Didn't I tell you the Gore Clinton team were working hard to get rid of the US Military Strategic Metals Reserves(though they didn't start it - with silver).
Here we go.
U.S. National Defense Silver Stockpile Eliminated
November 27, 2000
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(Washington, D.C. – November 27, 2000) The U.S. Defense National Stockpile Center (DNSC) committed to deliver its remaining stockpile of silver, nearly 15 million ounces, to the United States Mint for its coinage programs. The final balance of silver will be shipped to the U.S. Mint over the next few weeks, effectively depleting the silver stockpile. The silver stockpile has been managed by the DNSC, an arm of the Defense Logistics Agency.
Once the U.S. Mint depletes its silver reserve, they must then purchase silver for its coinage programs from the open market, potentially boosting silver demand by up to 1 percent annually. "According to silver market analysts, this increased demand would further widen the gap between overall silver supply and fabrication demand," said Paul Bateman, Executive Director of the Silver Institute.
In the late 1960s, the DNSC had over 165 million ounces of silver in its stockpile. The silver stockpile once posed a serious threat to the market when government officials determined it was no longer needed and that domestic silver production combined with reliable imports could sustain the United States in the event of an emergency. The General Services Administration, an executive branch agency, attempted to sell the silver in the fall of 1981 through auctions, but the auctions were discontinued when bid prices fell below the market price of silver.
In the early 1980s, the General Accounting Office (GAO), an investigative arm of Congress, recommended that silver from the stockpile be used for coinage rather than sold on the open market. GAO's proposal assured that using silver to mint a bullion coin and other forms of coinage would minimize or eliminate any short-term market price disruption by developing new demand to offset the increased supply. GAO's proposal was implemented when Congress created the American Silver Eagle bullion coin in 1986 and specified that metal for the coin be drawn from the stockpile, unlike the Gold Eagle for which the U.S. Mint is required to use newly mined gold from domestic mines.
Having consumed over 120 million ounces of silver over the past 19 years, the U.S. Mint is one of the largest silver users in the world, accounting for more than 1 percent of worldwide demand during that period.
The Silver Institute is a Washington, D.C.-based nonprofit international industry association. Established in 1971, the Institute serves as the industry's voice in increasing public understanding of the value and many uses of silver.
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For Further Information Contact:
Mike DiRienzo
The Silver Institute
1112 16th Street, N.W., Suite 240
Washington, D.C. 20036
Tel: (202) 835-0185
Fax: (202) 835-0155
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