Inside Look At Silver Shortage With CEO Of US Mint’s Silver Eagle Blank Provider

(By Silver Doctors)

Skeptical that a REAL SHORTAGE is developing in the physical silver market?
Silver Doctors welcomed Sunshine Minting CEO Tom Power for a special Exclusive interview to ask:

What’s Going On at the US Mint, and Are We Looking at the Potential For an Extreme, 2008 Style Shortage in Silver?

Sunshine Minting CEO Tom Power Joins Us For a Power Packed Show On the Status of the PHYSICAL Silver Market, Discussing:

Power on Current Silver Demand: What we’re seeing is reminiscent of 2009-2011. The surge in demand for ANY PRODUCT is something I haven’t seen…people are clamoring for any product they can get their hands on!
•Demand Surge STRONGER than 2008-09! Sunshine has TRIPLED capacity since 2007 and its still not enough as the market has exploded!

•SMI’s CEO Reveals US Mint’s Built Up Reserves of Silver Eagles & Blanks CLEANED OUT in Under Two Weeks
Power States Sunshine Has Been Running 24/7 Since 2009, and Reveals Sunshine Mint’s MASSIVE Estimated Production Numbers for 2015
•Will Any Further Price Weakness Push the Physical Silver Market to Extremes Last Seen in 2008?

This was a Silver Doctors interview which can also be found here: Inside Look at Silver Shortage With CEO of US Mint’s Silver Eagle Blank Provider

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39 Comments on "Inside Look At Silver Shortage With CEO Of US Mint’s Silver Eagle Blank Provider"

  1. IT SEEMS ROCCO SAYS THERE IS A CRITACAL SHORTAGE AND POWERS IS SOUNDING LIKE BUSINESS AS NORMAL EXCEPT JUST MORE OPERATING HOURS. HE DOSE NOT SAY THERE IS A SHORTAGE. WHO IS RIGHT

    • TOMB,

      I never stated there was a “Critical Shortage.” I published information saying there was a shortage in certain retail and wholesale markets. I actually stated in my interview with Money Metals Exchange, that the shortage did not yet make its way into the Wholesale Market (Exchange inventory) that supplies the entire silver market.

      However, if we see serious fireworks in the broader stock markets over the next few months, then yes.. we could see serious shortages extend into the larger wholesale market.

      steve

    • there seems to be no shortage of silver, you can get all the 10koz slabs you want. the shortage seems to be in bullion/coinage, for use as money in the end of the world. as the world-wide economy slows and manufacturing demand for silver declines you’ll see a decline in the price of silver even as demand for bullion/coinage continues to skyrocket.

      • “you can get all the 10koz slabs you want.”

        I don’t know what size that is. 100 ounces is the largest size all but a very few individuals are interested in. Checking one of the largest online dealers [Provident] they are out from one supplier, stock delayed from two, pre-sale on another. They have 100 ounce bars from one manufacturer. Checking another [goldsilver.com] they are out of 100 ounce bars. APMEX being the largest online dealer [I think] probably has some but we clearly see retail shortage. This is not wholesale shortage.

        The COMEX paper/contract price on silver might go down a bit but premiums will keep the physical prices close to where they are now. If it drops anymore the buying will create more retail shortages. When price goes up steadily premiums will increase from where they are until there is none for sale.

        Here is an article on silver premiums: http://www.jsmineset.com/2015/09/04/you-think-silver-premiums-are-high-now/

  2. Nice work Steve…Thank You!!!

    PS Now stacking some 64 JFK Halfs…..If only Jack had lived…NO FED……My Hero!!!

    Cheers
    Ken

    • Hope you have a local low-markup source on those, as there are big premiums on 90% now..999 generic or coins are a better value when one does the math!

  3. So isn’t it the law that the US mint has to produce silver and deliver to buyers no matter what?

    Then why are we seeing shortages and delays from the mint on delivery? Could it be the mint is not following the law by raising the prices of silver and keeping the supply going? Makes me wonder.

    Mr.T

    • Clearly the math shows that they need a deeper inventory of blanks and a greater capacity to stamp out those blanks. So what’s the problem??

      Mike

      • The problem Mike is they can’t get the blanks fast enough. They run out. The interview points out ramping up production of anything takes time and equipment and no entity wants to get stuck with excess capacity they have to pay for [machinery, staff, raw materials.

  4. Expect to see a surge of counterfeit silver eagles hitting the market soon just like the counterfeit gold eagles. Make sure to have a reputable dealer check your transactions.

    • It’s actually fairly easy to determine if a gold or silver coin is fake. Even a tungsten core on a gold coin alters the coin so dramatically that you don’t need any sort of equipment to identify it. People simply need to be educated on what to look for instead of depending on someone else to do it for them. The dealers would love for you to be dependent on them but that’s really not a good idea.

      Mike

      • A very good way to keep an eye on fakes is to use a mini electric digital scale. They are reasonably priced and worth the purchase.

        • Unfortunately there are now fake gold coins out there with tungsten in them. These coins have the size and weight of the real thing. But if you simply drop it on a table you can easily tell the different because tungsten and gold do not have the same hardness.

          Mike

    • Unlikely we will see a surge of counterfeit ASE’s until prices go up appreciably. It just isn’t worth it.

  5. There is a silver slug capacity issue and a silver coin demand surge. What Powers didn’t really address was if or when this slug capacity is being increased. The new slug capacity would fulfill the coin demand and thus end the constraint on raw silver demand.

