Twos-Day Silver Shortage Report
(No Silver on Tuesday)
Silver Stock Report
by Jason Hommel, September 3, 2008
For the last two weeks, I've asked my readers to
go to their local coin shop on Tuesday, September 2, at 2PM. In sum,
for those who acted, they were alone. Most shops were out of silver,
or nearly out. Dealers want you to pay up front for silver that may
take 5 weeks or more for delivery.
Report from North Alabama on Twos-day:
Went to the local coin shop (oldest and largest in the area AFAIK). Local coin shop had several customers selling a few odd coins each for cash. I didn't notice anyone else there from JH newsletter readership.
Proprietor had no bullion for sale at current prices. He is sitting on a few Engelhard 100 oz bars that he purchased between $17 and $19 per oz. He said there are no sellers, that selling has dried up recently. He cannot sell silver bullion to me until someone sells it to him first. He won't sell what he doesn't have.
I believe he would sell his few Engelhard's to me for around $18 - $19/oz.
Conclusions: (1) spot price does not equal physical price, and (2) a retail shortage exists in North Alabama at the current spot price
I took a guy from work with me as a "neutral third party" to see if he agreed that there was a shortage, and also to introduce and educate him about the situation in silver markets. He agrees with the conclusions.
Tuesday at 2pm Results
Went to the Onlygold.com shop in Phoenix, AZ. Do not get tripped up by the name. These guys do a fair amount of silver dealing as well. This shop is owned by a guy named Richard Smith. Richard has slammed the notion that there is a silver shortage and has also picked on Chris Powell of GATA as well. Here are the two articles that I was referring to:
I guess we can debate on how negative these articles are against the metals. The reason that I bring up this subject is because of what I found in the shop. I walked into the shop and I did not meet anyone from the Hommel camp. I have gone to this shop and only this shop for about 5 years now. I have never been turned away due to them being out of silver. I briefly went over with one of the employees tallying how much silver they had in stock. The stock at that time was as follows:
< 50 Silver Austrian Philharmonics +2.50 over spot for 20+ order
< 50 American Silver Eagles +3.25 over spot
5 100oz. JM/Engelhard bars (did not check how much premium over spot)
1 100oz. Generic Silver bar (did not check how much premium over spot)
No Generic Rounds or 10oz. bars (which I have never seen before)
(it would not surprise me if all of this inventory was cleared out by tomorrow)
The only reason that I went was due to the Tuesday at 2pm so I only brought $500 with me so that I could buy whatever I could but his inventory was more of my concern than anything else. I ended up buying 32 Austrian Philharmonics for 15.60 (13.10 + 2.50.) The employee that I talked to said that it was getting drastically harder to acquire the metal.
I just found it laughable that an insignificant $500 took out 5% of his inventory. No sir, there is no shortage
What I Learned During My Summer Vacation while Visiting Two Coin Shops
Being a silver enthusiast since 1978 I took your advice and decided
to visit not one but two coin shops in my local area on September 2nd. I
was very curious to see what kind of knowledge the owners, personnel, and
customers had regarding the silver market.
American Coin/Hur Jewelers in Orem, Utah
I've just returned home from visiting my favourite Metro Vancouver coin
After withdrawing cash from my bank, I arrived at the coin shop at 2 p.m.,
(there was a man and a couple in the store at the time). After circulating
around the collector and numismatic displays, I approached the gentleman
behind the counter, from whom I've bought gold and silver in the past (we know
Up front, I asked him how much silver bullion and/or coins he had for sale --
he responded "none". No silver maple leafs, I asked? Nope, nothing ... and
the waiting list is about a month, because the Royal Canadian mint can't keep
up with the demand.
How about bullion, I asked? Same story -- we're back-ordered for about the
same amount of time. He then surprised me by saying that his company is
thinking of producing its own silver bullion, because of the demand!
I then asked him why the demand is so great for silver coins and bullion, when
the spot price keeps dropping? Without hesitating, he said "manipulation".
When asked if he had any gold maple leaf coins, he reponded "only a few one
ounce". He then said he was sold out of the one-quarter and one-tenth ounce
gold maple leaf coins, because there's more interest in smaller denominations.
The dealer said if I wanted to join the long list of people waiting for silver
maple leafs, I could. He said today's order price for a one-ounce maple leaf
silver coin is $17.79 -- based on today's silver spot price of $13.05.
I asked him if he had heard of the Bangkok coin dealer, who recently sold
7,000 ounces of gold in one day ... he said Asians love to buy gold and
Jason, I gave him the list of three websites that you provided in your
article ... he thanked me, and said he would look into them. Another couple
arrived, just as I was leaving the store.
Will be interesting if all other reports coming to you today share the same
story: no silver for sale!!
have you heard anything how things went across all the coin shops
I picked up (2) 100 oz bars...1461 each....
and the coin shop had plenty on sale...
Bob in Michigan
Well, the three shops that I visited today had no silver and they all said that delivery was 2 weeks out.
They all stated they were not sure if I would receive the silver at all.
All three shops stated that they are experiencing a shortage of silver….
Where can I go to purchase silver?
On my visit to the local coin shop today at 2pm, I noted that I was the only one there buying silver. I was onsite about 5 min prior to 2pm and stayed to about 2:15pm. I just thought you'd want some feedback. I was hoping to find other people there buying silver but no luck.
I also noted that the dealer stated he has "plenty" of silver. I only buy 1oz. rounds and he stated he had plenty. Last time (2 weeks ago) I asked him and he said he had over 1500 rounds. At the time I bought 100. I'll just keep visiting him every other week and buy my portion.
I really enjoy your article and hope you keep up the good work! I tell everyone I can about your site.
Well I went down to the local coin shop here in Green Bay and nobody else
showed up. You might be interested to know that the guy had no silver bars
of any kind, not even a 10 oz. He had one 1 Oz bullion coin and a box of
This kind of reminds me of that character on the old Popeye cartoons, Wimpy, who was always broke, who always said, "I'll gladly pay you Tuesday, for a hamburger today."
Well, it's Tuesday, and it looks like many dealers who rely on silver shipments in the future, are going broke.