silver exchagne traded funds

Physical Silver Shortage Rumors

“If investors can’t buy Silver Eagles, they can also buy other coins like Canadian Maple Leaf silver coins, which are minted by the Canadian government and are ‘just as good.’”

-Peter Schiff, President/Chief Global Strategist of Euro Pacific Capital and CEO of Euro Pacific Precious Metals, in a January 19 article on the ABC News website that noted the U.S. Mint had stopped selling 2013 American Eagle silver bullion coins

First, the U.S. Mint halted the sale of 2013 Silver Eagles.

Now, the Royal Canadian Mint is limiting sales of 2013 Silver Maple Leafs.

Daniela Cambone of Kitco News reported the following on The Globe and Mail (Canada) website last Firday:

Following news last week that the U.S. Mint had run out of its initial production of 2013 Silver Eagles, reports were circulating on industry blogs that the Royal Canadian Mint was next in line after suffering a silver shortage.

Confirming this strain on physical silver supplies, the mint this morning went on allocation, limiting the quantity of sales of the popular Silver Maple Leaf coin.

“Due to very high demand for Silver Maple Leaf bullion coins, the Royal Canadian Mint is carefully managing supply to ensure all our bullion distributors are served and we continue to take orders,” Alex Reeves, senior manager, communications for the Royal Canadian Mint, told Kitco News this morning.

(Editor’s note: Italics added for emphasis)

These latest developments at the U.S. and Royal Canadian Mints- in conjunction with HSBC’s recent large purchase of silver bullion from KGHM Polska Miedź S.A., the world’s largest silver miner- are fanning rumors of a possible physical silver shortage going on. From the Dubai Chronicle (UAE) website Sunday:

News that HSBC has concluded a second large purchase of silver bullion has sparked speculation that there is a physical silver shortage in the markets.

Earlier in the week, a news about the U.S. Mint temporarily running out of Silver Eagle coins added to the momentum. Many of the latest rumors about physical silver shortage talk about the relationship between physical silver-actual silver bullion-and paper silver, which is the silver that exists only on paper in the form of exchange-traded funds (ETFs) or futures contracts. Some market observers have speculated that there isn’t enough physical silver currently available to make delivery to all of the owners of silver futures, which would result in a “default” by the Comex where the silver contract is traded.

Whether these issues are actually reflective of high demand, problems with the mints’ supply chains, or games being played in the silver bullion market by outside forces or silver traders, remain in question.

(Editor’s note: Italics added for emphasis)

A follow-up piece by the Dubai Chronicle suggested silver production looked to be more than adequate in 2012. From the January 29 article:

In response to the recent physical silver shortage speculations, we researched data provided by mining companies for their performance in Q4 of 2012 and the past year in general. According to what the companies state, most of them increased silver production between 2% to 15% and aim to rise production further in the course of 2013.

(Editor’s note: Italics added for emphasis)

And a recent Money Morning article noted Kitco Senior Analyst John Nadler claims there are 207 million ounces of surplus silver overhanging the markets.

Still, stories of silver shortages, like this one by Matterhorn Asset Management founder Egon Von Greyerz on on the King World News Blog back on January 18, are making the rounds on the Internet these days.

By Christopher E. Hill, Editor
Survival And Prosperity (

(Editor’s note: I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein)


Cambone, Daniella. “Mint limits sales of Silver Maple Leaf coins on high demand.” Kitco News. 25 Jan. 2013. ( 25 Jan. 2013.

“News about physical shortage drive silver price higher.” Dubai Chronicle. 27 Jan. 2013. ( 29 Jan. 2013.

“Physical Silver Shortage Rumors Confronted.” Dubai Chronicle. 29 Jan. 2013. ( 29 Jan. 2013.

