Dear Money Metals friend,
Even though the social-media-driven #SilverSqueeze campaign has fizzled – at least in terms of the dramatic burst of buying it caused – heavy retail accumulation of silver coins, bars, and rounds continues apace.
In the last two weeks, there has been a greater awakening about the silver story – its growing industrial uses, its growing investment demand, and the pre-existing bullish posture of the silver market itself.
And all the media attention has helped remind folks that silver is the money of the people – money that cannot ultimately be debased by Wall Street and central bankers.
Here’s a quick update on what we’re seeing right now, as one of the largest dealers in the United States…
Although most other U.S. dealers are mostly sold out of privately minted silver bars and rounds – the favorites of value-focused silver investors – Money Metals has secured from its minting partners significant supply of these items and have made them available at MoneyMetals.com.
The supply situation in silver coins is similar, with good availability but higher premiums on some items, particularly Silver Eagles which have become scarce.
As to silver coins, the best deals right now are on pre-1965 dimes/quarters, Silver Britannias, and Silver Philharmonics.
Our staff is working long hours to ship out the overwhelming number of orders over the past ten days. We’ve hired up, and delays are reduced.
Many customers have asked us if we see shortages developing in large commercial bars, because that would indicate a true shortage of silver (rather than shortages due to minting bottlenecks).
We frankly aren’t seeing major tightness on 1,000 oz silver bars so far – just a few logistical issues involving the location of available supply.
However, if the outflow of silver through the retail minting channel continues for a few more weeks, that could put real pressure on the availability of commercial bars as well as silver grain for minting.
Demand from the exchange-traded funds (ETFs) that actually back their shares with real metal are also putting some pressure on the commercial bar supply. But ETFs remain a misguided way to accumulate silver.
Silver is just under $28 this morning. The key area to watch is $30 to $31, as a decisive break above those levels would point to a big rally ahead.
However, there are no guarantees, and investing requires patience. A true silver squeeze will not be a weekend event!
Stefan Gleason, President
Money Metals Exchange
P.S. For more info on what’s happening in the physical silver market, please check out my recent interview on Arcadia Economics.