selling something. This really is why I believe the lack of supply will be the single greatest issue in this marketplace. And in time, I believe it'll turn out to be significantly more apparent. Go here now to http://www.silver-
When talking about silver Eagles, “You know, as soon as the allocations come in, they’re sold out. We can’t maintain them in.” This really is coming from one of the largest distributors of U.S. Mint goods in the country. And this really is all occurring in an atmosphere that has only minimal participation by the masses. Very few individuals in this country have ever even held a gold or silver coin. So, if it is this challenging to get bullion now, what’s it going to become like when it becomes evident to the masses they need to purchase? This really is what keeps me up at night.
But in reality, it has been my feeling since late 2007 that ultimately this marketplace will probably be defined less by the price going parabolic - which I believe ultimately will occur - and more by a lack of supply. You see occasional reports that state it is just a lack of refined silver or lack of silver in investable form. But as far as I’m concerned, there's a significant supply deficit issue, and it is getting worse.
Take the U.S. Mint, for instance. Right now, as we speak, you are able to barely get silver Eagles. We’re seeing delivery delays of 3 to 4 weeks, and premium hikes of a dollar or more in the last 3 weeks. Most of the suppliers in the country are reluctant to take big orders on silver Eagles because they do not know (a) when they’ll get them, and (b) what the premiums will probably be once they arrive.
In the event you look in the precious metals charts, they show the net purchasing and selling of investors; and you'll notice that while purchasing has jumped tremendously in current years, it is nonetheless 36% beneath the 1980 high. This information consists of the ETF goods introduced over the past couple of years. And maintain in thoughts that the international population is roughly 57% higher!
Silver is nowhere near its inflation-adjusted high, and investment demand, while powerful, is far beneath its prior peak. These two elements paint a clear picture about silver’s price possibilities:
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Silver Dollar is really a well-loved commodity among collectors. Several discovered collecting the Morgan and Peace silver dollars to be profitable.