The crash of the price of paper gold on Monday has unleashed an unprecedented global frenzy to buy physical gold and silver.  All over the planet, people are recognizing that this is a unique opportunity to be able to acquire large amounts of gold and silver at a bargain price.  So precious metals dealers now find themselves being overwhelmed with orders in the United States, in Canada, in Europe and over in Asia.  Will this massive run on physical gold and silver soon lead to widespread shortages of those metals?  Instead of frightening people away from gold and silver, the takedown of paper gold seems to have had just the opposite effect.

People just can’t seem to get enough physical gold and silver right now.  Those that wish that they had gotten into gold when it was less than $1400 an ounce are able to do so now, and it is absolutely insane that silver is sitting at about $23 an ounce.  If the big banks continue to play games with the price of gold, we are going to see existing supplies of physical gold and silver dry up very quickly.  And once reports of physical shortages of gold and silver become widespread, it is going to absolutely rock the financial world.  But this is what happens when you manipulate free markets – it often has unintended consequences far beyond anything that you ever imagined.

The following are 10 signs that the take-down of paper gold has unleashed an unprecedented global run on physical gold and silver…

 

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From The Economic Collapse Blog:

#1 According to Zero Hedge, the U.S. Mint set a new all-time record for the number of gold ounces sold on Wednesday…

According to today’s data from the US Mint, a record 63,500 ounces, or a whopping 2 tons, of gold were reported sold on April 17th alone, bringing the total sales for the month to a whopping 147,000 ounces or more than the previous two months combined with just half of the month gone.

#2 Precious metals dealers all over the United States are having a really hard time keeping up with demand right now.  According to Chris Martenson, many are warning customers to expect waiting times of five to six weeks at this point…

In the U.S., all of the dealers I talk to are reporting huge demand and brisk buying. Silver in any form is quite hard to come by unless you want to pay premiums of 20%+ per ounce above spot price. Delivery times are 5 to 6 weeks out now that’s an unusual situation.  If this recent slam was designed to scare people away from gold, it did not have that desired outcome; in fact, just the opposite.

#3 Individual dealers all over the country are confirming that we are seeing a voracious appetite for precious metals at the moment.  For example, the following is what a spokesperson for JM Bullion had to say…

We still have certain things in stock, like 10 oz bars, while others, like Silver Eagles, are a bit of revolving inventory.

The shipments are going out as soon as inventory comes in.

Our main challenge right now is actually getting the silver into the boxes and shipped out – we have been experiencing astounding volume.

This appears to be a widespread phenomenon.  Just check out what other dealers are reporting

“There has been a marked increase in demand since the plunge,” said Mark O’Byrne, executive director at Dublin-based investment and bullion specialist GoldCore, referring to the drop in gold prices seen Friday and Monday. Gold futures lost more than $200 an ounce, or over 13%, on those two days. They were at $1,392 an ounce, moving higher ahead of the close on Thursday.

GoldCore has seen more buying than selling on Wednesday and Thursday, with buy orders “lumpier and from high net worth clients, and with most of the selling in small orders of less than 50 ounces, said O’Byrne.

On Wednesday, David Beahm, executive vice president at Blanchard & Co., said his precious-metals investment firm has seen “2008-like demand” for gold since Monday.

#4 Large international banks are also experiencing tremendous demand for physical gold and silver by customers right now.  The following is what Keith Barron told King World News about what he is hearing…

At the Bank of Nova Scotia in Toronto the gold window has been absolutely swamped. I have confirmed there were people lined up in droves recently for multiple-hours at a time to buy gold and silver bars and coins….

I then confirmed with UBS today in Zurich, Switzerland, that they are experiencing exactly the same thing. They told me people are waiting in long lines for bullion related bars and coins. The physical market is incredibly tight, and there is a huge buying opportunity right here.

The damage in gold will not be long-term because physical supply is already drying up. Asian countries have been aggressively buying gold. This really is an unprecedented opportunity for investors. This takedown in the metals has created incredible demand for both gold and silver, and anyone who wants to unload dollars or euros and put them into gold because they don’t trust the currency, now is the time to do it.

