The following text is excerpted from the fourth week of August
edition of The Mike Fuljenz Metals Market Report. Fuljenz
is founder and president of Universal Coin and Bullion in Beaumont, Texas:
"Phone calls from new and established customers are asking
dealers how long (and for how much of a premium) they must wait for
delivery of some gold and silver coins. The U.S. Mint and/or
the Royal Canadian
Mint have slowed down delivery, occasionally stopping delivery
altogether, or they have had to put major dealers on an allocation
basis as they search for more raw silver and gold blanks to
manufacture new coins.
"Many dealer’s phones are ringing off the hook. The surge in
demand for hard-to-get bullion coins is now creating a shortage of
low-premium numismatic coins, like $20 gold Double Eagles or
common-date Morgan and Peace silver dollars. Even 'junk' silver coins
are now getting harder to get.
"Dealers who haven’t stockpiled coins in advance are in a bind.
If they merely 'buy to order,' their customers may experience long
waits and then take what’s 'left over' after the more established
buyers have stockpiled the best products. First-time customers need to
know that this unusually high demand for many physical bullion
products (including coins and bars) this summer has created in some
cases higher premiums over precious metals prices and often delayed
deliveries for many products.
"Delayed delivery in normal times is a warning sign that a
vendor may not be reputable. Be sure and check out any vendor you
transact with for their reputation in the industry. Customers who
demand bullion at any price may want to discuss with their broker
which products may provide better value."
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