It would takes months and cost millions, how was that going to help eliviate the current supply issues, also it would take years to build up a name that is trusted buy buyers.
Bingo, and that is why the current demand cannot be met, because refineries/mints cannot keep up, and it takes a while to increase capacity. Doesn't it make sense that as demand shot up, supply constraints would be hit and naturally it would take some time to increase capacity? I don't see any other way things could have played out.
Wrong, the spot silver price is based on large REFINED good delivery bars.
Sorry I worded that poorly, of course the silver has to be refined into pure form, what I mean is Perth mint pays spot price and then adds a premium for making it into smaller bars. If Perth mint cannot keep up with demand, that is their problem. You've said yourself you could go to less reliable bullion dealers and place orders (still delayed), but you don't trust the security of your funds. Are you saying these other bullion dealers cannot source the metal either? If not, then where is the shortage?
Again I ask, what kind of dealer would accept a lower price for their commodity if they knew they were running out, when they know they could achieve a higher price from the pent up demand. If there really was a shortage and you were the supplier, I can guarantee you would be raising prices to reflect this. Why isn't this happening at a higher level (where Perth mint sources silver from)? For Perth mint, they have a reputation to uphold, they would be slammed if they said we're upgrading our production capacity, but in the meantime we're going to jack up the prices due to not being able to keep up with demand..
You seem to think miners and bullion dealers alike are not interested in maximising their profits, that they're happy to sell at low prices in full knowledge there's a shortage and they could sell for higher. Is someone putting a gun to their head to sell at the spot price? This just doesn't make sense, in any market.
Perth mint had no bars for sale and were not taking order for any either It has been stated many times on this thread.
I know that has been stated, but this is a forum, and information can be unreliable. The official word from Perth mint was that they accepted backorders (see http://www.perthmintbullion.com/blog/blog/11-05-17/Perth_Mint_Answers_Calls_For_Back_Orders_On_Silver_Bars.aspx), if that's not true fair enough, has this policy been officially rolled back?
Wrong again, bullion dealers have to wait just like everyone else, they do not get guaranteed delivery, in fact many dealer are steering potential buyers away from ordering perthmint products, because of the major delay with securing products from them.
I'm aware there were delays, you stated you wouldn't trust your funds to be held by these dealers while you waited for delivery. I'm sure a dealer could get insurance to guarantee your funds in the event of the business going under, some kind of insurance premium. I assumed the dealers you were talking about were going through channels other than Perth mint.
and I make money on my paper silver, then I have to pay tax on that profit which would then reduce the amount of physical that I can purchase.
That is a bit of a pain as you're bringing tax forward, and throwing out the 50% CGT since you'll hold for over a year. I understand this isn't feasible for a small investor, but you could create a separate trading entity to handle this and avoid these tax issues (the company offsets the paper gains vs losses on sale of physical to you).. Anyway my point is, this is a strategy anyone can use, so why companies wouldn't be offering this as a service is beyond me. If you really want silver at the low prices that bad, this is still a viable option. I agree it's a unnecessary hassle, but that's beside the point. I don't understand why no company has met the market on this issue, if it really is this difficult to secure physical silver - there are ways to manage it but nobody seems to be willing. Maybe it's just not profitable enough, people aren't willing to pay enough of a premium for the guarantee of physical. Also I wonder if there are 'like kind' provisions in Australia tax law to allow a swap from paper to physical, without triggering a CGT event (sounds like something you could argue in court quite effectively, it's not like you're trying to dodge tax).
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