“We’ve never seen anything like this. The volume of demand we experienced on Tuesday surpasses anything we’ve ever seen – and that includes Q3 of 2015.”
SD Bullion Market Update
With Silver Prices Smashed 11% In 48 Trading Hours, Physical Silver Coin and Bullion Demand Has Roared Back to Life.
To put the Surge in silver bullion investment demand into perspective, SD Bullion processed approximately 550 transactions and moved through nearly $2.5 million in bullion Tuesday, roughly 20% of September’s ENTIRE sales totals.
SD Bullion’s CEO and co-owner Dr. Tyler Wall stated:
“We’ve never seen anything like this. The volume of demand we experienced on Tuesday surpasses anything we’ve ever seen – and that includes Q3 of 2015. Our outlook on the physical market just changed substantially. We’re doing everything we can to ensure our customers have access to gold and silver bullion throughout the 4th quarter. I expect the rest of the market is doing the same.”
The silver bullion market began to show early signs of physical tightness Wednesday, the day after silver prices were rocked to $17.65, down over $2 from a high of $19.77 just last Friday.
The US Mint sold 1.03 million 2016 Silver Eagle coins in 24 hours – nearly matching the Mint’s sales for the ENTIRE months of July, August, and September!
Wholesale premiums on 90% junk silver coins have jumped sharply, another early indicator of supply concerns watched closely by the market.
Sunshine Minting sold out entirely of SD Bullion’s most popular generic silver round product Tuesday, the Walking Liberty 1 oz silver rounds, and is estimating next shipment around the end of October.
Several of the top 5 AP’s (Authorized Purchaser) have sold out entirely of on-hand 2016 Silver Maples, 2016 Gold Maples, 2016 Gold Eagles, 100 oz RCM Silver Bars, Gold Krugerrands, and Gold and Silver Queen’s Beasts Lions inventory, with wholesaler’s inventory resupply estimates ranging from 1 to 3 weeks.
No reports on shortages or delays have emerged to this point on Silver Eagle coins, and based on our previous analysis that the US Mint has likely stockpiled 4-5 million coins before ceasing allocations in July, we estimate the Mint to have a remaining ASE inventory of 3-4 million coins.
Over the short term, we expect these inventories to be sufficient to prevent major supply issues- baring another major leg down in silver spot prices when the jobs report numbers are released Friday morning.
Compounding any market supply concerns on the demand side is the approach of Hurricane Matthew, which has shuttered operations for the rest of the week at Republic Metals Corporation, one of the nation’s top gold and silver refineries, and threatens to dramatically impact the supply side of the gold and silver bullion market.
The Miami based firm was reportedly boarding up windows and closing up operations for the week early Wednesday, ahead of the approaching monster storm Matthew, which made a turn towards the Florida coast overnight Tuesday.