Silver: Buyer of ‘Up to a Billion Dollars’ in Eagle Coins Emerges

The comments below are an edited and abridged synopsis of an article by VBL

There is a story circulating of a Texas billionaire who has purchased a large amount of Silver Eagles, and intends to buy more. This was disclosed by coin dealer Andy Schechtman of Miles Franklin Precious Metals, who reportedly filled the order. No one has yet ascertained the veracity of the claim.

Silver: Buyer of ‘Up to a Billion Dollars’ in Eagle Coins Emerges - BullionBuzz - Nick's Top Six
Silver Coin Bullion 1 ounce on top of a larger bullion bar, precious metal investments.

The order was likely real and has probably distorted silver premiums for months due to the supply crunch. Subsequent orders are not a given, but may happen. Two phrases that the buyer used (she wants to tell the world that she placed this order, and that this is the first of several, up to a billion dollars of orders she wants to place) are specific. She appears to be a reputable professional with a keen understanding of the implications.

Historically, you announce after your order is filled, not before. This particular order could be a legitimate explanation for the premium stickiness over the last several months. But no one ever stated they may buy a billion more after buying ‘only’ $50 million of something. If the coins were in fact purchased and more are bought in the future, then this whale did everyone a public service by letting the dealer disclose.

Assuming the order was real, premiums will remain high through August. If this purchaser buys more, silver has to go higher.

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