Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

Now Royal Canadian Mint rationing silver coin sales

IMG Auteur
Published : January 25th, 2013
688 words - Reading time : 1 - 2 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : GoldWire

Silver demand looks to be running at particularly high levels in January as the Royal Canadian Mint follows US example and begins rationing sales of its Silver Maple Leaf coins. 

Author: Lawrence Williams
Posted: Thursday , 24 Jan 2013
LONDON (Mineweb) -

Is there a shortage of physical silver available, or have the official North American mints which sell silver coins just heavily under-estimated demand – or, as GATA suggests, is this another ploy to make sure demand for bullion is kept under control as a way of helping prevent a physical shortage developing on the commodity markets by putting a choke on demand and thus suppressing the metal price?  While we tend to discount the latter as GATA just finding another factor to support its gold, and now silver, price suppression position, either (or both) the former reasons would seem to fit the current halt or suppression of silver coin sales by two of the world’s largest official mints.
As Mineweb readers will be aware, the U.S. Mint announced that it had suspended sales of its Silver Eagle coins around a week ago following enormous early-year demand (see Over 6 million Silver Eagle bullion coins sold already this year) and would only be able to start supplying authorised dealers again, on an allocation (rationing) basis, from next week.  Now a report by precious metals analyst Jason Hamlin in goldstockbull.com notes that the Royal Canadian Mint announced yesterday that it too was having to ration its sales of its popular Silver Maple Leaf coins.

As the U.S. Mint article we published suggests, demand for silver bullion coins has been virtually unprecedented and, we assume, it had not sourced enough silver blanks to meet new demand for this extremely popular way for the individual investor to hold physical silver on its release of the 2013 coins.  It now looks as though the Royal Canadian Mint too is seeing tremendous demand – perhaps as a knock-on effect of the U.S. Mint’s sales suspension - with dealers in North America looking to source coin supplies from Mints in which its customers have full confidence.  This is not to say that there are not other mints around the world which are perfectly reliable sources of premium silver bullion coins, but the North American investor obviously prefers to stick with their local official coin suppliers and it the U.S. Mint can’t provide enough to meet demand then perhaps the Royal Canadian Mint coins will do as a substitute!

Although some U.S. Silver Eagles and Canadian Maple Leafs may remain available through dealers who had built up their own stocks ahead of the suspension and rationings, naturally the premiums charged on the coins will have been rising, particularly on Silver Eagles.

These should reduce again should the allocation quotas be removed if demand falters, but there are also other indications that silver demand in particular is currently running at very high levels indeed.  Reports suggest particularly strong demand from areas like India and China where precious metals ownership and giving is inbuilt into the psyche and where gold prices are perhaps running too high for many individuals to buy what they see as meaningful weights of metal.  Silver ETF inflows too are also seen to be at exceedingly high levels.

Even so there is, as analyst Ted Butler makes a particular point of reiterating in his commentaries, a huge short position overhang in silver on COMEX, which appears to make the market particularly vulnerable to manipulation by major financial entities with seemingly bottomless pockets.  Whether the burgeoning demand for physical silver can overwhelm the potential mega-losses of the short position holders with a significant price surge remains in doubt unless, and until, these mega short positions are unwound, which doesn’t look to be likely to happen any time soon.
Source

Data and Statistics for these countries : China | India | All
Gold and Silver Prices for these countries : China | India | All
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
All the stuff you don't want to know about, but should. And, when you do know, you realize that for the present you are powerless to change it This article is brought to you by the Charleston Voice E-mail List. To subscribe FREE to the distribution list, send an e-mail to the author with 'SUBSCRIBE' in the subject line.
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
MOST READ
How To Buy Gold Or Silver - Trace Mayer - Run to Gold  (10)
March 27, 1980 : Silver Thursday, or the end of the The Hunt Brothers Story - History of Silver - Playboy  (4)
The US Constitution and Money - Michael S. Rozeff - Mike S. Rozeff  (7)
The Gold Bug (Edgar Allan Poe) - Treasures and Gold Fever - Edgar Allan Poe  (13)
Most commented articles More... 
TOP RATED
The Gold Bug (Edgar Allan Poe) - Treasures and Gold Fever - Edgar Allan Poe  (13)
Discovery of Governmentium, the heaviest known element - Food for thought - Hat Trick Letter  (16)
The US Constitution and Money - Michael S. Rozeff - Mike S. Rozeff  (7)
How To Buy Gold Or Silver - Trace Mayer - Run to Gold  (10)
Most commented articles More... 
MOST COMMENTED
100 Items That Disappear First in a Disaster - Beans Bullets Bullion and Bible - 24hgold  (17)
Most commented articles More... 
Latest Comments
‘Real’ Performance Comparison
26 MarChristopherbalz
Question: In the method of figuring inflation referenced, what is the rationale for adding population growth to productivity growth? Sugge...
100 Items That Disappear First in a Disaster
23 Markevthorne
68, 69 probably not that safe - particularly if you're growing your own vegetables - keep a Maine Coon cat instead: does the job automatically.
Farage Interviews Le Pen: “Prison of the EU”
21 Marneville1
BRITANNIA RULES THE WAVES AND NOW BREXIT WAIVES THE RULES. GO FOR IT FRANCE AND RID YOURSELVES FROM THE CHAINS OF IDIOTS. NOT SIN...
How the Fed Operates — And Why It's a Problem
20 Marramasart
In a nutshell, the Fed facilitates the theft of the value of the dollar, as they can control the increase in supply which at the same time inverts ...
How the Fed Operates — And Why It's a Problem
20 Marneville1
With all due respects for outlining how the crooked american Fed works or should work. From all our research we find the following the Fed...
Sparta - Gold prohibition in a collapsing economy
18 Markevthorne
You've answered none of the authors points: your comment is flat rubbish.
America Too Broke to Fix Crumbling Infrastructure? “Bridges, Roads,...
16 MarCameron Waugh1
Just like the leaders of the Bolshevik revolution were not Russians, those formulating belligerent US foreign policy are not Americans, and they ha...
POTUS at SOTUS
16 MarDRGEORGE1
Try explaining that to my patients dying on public waiting lists or getting ripped off by exorbitant private specialist fees!
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS