Comment regarding the interview – Quality interview well worth listening time – Eric Dubin
As most of the regulars at The Daily Coin are aware, the mining industry as a whole is in serious trouble. We learned, a few days ago, the top three mining countries in the world production has fallen off a cliff—to the tune of 34%. This really shouldn't come as a shock as the blatant manipulation of precious metals prices has been ongoing for over four years. This is to say nothing of the ongoing global economy collapse, which has a direct impact on base metal mining; and, since 70% of all silver mined is a by-product of base metal mining, silver is rapidly becoming a scarce product.
If we look at what has happened, beginning at the first of July, we can see how demand for silver and gold has exploded, and we are now seeing the end result of precious metals prices being manipulated downward. The week of August 3, 2015, China, through the Shanghai Gold Exchange, traded approximately 300 tons, of gold in three days. The price is right for people to acquire vast amounts, so that is exactly what they are doing. The US Mint sold out of the American Silver Eagles on July 7, and, as of August 3, Silver Eagles have been on reduced allocation sales (read rationed sales), since being able to offer Silver Eagles for sale. The premium, the overage in price that the wholesaler and retailer place on the products, has shot through the roof. APMEX, one of the largest online dealers, is offering 2015 American Silver Eagles at $5.75 over the spot price when you purchase a roll of 20 coins. If you want to purchase individual coins that will cost you $6.00 over spot per coin. It is almost impossible to find any back-dated Silver Eagles on the market. Said another way, if it wasn't produced within the past few weeks, it is already gone.
This brings us to Mr. Patrick Donnelly, President of First Mining Finance Corporation (FMFC). Mr. Donnelly has a finger on the pulse of the mining industry, as his company is tasked with helping distressed mining operations that are strapped for capital inflows. The current spot price of silver being at or below operating cost for most mining operations is causing huge problems within the mining sector. It is also beginning to cause shortages in both gold and silver worldwide.
The audio only version is available unedited, without ads, for download or stream at silverfarm.podbean.com, or search iTunes for Silverfarm.
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