Tags: , , , , , , , , , , , , , , , , , , , ,

Tuesday, January 29th, 2013 Commodities, Investing, Precious Metals No Comments

Survival And Prosperity
Christopher E. Hill, Editor
Est. 2010, Chicagoland, USA

Successor to
"The Most Hated Blog On Wall Street"
(Memorial Day Weekend 2007-2010)

Please Rate this Blog HERE

Limited Time Offers

Via Banner Ads Below (navigate to vendor home page if necessary); Updated 10/3/15:
>CHIEF 20% Off Top Apparel Brands Thru 10/5 (code needed); Waterproof Outwear, Safety Boots, Vests On Sale Thru 10/27; 25% Off Tru-Spec 24-7 Series Pants Thru 10/31; Free 3-Pack Coolmax Cushion Socks w/ All Footwear Thru 10/31
>BGASC 1 Oz. & 10 Oz. Silver Bar Sale For Limited Time; End Of Summer Sale
>BUDK Free Shipping (no min. order; code needed)
>Nitro-Pak Mountain House Freeze-Dried Food Sale; Katadyn Water Filters Up To 30% Off; All AlpineAire Food Up To 25% Off; All Backpacker's Pantry Food Up To 25% Off
>Food Insurance Warehouse Sale; Free Emergency Supplies With Long-Term Meal Plan; Save Up To 43% On Freeze-Dried Seasoned Ground Turkey Pieces
>Airsoft Megastore Multicam Sale Up To 30% Off; Free Shipping On All Orders (no code required)
>BulletSafe Bulletproof Baseball Cap $119 Pre-Order Price; Ballistic Plate Only $169
>Tractor Supply Co. Free UPS Ship To Store
NEW! Advertising Disclosure HERE
Buy Gold And Silver Coins BGASC Review Coming Soon
Free UPS ship to store on all Tractor Supply Company orders! Shop now! Tractor Supply Co. Review Coming Soon
Food Insurance Reviewed HERE
Nitro-Pak--The Emergency Preparedness Leader Nitro-Pak Reviewed HERE
BullionVault Reviewed HERE
CHIEF Supply Reviewed HERE
bullet proof vests BulletSafe Reviewed HERE
BUDK Reviewed HERE
Pyramyd Air is your one-stop shop for everything airgun related. Reviewed HERE
Airsoft Megastore Reviewed HERE
Survival Titles Save 20% Paladin Press Reviewed HERE



Prepper Website
  • Who Needs An Offshore Safe Deposit Box?

    It is my belief that offshore safe deposit boxes will be increasingly demonized in the coming years. If registering interest in one of these overseas asset protection tools to another party, be prepared to hear something along the lines of: “Why do you want an offshore safe deposit box? Are you doing something illegal?” While […] ...
  • War Declared On Gold As Part Of Capital Controls?

    I’ve read/heard a lot about the following lately: Wealth confiscation. The War on Cash. Capital controls. But after reading two articles by Doug Casey and Ted Bauman the other day, I’m wondering if a War on Gold related to capital controls has begun as well. From Doug Casey on his International Man website recently, concerning […] ...
  • Bank And Private Vaults Should Focus On Security Issues Post-Hatton Garden Heist, Pre-Financial Crises

    I’m still playing catch up on my offshore-related projects after that late summer break. So I just recently learned the fate of Hatton Garden Safe Deposit Ltd, the London private vault that was burglarized over Easter weekend to the tune of £10 million. Jamie Grierson reported on The Guardian (UK) website back on September 1: […] ...
  • Related Reading: Storing Precious Metals In Offshore, Non-Bank Facilities

    I was doing some reading Monday when I came across an article entitled “Your Gold Is Only as Good as Where You Store It” on Doug Casey’s International Man website. Jeff Thomas talked about how those looking to safeguard their wealth against insolvent governments have moved their cash into potentially harder-to-confiscate real estate and precious […] ...
  • Thoughts About Bloomberg Article On Swiss Private Vaults

    Anyone get the chance to read that article I mentioned Wednesday? Here are my thoughts about “Italy’s Tax Dodgers Hide in a Swiss Loophole,” penned by Hugo Miller and published on the Bloomberg website on September 17. Miller wrote: One floor above Ristorante Pasta e Ravioli is the office of safe-deposit-box company Gestisafe, whose […] ...