Perth Mint’s Bron Suchecki: Expect Precious Metals Shortages During The Next Crisis

July 27, 2012 By 1 Comment

Bron Suchecki, who’s in charge of strategy for the famed Perth Mint, is warning all precious metals investors that the next crisis will lead to heightened precious metals demand so expect shortages and mint rationing. This is exactly what happened in 2008, and the next crisis could very well be worse. Interestingly, the shortages emerged not from a shortage of raw materials, but due to a lack of fabrication capacity.
Suchecki states precious metals investors should expect precious metals shortages during the next financial crisis.


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Comments

  1. Avatar of Tears of the Moon Tears of the Moon says:
    July 28, 2012 at 8:52 AM

    Good to hear from my compatriot Bron. He is correct in his assessment of the potential for bullion shortages. I work for ABC Bullion and from around mid 2010 to mid 2011 we routinely had six week delays on 1kg silver bars (the most common investment grade silver form in Australia), not because the world had run out of silver but the fabrication capacity of refiners cannot be ramped up quickly.

    The situation has changed over the last year with our silver bar supplier, PAMP, opening a new refinery in India and increasing capacity in Switzerland. But there is a new phenomenon that has emerged over the 18 months which I have not heard discussed elsewhere – Indian and Chinese buying. When I started with ABC Bullion 2 years ago no matter what I said I could not sell an Indian or Chinese client silver. Whilst both ethnic groups in Sydney are committed gold buyers neither would even look at silver. I imagine to the Indians silver was seen as the metal bought by those in poor villages, the people who could not afford to buy gold. But all this changed about 18 months ago when the silver prices started to ramp up. Now the Chinese and Indian buyers I speak to discuss the merits of silver and routinely buy silver in quantity on price dips.

    Now whilst I would like to think that this interest in silver amongst these ethnic groups in Sydney are the  result of my smooth sales chat I highly suspect this is not the case. If this increased interest in silver has also been occurring in India and China then the next time we have a significant upturn in interest in silver as an investment asset then the recently increased fabrication capacity will most certainly overwhelmed, and to a much greater extent than occurred in 2008-9 & 2010-11.

    If you want to hear more from Bron his blog is here

    If you want to hear more from me my blog is here

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