First Majestic starts selling bullion at Nevada mint facility

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So, instead of selling their silver under spot to the bullion banks they sell it over spot to the market.
Keith N. genius
 
It's a wonder that they (ie. all the miners) haven't started doing this a long time ago. I have to wonder if these first edition mintings might one day have some historical value should this "minor mint" lead to a revolution in the industry neutering the futures market's grasp on the metals.
 
It's not the best looking stuff. But the Real potential advantage here is Vertical integration. They can Undercut everyone else's prices. And they need to price it with less or no premium unless they start selling too much.
 
And it looks like they are not doing that. Apmex still selling a few products cheaper than theirs. They need to undercut premiums if they want to move a Lot of product.
 
They should put in a drive-thru window.
 
And it looks like they are not doing that. Apmex still selling a few products cheaper than theirs. They need to undercut premiums if they want to move a Lot of product.
They are not bullion dealers so they cannot compete with bullion dealers. They will always sell more expensive. Maybe it depends on the fact that AFA I understand it they don't have a refinery but only a mint. Total vertical integration needs a refinery.

I wish they would start selling 1k oz industrial ingots to those European refineries that according to A. Maguire cannot find raw material.
 

Grr, you are correct. Refining is not that freaking hard. Get together with someone and buy up a refinery.
 
Grr, you are correct. Refining is not that freaking hard. Get together with someone and buy up a refinery.


I think in a normal world mining companies wouldn't sell coins. They wouldn't refine, they wouldn't mint, they would just mine.
A vertical integration is no more a mining company, if they want to do it properly it's another line of business.
I think First M. foresee that demand of bullion is going to increase so much - with shortages and premium etc. - that it will make this business profitable anyway.
 
They are just starting up a new Mint. I imagine thay have some capital expenses they need to recoup. I would expect that over time those expenses roll off the books and they will be able to lower their premiums.
 
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