Monday, 18 August 2008 09:27
The real question to be asking is, "Why?"
ApMex - We just received word, the US Mint has suspended sales of the 1 oz Gold American Eagles until further notice and are not accepting new orders from precious metals dealers. This is in addition to the shortage of 1 oz Silver American Eagles.
This comes at a time when many investors around the nation are scrambling to locate silver bullion and US gold coins while prices are attractively low. These low prices seem to be one of the driving factors in this recent shortage, as investor demand has dramatically increased.
More info from the comments section -
Thank You All for your comments. We understand that the latest news was disturbing to some and confusing to others. The latest news is due in part to significant manufacturing delays by private and government mints... they simply can?t keep up with the unprecedented demands of the market. Let us a address a few of the concerns you have so far:
1. The US Mint has not published this information on their website (we checked again this morning). The news of the US Mint suspending sales and future orders has also been confirmed by Mint Distributors, as well as numerous other dealers. This is a hot discussion right now on various precious metals forums and blogs. We are simply trying to provide information as it becomes available. We were the first to report this information.
2. You are absolutely correct ? this situation is strange and doesn?t fit the ?normal? supply & demand economic model. However, this is the way it is right now. We don?t have control over the commodities market, so we are in this boat with you. We are not in the position to speculate as to the reasons why this situation has occurred. A variety of theories are being debated in the forums.
3. Some local dealers may seemingly have some product left. This is mostly due to the low volumes that they sell and carry on a regular basis. At APMEX, we sell and ship thousands of ounces of physical metal every day. Local dealers may have some products left for the moment, but may either pull product to prevent losses, dramatically increase premiums to cover themselves or will sell out very quickly when they cannot replenish their supplies from larger national dealers like APMEX.
4. APMEX has not, does not and will not pull product simply because prices are low. We are professionals and have a responsibility to our customers to provide products in demand (as fast as we can secure them) at a reasonable market price. We have structured our business to be able to weather the variables in market conditions, while still providing the expert services and competitive prices for our customers.
At APMEX, we understand your dilemma and are doing everything we can to secure more products for you. We are not manipulating or misleading the information we are sharing with you. As customers, you are very valuable to us and we believe you have a desire and need to know the truth about the precious metals market to best serve your own personal interests.
Read the full article...