#5 The demand for physical gold and silver is heating up over in Europe as well.  For example, the following is from an emergency message posted on the website of a precious metals dealer in the UK…

Due to the unprecedented demand triggered by the recent fall in the Gold Price we are currently not able to guarantee Next Day Delivery of orders.

We anticipate that all orders will be delivered within 7 days of receipt by us.

Whilst we appreciate that these delays are frustrating for our customers we would like to stress that all accepted orders are guaranteed at the order price and will be dispatched as soon as possible.

It is necessary for all of our staff to be utilised in fulfilling orders and we ask for your cooperation by not calling us to query delivery times. If you do need to contact us, please do so by e-mail and we will endeavour to respond within 48hrs.

#6 On the other side of the globe, demand for precious metals is skyrocketing as well.  According to Bloomberg, people are “running through the gate” to get gold in Australia…

Gold sales from Australia’s Perth Mint, which refines nearly all of the nation’s bullion, surged after prices plunged, adding to signs that the metal’s slump to a two-year low is spurring increased demand.

“The volume of business that we’re putting through is way in excess of double what we did last week,” Treasurer Nigel Moffatt said by phone, without giving precise figures. “There’s been people running through the gate.”

#7 Reuters is reporting that customers are waiting for up to three hours to buy gold in Japan…

A week ago, as the yen-denominated price neared a new peak, jewelry stores and gold merchants across Japan saw long lines of mostly older Japanese looking to cash in on unwanted jewelry and other items that they had held for years.

But on Tuesday, buyers outnumbered sellers by a wide margin. At Ginza Tanaka, the headquarters shop of Tanaka Holdings, gold buyers waited for as long as three hours for a chance to complete a transaction.

#8 According to a Chinese article quoted by the Blaze, there is a mad rush to buy gold in China right now…

People have to rush to buy gold … gold bullion out of stock yesterday, investors yesterday to spend as much as 600 million yuan to buy 20 kilograms of gold bars

The mad pursuit gold insufficiency is not just a game for the rich. Yesterday, the Yangcheng Evening News reporter learned from the East flowers to Bay store, many growers, pork traffickers, fishmonger recently put down his job went straight to the mall to buy gold.

#9 According to Reuters, dealers in Singapore are having significant trouble finding enough of a supply to keep up with the intense demand for gold that has erupted this week…

“People are actually buying everything, gold bars, gold coins. People are rushing to get a hand on it. We have a problem meeting the demand because we are unable to get new supply,” said Brian Lan, managing director of GoldSilver Central Pte Ltd in Singapore.

#10 Bloomberg is reporting that over in India people are “flocking to stores” to purchase gold jewelry and coins…

Gold buyers in India, the world’s biggest consumer, are flocking to stores to buy jewelry and coins, betting a selloff that plunged bullion to a two-year low may be overdone.

“My daughter is just six months old, but I think it is never too early to buy gold,” said Sharmila Shirodkar, a 28- year-old housewife, while displaying a new pair of earrings she bought from a store in Mumbai’s Zaveri Bazaar. “I had been asking my husband every day if prices will go down more. I couldn’t wait anymore.”

If the big banks were trying to scare people away from gold and silver by crashing paper prices for those metals then they have utterly failed.

Instead of being frightened away, the global appetite for physical gold and silver is now more voracious than ever.

If the prices for gold and silver stay this low, we are eventually going to start seeing some very serious shortages in the marketplace.

And once reports of shortages of the actual physical metals become widely circulated, it will cause an “adjustment” in the marketplace that will shock everyone.

So hold on to your hats.  We are entering a period of time when there will be unprecedented volatility for the prices of precious metals.  It will be quite a roller coaster ride, but if you can handle the ups and downs it will be worth it in the end.

 

  1. Well here’s a 40% question for anybody reading this.
    I have an opportunity to buy 600 1965-1970 (40% Silver) Kennedy Halves for about 12% over spot.
    The 40% halves do not seem as desireable as the 90% coins, so I am leaning towards passing this one up.
    Comments?
     
