Mints Put Silver Bullion Coins on Allocation in 'Unprecedented' Phenomenon

The Silver Institute reported that the US Mint, the Royal Canadian Mint, the Perth Mint, the Austrian Mint and the British Royal Mint have all put their silver bullion coins on allocation. That means they are controlling the distribution volume of such coins “due to bottlenecks in the manufacturing process.”
As quoted in the market news:

This is an unprecedented industry-wide phenomenon. In recent history, putting bullion coins on allocation has only occasionally been done by the U.S. Mint. The practice points to considerable tightness in the silver coin business at the moment.
Globally, silver bullion coin sales reached an all-time high of 32.9 Moz in the third quarter of this year, according to GFMS Thomson Reuters data. This volume was a 74% quarter-on-quarter and 95% year-on-year increase. Sales in North America, Europe, Japan and other Asian countries (predominantly China) saw quarter-on-quarter growth of 74%, 72%, 95% and 202%, respectively.
As a result, lead times for silver coins have been stretched from immediate delivery to 3-4 weeks in some cases. This is an unusual occurrence in the industry, with several dealers stating this is the first time they have experienced lag times for certain coin products. Additionally, the shortage is apparently both a supply and demand issue. While demand is very strong, given the slow global economic outlook and attractive silver price, the mints are finding it difficult to source the blanks needed to produce the coins.

Michael DiRienzo, the Silver Institute’s executive director, commented:

It is clear that investors are continuing to demonstrate their desire for silver bullion coins and we encourage national mints across the globe to examine their manufacturing pipeline to ensure that this strong demand is met with immediate fulfillment.

Click here to read the full report from the Silver Institute.