perth mint has run out of silver bars, page-34

Hi Guys, been busy so haven't checked out this forum for a bit and missed this thread.

I've covered a lot of the issues in the SS forum, so won't go over that again.

On the 1000oz bars, because they are so big and more used in the wholesale markets, we don't sell them via our retail outlets - not many people want 30kg bricks worth $32,000.

They can be bought from Depository for allocated storage and you won't find any problem getting them, however Depository business is for storage, not cash and carry.

As to Jeffery Christian's reference to us, I consider it a bit odd. We have no contact with Jeffery Christian or provide any information to CPM Group. Maybe someone in the bullion banks told him we've been pulling a lot of physical out of London, but even so our pool allocated product only has 2.5 million ounces which is small change for the London market.

If he thinks we just have some massive stockpile that we own outright, he is wrong. We aren't a central bank. As bigsky9 says "the silver that was drawn from their pool account is then replaced when the perthmint either imports or refines enough to replace it."

When we sell physical, then we buy replacement raw silver so we can make the next batch. The business is working on the basis of flow. We have never had a problem sourcing the replacement silver from London.

If we do ever get to the situation where bullion banks won't supply us, then we won't be going around saying it is just a factory capacity issue, we will say we can't sell product because we can't source the replacement metal. Bigsky9 is right, "if the perthmint simply sold it all, and did not replace it, would that not be a breach of contract" - there is no way we would do that.

I don't think it will come to that however, because all we will do is keep on bidding up the price until we find someone willing to supply us with physical, and accordingly you will see the "Perth Mint Spot" price increase to reflect the reality of the spot price we are having to pay to get physical.