    Thanks,
    Mammoth

    • @Mammoth
      I’d say that you should still be trying to get physical at 90% or higher purity.

      Just don’t pay a $6 premium … because in the States you can get 99.9% silver for $1.50 above spot if you’re careful still, so I’d say skip out on the junk silver until bullion prices match junk prices.

    • One of the happiest days in recent memory was the day I sold 40 ROLLS of these bastards.  You know I will buy ANY silver, but the JFK 40% half is a dismal item.  With that markup, I’d pass quickly.  My LCS has no silver, but they have a tray about a half-inch thick with these 40%’ers.  Nobody wants them, and there you go.

    • SPOT PRICE is actually a big discount right now, so 12% Over is still under spot IMO.
      AGXIIK was selling generic rounds for $30 when spot was $24-ish
      Eagles for 40-45

    • @Mammoth: The’re better deals than that still. The Doc has Buffalos for sale right now! Save the LCS stuff for when things get really really realy tight. Only 1% of us are buying and look whats happening. LOL. When national retailers shelves are bare then we pic the LCS show cases clean. Just my way of thinking maybe, but the stuff that has managed to get to my area I want to save for last!

    • I’d pass on those 40 percenters myself.  They are destined for melting at a refiner, IF they will take them.  They always seem to be the last silver left on the shelves whenever there is a shortage.

  2. I find it hard to believe that if a deliberate move to smash the metals was initiated, the perpetrators would have been expecting other than what happened.  TPTB are evil, but not necessarily stupid. I guess I have seen too many movies like Margin Call and Rollover whereby a TBTF is backed into a corner and has to pull something drastic, knowing full well the consequences. Maybe the fueling of the physical buying fire was just part of the overall equation. They still probably made out like crooks, even if the few wise people out there got a few crumbs.  Just my gut feeling.

    • @KenS … I agree. Of course, they knew this would happen. Why else would they have had to smash it down again and again for years, and they also know it’s in a bull market for the last 12 years. There are too many people who believe that those in power are actually trying to fix things and are bumbling idiots … while it’s so clear that they are both intelligent, calm and well understand the consequences of their actions, BEFORE they do them.
       
      Which says to me that we are VERY near some huge event which will change things forever. That’s a logical conclusion, as well as what my gut tells me.

    • On the other hand, it is also possible that they have seriously miscalculated.  It is a fact that gold and silver in the hands of citizens empowers us and not the banksters.  Paper money in our hands is what they want because they know that it is inherently worthless and it feeds their inflation game.  Us having paper money empowers THEM, not us.  Lately, there has been a LARGE amount of fiat paper traded for gold and silver.  This is not in their best interests because gold and silver in private hands is a LOT more difficult to steal than is fiat in the banks.  Just MHO, YMMV.  :-)

    • @Ed_B … I agree that is a possibility, but they are not TPTB for nothing, and if we look at their MO for getting things done, it is hiding behind events that SEEM to unfold of their own accord, but which are really framed and directed. I do not believe that recent buying on the part of us little guys amounts to alot, in terms of what is already in some world vaults .. eg. The famed but mysterious Rothschild vault, which has been collecting for 100s of years. If we assume that the same group owns the BIS, central banks, MSM and has a stranglehold over global politics, then that is indeed a squid to be contended with, and one which we little guys have no control over. (I don’t buy into that buy silver, crash the system thing – I buy it for my own protection). THEY know we are transitioning, and so at some point, the few informed people will move into Au/Ag, and this little move, amplified by the MSM (eg. Bloomberg and Reuters articles recently on shortages) can actually be useful as it can be blamed for things to come, even though it is not true. And they can say, the gold/silver bugs crashed the world .. ‘it is against the law to trade with Au/Ag, as it is the money of terrorists. People should report to the authorities anyone who tries to trade with Au/Ag .. reward for reporting’ … the sheeple will gladly report such bad boys if they think they might get something for nothing, especially in countries where this type of thing is established already – USA, UK are 2 examples. (There is programming for the future importance of Au/Ag – eg. chevrolet silverado ad Dec 2012 – such huge companies are another tentacle of the squid which runs the world).

