Stefan Gleason Blog | Why Isn’t Retail Demand For Silver Pushing Up Prices? | Talkmarkets - Page 3
President at Money Metals Exchange
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Gleason is president of Money Metals Exchange, a national precious metals investment company and news service with over 450,000 readers, 35,000 paid customers, and $120 million in annual sales. He launched the company while president of a national newsletter publishing ... more

Why Isn’t Retail Demand For Silver Pushing Up Prices?

Date: Friday, February 19, 2021 1:31 PM EDT

 

It's been a mad scramble to keep inventory on the shelf – and the silver supply situation is highly tenuous. On top of that, recent weather issues in many areas of the country have slowed the transportation of metal.

 

Silver Eagles are currently scarce and carry elevated premiums. We are also now beginning to see some supply issues emerge in gold products, particularly fractional coins and bars.

 

Most other dealers are already wiped out of silver bars and rounds – or they are quoting ridiculously long lead times for fulfilling customer orders. But Money Metals Exchange has so far been able to keep all popular silver items in stock while shortening or eliminating delivery delays.

 

Meanwhile, we aren't seeing overall tightness on 1,000 oz silver bars so far – mainly some logistical issues involving the location of available supply. But again, the silver supply situation is tenuous.

If the outflow of silver through the retail minting channel continues at this rate for a few more weeks, that is likely to put real pressure on the availability of commercial bars as well as silver grain for minting.

 

We know that ultimately mints, jewelers, and industrial users of gold and silver require physical metal. Cash-settled futures contracts and shares of exchange-traded funds are no substitute for the real thing.

 

Time will tell whether furious retail buying of physical precious metals can help lift the lid on spot prices.

Mike Gleason is a Director with Money Metals Exchange, a national precious metals dealer with over 50,000 customers. Gleason is a hard money advocate and a strong proponent of personal liberty, limited government and the Austrian School of Economics. A graduate of the University of Florida, Gleason has extensive experience in management, sales and logistics as well as precious metals investing. He also puts his longtime broadcasting background to good use, hosting a weekly precious metals podcast since 2011, a program listened to by tens of thousands each week.

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