Widespread Shortage of Silver Bullion
Strangely enough, physical silver became very scarce last week right smack in the middle of a dramatic 20% decline in the spot price for silver and related futures contracts. In follow-up to the article linked above, I would like to list some of the sources of information.
Bulliondirect.com, a major online vendor, has the following posted to their homepage as of this writing (8:30pm Monday evening).High Activity Market Alert
The precious metals industry is experiencing a substantial surge in activity which may increase the possibility of logistical delays; including customer service response time and product processing (incoming and outgoing). Our goal is to keep our prices competitive while still delivering an exceptional transaction experience.
Kitco.com, another well-known, high-volume bullion dealer, had the following to say:
IMPORTANT:Due to the volatility of the market, we are experiencing a significant increase in the volume of shipments going out. Although Kitco and our depositories are working hard to stay on top of this, you may experience a delay in your order being processed by our vault, and sent out to you. We apologize for any inconvenience this may cause, and appreciate your patience and understanding.
California Numismatic Investments, at the time of this writing, reveals on its site that it is out of all silver bullion products... even 500-coin boxes of US Silver Eagles! All they have laft are $12,000 bags of junk silver and boxes of Peace Dollars (.90 Purity).
THE MOST POPULAR SILVER BULLION
Premium Quality-$2000 Order Free Shipping
Our Buy Price
Our Sell Price
$1000 Face 90% Ave Circ Silver Coin Pre-65 (715 Oz)
$1000 Face 40% Ave Circ Silver Halves (295 Oz)
100 Oz Johnson Matthey/Engelhard Bars (.999 Fine)
1000* Oz Comex Acceptable Bar (.999 Fine/Per Oz)
1 Oz Generic Silver Rounds (.999 Fine)
10 Oz Generic Silver Bars (.999 Fine)
US Silver Eagles 1 Oz 2008 Box of 500
Canadian Silver Maple Leaf 1 Oz 2008 Boxes Of 500
Backdate US Silver Eagles
PCGS MS65 Peace Dollars – Box of 20
APMEX, the American Precious Metals Exchange, updated its homepage again today: As of the time of writing of the article linked at the beginning of this post, though, no prices were listed and the stated minium order was $5,000. Presently, they have lowered the minimum order size to $1,000 and listed a new price list for what they will pay and receive for bullion.
The Tulving Company reports online that it is out of stock on all silver products, except for bags of junk silver and a limited supply of 10-ounce bars that buyers must wait until at least April 23rd to receive.
Here is Jason Hommel's Silver Stock Report on the issue
A relevant selection of Kitco discussion threads from recent days:
I will keep a close eye on the situation, and report updates as they become available.