SD Metals and Markets

Without warning, the US Mint advised authorized purchasers that 2016 year silver eagle production is suspended and no further coins will be available until 2017.  Precious metals fund manager Dave Kranzler joins Doc and Eric Dubin to forecast the market impact, the chaos going on in the bond market and India’s ban of 1,000 and 500 rupee notes

SD METALS & MARKETS

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Silver Eagle premiums jumped .65/oz on the wholesale market Friday as news spread that the US Mint had informed it’s Authorized Purchasers (AP’s) No Further Silver Eagle Coins Will Be Available For Sale Until 2017.

The Head of the Trade Desk at one of the largest gold and silver bullion wholesalers in the world advised SD Bullion Friday morning:

The US Mint has suspended Silver Eagle coin sales.  We just received a phone call from the Mint that they could not fulfill the Silver Eagle coin order we placed this week, and also informed us that the Mint will have no further coins for sale until 2017 dated coins are made available sometime in January.  

As of now the Mint has assured us that they will have enough coins on hand to meet expected demand in January.  Of course as recently as a week ago they also said that they had enough silver coins on hand to meet demand through 2016.  Not to fault them, but no one has a crystal ball and the recent spike in coin demand took them (and us) by surprise…

With the US Mint abruptly and unexpectedly halting Silver Eagle coin sales weeks earlier than the typical mid-December, we are concerned the potential exists for significant tightening of the physical silver market in the US over the next 8-10 weeks – particularly if gold prices fail to hold $1200 and drag silver futures market prices towards a $15 handle.

We will update SD readers as conditions evolve.

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Mr. Dubin is the Managing Editor of TheNewsDoctors.com. He has 25 years of experience as an independent buyside securities and global macro analyst. He has well over a decade of experience as a financial journalist, editor and political analyst. He’s primarily an autodidact, but his formal education includes degrees in economics, international relations and MBA. He welcomes feedback on his articles and will make an effort to respond to comments. Email Eric by sending to “Eric” and then @TheNewsDoctors.com. He can also be “followed” on Facebook: https://www.facebook.com/EricDubin

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