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Expect shortages of precious metal coins worldwide should investment demand jump dramatically as a result of another financial crisis.
According to The Perth Mint’s Bron Suchecki, probably less that 2% of people started buying precious metals during the financial crisis in 2008. The result was rationing of coins by mints!
In a telephone interview with the Financial Survival Network, Bron questioned what would happen should serious, mass market demand like that seen at the end of the 1970s re-emerge.
Despite better preparedness among mints generally for this possibility, Bron told Kerry Lutz there remains a huge potential production bottleneck problem that investors would do well to be aware of.
While coining is a fairly straightforward process, he said, the manufacturing of precious metal blanks was a much more complex and time-consuming process. As a result, a lot of mints don’t have the scale or expertise to become involved in this aspect of minting and were therefore reliant on a handful of operations for supplies.
Kerry Lutz revealed that the U.S. Mint, for example, relies on just three suppliers, including The Perth Mint.
Bron’s message to investors? If you foresee another major crisis, buy now to avoid the certainty of increasing premiums as coins become scarce.
Listen to the full interview here.
Gold futures declined overnight in New York by US$1.20 to settle at US$1,576.20 an ounce. Silver slid 23 cents to $26.811 an ounce.