Saturday, April 27, 2013

Economic Collapse — Unprecedented Shortages Of Ammo, Physical Gold And Physical Silver

All over the United States we are witnessing unprecedented shortages of ammunition, physical gold and physical silver. Recent events have helped fuel a "buying frenzy" that threatens to spiral out of control. Gun shops all over the nation are reporting that they have never seen it this bad, and in many cases any ammo that they are able to get is being sold even before it hits the shelves. The ammo shortage has already become so severe that police departments all over America are saying that they are being told that it is going to take six months to a year to get their orders. In fact, many police departments have begun to trade and barter with one another to get the ammo that they need. Meanwhile, the takedown of paper gold and paper silver has unleashed an avalanche of "panic buying" of physical gold and physical silver all over the planet. In the United States, some dealers are charging premiums of more than 25 percent over the spot price for gold and silver and they are getting it. People are paying these prices even though they are being told that delivery will not happen for a month or two in many cases. Some dealers are feverishly taking as many orders as they can, and they are just hoping that they will be able to get the physical gold and silver to eventually fill those orders. Personally, I have never seen anything like this. If things are this tight now, what is going to happen when the next major financial crisis strikes and people really begin to panic?
The Economic Collapse
Unprecedented Shortages Of Ammo, Physical Gold And Physical Silver


Matt Franko said...

Metal, metal, and more metal....

Unknown said...

maybe they could use the gold and silver to make bullets?

Dan Kervick said...

The loony right crying about the inability of the loony industries to satisfy their infinte loony needs.

The Rombach Report said...

Leo Melamed, former chairman of the Chicago Mercantile Exchange and Godfather of the exchange traded futures and options industry, was refused physical delivery this week of physical gold he elected to take delivery of on two expiring gold futures contracts.

And then JPMorgan's eligible gold for delivery plummets 65% in 24 hours.

Does sound to anyone like the makings of an epic short squeeze?

Matt Franko said...


Wouldnt the exchange ultimately be at risk here?


Dan Lynch said...

The ammo shortage is driven by irrational panic buying thanks to the Democrats' recent attempt at gun control.

Toss in the "preppers" movement where religious types believe they are preparing for the end times.

No shortage of crazies in this country, and no leadership in Washington to steer the country. It's a symptom of lack of confidence in our government.

Tom Hickey said...

The ammo shortage is driven by irrational panic buying thanks to the Democrats' recent attempt at gun control.

Actually the run on ammo has been going on for several years, really since the financial crash followed by the 2008 election. Frustration really built after Obama won again in 2012.

The Rombach Report said...

Matt - The CME Group is obligated to deliver gold to all long futures positions that are not liquidated before the futures contract expires. These are futures contracts that culminate in delivery, either due to or due from the exchange clearing house which simply acts as the AAA rated intermediary between all long and short positions. If nothing else, failure by the CME Group to deliver to Melamed or anyone else would seem to me like a default of some kind.... unless there is some loophole that I don't know about which gets the exchange off the hook for physical delivery and allows them instead to settle in cash. Makes me wonder what the ratings agencies have to say about it. You would think though that Leo Melamed is the very last person on the face of the earth that the CME Group would want to fail to deliver on.

Likewise, looks like a short squeeze in ammo with that parallel shortage.

Roger Erickson said...

wow, I stopped at a rural pawn shop in Pennsylvania this past weekend

they had a whole collection of pawned crossbows & darts

you mean I should have cornered the market? :(