Gold News: US Mint Runs Out Of Silver

| September 11, 2018 | 0 Comments

silverYesterday in gold news, the US Mint notified “authorized purchasers” (only in quotes because it sounds weird) that it has run out of silver coins.  “…[D]ue to recent increased demand”, they say.  To these old, grizzled Gold Enthusiast ears, that just sounds wrong.  For several reasons.

Number one: Isn’t silver gold’s poor cousin?  Aren’t the only people who buy silver coins the kind of folk who stash them under mattresses and bury them in the backyard? Or those who haven’t stepped up to trading “real” investments yet?

Well, if so, then there are a lot of folks like that out there.  Just a few months ago – beginning of summer if the brain recalls correctly – reports were that silver coins sales were down.  Now they’ve blown up to where all the silver coins are gone? As they say in Texas – What The Toothpicks?

It might not be too hard to figure out.  Silver is now down at prices we haven’t seen since 2015.  And as any rational consumer is aware, prices for everything have gone nowhere but UP.  People are even getting STOOPID MONEY for things like rusty old pickup trucks.  So why not take advantage of this drop and buy valuable things now?  Especially things that are easily recognized and valued, for later buying/selling/trading/bartering later when the price of silver goes back up?

Honestly, your friendly Gold Enthusiast, grizzled as he is, looks for such things to help decipher the market.  Precious metals all disappearing when prices are low are a sure sign we’re close to a bottom.  Now this doesn’t mean to run out and throw your inheritance from Aunt Gertrude at it, not quite yet.  But certainly not a bad time to buy, oh, 20% of your total desired position size – assuming you’re talking about thousands or 10’s of thousands of dollars’ worth.

As for this Gold Enthusiast – well, read the disclaimer to find out.  Gotta satisfy the legal and ethical obligations.  Which in this case are more ethical than legal.

Y’all have a great weekend!  Remember that the cure for low prices is nothing other than low prices.

Signed, The Gold Enthusiast

DISCLAIMER: The author holds no position in SLV or other direct-silver investment such as futures or options.  There many be a miner or two in the portfolio that has secondary returns in silver, and if so the position size is small.

What the author does have that bears reporting is a very small box of several rolls of old silver coins, stashed in safekeeping at a local bank.  Just in case either (a) silver pops up so high that it’s worth selling, or (b) it looks the stuff is heading for the fan, and having such could help in bartering.

Note: This article originally appeared at The Gold Enthusiast on September 7, 2018.


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Category: Silver

About the Author ()

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals. Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach. Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"