Apmex Starts Reverse Inquiry: Seeks To Buy "Any Quantity" Of Silver From Clients At $3 Over Spot

Apmex, one of the largest dealers in north America wants your gold and silver coins (because they have depleted their inventory).  They're willing to pay a premium over spot price.  It may explain why the spot price dropped in overnight trading.

http://www.zerohedge.com/article/apmex-starts-reverse-inquiry-seeks-buy-any-quantity-silver-clients-3-over-spot

2011 1 oz Silver American Eagle (May 13th) on APMEX

http://www.zerohedge.com/article/apmex-out-silver-eagles-until-may-13

This is an example of how data is distorted by pundits, economists, and the media.  Sales of American Silver Eagle coins are momentarily down, month-over-month.  According to the experts (i.e. silver bears who completely misjudged the bull market in silver), this is a sign of declining demand, much like a decline in new home sales, for example.  Ergo, prices must come down, is the line of thinking.

However, unlike housing demand, which is countered by bulging inventory, there is a physical shortage of silver coins.  In other words, the reason why investors can't buy silver coins is due to lack of inventory--not because there is declining demand.  As a matter of fact, demand is booming among both investors and industrial consumers, and supply cannot keep up.

But leave it up to the anti-silver crowd to use their spin tactics to hoodwink the public.

Silver and uranium

See disclaimers in the side bar.

Disclosure:  Sold a little SLW today and bought CCJ to replace it.  Uranium is so beaten up, and unless the world stops using nuclear power, I don't think CCJ is going out of business anytime soon.

Gold and silver spot prices continued to rise today, but the mining equities didn't rise as much proportionately, so perhaps the trade is getting heavy, and the precious metals are due for a breather.  If SLW drops to the 30's, I'm buying the trading shares back, but I did not sell my core position in SLW.

Holders of physical gold and silver made some money today.  I'm still bullish long-term, but looking for a short-term correction, that may or may not occur.  In other words, since I don't have a crystal ball, either way, I'm still in SLW, but I did lighten up today, with an eye toward re-entering at a lower price point.

I tried this tactic when SLW was at $22 last year, looking to get back in if it dipped into the teens (bought original shares in the $2's and $3's), but SLW gapped up and never hit my buy price target.  Do I have regrets, since SLW has soared as high as $47?  Absolutely, but it was still a good trade, from a risk management stand point.  In other words, when you're right, don't get greedy.  I've been burned by greed before.

Having said that, this is now house money (twice), so I can afford to have exert more patience, able to withstand the higher volatility, and wilder price swings.  In other words, I didn't have to sell any SLW today, but I truly believe I can buy back in at a lower price.  We shall see--I've been wrong before, but when I buy right, it masks my selling mistakes.

And if it keeps going up, well, I can't complain, because I am still in.  End of my rambling thoughts.

American Eagle Silver Uncirculated Coin

This is becoming a common occurrence:  the US Mint is out of silver.

http://catalog.usmint.gov/webapp/wcs/stores/servlet/CategoryDisplay?catalogId=10001&storeId=10001&categoryId=13738&langId=-1&parent_category_rn=10191&top_category=10191

Production of United States Mint American Eagle Silver Uncirculated Coins continues to be temporarily suspended because of unprecedented demand for American Eagle Silver Bullion Coins. Until recently, all available silver bullion blanks were being allocated to the American Eagle Silver Bullion Coin Program, as the United States Mint is required by Public Law 99-61 to produce these coins “in quantities sufficient to meet public demand . . . .” Although the demand for precious metal coins remains high, the increase in supply of planchets—coupled with a lower demand for bullion orders in August and September—allowed the United States Mint to meet public demand and shift some capacity to produce numismatic versions of the American Eagle One Ounce Silver Proof Coin. However, because of the continued demand for American Eagle Silver Bullion Coins, 2010-dated American Eagle Silver Uncirculated Coins will not be produced. The United States Mint will resume production of American Eagle Silver Uncirculated Coins once sufficient inventories of silver bullion blanks can be acquired to meet market demand for all three American Eagle Silver Coin products.

Speak Up and Be Heard

http://news.silverseek.com/SilverSeek/1298557244.php

American Eagle Silver Uncirculated Coin

From the horse's mouth--the US Mint:

http://catalog.usmint.gov/webapp/wcs/stores/servlet/CategoryDisplay?catalogId=10001&storeId=10001&categoryId=13738&langId=-1&parent_category_rn=10191&top_category=10191

Production of United States Mint American Eagle Silver Uncirculated Coins continues to be temporarily suspended because of unprecedented demand for American Eagle Silver Bullion Coins.