  6. APMEX is still bidding just $2 over spot for Silver Eagles. That is the same price they buy them from the mint. In other words, the “silver shortage” isn’t yet moving the price for Silver Eagles. The only people paying higher prices are the duped retail customers.

    Be patient. The premium APMEX expects you to pay will come back down soon.

    Mike

    • “Duped” retail customers can always buy cheaper coins or generic of course.

      But if the customer wants new ASE’s, and many do, one has to pay what the retailer charges.

      The premium may not come down too. It all depends on demand of course.

      • People do not have to pay those high premiums for ASEs. Simply wait. APMEX broadcasts this loud and clear by the price they are willing to pay for ASEs. It has happened over and over for many years now.

        When APMEX starts putting a high premium on their bid for ASEs then you’ll know that demand has finally outrun the ability of the supply to catch up anytime soon. But that is not happening right now.

        Mike

        • How does one find out this information about APMEX or any other retailer? Is APMEX big enough to buy directly from the mint? There are only about a dozen I think.

          • The price apmex is willing to pay for your ASEs is right on their website. In reality they may be willing to negotiate a higher price, but their postedt bid is a pretty good indicator of how badly they need ASEs. Right now they don’t appear to need them badly enough to pay you more than they pay for new ones from the mint.

            So there’s clearly no silver shortage when looking for 1,000 ounce bars. The retailers don’t appear to be willing to pay more than they normally do for ASEs either. The only people paying more are the retail customers. We’ve seen this scenario over and over again in the past few years. It always ends the same: premiums you pay will come down.

            Mike

  7. The shortage is not real. The most prominent PMs experts invested only up to 20% of their money in G&S. If the collapse were imminent they would buy far more.

    • You don’t know what % of their assets they have placed in G or S. No one can possibly know. Yes some experts like Jim Rickards say put 10% into gold. But he may or may not be doing that. Many financial experts have inside information that would allow them to play stocks or other traditional investments longer, or get out sooner. And 10% of ten million net worth [which many big name financial sector experts have or a lot more] in gold is a lot more than most being 100% in.

  8. 207 ‘owners’ for every ounce… and counting:

    http://www.zerohedge.com/news/2015-09-09/something-just-snapped-comex

    Can you say ‘exponential’?

    • Make that 228. Scotia Mocatta is eating through its vault also.

      Where are the trolls? I want to hear their opinion.

      • This means all the shorts will have to roll at any price. They have not put up gold to deliver. I suppose this puts more backwardation pressure on.

        Mike

        • 128, then 256, next step is 512…

        • Mike, there’s no systemic risk in paper. Not anymore, after 2008/9. Central banks and .gov will ‘manage’ paper, through military force if needed. We have passed the point of no return, the Bank of Japan buys Apple stock, with printed money. They do that to spread systemic risk all over the world. That makes Japan tbtf, other central banks will have to step in to avoid a plunge in their own markets. World wide circle jerk.

          only real life shortages can crush the system. Like oil. Or silver. Hopefully we’ll see a bit of sunshine after the paper fog gets blown away. It’s gonna be messy though.

          • Well, I don’t really see the risk in paper silver either. the possibility of a delivery failure just means the shorts will have to bid high enough to cover. That creates backwardation. At some point someone else sees that as a good bet and takes the other side of the trade. Then no physical has to leave the COMEX. What am I missing? It’s a big scam, I get that, but not a “failure”.

            Mike

  9. Ho Hum!!!

  10. Word has it that for every 1 ounce of physical silver out there , there are 1000 ounces of paper silver. Does anyone have facts to back this up or is it hyperbole ?

    • Unrealistic.Do you really think the miner didn’t know that.
      They must only hold back production for some time and the papermafia is broken.

      I think it’s the opposite, the big players are part of the game.

  11. Steve,

    I suggest someone should interview Sunshine Minting CEO Tom Power again in the future to get his knowledge on changes from this point. I suggest not waiting more than 1-2 months. Every working day this man has the pulse of wholesale supply; whether abundant or some signs of shortage. For most other PM people their opinion on shortage is pure speculation.

  12. Deflation is all around.Strange as it is.”Soon Cash is king”?

  13. There are missing/deleted posts on this web page. Was there a crash and a backup restore, or something else?

    Mike

    • Mike,

      Yes, thought you might have noticed over the past week the site was a skeleton of its normal self. The site was hit early Monday morning and a lot of the site was erased… including the backup. So, its been one hell of a week.

      However, we are working out the rest of the kinks, but the site was moved to a new hosting service. The problem was not through the site, but actually on the previous hosting servers. After four attempts in asking them what the problem was… I still have not received an answer.

      By the way, this hosting company (unknown to me until now) had a major hack of 700,000 of its sites a few years ago.

      Mike, if you look at my site address, you will notice it is now a https, instead of a http. We have an SSL Certificate of security that you can check by clicking on the little LOCK ICON towards the right-hand side of the site address.

      The site will be better than before, but we lost some data that can’t be retrieved.

      I gather you may have also noticed no new articles for the past week. I will be putting out an article about this tomorrow.

      Sorry about some of the comments missing.

      steve

    • Yes, a few comments from Sept.10-11 were missing. Thanks for noticing. Just restored them from cache.

      Peter

  14. Steve, thanks for the update. I own an IT company and can very much relate to the stress that causes. Rackspace seems to be the most reliable hosting company on the planet. The one time they had a data center go down the CEO called me personally to apologize. I was very impressed. But they are pricey.

    Mike

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