Jim’s Daily Rant. Why is Treasury Selling Silver Eagles For $173?

This is a reply I posted to a Chat Room just now:

Angie:   I truly enjoyed your last analysis. It was amazing.

I lost my Modem Sunday and have been out of the silver loop the past week. Just came Back online.

You brought up two good questions: the Ninja and the Treasury Silver at $175.

I admire Economic Nija very much and he is absolutely correct about leaving silver alone and preparing to invest in real estate. I am reminded of learning to drive a stick-shift car as a teenager. Being stupid, my first tattoo on my arm read “Down on the clutch and up on the gas.” Then I was able to do it.

As silver soars the Dollar will fall. As it falls the real estate market will continue to collapse. That is the time to have cash reserves to purchase foreclosures cheaply and cash in on flipping. He is absolutely right.

Once you change gears you have to reverse the process on my arm. So the process is up and down then down and up. However, Ninja can’t see that because his Stock-In-Trade is courses on flipping homes. He doesn’t care to see the rocket ride. He doesn’t see that as the rocket goes up you can sell a gallon of the rocket fuel to generate cash for real estate.

Accordingly, he sees silver only as his immediate competition.

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After your post I too checked the Treasury sale of Eagles for $175. You are right, it is true, only they tied a nice bow around one as a gift.

See: https://www.usmint.gov/gift-ideas/newborns/

Knowing that they have a Constitutional requirement to make metal dollars available to the public at a reasonable cost, they must provide. Knowing they said they temporarily stopped shipping Eagles for a short time “Until they could determine the cost”, that bought them time to think.

I feel they picked a couple of months (possibly three) and selected the lowest cost (today at $90) and the expected cost in 3 months. My opinion is they then took an average between the two numbers ($173) and offered them up for purchase during this quarter.

This is a safe bet that keeps them legal and out of the gun fight for 3 months. It also allows them to not give away Treasury Trade secrets on the future of Silver.

However, a good mathematician can guesstimate the high end at 3 months may be a little less than $350 per Eagle. Therefore, they are telegraphing silver around $350 by March 31^st. Then they will have to reprice their Bow Tie Eagle again going into the second quarter.

Again, this keeps IRS out of the gunfight. Your thoughts?

PS. Silver Spot is now Above $100 and the Street Price is $122.

And Gold is now over $5,000. ( per JMBullion.com)