APMEX Implications

Many of you have received an email from APMEX yesterday about buying gold and silver over spot price. This is the first time that I ever remember seeing a tactic like this from them. Now don’t get me wrong, I have had nothing but good things to say about APMEX, I have bought from them in the past and they are an affiliate advertiser on the blog. I have to say that I am a little taken a back from this email and is something we all should be paying close attention to.

My first conclusion that this is the inevitable outcome of the US Mint stopping production of silver American Eagles in March, despite record sales. The normal sources of supply must be drying up for APMEX to try to solicit buying back their product. This could be a sign of real stress in the real physical market of silver. After all there should be a lot of silver on the market with the smack down we saw yesterday. (Do you smell the sarcasm?)

The next thing I would think about is that customers are buying and not selling. I can tell you from all of the people I talk to on a regular basis, that people are dumping their savings accounts, 401ks, IRAs, stocks, bonds and any other paper assets and buying REAL tangible wealth. I have told you my story of a very good friend, that after 6 years of me pestering him about buying silver, finally read the Silver Bullet and the Silver Shield and said to me “I get it now.” This weekend alone, my mother and father in law came to me about buying silver. They are 70+ year old retired autoworkers and they now get it. My neighbor was in a mommy support forum and they got talking about the bad economy. She googled hyperinflation and ran across my blog and was shocked that it was her next door neighbor wrote the article. My wife’s best friend who just beat cancer is “scared” about the economy and the future of her kids and want to buy silver. A guy who I twisted his arm to buy a monster box at Christmas time, gave me a “high five” in the mall over the weekend. A very good friend of mine is considering selling the home he built to buy silver. As I am writing this article I just got Skyped from an old coworker asking about silver. We are close when people around me are waking up on their own. Once you are aware, you can prepare.
Prices MUST be going up, for APMEX to invest into buying more supply over the spot price. This is probably one of the largest retailers of silver in the market and they have the pulse of market probably better than anyone. I am sure they are getting massive orders and they see the determination in their buyers to buy and buy and buy. APMEX alone could force the market higher by being the bidder of last resort on silver. This new monetary demand is insatiable and that is what all of these negative silver haters are missing trying to trade this market. People are fed up with Wall St and Washington and are using silver to stick it to the man and protect their life’s work. (Please read the Silver Bullet and the Silver Shield.)


The next point is that the real physical market is becoming less and less tied to the fake paper CRIMEX market.
The premiums have gone from $1 to buy Silver American Eagles, to now, with this APMEX solicitation, $3 to sell. This is huge! Forget the huge appreciation in the physical metal, the premium alone is up 200%. It will get worse/better as this market progresses. I would not be surprised that the premiums move much higher than the underlying paper metal price as the silver scarcity become more obvious.

If the shortage is apparent in these individual coins, there is soon to be shortage in other silver coins. In 2008, the silver market was very tight during the big bust of ’08. Many times APMEX would show no inventory in their top 40. Or the premiums seemed as high as the metal price itself. People who are entering this market want physical and will start with American Eagles, then silver rounds and junk silver, and eventually bars. At the end of the day, they just want REAL silver and will take what they can get.

APMEX is big, but China is BIGGER. When China announced that it should cut its now $3 trillion dollar reserve by 2/3 the silver market took off. After all, what can China use most? Commodities. They will buy oil, food and metals to bolster their economy. When commodities spiked in 2008, China paid triple the going rate for potash. China could in a blink of an eye pay triple for the entire SLV, COMEX, and all of the Silver Miners and still have a couple of trillion left over. After all, wealth is not the paper, it is the REAL things you can buy with that paper.

The final thing I want to bring up is the huge amount of anti silver propaganda I am receiving right now. This disinformation campaign has to be coordinated and will be short lived. I will tear these guys apart in another article right after this one, but I feel we are real close to the end with all of these developments. The enemy always fights the hardest when you are closest to victory. It is better to be 6 years too early than one day too late.

22 comments to APMEX Implications

  • magadates

    Thanks once more for the follow-up.
    I’m confident silver will break 50$ on the long run. Patience is a virtue.
    Accepting volatily on silver market is wisdom, as we know who is on the short side.
    Delivery on contracts is coming : where can we follow the stocks on the COMEX?
    I feel that the less stock they’ll have, the more delivery orders will grow and the faster they’ll lose their remaining ounces…default is closing on the futures and CFD markets…
    I’m even wondering if it’s not also a reason why prices drop : imagine I’m long on some silver contracts, and I have a “reasonable” covering, say 10.000 $ per CFD contract. Well, at 40$, it’s as if I managed 40.000 $ of Silver, so I’m happy of this leverage when Silver prices go up.
    But if suddenly I’m getting afraid of delivery problems and of a default on the Comex…well I’ll bloody run away from the place, sell my contract and buy on the physical market…only 10.000 $ of silver.
    I’m no specialist, but maybe it has an influence on the prices.

    In any case, I’d like to know what stocks these guys will have left after the delivery and rolling positions of may are done…

  • James Woroble Jr

    Eventually the COMEX index will be replaced by a APMEX index in determining the REAL market value of actual precious metals.

