Market Curiosity: Exploring Markets And Systems

March 19, 2011

Quick silver “shortage” update

Filed under: Just Watching — Tags: , , , — Jeff Fitzmyers @ 10:44 pm

Harvey Organ: I would like to point out, that 4,445,000 oz of silver that remains to be served is huge with about 9 trading days left. Approximately 500,000 oz of silver must be served on average for the next 9 days…. The commercials that have been long in gold added a monstrous 15,427 contracts to their longs.
And the commercials that have been perennially short gold, covered a huge 11,883 contracts to their short positions… And our famous bankers, JPM (Blythe) and HSBC covered some of their shorts to the tune of 1560 positions.

Jason Hommel: Several of our suppliers are short of silver now, due to overwhelming customer demand. We also, at the JH MINT, had a record week last week.

Two of our best Silver Eagle suppliers have been sold out for a week. One might have them in again in about two weeks, but that’s not guaranteed.

Our 10 oz. bar supplier is backordered now, with a two week delivery time.

Our 100 oz. bar supplier has raised prices.

We can still buy 90% junk bags and 1 oz. rounds and get them in a few days, but prices to manufacture 1 oz. rounds just increased.

All of our silver is available for immediate delivery, we still ship the same day your wire comes in, but our prices have increased to reflect the delays and price increases for us to replace those products.

Our price for 90% junk silver bags remains low at 3.7% over spot, but I don’t know how long that bargain may last in this hot market. Once 90% silver sells out at the supplier level, it gets very difficult to source in quantity, since coins dated 1964 or earlier are not being made anymore. In fact, we have not been able to buy Silver Dollars from any wholesalers since we started dealing in late 2008.

We can also source 1000 oz. bars with a 5 day delivery wait, which is excellent and fast.

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