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Shortage of gold coins


Metallic

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In reference to recent gold coin shortages, I noticed in February 2008 that www.goldline.co.uk/bullionCoinsPage.page was out of stock of several 1 oz. coins (I'd been monitoring them for 2 years up to that point). I hadn't seen this before, even when prices spiked in May 2006.

 

This situation hasn't changed since, and smaller denominations are also now out of stock.

 

Furthermore, spreads on the spot price (my first purchase, a 1 oz. Krugerrand in Feb 2006 was ~2% above spot) has increased to between 6% and 9% above the spot price, depending on which 1 oz. coin is purchased.

 

Can anyone explain the shortage and increase in spreads?

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  • 2 weeks later...

you're right there is a shortage of gold coins, but the reason Goldline has no silver bars and some of the smaller bars is 'cos they're moving to larger premises and their machinery is being installed which will take 3 weeks.

 

they've grown so much that they need more space, probably because dumbasses like you think theres a silver shortage and have been buying silver bars by the truckload... hahahaha

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you're right there is a shortage of gold coins, but the reason Goldline has no silver bars and some of the smaller bars is 'cos they're moving to larger premises and their machinery is being installed which will take 3 weeks.

 

they've grown so much that they need more space, probably because dumbasses like you think theres a silver shortage and have been buying silver bars by the truckload... hahahaha

 

Let's keep the tone friendly here, Okay, Goldshark!

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Well, there must be an awful lot of idiots out there as premiums on silver coins are soaring.....

 

Silver at £6/oz.

 

Coins (taking off VAT@ 17.5%) £9.16/oz. (on www.coininvestdirect.com)

 

This is a 50% on 1 oz. silver coins.

 

1 kilo bars are £268/kilo (ex. VAT). Market price £195....37% premium. Goldline

is even more expensive at £291/kilo, 49% premium

 

There is a severe disconnect between the physical and paper markets.....

 

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Well, there must be an awful lot of idiots out there as premiums on silver coins are soaring.....

 

Silver at £6/oz.

 

Coins (taking off VAT@ 17.5%) £9.16/oz. (on www.coininvestdirect.com)

 

This is a 50% on 1 oz. silver coins.

 

1 kilo bars are £268/kilo (ex. VAT). Market price £195....37% premium. Goldline

is even more expensive at £291/kilo, 49% premium

 

There is a severe disconnect between the physical and paper markets.....

 

I was chatting to Michael at the NZ mint a few weeks ago and they are quite happy to receive orders from overseas :D

I'll give him a call on Monday and find out delivery and above spot prices for your comparison.

(wish I got commission !)

 

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Can anyone explain why the premium for gold coins is not reflected in a premium for physical gold in BV?

Any costs of manufacture are already built in to the spot price for gold as that price is based on a standard LBMA bar. There is no minting cost in producing LBMA standard bar unlike the higher costs involved in minting coin.

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