Silver Coin and Bar Demand causes bottlenecks and supply delays – states the Silver Institute

Silver Coin and Bar Demand causes bottlenecks and supply delays  – states the Silver Institute


Welcome to illuminati Silver, we tell you
the truth about silver. Today is Tuesday 13th October 2015 and we
are producing this video to read and interpret the Silver Institutes announcement about coin
and bar demands and shortages. Today, the Silver Institute has issued an
announcement concerning their findings on silver coins and bars. We wanted to report
this to you, as we have often said previously; we want you to receive details of all sides
of the precious metals debate. This is exactly what they have said:
“Retail investors in recent months have seized the opportunity to significantly increase
their holdings of silver bullion coins and, to a lesser extent, bars. Due to strong demand,
the U.S. Mint, the Royal Canadian Mint, Australia’s Perth Mint, the Austrian Mint and the British
Royal Mint have put their silver bullion coins on allocation, where the volume of distribution
of coins is controlled due to bottlenecks in the manufacturing process. This is an unprecedented
industry-wide phenomenon. In recent history, putting bullion coins on allocation has only
occasionally been done by the U.S. Mint. The practice points to considerable tightness
in the silver coin business at the moment. Globally, silver bullion coin sales reached
an all-time high of 32.9 Moz in the third quarter of this year, according to GFMS Thomson
Reuters data. This volume was a 74% quarter-on-quarter and 95% year-on-year increase. Sales in North
America, Europe, Japan and other Asian countries (predominantly China) saw quarter-on-quarter
growth of 74%, 72%, 95% and 202%, respectively. As a result, lead times for silver coins have
been stretched from immediate delivery to 3-4 weeks in some cases. This is an unusual
occurrence in the industry, with several dealers stating this is the first time they have experienced
lag times for certain coin products. Additionally, the shortage is apparently both a supply and
demand issue. While demand is very strong, given the slow global economic outlook and
attractive silver price, the mints are finding it difficult to source the blanks needed to
produce the coins. “It is clear that investors are continuing
to demonstrate their desire for silver bullion coins and we encourage national mints across
the globe to examine their manufacturing pipeline to ensure that this strong demand is met with
immediate fulfilment,” stated Michael DiRienzo, Executive Director of the Silver Institute.
Silver bars are also experiencing a slight shortage, although confined to bars under
100 ounces, specifically one ounce and ten ounce bars. Delivery times have increased
from immediate to a 10 day delay in the most extreme cases, especially in the U.S. and
Canada. The increase in demand in recent months has been primarily driven by bargain buying,
particularly after prices fell below US$15/oz. The demand remained buoyant when prices reverted
back above US$15/oz, however, as shortages in products spurred ever more investor interest
in the white metal.” So what is the Institute really saying? Well
it is pointing out that there is demand for silver coins and bars below the $15 level,
and this is important to note. It has also referred to a bottleneck in blank production
because of this demand, and it is basically urging mints and blank manufacturers to look
at their operations to cater for such eventualities. Now this to us is the most important point
to bear in mind. Demand and supply for 1000 oz bars – which are the commercial bars
– has not been unduly affected, only the smaller bars. Why is this important, well
as we have indicated before, if there were a true silver shortage, this would show up
in terms of the availability and price of 1000 oz commercial bars. So far these have
been readily available, and it is this that tells us, silver is not in short supply. Of
course our view will change, should 1000 oz bars become scarce or premiums rise on them
significantly. So what does all this mean, well, it suggests
that below $15 silver is seen by many retail investors as a good opportunity for purchase.
However, please bear in mind, do not be persuaded to pay high premiums or to panic should prices
rise a little, especially when pumpers suggest there is a shortage – there is not- but
a bottleneck does exist, which can eventually be relieved. Of course, as we have always
maintained, a major ‘black swan event’ can change the landscape, but assuming one
does not occur, there is adequate silver supply to meet demand, although the blank production
may cause delays in supplying it in a timely fashion.
We hope you have found this video helpful and informative, and would appreciate it if
you would give it a thumb up, comment and if you haven’t already done so please subscribe. Disclaimer: Silver Illuminati owners come from a background
of Banking, International Wealth Management and Economics. Having now retired from these
worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of
its owners.

28 Comments

  1. unfortunately the retail dealers and general public will be the absolute last ones to know if a wholesale shortage is developing and by then unfortunately it will be too late

  2. Still much appreciative of the channel! While still watching this video ( 2015-10-13 @ 3:45 CST) I opened another window to see just what a 1000 ounce AG would be. Site i chose was APMEX a rather well known and not too sexy of a site. To be sure bars were being offered but the premium was $.49 over spot or about 3%. However… COMEX deliverable bars were … "Currently out of stock".
    In the video you noted that you may change position if the premium were to rise.. but you failed to state the nominal and elevated premiums … is 3% ok? 4%… what is the break point?

    PS: to me a 3% premium on a 1000 oz bar seems high, esp on a non- COMEX deliverable, which is pretty il-liquid.

  3. So does that mean that you do not think that Precious metals are good investment then? The over spot prices are getting really high I got a couple PhilHarmonics for $3 over spot.

  4. High premiums are keeping me away. If I never buy another ounce that's fine with me. Once premiums fall again, I'll be interested, but there's no way that Silver Eagle is worth $4 in premiums.

  5. Unfortunately, this is just another merry-go-round. People loading on the premiums while the Youtubers start drivelling on about collapse and how precious metals will be the next 'currency'. High premiums kill the whole idea for collecting PM's in the UK at least. If anyone is really worried about some sort of collapse then your money , perhaps, would be better invested in Freeze dried foodstuffs. I have seen this whole process repeated many times over the past thirty years.
    Demand is slightly higher than supply. It's the same threat to humanity as my local pastry shop running out of croissants every Sunday Morning around 12 noon….it can drive a man to distraction.

