June 06, 2008
What do you think? I read the following about the Mint's rationing of silver American Eagles and I have to give the guy points for guts, but it seems to be an allegation that anything less than an effort by the government to make silver holdings worth more is somehow illegal.
There has been a speculative streak in collectors regarding silver for over 40 years, since the great coin shortage of the middle 1960s and the Coinage Act of 1965 that by and large drove silver coins out of circulation by the end of 1968.
We've had up markets and down markets, but this is the most novel approach I have ever seen in any market in the last four decades. It comes in language that we might have heard in the backrooms of Washington, D.C., just prior to the Bland-Allison Act of 1878 or any other silver-propping legislation of the following years.
If this is the intent, it would seem to me to indicate market weakness rather than a sound economic position and a strange appeal for government intervention to cause prices to rise couched in language that implies the opposite.
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