Open letter to:

Henry Paulson
US Secretary of The Treasury
1500 Pennsylvania Avenue, NW
Washington, DC 20220

RE: US Silver Eagles Illegal Rationing

Dear Sirs:

It has come to my attention that 1oz US Silver Eagle coins are being rationed by the US Mint to 13 authorized dealers and not being made available to the public in adequate amounts.
http://www.silverinstitute.org/news/pr29may08.html

According to US Law: 31USC5112(e) this action is illegal and I demand that this rationing program end immediately.

http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=browse_usc&docid=Cite:+31USC5112

(e) Notwithstanding any other provision of law, the Secretary shall mint and issue, in quantities sufficient to meet public demand, coins which–

(1) are 40.6 millimeters in diameter and weigh 31.103 grams;
(2) contain .999 fine silver;
(3) have a design–
(A) symbolic of Liberty on the obverse side; and
(B) of an eagle on the reverse side;
(4) have inscriptions of the year of minting or issuance, and the words “Liberty”, “In God We Trust”, “United States of America”, “1 Oz. Fine Silver”, “E Pluribus Unum”, and “One Dollar”; and
(5) have reeded edges. (more…)

By: Deepcaster - www.deepcaster.com

That there is a Crisis in the Silver Market is clear.

Deepcaster recommends that all those who do not believe there is such a Crisis try to take delivery of Physical Silver.

Attempting to take delivery of Physical Silver will likely provide a dose of Reality Therapy. Delivery delays are common, with delays for delivery of 100 oz. Bars running 6 to 8 weeks, for example.

Consider the following:

Already the U.S. Mint has sold twice the amount of Silver Eagle coins as it did last year, and 2008 is not yet half over. The Mint is rationing the available coins to just a few dealers.

The demand for Silver Eagles is much greater than the supply. Therefore, there are delivery delays, otherwise known as shortages.

Silver coin dealers around the world have depleted or exhausted inventories.

A major mint, the Perth Mint in western Australia, and a precious metal refiner, AGR Matthey, have, for example, made some disturbing disclosures (and thanks to Jason Hommel for identifying them):

Read Full Article here

By: Silver Institute

Unprecedented investor demand has caused a market shortage for American Eagle Silver Bullion Coins, and the Silver Institute has called on the U.S. Mint to take immediate steps to increase production of this popular physical precious metal investment vehicle.

Today, the Silver Institute has written to the Director of the U.S. Mint expressing its concern over published reports that the coins are essentially being rationed to thirteen authorized dealers, reflecting a major kink in the supply chain, thereby making it difficult in many cases for consumers to purchase them. Silver Institute Executive Director Michael DiRienzo said, “It’s clear that the Mint misjudged the strength of the current silver market, and we are encouraging the Mint to take immediate steps to increase its production of these popular investment coins and plan accordingly for the balance of 2008 and for 2009. The trend line is clear, silver investment is on the rise, so the Mint should position itself to take advantage of this market momentum.”

Congressionally authorized American Eagle Silver Bullion Coins provide investors with a convenient and cost-effective way to add physical silver to their investment portfolios. Since their launch in 1986, American Eagles have become a leading silver bullion coin investment product and have produced over 165 million one-ounce coins, with 9.8 million sold in 2007, and already over 7.2 million have been sold in just the first 5 months of 2008.

Understanding that demand for the extremely popular coins is strong, the Silver Institute is urging the Director of the U.S. Mint to consider methods for streamlining the silver Eagles’ production process.

“We are very concerned about interruptions in this market and have requested a meeting with the Mint Director to seek stability for this important silver coinage program,” DiRienzo added.

A copy of the letter from the Silver Institute to the U.S. Mint can be viewed at http://www.silverinstitute.org/news/DirectorMoyMay29.pdf. (more…)

By: Mark O’Byrne, Gold & Silver Investments Limited

Further to recent articles containing unfounded rumours and allegations alleging that the Perth Mint does not have physical precious metals (especially silver) to back its storage programmes or to make deliveries we have received a few phone calls and emails from concerned clientele.

Both the Perth Mint and Gold Investments strongly refute these absolutely baseless allegations.

Firstly, it is important to remember that the Perth Mint is owned by the Government of Western Australia and is run within very strict and ethical guidelines. The Perth Mint does not and would not contravene the law and act in a manner which would embarrass its government owner. Indeed because it is government owned it has to be absolutely scrupulous in adhering to strict business procedures. For every ounce of precious metal that is sold to a client, the Perth Mint must buy a corresponding ounce in the marketplace. The Perth Mint is audited rigorously by the Auditor General of Western Australia as well as by internal auditors Price Waterhouse Coopers, to ensure that this policy is maintained at all times.

The Perth Mint holds full inventory confirmations on a quarterly basis as well as the comprehensive audits. The Perth Mint Depository programs are not permitted to, and do not, run short positions under any circumstances The Perth Mint does not lease metal out to mining or exploration companies and does not undertake precious metal derivative transactions.

The Mint shares concerns about pool and unallocated accounts where it cannot be established if the operator is backing its liabilities to investors. Gold Investments would advise investors to research and question any program or facility they are investing in.

The Perth Mint Certificate Program remains one of the world’s safest and securest ways of owning gold and silver offshore. All methods of investing in precious metals have pros and cons. However we are confident that the AAA rated government Perth Mint is the safest option when it comes to third party precious metal ownership. (more…)