      IMHO :)

  3. @mammoth personally i’d pass it up if you can find some 90% or better as saddle also said.  Although the 40% silver will be nice to flip when the price starts moving upwards because the supply will most likely start getting even tighter.  People will want to get their hands on anything of real value.  My stack is mainly all 90%, im a very little guy compared to some of you long time deep pocket stackers lol.  Im just as die hard though and as awake to the real situation of our worldly economy and paper ponzi markets.  I Love the people in the stacker/liberty movement and ive learned alot reading your articles and comments over the years lerking in the back ground lol.  Keep up the good fight and keep stacking

  4. #1
    Could have been one single buyer, like a pension fund that had just been refused a COMEX delivery. So, they make a call to the US Mint, and it’s a done deal. They may have paid a 1-2% premium, but free shipping. May have had to sign a contract the gold would not hit the market for at least x amount of years.

    #2
    In Europe, dealers have started to cancel orders and return payment. No silver available. Meaning, they do not expect to replenish silver at the 5-10% or whatever margin they need to make to keep the lights on. They will await new prices, and silver actually in stock magically jumps up in premium. I see places selling Antelopes they do have several Euro’s cheper than Bisons they ran out of, but are accepting orders on.
    In the classifieds, smalltime dealers are raising premiums, but customers are not really biting yet. They still think prices will drop further and they’ll get their chance. I think the silver that will be available to NEW buyers at normal premiums, still needs to be mined. And even then, most of the next month’s mine supply will be meeting existing (higher priced) orders.
    Can mints really tap into cheap silver, even now? Is it a matter of a COMEX/LBMA delivery?

    #8
    How much of China’s imports (and production) would go towards retail investment? We see huge import figures, but really, if you consider the people have been encouraged by their leadership to invest in precious metals, 1+ billion Chinese people can surely buy some. And for every 1000 super poor workers, there is one sickeningly rich company owner, who can and will buy gold. That’s still 1 million strong customers for the amount of gold that fits in anyone’s living room, if built on bedrock. Here, my modest living room is 110m³ or so, that’ll fit roughly 2200 tons. About what China can import and produce annually? Divide by one million awake super rich Chinesese. 2kg each for my total guestimate example :-)

  5. Since it is believed that 1% or less of the population are physical PM owners, I would not be surprised if an executive order would be issued to confiscate the metals from those wise citizens because of a national shortage/emergency. The other 99% of the sheeple would not have any sympathy for “those wealthy and greedy hoarders” and especially those people who did not buy the metals when they were cheap. I have counseled people to buy at least some metals since around the year 2000 and only a couple of them ever listened to me and were convinced to protect themselves. Those who didn’t listen will now be sore losers and agree that the 1% should not be allowed to keep the wise investments that they made. I went without many luxuries and toys and sacrificed to buy my metals over the last 12-13 years and prepare for what I knew was coming while they had their latest cell phones, new cars, Hi-Def televisions or laptop computers. I scraped the bottom to pay my home off and now it is falling in price. The banksters will win and the honest will lose according to Revelation chapter 13. Who can make war against the beast? Hopefully we will have an underground economy for a while until the penalty for possessing precious metals becomes a felony. I am hoping that I am wrong and that the good ship America can be righted once again.
    P.S. How convenient for the robber barons to drive the paper price down so low and then to “cash out” the holders of the physical metals which (are or were) under their lock and key inside of their vaults. The people who bought the paper silver and believed that the physical metal was really there will not be able to find and replace it once the scam is complete.

    • The term “hoarder” is a pejorative comment made against those who prepare for an uncertain future by those who do not.  The simple fact is that anyone with some money in their pocket can choose to buy some gold or silver but many simply choose not to.  In the event that the economy crashes and dollars are seriously devalued, those who have real money, aka gold and silver, will suddenly be “the bad guys” because we dared not to be sheeple.  When the SHTF, those who spent $500 on i-crap instead of silver will deeply regret their poor choice.  Then, of course, they will become angry with those of us who made the better choice.  Got brass and lead?
       

