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Gold/Mining/Energy : Platinum Group Metals (PGMs) -- Ignore unavailable to you. Want to Upgrade?

To: Ptaskmaster who wrote (271)	2/10/2000 5:17:00 PM
From: Archie Meeties	Read Replies (3) \| Respond to of 529

And when the 200,000 oz. are gone? "The US Defense Logistics Association has sent a letter to the US Mint requesting the return of a little under 200,000oz of platinum that had been transferred back in Fiscal Year 1997 under the Omnibus Consolidated Appropriations Act of 1997, according to a letter sent by DLA administrator Richard Connelly to Mint director Philip Diehl. However, the Mint said that the return of the material within a few months poses a threat to its American Eagle bullion program. A government source said DLA and the Mint "are having dialogue" regarding the issue but would not comment any further about how the discussions are proceeding. In the letter obtained by Platt's, DLA is requesting the Mint return 199,934.17oz of platinum that was loaned in 1997 for the Mint's bullion coinage program so that DLA is able to complete its fiscal year 2000 sales and prepare for its fiscal year 2001 sales. The source said that DLA needs from the Mint about 4,000oz to complete its sales for Fiscal Year 2000, which began Oct 1, 1999, and ends Sep 31, 2000. Under the Annual Materials Plan for this year, DLA is authorized to sell 125,000oz and to date has sold 121,543oz. For Fiscal Year 2001, DLA also is authorized to sell 125,000oz and needs the material from the Mint to complete those sales. In the letter, DLA said that "there is clearly not a sufficient quantity of platinum in our inventory to satisfy the sales objectives for this or any subsequent fiscal years." The source said that platinum prices are "excellent right now, and our sales are going extremely well. There's a lot of demand for it." DLA said it would like to establish a schedule where 50% of the quantity is returned by Mar 31 and the balance provided by Jun 30 for DLA to be positioned to offer it by Oct 1, 2000. The source said DLA will need enough time to store and analyze the material for Fiscal Year 2001 sales. "We are authorized to sell 125,000oz for next year but we have no material," the source said. In its response to DLA, Diehl said in a letter that "I respectfully object to the manner in which [DLA] has made this request." He said that it is "unclear why DLA finds it necessary to demand the return of all 200,000oz on loan to the Mint in less than six months. "DLA's demand for half of the loan to be returned by Mar 31, 2000, poses an immediate threat to the viability of the American Eagle platinum bullion program." alaron.com