  6. I suggested in comments on "Greg Hunter" video your previous video on Perth Mint saying there is no shortage of silver and he shadow banned me.
    Shadow banning is when the video maker does not allow others to see a comment, but I still can. One has to have a second channel to find out if your comment is not visible to others, and of course no thumbs up or replies to a comment that has been shadow banned..

  7. I'm still crossing everything I've got two of that we don't see that dead bird any time soon…it's just too close to thanksgiving…still coming out from under that L-Tryptophan haze… d;o)

  8. As an aggressive silver purchaser, I find it much more manageable to buy silver in smaller quantities. Over the past year I have been able to accumulate 3000 oz while never purchasing more than 100 oz at a time. This makes for a very discreet but steady accumulation. I would never buy a thousand oz bar for 2 reasons. One, all thousand oz bars are registered and tracked so being discreet is out of the question. Two, many dealers don't like to handle the 1000 oz bars because they don't sell as well as the smaller quantities plus the liability of laying out all that money and lugging the bar around. I found this out after I tried to sell my silver back in 2011 when the price was 40.00 an oz. Nobody wanted to buy a $40,000.00 giant hunk of metal. Those bars are made specifically for industrial use and many of the coin and bullion shows that I attend don't have any on display. Many of the dealers fly in to these shows and the cost of getting it there and having to take it home if it doesn't sell is not cost effective Also the average guy who is trying to accumulate some silver doesn't have 16 to 18 thousand dollars lying around. Anybody with that much disposable income is usually buying Gold. I think you're off base about the silver shortage and the reason behind the available thousand oz bars, but that's just my personal experience.

  9. While I agree there is no shortage of silver, the fact that there is such heavy retail demand implies that faith in our economic system is faltering. Maybe not that there will be a collapse, but many people wonder if they will even have a job in the future. I think the recent buying spree comes from a "get while the getting's good mentality" by those who have no faith in our government leaders. Their number are growing day by day.

  10. My seller hasnt sold as much as last 2 3 months and i needed to wait 3 weeks for a couple of Philharmonic 1oz coints,but if mints can buy 1000 oz bars and melt them why dont they if they have a profit of a few cents per produced coint?

    Like if u can produce much and the demand for ure product is high,its weird to not produce in our open free market capilist econemy..

    And yes i think there isnt a shortage but if all sellers get more and more clients globaly one day there be a shortage..Cause none new silver is been made by the earth whats there is there and thats the pie we humans need to share..

  11. Great points & I would add, that as the perceived shortage being pumped instead of the 'bottleneck' which you rightly point out, I believe we will continue seeing a separation between the paper price and the physical price as we continue the 4th quarter 2015 indices & currency meltdown going well into 2016 and beyond.
    Thanks for the upload & appreciate your efforts to keep us informed.
    Cheers from Oz (Australia)

  12. it was noticed last year premiums were going up, before coming back down again. One has to be careful and ALWAYS check premium over spot before buying. I also check the Gold to Silver ratio purchasing.

  13. There will be a major economic crisis in the US at some point. To say that there is no chance of a collapse of some kind is just wishful thinking. There is no way that a country with the horrible fundamentals that the US has can survive longterm as the economic superpower. Historically, it never has happened with other countries/emptied and America is no exception. That said, people need to prepare cautiously and not do panic buying. It's not worth it to pay high premiums on silver. Best to wait for production to catch up in a couple months and premiums to fall back down. Best to keep buying low to protect investments. People should also make sure they have other areas covered too, like paying off debt, food storage, protection, etc. But again, do these things reasonably so and don't fret over what those who are selling metals are telling you. There most likely won't be a collapse tomorrow. In all likelihood, we probably have a few more years worst case unless a major war breaks out.

  14. There is no real shortage of silver or gold compared to societys desire for both metals . Any shortage of silver " blanks"  , is being done on purpose for a desired effect .  I wont touch silver when there is a $4 premium over spot.

  15. why is it that when the silver price goes down that is supply and demand but when physical premiums rise it's just greedy dealers the premiums are what they are because that is the price people are willing to pay which is a true free market

  16. Your graph shows a low point for the premium in mid May of this year. Silver was at $17.71 on May 15, 2015.                             Today, silver is at $16.10. The premium percentage basically doubles while the spot price drops by $1.61??? WTF???

  17. In my opinion, this is one of the most valuable videos I have watched in sometime pertaining to AG. I actually sold some AG today to be able to increase my purchasing when the price drops. (assuming this thought line is correct.) If you guys get this right, I will owe you all…However many members of IS there are… A big old Cuban cigar!

  18. Following these arguments, we could also say something like, "There's no shortage of Germany's gold in the NY Fed, they simply need an additional 7 years to source the metal." Delays have the potential to be the opening round of default. Unlike say a commodities contract, a retailer can tell a buyer to wait, while a contract has a specific deleiver date. So, what we've seen is a drastic price increase if you want to source your metal in the short term, the price only remains low if you're willing to wait and hope it's just a delay and not a default.

  19. 03:20 “It is clear that investors are continuing to demonstrate their desire for silver bullion coins and we encourage national mints across the globe to examine their manufacturing pipeline to ensure that this strong demand is met with immediate fulfillment,” stated Michael DiRienzo, Executive Director of the Silver Institute. "

    I agree sounds like he is saying get the goods out to the people while we have them on the line.

  20. Dear sirs at Illuminati Silver. just in case you missed the question ( as there are so many posts). comex silver inventory now stands at abt 42million ounces for the registered category. there are also 120million ounces in the "eligible " category.

    may i know your opinion at what levels will you be concerned and agree there is a supply shortage.

    thank you again for this channel and your time and efforts.

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