    My technical analysis strongly indicates silver @ $90-$100 near the end of this year. But fundamentals trump technical analysis and reports such as this would indicate this price range to occur much, much sooner, perhaps before the Autumn. If other major dealers follow suit, this would then be absolute confirmation. Another extremely strong confirmation would be if these dealers extended such an offer beyond U.S. Mint products to all and any silver bullion!

  • James Woroble Jr

    BTW- As a non-interested party, it is important to say, with all the fiduciary bullshit occurring as desperation and greed induces the best of concerns to be dishonest and fraudulent, my dealings with APMEX have been highly professional and ethical. I have the utmost regard and trust for this dealer and could not recommend them higher.

    I would also like to commend APMEX for their support of this site and ‘SS’ and believe their presence here will be of great benefit to them.

  • Silver Sword

    If Apmex really wants that much silver all they have to do is buy all the contracts that they want to take delivery on at the crimex wait for the contracts to expire and take delivery at spot( actually the price they bought the contract) what’s the big deal :-)

  • Spencer

    Thanks for posting this article.. I came within a hair of selling some of my hoard today in hopes of finding a lower entry point later on to get more volume. I see now that might have been an effort in futility and I would have been left on the platform at the train station.

    Thanks for your effort and I really enjoy the blog!

  • Tom

    Thanks for alerting us to this. It is one more reason to stay on the long side of silver.

  • Bill

    Isn’t this about what they pay for silver eagles anytime?

  • Silver Shield

    No this has been rising steadily. I mean premiums are on SAE are almost what I paid for the metal itself now on Apmex.

  • Hoser

    I’m long Silver and will add to my long position again in July when I can clean-out the rest of my 401K. I’m a Platinum Club member of APMEX and have nothing but good things to say about them. That email, which I recieved too, speaks volumes to the trouble JPM, HSBC and the US Dollar is in. I keep beating my drum as well and more and more of my friends are getting educated and are starting to buy physical.

  • Hairy Herry

    @SS,
    It may well be an issue that Apmex cannot wait! Some have opined, I believe correctly, that silver was forward-sold and Apmex needs to fill in those orders.

  • Smile and say Silver Stacker

    Yup, I would to confirm the authenticity of this e-m sent. I really didn’t think too much of this e-mail from APMEX I had received the other day. They do put out notices of sales etc from time to time to drum of business after all so no biggy, I thought. I believe your view on this to be correct as to what is behind the offer to Buy back stock previously Sold to customers. Silver is runnin’ low my friends, especially coming from the US Mint which has all but dried up.
    My advice is to keep smiling and stacking that silver boys and girls. With signs pointing to the moon like these, the crest at the top of the chart can only be imagined at this point in time… 😉

  • Kevin

    Once the US had become feminized, there is no such thing as personal liberty. Everything is now based on emotion (not facts), id10ts….

  • Yoni

    If it was only the American Mint products that they were paying over spot – they are also paying over spot – not at the premiums for US mint products – Silver Rounds (Secondary Market & New).

  • Mike

    WoW! I this a first? I dont recall ever reading an article about a major bullion dealer offering premiums to buy back the product they sell. Now for sure, nothing will make me sell my stash for fed notes!

  • Silvergirl asia

    I ordered 3 bars of 1 kilo silver from Apmex, paid and guess what? The goods only ready to be shipped end of May!
    What does this indicate???

    • Silver Shield

      Nothing to fear this happened in 08.
      You will get your silver and you will have to wait.

      This is just the beginning of more stress in the physical market.

      My prediction is that at some point people will not trade REAL money for FAKE money.

      Keep stacking.

  • Sure APMEX, I’ll sell you my Eagles.

    But I’ll charge you an extra 20% minimum of hidden charges and bogus fees, using whatever form of payment you happen to use as my excuse.

    I’ll get around to shipping your Eagles, maybe in about 10 days after your check clears. If I feel like it.

    After all, that’s how you treat APMEX customers. Fair is fair.

  • Gargamel

    I have been bouncing back and forth all day on whether I trade some silver to buy gold.

    But with all these developments I can’t bring myself to do it. Here is what I have seen:

    – apmex, as noted.
    – obvious attacks on silver. The comex has hiked margins twice in the past week!
    – What to me look like obvious attacks on silver before the option expiration, the ben b speech, the obama speech.
    – and that stupid technical level of $50 which really should mean NOTHING cause the comex is trading 95% fake silver!, ie we have no idea what the price should be.

    So there….I said it. I agree with the author and am sticking to my guns. I think the cracks are starting to show and would rather be a part of cracking it open then shying away.

    And I am not talking about some small portion of my investment. ALL of my savings are in silver and gold, real silver and gold except for a very small % in mining, energy and cash. That is how much I believe the current system is a farce and will continue to show its true colors.

  • Kevin

    I can confirm the email as well. I don’t normally buy from APMEX as they are higher than some of the others. Gainsville has better pricing on Bullion and Provident on junk silver. Provident has a wide selection and Gainsville less so

    Good website to look at for pricing is GoldShark.com. This looks like a beta site but it is pretty good for reviews and pricing on PM’s

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