perth mint out of silver?

  1. 678 Posts.
    Anyone confirm this? A post from the midas website

    Hello Bill,
    Thought you and the readers would love this one. We had an investment club meeting on Saturday and we heard some very bullish information about silver, which may see it go to 1:1 with gold before new mines come on.This prompted a few club friends on mine to muster up approx $500,000AUD of cash for a silver 5kg bar purchase.

    Well the Perth mint has always delivered for us, even as you say Europe is having such problems for the small investors. Well they only had 114 bars when we ordered over 320. Bless their hearts they sold us the lot. But It will take over a month for them to deliver the rest . Get this 6 guys have just bought out the Perth Mint (Australian Bullion Co) for a month for 500K. What happens to everyone else??? Go GATA, Go Butler, Go Morgan, I love you all. You are making my life so much fun. ?#@% the Cartel, you are going down.

    Its still hard to help those closest to you as most of my social friends still think I am insane for investing in SILVER. Marcus my best mate's family and work buddies think he is a tripper. Yeah it feels good , but I would prefer to protect them, not see them buy another investment house.

    Got to love 2004 and 5. GOT to love GATA.

    Tom W.
    Margaret River
    Western Australia

    Also it seems copper and nickel about to run out as well

    From The King Report:

    Monday’s feature attraction was the continued commodity surge on Chinese buying. Commodities are in short supply. At current drawdown rates, copper supplies will be exhausted in two months and nickel will be gone in two weeks. Oil inventories are at a 28-year low. Silver made a 16-year high. Platinum hit $906, the highest level since 3/80, when the US had its highest inflation since the Civil War. The Chinese corner on global commodities is about to unleash very unpleasant consequences. Bottle necks in production could appear. A critical consideration is industrial company raw material contracts. When they expire, the cost jolt will be immense. There’s also the real possibility that suppliers will be unable to deliver commodities or honor contracts. The term ‘force majeure’ could litter financial stories. Hedgers and leveraged arbs might be ‘bought in’ on their short physical commodity positions.

    Industrial companies could soon experience a profit squeeze due to rising commodity prices and the possibility that they are unable to garner necessary supplies. This is the type of economic action that the Fed is supposed to prevent. However, the perilously weak US economic and financial fundamentals have rendered the Fed to inflation-fostering agents. The die is cast. The Fed will not intervene. This means the likely eventuality is a flame out boom on unsustainable price increases and then a bust.

    In the 1980 inflationary binge, government debt was $1 trillion. When Volcker administered the necessary medicine in 1980, the result was a severe recession that almost felled the US financial system when Mexico threatened to default on its debt (summer of 1982). We’re now $7T and soaring. Current aggregate US debt is a large multiple of 1980 levels. And that’s why Easy Al will not allow debt contraction, and consumer debt is in its 50th consecutive month of expansion.

    We keep hearing much nonsense about consumers and the US economy being able to tolerate much hirer interest rates. The major factor or impetus in the US economy is not manufacturing, consumer spending, business spending or technology. The prime impetus in the US economy is finance. About $1.5 trillion/day of forex is traded in the US. Debt trading is about $1 trillion as is Eurodollar futures and options. Eurodollars are estimated to trade about the same as forex. Swaps and derivative numbers are difficult to discern, but reasonable estimates are about $1 trillion/day. Let’s say stocks, money markets, commodities, CP, and everything else total about $0.5 trillion. That’s about $6.5 trillion/day of paper or about 3 times annual US GDP in one week. The US economy is essential a carry trade…There are about 6000 hedge funds in the US with an estimated $600B in capital. They exist to speculate. If there were significant opportunities in the US’s real economy, the capital would flow there.

    Here's a monthly view of copper's breathtaking climb since the fall of last year:

    Pretty amazing, eh? Looks like copper is in the process of forming a cup-with-handle pattern, which implies an upside explosion of multiples of its base to rim
    measurement, in this case the difference between $0.60/lb. and $1.40/lb. In other words, multiples of .80/lb. Folks may not believe it yet, but at some point in the years ahead, copper will probably be selling for five bucks a pound or more! People may soon be hoarding pennies and other U.S. coins for the meltdown value of their metal content. Check out this excerpt from today's Daily Reckoning:

    "- The highest-flying commodities on the planet continue to be the lowly base metals. Week after week, they're stealing the shine from their precious counterparts, gold and silver. Zinc advanced to a new 3-year high last week, while copper soared 3% to a new 8-year high of $1.343 a pound.

    - "Steel prices are soaring," your New York editor was informed on Friday. The source of the observation is a life-long friend who earns a handsome living selling specialized steel products on the West Coast. "We're seeing some huge price hikes," he says. "Some products will be going up 40% over the next two months... It really sucks."

    - Happily for us all, Chairman Greenspan has assured the nation that inflation is non-existent. That's a good thing too; otherwise we might have reason to be worried about the surging price of steel and crude oil and gasoline. Crude futures closed above $36 per barrel for the first time in almost a year, and ended the week with a gain of nearly $2. Average retail gasoline prices jumped to a 5-month high.

    - Even if Alan Greenspan can't see any inflation through his bifocals, the Chairman's employer might soon feel the pinch of rising metals prices.

    - "In 2004, the U.S. Mint will likely lose money minting pennies and nickels," observes our learned colleague, Dr. Steve Sjuggerud, editor of The Investment U E-Letter. "Starting this year, pennies and nickels may be worth more for their metal content than for their purchasing power... So it might be time to start burying pennies and nickels in your back yard," Sjuggerud suggests.

    - "In 2003, it cost the U.S. Mint 0.98 cents to make a penny. This used to be an easy profit game for the government... In 2002, it cost 0.88 cents to make a penny. And in 2001, it cost 0.80 cents. But now, in 2004, it is almost assured that the government will lose money minting pennies.

    - "The U.S. Mint counts September 30, 2003 as the end of its fiscal year. Since then, the price of copper has risen by 62%. Copper, you may be surprised to learn, is the main ingredient in a nickel. In 2003, it cost the government 3.78 cents to make a nickel. Easy profits right? But the government didn't count on the dollar crashing. If the price of copper, the main ingredient in a nickel, stays the same, it's possible that the cost of could rise by 62% in 2004. Then it'll cost the government over six cents to produce a nickel.

    - "The situation is similar with the penny. The main ingredient in pennies is not copper, but zinc. Actually, zinc makes up 97.5% of a penny. Zinc is up nearly 40% since the end of the 2003 fiscal year. So if the cost of producing a penny rises by 40%, it'll cost the government 1.38 cents to make a penny.

    - "How can the government get out of this mess?" Sjuggerud asks rhetorically. "Oh that's an easy one... change the metal content of the coins. I'm sure it's only a matter of time. Maybe next year we'll be spending poker chips instead of pennies. And just think, someday down the road, even those poker chips will have more intrinsic value than a paper dollar."
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