US Mint Halts Sales, Depletes Inventory Of One-Tenth Ounce Gold Coins -
We have been reporting extensively on the terminal disconnect between the paper gold market, which tumbled ten days ago for a variety of reasons, and the physical gold market which one can safely say, has seen a record surge in demand by those who wish to take advantage of the tumbling prices, depleting inventories of gold and silver in virtually all jurisdictions, and leading to the a record purchase of gold in the US mint a week ago as also reported here.
Today, we learn that, as expected, none other than the US Mint has officially run out of small denomination gold coins, in this case One-Tenth ounce American Eagle gold bullion coins. We are confident this incontrovertible proof of soaring retail demand for physical will somehow result in JPM or another bullion bank dumping a few extra thousands ounces of paper/electronic gold or silver to further disconnect the paper price from what is actually going on with physical demand. As for the US Mint, first it's fractions of an ounce: look forward to the mint running out of all bullion denominations in the coming days and week, first in gold, then in silver as well.
From Reuters:
The U.S. Mint has temporarily suspended sales of its one-tenth ounce American Eagle gold bullion coins because of inventory depletion due to strong demand, but continues to offer the one-ounce, one-half ounce and one-quarter ounce coins.
In a memo to its authorized purchases late Monday, the Mint said that gold coins sales in total ounces has been up more than 100 percent year to date over the same period last year.
We, for one, can only hope that the idiotic smashdown of spot paper gold continue and the price is sent to $0 or negative, while the last remaining physical ounce in inventory disappears at any price.
At that point the exchanges will have quite a few anxious people to answer to, the second someone demands even one bar in delivery.
Also, learn the words: "forced cash settlement."
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