1. They're selling product with no/insufficient inventory? 2. They're hedging on a big spot price increase? 3. It's a supply collusion scam to keep premiums high? 4. They really don't have enough employees to process orders and can't figure out how to hire more people? 5. Other? My recent order for 20 ounces hasn't even processed after 5 days, although the payment debited immediately. What do you think is going on?!
I assumed it was a little bit of column 1, 2, and 4. However, I just made a purchase 2 days ago and it has already shipped.
You will likely hear many different explanations to this question but I have attached a link that is interesting, although written 18 months ago. USGS: “Worldwide silver supplies will be depleted by 2025” - 401kRollover
Eh, take that with a grain of salt though since it's one of those "OH MY GOD THE SKY IS FALLING! BUY ALL THE SILVER AND GOLD!"..."Oh, by the way, did we tell you how you can buy silver and gold from us and we will store it for you in our totally safe vault?"
Silver on paper and the vault are both dangerous ideas. Have it in hand is my idea of safe. Maybe someone else remembers the company that shut down and everybody lost everything a few years back? I would not even trust a SDB in the event the economy ever crashed. Okay for small holdings but certainly not large. @furryfrog02 Agreed with taking that report with a grain of salt. But the USGS report is interesting.
A lot of bullion dealers sell inventory that they do not already have in stock, or ran out of the item, and are waiting to restock. When purchasing any bullion coins, only deal with the most reputable dealers, and only buy items that are advertised as “in stock.”
This article is more up to date and may explain better than the fear implied in my first link. Even though it is from a private firm it seems much more down to earth and is up to date through this past February. Silver Shortage - Myth or Inevitable Reality? | Sunshine Profits
In my experience, bullion dealers only hold in stock what they manage to buy from their customers at more favorable prices than they pay their suppliers. When a customer wants bullion the dealer doesn't already have, the dealer has to pay over spot to get it, and this cuts very significantly into the margin. Dealers generally don't wholesale their bullion on hand to their suppliers unless they (1) need the cash for other purposes or (2) they believe they are in the bullion near a top, and stand to lose money of it drops before they retail it.
Reminds me of when I was selling construction commodities. Plastic sheeting I would purchase by the truckload and a lot of it is used in construction. Man, talk about a product that makes or breaks based on fractions of a cent. And it would change with the cost of petroleum so you couldn’t predict what was coming. When costs were dropping, I kept my inventory low and still wrote orders hoping I would catch bottom before my next truckload. Most nerve wracking business I ever did.
Yes, that's why I'm kinda surprised at the delay. I've done regular business from this company for many years and they're only about two hours away. I wonder if you go there to buy in person what they have in stock.
Well, it's day 6 and hasn't processed yet. They advertised a 3-5 day delay. Premiums we're pretty high, more than I would normally pay. Thinking about cancelling the order at this point.
I called the company and asked for an update. They said maybe it will ship next week, not delivered, just shipped. I asked point blank did they not have the item in stock. He said they no longer have stock, other than "just enough" to fill my order for 20 ounces. He waffled a bit when I pressed the issue; I said if 75 percent of your items are listed as out of stock on the website, than doesn't make sense they are overwhelmed with orders for " in stock" items since so few are available. Sure seems like they didn't really have these in stock when I ordered and are backfilling from their suppliers as orders come in.
In looking at the bullion dealers that advertise on the tube and the other US dealers with sites on line. They all seem to to have little stock items currently. I have only dealt with one bullion dealer over a coup[le of years. I use the bank wire transfer, lowest cost and fastest way of getting it shipped since it clears shortly after they get it. I have placed two orders in the last two Fridays the items were in stock and shipped out even with the week end got the first order by Tuesday. The second order is awaiting shipping. I have been told that a number of the bullion dealers use a fulfillment mint/refiner in Las Vegas. The supposedly have stock assigned to each of the dealers. The LCS has had a hard time getting any more new PM's in in the last 3 weeks to to current conditions. Everyone buying it and few selling any PM's. either walkins or from his suppliers. The prices have lower the last couple of days, and seemed to climb before the market closed. This is an interesting read The Great Reset Is Here - The Daily Reckoning
It's also interesting that demand is supposedly so high, with dwindling supply, and the price goes down or sideways.
