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How and What Bullion Dealers
Sold Out this April and May

Following the 2013 mid-April gold price drop, a run on bullion dealers occurred in various countries around the World.

There were rumors and reports about bullion dealers and mints running out of coins.

Part of these rumors are based on facts: the precious metal price drop attracted many stackers, "gold bugs", investors and ordinary people to buy up more gold and silver.

Although the April crash mostly affected gold and silver held on much stronger, a massive run on both metals occurred.

Silver coins were among the ones that ran out first. The biggest depletion of bullion coins and bars has happened in case of silver. Gold experts seemed to be proven right: it looked indeed as if there were far less silver investment products around than gold investment products.

Could this be untrue?

Well, part of the "depletion" could have occurred due to the fact that silver is a lot cheaper, more affordable than gold. Thus, the ordinary buyers rushed to buy more silver, rather.

Another reason for silver coins running out was due to dealers' unwillingness to sell at loss. Since they bought the products at higher prices (previously), they were reluctant to sell them now at a much lower price.

Otherwise, World-wide a massive buy-up of bullion products, including popular silver and gold products really occurred, reducing the available base of some of the most popular and beloved coins. Again, silver coins were sold out more quickly than gold coins.

Silver Kookaburras, Pandas, American Eagles and Year of the Dragon special edition coins were sold out fast. Many privy mark-bearing Perth Mint silver coins ran out very quickly.

Despite the continuation of the silver price fall and gold's sharp correction, dealers are trading bullion at excessively high premiums.

Silver products have the higher premiums. Dealers place roughly 30-40 % on the most popular coins, some place even more.

Among the 1 ounce silver coins, the Kookaburras, Pandas and Kangaroos are among the most expensive with premiums of 10-14 USD over spot.

Among the cheapest popular silver coins we can find the Canadian Maple Leaf (8-10 USD), the American Eagle (8-10 USD) and the Wiener Philharmoniker (4-8 USD) coins.

As for gold coins - premiums vary from dealer to dealer. The highest figures can be seen in Europe and the USA, mostly around 100 $ over spot per ounce, but some exceeding even 200 $.

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