Earlier this morning Keith Weiner made the claim that silver demand is weak, and supply is robust.
This afternoon’s data point on 2016 Perth Mint Silver Kookaburra availability however (or lack thereof), seems to claim otherwise…
Over the weekend, SD Bullion experienced an usually high surge in demand for 1 oz 2016 Silver Kooks– a sure sign that something was up in the market.
Sure enough, early Monday the SD Bullion team reached out to Coins N’ Things (CNT), the COMEX approved depository and sole US Authorized Wholesale Distributor for silver Perth Mint coins– and discovered something was indeed “up”.
Stunningly, our staff was informed by the head of CNT’s trade desk that The Perth Mint has already entirely sold out of 2016 1 oz Silver Kookaburra‘s, that The Perth Mint will not be taking further 1 oz Kook orders until the 2017 coins are out, and that CNT itself had a whopping 400 coins left in their vaults.
While anecdotally, the fact that The Perth Mint is sold out of their most popular silver bullion product by the first week of June may seem like no big deal (and will assuredly be poo-poohed by the silver-is-more-plentiful-than-water naysayers), to put this in perspective: the Perth Mint did not sell out of the 2015 1 oz Silver Kooks (the 25th anniversary edition no less!) until early January of 2016!
Think about this for a moment. The 2016 release had the identical mintage (1,000,000 coins) to the 2015 25th Anniversary release, and the coin sold out in 1/3 the amount of time as last year- even with the 2nd half of 2015 experiencing historic silver shortages!
While a mere half million silver coins is not going to affect silver’s overall supply situation whatsoever, it certainly is indicative (along with records sales paces of Silver Eagles and Silver Maples) that silver demand continues at a historic pace as we near the end of the first half of 2016.
If the fall witnesses any sort of financial panic or banking crisis, we are looking at the potential for a silver shortage much more extreme than that witnessed in 2015.