One of the top on-line PM exchanges posted a rather noteworthy item on their website yesterday...

Regards - VHF

-

American Precious Metals Exchange (APMEX)

8/12/2008 11:05:00 AM, Posted by APMEX

You may have noticed a significant number of products on the APMEX.com website are listed as “Out of Stock” right now. This stock shortage coincides with a low price for the precious metals we provide investors and collectors across the nation.

Most, if not all, dealers are experiencing temporary shortages right now. This blog post will address the conditions leading up to this shortage situation, help to ease your concerns and provide you with great alternative products for you to take advantage of the current low price market.

Causes of Product Shortages

When the price of silver, or other precious metals, drops to a low position, everyone who has been waiting to purchase comes in and buys. Whatever silver or gold is in inventory is quickly depleted – not just in our reserves, but also in those of our suppliers. Ultimately, this reduction in supply increases demand, and will eventually increase prices.

This is basic supply and demand. This effect is felt across the marketplace, from suppliers to dealers to the investors.

What We Do When Product Is Unavailable

When the APMEX supply of a given product is gone, we mark the product on the site as “Out Of Stock”. We do not sell what we do not have. This practice of honesty and integrity has gained us the respect and appreciation of the majority of investors in the precious metals markets.

There are companies that will sell what they do not have, leaving concerned investors completely in the dark as to when a shipment will take place. Sometimes getting delivery of a product from these companies may take months, and getting a refund could take longer.

The APMEX policy of not selling what we do not have alleviates this problem. You simply do not have to worry about not getting the products you purchase from us. This is the cornerstone our business is built on.

2008 Silver Eagle Shortage

You probably have read or heard that the US Mint has been “rationing” 2008 Silver American Eagles. We put these very popular products on the website as we are able to get them from the US Mint or other dealers.

Because the price of silver has been low, these products are quick to sell out – other dealers are reluctant to sell their product, fearing that they too will find themselves in an out of stock situation.

Similar situations are the case for other popular items like:

• 1 oz Silver Rounds
• 1 oz Silver Bars
• 10 oz Silver Bars
• 100 oz Silver Bars
• Many Foreign Gold Coins
• Smaller Gold Bars
  

We have been incredibly busy lately, filling orders for products and shaking trees, looking under rocks, calling fellow dealers looking for inventory. We will do our best as always to try to find inventory for you to purchase.

Suggested Alternative Products From APMEX

Even though we may be out of stock on some items, this doesn’t mean that we are completely sold out of everything. There are many other products listed on our website that provide a fantastic investment opportunity for you. If you have been waiting for a tremendous time to get involved, when prices are low – now is that time. Take advantage of the market, before increased demand inevitably drives up the cost.

Currently, APMEX.com has the following alternative products in stock – and best yet, ready for immediate shipping to you.

Silver Investors:

• 2008 Silver Maple Leafs – priced the same as the 2008 Silver American Eagles
• 90% Bag Silver Coins – roughly 712 oz of pure silver
• Morgan or Peace Dollars
  

Gold Investors

• 1 oz Gold American Eagle – random years
• 1 oz Gold Buffalo – random years
• 1 oz Gold Maple Leafs – random years
• 1 oz Gold Krugerrands – random years
  

Final Thoughts on Silver Rationing and Shortages

It is not hard to imagine that once the Silver Maples sell out, we will begin to see the same situation as the US Mint. These coins may follow the 2008 SAE’s, especially if the price of silver remains low.

If you are interested in 1 oz coins or silver or gold you should take advantage of what inventory is still available for immediate shipping.

We certainly hope this will help answer some of the questions you may have about the current market conditions and out of stock items. Thank you for your patience and your business. We are out to see what other rocks we can turn over to find more products for you right now.