Supply Starting To Dry Up

[Engineer]

this is my problem with 90% Dimes, I bought about 20 of them, Morgans and they charge spot price, but spot price is for 99.9% silver so I lose money right off the top, secondly these morgans are paper thin and have lost alot of the weight they originally had, so even less silver. Anybody else got a problem with this?

90% does a pretty good job at carrying a 10% premium simply because it came from the US mint...but you do have to be careful of extremely worn coins. Morgans do an even better job of carrying a premium, but I'm guessing you're referring to Barber dimes rather than Morgan Dollars?

If you have some worn Barber dimes, the current high premiums on 90% present a good opportunity to sell them to APMEX for nearly spot price based on the .715 standard rather than their actual silver content.

[m21221]

Speaking of silver on Ebay I managed to pick up $127 in silver for $94 (a couple of pre 65 proof sets and Canadian silver dollars). Plus some wheats, indian heads and other junk foreign money thrown in the same lot. This guy poorly photographed and described the stuff and figured it would go cheap. It's definitely much harder to find deals on the bay than it was over the summer.

[93_Confirmed]

Are you guys still seeing shortages of 90%? I called two LCS and they both only have a dollar or two of FV left. Guess I'm going to have to start buying online. What stores are best for small quantities of 90%?

[Oakair]

Check JobIII over in buy it now...he has some small lots up?

[ZenOps]

News in Canada: One of the Big 5 banks here just started selling selling bullion silver and gold as well as the maples.

http://www.tdcanadatrust.com/products-s ... 00-00-1066

They do have the 400 ounce gold bars for sale (I'm assuming its a standard LBMA good delivery bar). There does not appear to be a maximum limit per day on gold or silver, but there is a minimum order of 25 ounces of maple silvers.

So... I'm guessing no shortage here.

[beauanderos]

News in Canada: One of the Big 5 banks here just started selling selling bullion silver and gold as well as the maples.

http://www.tdcanadatrust.com/products-s ... 00-00-1066

They do have the 400 ounce gold bars for sale (I'm assuming its a standard LBMA good delivery bar). There does not appear to be a maximum limit per day on gold or silver, but there is a minimum order of 25 ounces of maple silvers.

So... I'm guessing no shortage here.

the topic of this thread refers specifically to 90% starting to dry up.

[ZenOps]

My LCS was mentioning that a lot of 80% was shaken loose in the last run up and down.

They melt most every non MintState circulation coin in Canada that had a mintage year of 2 million or more. Local guy always says he is torn whether to send a 1957 UNC 50-cent piece in for melt, or to keep them (50 cents usually come in UNC rolls and not individual coins.)

Its also worth mentioning that the Canada mint opened up the vault and is selling the only circulation 90% gold coins that were specifically made for Canada 1912 to 1914 - for barely above spot.

http://www.mint.ca/store/product/1912.j ... lang=en_CA The 1914 $5 gold with a mintage of 31,122.

[beauanderos]

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/1/19_As_Silver_Shortage_Intensifies%2C_More_Retail_Products_Disappear.html

"One thing I would point out here about the 90% coins (junk silver), the first 3 decades of my being in this business it was a staple. Eric, 20 years ago if somebody wanted 100 bags (of junk silver) I could have filled that order with one phone call to any one of five places.

Now, if somebody said, ‘I want 100 bags of 90%,’ there is no wholesaler that will fill the order. And there is no dealer that will short the coins to us (lock in the transaction price with a hedge) on a deal like that, hoping the coins will come in at a later date because they don’t know what the premium on these coins is going to be.

So I see the 90% coins continuing to have a solid premium until silver reaches probably the $40 range, and some members of the public will start to turn loose of their coins. But so far, what we’re seeing in the premium action suggests that (silver) is going into short supply. Egon (von Greyerz also) talked about how any time a quantity of (physical) silver shows up, somebody buys it, and understandably so.”

[barrytrot]

I would be interested to know how often he gets a phone call order for over $2 million dollars.

[beauanderos]

I would be interested to know how often he gets a phone call order for over $2 million dollars.

There's lots of buyers that size (think funds)... but they're limited to gold purchasing because the silver just isn't there anymore. And, I imagine, he was employing hyperbole for effect... the same statement would still hold true if you were searching for TEN bags.

[barrytrot]

Funds buying 90%? I am skeptical that there are ANY of those. Please point them out to me if you know of even 1.

Funds buying .999 silver YES, lots of those.

[beauanderos]

Funds buying 90%? I am skeptical that there are ANY of those. Please point them out to me if you know of even 1.

Funds buying .999 silver YES, lots of those.

Barry, you're reading between the lines of what I'm writing, but you're reading the wrong lines. I'm saying there are silver buyers of that size and volume... but they are forced to buy .999 (if at all) because the bulk 90% purchases just are not possible. I know for a fact one of the largest, steadiest buyers on this forum funnels 90% into investment accounts for clients, but I am not going to name him unless he cares to identify himself.

[barrytrot]

I don't think they are "forced" (at least not most of them). I think at that level they prefer PURE silver vs. impure. There is reason people melt 90% to make .999 you know

But if you are positive based on your knowledge that there are 2 million dollar buyers of 90% I will bend to your knowledge. I'm surprised.

[68Camaro]

There are multi-million dollar buyers of cents and nickels. Why would 90% silver be different, if not far more so?

Some 90% will get melted, but usually the lower quality worn stuff. The better 90% is well, better not melted.

As there is a reason for .999, there is also very specific reason for 90%.

[barrytrot]

Touche, you are absolutely and obviously right 68Camaro.

I stand corrected.

[SilverDragon72]

I've heard these same reports in other coin forums and I'm starting to believe the hype. Might pick up a big chunk this week at my LCS just in case the supply really is drying up.

If all goes well next week, I may pick up a nice little stash myself

I added a handful of quarters...and a few DIMES to my 90 stack!

[plus1hdcp]

I have actually been keen eye on fleebay and last night won 2 lots of 40% - 1 lot for $0.04 and the other for $0.25 above spot with delivery included. Not as good as when I find them searching but I am happy to add them to the stack.

[ZenOps]

There is a simple way to make sure that investors only go .999 or .9999

Make anything not .999 or .9999 taxable, like Canada. So that every 80% or 90% silver transaction automatically becomes soured.

Not that its right, but thats probably all that would be needed. India just moved their tax rate from 4% to 6% for gold. All Europe would have to do is move it to 30% on purchase.

[68Camaro]

There is a simple way to make sure that investors only go .999 or .9999

Make anything not .999 or .9999 taxable, like Canada. So that every 80% or 90% silver transaction automatically becomes soured.

Not that its right, but thats probably all that would be needed. India just moved their tax rate from 4% to 6% for gold. All Europe would have to do is move it to 30% on purchase.

But why? Why would they care, or it matter? 80% and 90% isn't made anymore, and there are relatively smaller amounts of it than .999. .999 is what they will care about.