Silver Refiners Overwhelmed, Limiting Acceptance of "Junk" Silver
Precious metal refiners are currently limiting or stopping acceptance of “junk” silver (90% coinage, sterling, etc.) because they are overwhelmed by a record influx of material and high market volatility, leading to massive processing backlogs. Only a few refineries are still processing alloyed silver, with wait times extending up to 10–12 weeks.
Key Reasons for Rejection:
- Overwhelmed Capacity: Refiners are facing unprecedented demand, creating a “silver freeze” where they cannot process incoming scrap fast enough.
- Higher Processing Costs: Junk silver (90% or sterling) requires more time, labor, and chemical processing compared to refining 0.999 fine silver.
- Price Volatility & Hedging: With silver prices hitting record highs, refiners are concerned about buying material at peak prices and facing downward corrections before the metal is processed.
- Long Payment Delays: Due to the backlog, some refineries are operating on 10 to 12-week payment schedules, making it impossible to guarantee prices.
This situation is causing a liquidity crisis, making it difficult for dealers to sell 90% silver coins.
Sources: Florida Gold Buyer YouTube video, CoinWeek, Google
Silver Refiners Overwhelmed, Limiting Acceptance of "Junk" Silver
Precious metal refiners are currently limiting or stopping acceptance of “junk” silver (90% coinage, sterling, etc.) because they are overwhelmed by a record influx of material and high market volatility, leading to massive processing backlogs. Only a few refineries are still processing alloyed silver, with wait times extending up to 10–12 weeks.
Key Reasons for Rejection:
- Overwhelmed Capacity: Refiners are facing unprecedented demand, creating a “silver freeze” where they cannot process incoming scrap fast enough.
- Higher Processing Costs: Junk silver (90% or sterling) requires more time, labor, and chemical processing compared to refining 0.999 fine silver.
- Price Volatility & Hedging: With silver prices hitting record highs, refiners are concerned about buying material at peak prices and facing downward corrections before the metal is processed.
- Long Payment Delays: Due to the backlog, some refineries are operating on 10 to 12-week payment schedules, making it impossible to guarantee prices.
This situation is causing a liquidity crisis, making it difficult for dealers to sell 90% silver coins.
Sources: Florida Gold Buyer YouTube video, CoinWeek, Google