Silver Coin Shortage Is Now a Global Phenomenon

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silver eagles

While the price of silver has reached a 5 year low, demand continues to surge in the opposite direction, and not just in the United States. Reuters reports that both the US Mint and the Canadian mint had to ration their supply of silver coins last Summer, while Australia’s Perth Mint had record sales this month. They sold over 2.5 million ounces of silver in September, which was 4 times more than what they sold in August.

Curiously, the rationing isn’t being caused by an actual shortage of silver, at least according to the wholesale manager of the Perth Mint. “There seems to be a bit of frenzy as people think there is a shortage of silver. But in fact it is a (crunch in) manufacturing capacity.” The surge in demand is largely being fueled by what the mint is calling “mom and pop” investors in the United States who want to take advantage of the price dip. As shortages worsen at the US Mint, Americans are now buying coins from foreign mints, and the demand is even spilling over into Asia and Europe.

Still, the silver price continues to fall as the “institutional and retail investors” place their bets on the US dollar, and our (supposedly) improving economy. Prices will likely stagnate until these big money investors lose confidence in the global economy. But until that day arrives, lower-income buyers will continue to outstrip the manufacturing capacity of national mints across the world, a trend which silver retailers expect to continue for at least another year.

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Contributed by Joshua Krause of The Daily Sheeple.

Joshua Krause is a reporter, writer and researcher at The Daily Sheeple. He was born and raised in the Bay Area and is a freelance writer and author. You can follow Joshua’s reports at Facebook or on his personal Twitter. Joshua’s website is Strange Danger .

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  • Rick E.

    Buy silver and platinum NOW! They’re less volatile than gold and are needed for electronics and other things. Buy bullion.

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  • YeahRightOkay

    …this goes against everything I learned in Econ 101…demand is high…supply low…price should be high…but no…price down below your knee caps…

    • Jason Calley

      Supply and demand are only efficiently coordinated by the pricing function of a free market. The fact that prices have not soared, with demand so high and supply so low, indicates that the prices are being artificially manipulated. Can you say “paper silver”? Can you say “market manipulation”?

      We know that the reality of the market always wins in the long run. Reality is funny that way… The only question is, “how long can the manipulation survive the pressures of the market?” This suppression of silver prices will pop — but when?

      • YeahRightOkay

        …dang…you sound like my Econ 101 professor…I just wanted it to be simple like Adam Smith’s supply and demand…I will go re-write my paper now JC…

        • Jason Calley

          Ha! A professor? I don’t know whether to be pleased or insulted! just don’t call me a Keynesian! :)

          • YeahRightOkay

            …waht…you related to obozo now…???…lol…!!!

          • Jason Calley

            LOL! YeahRightOkay! Man, you are a rough audience! (and I guess we are all related somehow — but I hope that particular obozo relation is a far distant branch!)

          • YeahRightOkay

            …just trying to keep us all sane here JC…humor make the medicine go down…or something like that…!!!

  • Eric Blake

    Over time, commodities’ value always goes up, and the buying power of the dollar always goes down. They may not take dollars someday in the country of your choice, but they ALL take gold and silver.