US Mint runs out of 2013 silver coins

[Old Pueblo]

Ominous sign makes headline news

Link

 

At first glance it sounds like our Government is out of money. Oops

 

I don't know if there's a numismatic story here or not

 

 

 

OP

[RWB]

Doesn't seem like much of a story at all. It's a problem common to most operations that produce physical objects - supply of materials always lags demand.

[Conder101]

2009 all over again? So much demand for the bullion coins that they have to suspend the collector issues and ration the bullion pieces to their distributors?

[bsshog40]

Well I already have my 2013 Bullion SAE and I recv'd an email that the mint was processing my 2013 Proofs in the next week.

[johnny9434]

it will return to normal ( what ever normal is these days )

[Conder101]

and I recv'd an email that the mint was processing my 2013 Proofs in the next week.

Or with the recently announced suspension, maybe not.

[bsshog40]

I wonder why they put dealers on the priority list over subscription collectors? The only reason that would come to mind would be less shipping.

[Old Pueblo]

I wonder why they put dealers on the priority list over subscription collectors? The only reason that would come to mind would be less shipping.

 

Profit in volume?

[bsshog40]

I wonder why they put dealers on the priority list over subscription collectors? The only reason that would come to mind would be less shipping.

 

Profit in volume?

I would think there would be a discount in volume, whereas there would be full profit for individual collectors.

[Coindude]

Did they really run out or are they doing like a lot of coin dealers do and are just holding back their higher priced inventory until the market is favorable to them?

[Conder101]

Because the law requires the mint to satisfy the public demand for the bullion issues. Special collector issues are not mandatory. So if there is more demand for the bullion coins than the mint has planchets, the silver or planchets earmarked for use in the collector issues are redirected to bullion coin production. Also since the mint does not make their own planchets they can be affected by the production capacity of the companies that do produce them.

 

As happened in 2009 and as may be happening again, demand for silver planchets is exceeding production capacity. In that case the producer winds up rationing planchets to their customers (The US Mint isn't the only customer.) This causes shortages in production and the Mint winds up having to ration coins to THEIR distributors. The rationing is reported, and sensing a possible "shortage" more people climb on the bandwagon trying to buy the dwindling supply. This demand feeds back up the supply chain and the production remains maxed out, yet still less than the demand and the collector issues remain in a holding pattern.

[bsshog40]

Well I guess we'll see what happens on 01/24. This is the proposed release date of the 2013 SAE Proofs.

[jpcienkus]

Condor,

 

I read in Mercanti's book, at least I think that's where I read it, that after 2009, Pres. Obama signed/amended the law and they will also need to satisfy collector demands. That's why there was a proof in 2010, etc...

 

Joe

[jpcienkus]

Well I guess we'll see what happens on 01/24. This is the proposed release date of the 2013 SAE Proofs.

 

I've already received an e-mail from the mint that my proofs won't be shipped until the 1st week of February. Hope they keep their promise.

[bsshog40]

Mine show backordered until 02/06.

[bsshog40]

Well my 2 Proof Eagles shipped out today!

[newprepper]

Is it Feb 6th already?

[bsshog40]

Is it Feb 6th already?

Right???

[newprepper]

I take a nap and I'm Rip Van Winkle

[Brian D]

Boss, Glad to see you are keeping up with the ase

[bsshog40]

Boss, Glad to see you are keeping up with the ase

Yea I am Brian. I hate to give up on them even tho' the prices are getting up there. Got my regular 2013 bullion eagle to keep my Dansco up to date also.

[Crohnos01]

Because the law requires the mint to satisfy the public demand for the bullion issues. Special collector issues are not mandatory. So if there is more demand for the bullion coins than the mint has planchets, the silver or planchets earmarked for use in the collector issues are redirected to bullion coin production. Also since the mint does not make their own planchets they can be affected by the production capacity of the companies that do produce them.

 

As happened in 2009 and as may be happening again, demand for silver planchets is exceeding production capacity. In that case the producer winds up rationing planchets to their customers (The US Mint isn't the only customer.) This causes shortages in production and the Mint winds up having to ration coins to THEIR distributors. The rationing is reported, and sensing a possible "shortage" more people climb on the bandwagon trying to buy the dwindling supply. This demand feeds back up the supply chain and the production remains maxed out, yet still less than the demand and the collector issues remain in a holding pattern.

 

I was actually just reading on a RSS feed about how the government apparently didn't like investors rubbing their nose in that particular law in 2009. Consequently, in 2010, they quietly changed the wording to include "as determined by the secretary of the treasury". So, they may not have the same pressure and/or response as what happened in 09.