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* * * Product Shortages * * *
Dear Subscribers:
Monex apologizes for the present availability shortages of many small- format delivery products and any shipping delays that you may have experienced.
Ever since the credit crisis became newsworthy with the collapse of Bear Stearns, the demand for physical precious metals has increased substantially. Surprisingly, prices over this same period have decreased. This market dichotomy is unprecedented and clearly contrary to economic principles.
There is one explanation. In a credit crunch, assets are sold to generate cash flow. When almost all assets are either toxic paper derivatives or illiquid assets having no market, one asset class is left which is perfectly liquid, one that can be converted to cash on a phone call . . . Precious Metals.
It may very well be that financial institutions are unwinding significant trading positions in precious metals as a means to gain cash flow. To exacerbate the run on physicals, the weakness in prices has led to dramatically increased demand for small-format bullion coins and bars throughout the world, especially in India, Japan and Europe.
Keep in mind that there is no shortage of large-format 1,000 ounce silver bullion bars for Monex Atlas accounts. However, small-format 1 to 100 ounce coins or ingots are nonexistent in volume. Even Monex has been unable to supply everything that customers are requesting. Other than 90% and 40% silver coin bags, Monex has been sold out of silver bullion coins and 100 ounce bars for several days.
The good news is that as the long-time distributor for the Austrian Mint, Monex will receive a good supply of one-ounce .999 fine silver coins this week. They will be made available for sale to investors at the opening on Wednesday on a first-come, first-served basis.
Monex is making every effort to get more product quickly. In the short run, this situation of a shortage of some bullion coins may continue.
However, it is inconceivable that the low metals prices and shortages can continue for long. Current events suggest higher metals prices will result from present demand.
Thank you for your understanding and patience,
Monex
* * * Product Shortages * * *
Dear Subscribers:
Monex apologizes for the present availability shortages of many small- format delivery products and any shipping delays that you may have experienced.
Ever since the credit crisis became newsworthy with the collapse of Bear Stearns, the demand for physical precious metals has increased substantially. Surprisingly, prices over this same period have decreased. This market dichotomy is unprecedented and clearly contrary to economic principles.
There is one explanation. In a credit crunch, assets are sold to generate cash flow. When almost all assets are either toxic paper derivatives or illiquid assets having no market, one asset class is left which is perfectly liquid, one that can be converted to cash on a phone call . . . Precious Metals.
It may very well be that financial institutions are unwinding significant trading positions in precious metals as a means to gain cash flow. To exacerbate the run on physicals, the weakness in prices has led to dramatically increased demand for small-format bullion coins and bars throughout the world, especially in India, Japan and Europe.
Keep in mind that there is no shortage of large-format 1,000 ounce silver bullion bars for Monex Atlas accounts. However, small-format 1 to 100 ounce coins or ingots are nonexistent in volume. Even Monex has been unable to supply everything that customers are requesting. Other than 90% and 40% silver coin bags, Monex has been sold out of silver bullion coins and 100 ounce bars for several days.
The good news is that as the long-time distributor for the Austrian Mint, Monex will receive a good supply of one-ounce .999 fine silver coins this week. They will be made available for sale to investors at the opening on Wednesday on a first-come, first-served basis.
Monex is making every effort to get more product quickly. In the short run, this situation of a shortage of some bullion coins may continue.
However, it is inconceivable that the low metals prices and shortages can continue for long. Current events suggest higher metals prices will result from present demand.
Thank you for your understanding and patience,
Monex