Precious metal coins no longer available

Discussion of the Gold portion of the Permanent Portfolio

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FarmerD
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Precious metal coins no longer available

Post by FarmerD » Mon Mar 16, 2020 9:48 pm

I've read the US Mint is completely out of silver eagles. If you can find any silver eagles to buy, online premiums have skyrocketed. Same thing with gold coins. For example, Texas Precious Metals to completely sold out of gold. Absolutely amazing!

https://www.texmetals.com/products/gold-coins

And yet the gold price has been absolutely tanking.

It looks like the Sprott CEF closed end fund is now selling at a 10.6% discount. It's 60% gold and 40% silver, but with the gold to silver ratio at 116, I'm thinking this is the best way to play precious metals. Thoughts anyone?
FarmerD
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Re: Precious metal coins no longer available

Post by FarmerD » Mon Mar 16, 2020 9:52 pm

Just noticed Texas Precious Metals is also out of silver. They are effectively out of business for a while. The CEO, Tarak Saab has posted the following:

https://www.texmetals.com/news/importan ... 3-12-2020/
FarmerD
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Re: Precious metal coins no longer available

Post by FarmerD » Mon Mar 16, 2020 10:00 pm

Checked a few PM dealers - SD Bullion is selling Gold eagles are going for $130 over spot. Silver Eagles at Apmex at $10 over spot.
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technovelist
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Re: Precious metal coins no longer available

Post by technovelist » Tue Mar 17, 2020 12:16 am

FarmerD wrote:
Mon Mar 16, 2020 9:48 pm
I've read the US Mint is completely out of silver eagles. If you can find any silver eagles to buy, online premiums have skyrocketed. Same thing with gold coins. For example, Texas Precious Metals to completely sold out of gold. Absolutely amazing!

https://www.texmetals.com/products/gold-coins

And yet the gold price has been absolutely tanking.

It looks like the Sprott CEF closed end fund is now selling at a 10.6% discount. It's 60% gold and 40% silver, but with the gold to silver ratio at 116, I'm thinking this is the best way to play precious metals. Thoughts anyone?
I don't like Sprott for how they took over CEF, but if you don't care about that, and don't mind the very annoying 8621 form that you have to fill out every year, that sounds like a bargain.
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technovelist
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Re: Precious metal coins no longer available

Post by technovelist » Tue Mar 17, 2020 12:20 am

US gold bureau has gold Eagles at normal premiums, or at least that's what they say on their website: https://www.usgoldbureau.com/gold/gold- ... ican-eagle.
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Tortoise
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Re: Precious metal coins no longer available

Post by Tortoise » Tue Mar 17, 2020 12:23 am

Looks like the coin dealer I used to shop from when I lived in L.A. is also sold out of most of their gold and silver coins and is having a hard time keeping product on the shelves right now:

https://www.golddealer.com/

Image
FarmerD
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Re: Precious metal coins no longer available

Post by FarmerD » Tue Mar 17, 2020 2:37 am

technovelist wrote:
Tue Mar 17, 2020 12:20 am
US gold bureau has gold Eagles at normal premiums, or at least that's what they say on their website: https://www.usgoldbureau.com/gold/gold- ... ican-eagle.
BTW The Texas Bullion Depository has finally moved into their permanent home in Leander. I made a deposit there last weekend. It's not nearly as impressive as the old Federal Reserve Building used by APMEX HQ in OKC. Basically a much smaller building on a rough surface road out in the countryside. They said they have been extremely busy.
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technovelist
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Re: Precious metal coins no longer available

Post by technovelist » Tue Mar 17, 2020 9:33 am

FarmerD wrote:
Tue Mar 17, 2020 2:37 am
technovelist wrote:
Tue Mar 17, 2020 12:20 am
US gold bureau has gold Eagles at normal premiums, or at least that's what they say on their website: https://www.usgoldbureau.com/gold/gold- ... ican-eagle.
BTW The Texas Bullion Depository has finally moved into their permanent home in Leander. I made a deposit there last weekend. It's not nearly as impressive as the old Federal Reserve Building used by APMEX HQ in OKC. Basically a much smaller building on a rough surface road out in the countryside. They said they have been extremely busy.
I'll bet they have been!
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Ad Orientem
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Re: Precious metal coins no longer available

Post by Ad Orientem » Tue Mar 17, 2020 10:39 am

I'm feeling pretty good about that Krugerand I bought yesterday when gold was around 1477. My silver stash... not so much.
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Re: Precious metal coins no longer available

Post by FarmerD » Tue Mar 17, 2020 12:00 pm

Ad Orientem wrote:
Tue Mar 17, 2020 10:39 am
I'm feeling pretty good about that Krugerand I bought yesterday when gold was around 1477. My silver stash... not so much.
I know the feeling. I bought a bunch of 10 oz silver bars for spot about 40 days ago. I was bragging to my wife a couple weeks ago about what a great deal I got. Now that purchase looks kinda dumb.
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Re: Precious metal coins no longer available

Post by mdwilson1991 » Wed Mar 18, 2020 9:44 am

So let me get this straight...

You can't get gold coins anywhere, or else at a very high premium, yet gold prices are going going nowhere???

How can this be?
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Re: Precious metal coins no longer available

Post by technovelist » Wed Mar 18, 2020 9:51 am

mdwilson1991 wrote:
Wed Mar 18, 2020 9:44 am
So let me get this straight...

You can't get gold coins anywhere, or else at a very high premium, yet gold prices are going going nowhere???

How can this be?
Spot gold prices are for very large purchases or sales, and typically are derived from futures contracts rather than physical transactions.

In normal times, those prices and coin prices are within a small distance of one another because of arbitrage possibilities between the two.

When things go crazy, the arbitrageurs don't want to risk getting caught offside, so those prices can diverge.

Such periods don't last very long, a month or two at the outside in my experience. We had one in 2008 that lasted for a couple of months, if I recall correctly.
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