Precious metals supply/demand during this panic

Precious metals supply/demand during this panic
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From Texas Precious Metals email. They are clearly trying to sell product but it shows how the precious metals market is ill-equipped to handle this panic. Something to consider if you are holding precious metals for just this kind of scenario.

As of this morning, the United States Mint is out of Silver American Eagles, and the backlog is tremendous. To ramp up manufacturing production to meet demand will likely take weeks, if not months.

The effects of these events will cause an increase in premiums on the sell side as well as the buy side. We have begun raising premiums on products to compensate for supply/demand constraints. To put it simply, inventory is getting more expensive for us. Additionally, we will be raising our buy back prices aggressively on popular products to help offset demand.

We have been aggressively buying hundreds of thousands of ounces of silver to create a pipeline of future supply. Some of this inventory will hit our facility next week. When these products arrive, we will make them available to you and announce this availability via email. We will sell them on a first come, first serve basis. Expect products to move quickly as investors seek a safe haven for assets during this uncertain time.

**see update below **

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I have a few silver eagles bought at off price a while back. However, after due consideration:

They are not for sale.

So far my purchase of those eagles is proof positive that from time to time even the blind squirrel finds an acorn. :grinning:

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Won’t matter. Toilet paper will be America’s new currency.

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I don’t see how silver coins would be useful in this situation at all. Aside from few being able to assay authenticity, seems like one would want to avoid touching hard surfaces. I guess you could have the buyer throw the payment in bleach before inspecting it…

Edit: silver price has been falling…
https://www.kitco.com/charts/livesilver.html

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Purell and N95 masks too.

I noticed how gold didn’t respond like past economic crisis. I guess when the chip is down and the crisis on a true global scale, gold just isn’t all it’s crack up to be.

I like silver better. It’s more granular.

I still have a few 1oz silver coins, spiff (sales incentive) from my days as a retail computer sales person. At the time it was worth about $5 each.

Just got this from Texas Precious Metals. Notice the confusion with the Mar 15/16 dates. Looks like things are getting unhinged there.

  • Thursday, March 19th will be our last day of shipping. All existing orders, as well as any orders placed on Monday, 3/15, will ship this week provided we receive payment before 12pm CST on Tuesday.

  • If you have selected “Payment by Check” and you do not believe your check will arrive by Tuesday at 12pm CST, please email operations@texmetals.com (mailto:operations@texmetals.com) and we can send you documentation that will allow us to pull funds from your account directly.

  • If you order on Tuesday, March 16th, or after, your only shipping option will be to store at Texas Precious Metals Depository (https://texasdepository.com/) . We are offering two months of free storage to all customers who open an account in the month of March. When normal operations resume, you can choose to continue storing at normal rates, or we can ship your metal to you. If you intend to use this facility, please open an account at texasdepository.com (http://texasdepository.com/) .

  • Effective immediately, we are temporarily raising our minimum order quantity to $1,000. This will not affect any pre-existing orders.

edit: I do not think I will be storing any gold purchases at their depository :grinning:

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I looked back a bit. When things are bad, gold goes up. When things get REALLY BAD, gold goes down. I think its a case of folks that are over-leveraged having to sell anything and everything in order to cover – including selling gold.

I suspect that today is a part of gold going back up (unless things get way worse again.).

To me, gold is a great hedge when you don’t TOTALLY need it and not a hedge at all when you really do need it.

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