  6. Mammoth I would buy these 40% coins  Silver is Silver so you could flip those when silver prices go up.  The 12% premium is modest as these coins are worth about $3.43 for silver value.  If silver becomes more scarce this is just one more way to acquire the white metal. Nothing sentimental about these coins, just a stock of cheap silver that could be flipped later as silver prices escalate.

  7. Mammoth, if you absolutely cannot find any 90%, I would take the 40% halves. But only as a last resort. Even if you can “flip” them later, they’ll always trade at a severe disadvantage (in terms of premium) to the good stuff, in my opinion.

    • Agreed, Mary.  US 90% silver coins have been in VERY short supply here in my local area for the past 6 or so months.  In fact, just about all forms of silver are in short supply now unless high premiums are attached.  
       
      I just ordered 200 Antelopes from Provident.  Not sure if these will ship soon or will be delayed.  I don’t collect the Canadian Wildlife series but these were the cheapest 1-oz. silver coins I could find.  Thy were $0.50 each LESS than regular silver Maples, so what the heck? 
       
      Also ordered 10 rolls of Proof Statehood quarters and 4 rolls of BU Kennedy halves from Apmex.  Not sure about their shipping speed either but was somewhat encouraged by the Apmex web site not letting me order more Kennedy halves than they had available.  Some sites will not even mention this, allow us to place the order thinking that they are in stock when they aren’t, and only later fess up to the fact that the shipment will be “delayed”.

    • Ed_B
      If you get those Antelopes, that’s an EPIC score!
      In Europe, the premium of Antelopes is exploding. And that’s just compared to Bisons, the next in line.
      I had 100 Antelopes and sold them, and rebought other silver. Now sorry to not have any left, and feeling too late to get back into them. Might scrape the very bottom of my cash and get 50 or so at more premium than I ever pay for silver. I do have a significant part of my stack in Polar Bears and (if I get delivery of 175,) Bisons. Happy with those, but it seems something is going on with the Antelopes. The Wildlife Series, I got in way to late with a few Puma’s when the Moose were already getting too expensive (but should have bought anyways). Hope they’ll come with a succeeding series, that would be sweet to get in on from the beginning.
      Polar Bears are odd. Never seem to have been available at Wildlife like premiums in the America’s, but in Europe I get them below that. Only a few stores are left offering such prices, when those run out, it will turn into a collectible overnight it seems. I hope. Will sell them in 1-2 years to get the best premium gain, and swap to the next new potential.

  8. Around two-hundred-twenty years ago, Adam Smith proposed a meta-answer that has never been seriously challenged:
    Economics is about wealth creation, and wealth-creating choices are (or should be) made by comparing the amount of time, labor, resources, and capital invested in a project with the return on that investment-and with alternative investments &
    organizations of production. (Economics in plain English, Leonard Silk, 1978)
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  9. This is an interesting article from the suspiciously enigmatic, although useful, Zerohedge. What is says to me is that the crazy buying on this dip will be used as a scapegoat when the financial system finally cracks wide open. Because we know its not the little people like us who dry up supply .. it is the huge vaults, like that of the Rothschilds, who have been hoarding for 100s years (while issuing paper to the cattle). We have global shortages now, as noted by Bloomberg and Reuters articles, which incredibly pop up almost immediately after the PM smash; their documentation of extreme shortages is a necessary preliminary to financial collapse, but they don’t want to give the cattle too much time to buy to protect themselves. All this is evidence supporting the financial collapse in the very near future IMHO.

  10. This volitile market is not surprising…
    Given that ALL governments have “Fiat Currency Legal Tendar” laws, they are forcing people to PANIC and sell their coins for a pitence of what they are REALLY WORTH.
    The FIAT MONEY BANKSTERS have unchecked manipulation powers over peoples lives and property and have no hesitation to destroy anyone or THING that might compete against their monopoly over money.
    “How Dare YOU!!! think you can OPT OUT!, WE own you!!”
    Or so they would have you believe….
    In your faces banksters…. we’ll BUY MORE NOW!!,
    Take your FIAT NOTES and shuve them
     

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