BullionVault.com Runs Out Of Silver In Germany

Tyler Durden's picture

Correction: BullionVault does not vault in Germany. Silver is in London; gold is in London, New York and Zurich.

With the US Mint selling silver at an unprecedented pace, it was only a matter of time before the silver shortage would be spotted across the Atlantic, where distributors ran out of both gold and silver on a daily basis during the first time Europe became insolvent some time in early May 2010. Sure enough, BullionVault.com has announced that it has run out of silver in Germany "due to high demand." In the meantime, the CFTC's actions have succeeded in allowing the JPM's suppression of precious metals markets to continue indefinitely, yet all its actions have really done is to provide a short-lived lower cost basis for the precious metals as there is no indication demand is subsiding. At some point the margin calls will come. Then not even Gary Gensler will be able to bail out JPM (we wish we could say the same about Ben Bernanke to whom JPM's role as head of the tri-party repo clearing market is irreplaceable in maintaining an orderly shadow liquidity market).


Due to high demand our own silver stocks are exhausted right now.

As BullionVault is only dealing with physical bars which are already in our possession, we are currently unable to offer, silver on our own market. Of course, our market is still open to all our clients act with each other and set their own prices. This situation could lead to buyers and sellers at higher prices. Buyers are asked to check the price again before they confirm their order.

On Tuesday, 18 January 2011, we expect the next delivery for silver.

h/t Oldeurope

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bugs_'s picture

Don't vorry - ve have vays of getink more silver!

Strider52's picture

In other news today: I did NOT run out of silver.

TheJudge2012's picture

A price smack down and stops run into.

walküre's picture

What is spot price? It means sweet fuck all.

JPM's short term manipulative gain will cost America its currency.

Get it?

People lost faith in paper. Repeat. People have lost faith in paper - again.

Now people pay for silver or gold whatever the market is willing to sell it at.

It will not be reflected on the government controlled "trade" boards.

The biggest bubble of all is the paper money that nobody wants to hold.

Fewer and fewer people trust paper money.

strannick's picture

'Monster box Friday'

That should be a slogan, a rallying cry...

Sudden Debt's picture

For now, there is still a hughe lot of money stuck into debt.

Imagine the economy would start to improve and people would pay down debt and freeing that capital so it gets back to the street.


And keep in mind that there WILL be plenty more QE's comming making that timebomb even bigger.

TeMpTeK's picture

"Don't vorry - ve have vays of getink more silver!"



Freddie's picture

I own some SLW and it went down again today.  PLEASE make it stop.  Is The JP Morgue behind this?

Cleanclog's picture

Good.  While JPM keeps prices down, go buy more physical.  It will appreciate in price soon enough.  

gorillaonyourback's picture

as gonzo said, its the best retirement invest u may ever get?

DosZap's picture

Just did,another wad out of dealers stocks.

EscapeKey's picture

Respect! I always suspected BullionVault of borderline activity (I don't like that you can't pick up your physical under any condition), but I guess they're clean.

Renfield's picture

That lack of 'permission' to claim your own possessions is the reason my husband and I use BV and GM (GoldMoney) for chart-trading only (like any other trading account), NOT for any kind of real holdings.

If they won't 'let you' get your own stuff out, then who really owns it?

Danielius's picture

That is simply not true.  You can.  It has been done many times.  They publish this information, openly.  I dont know where you heard it, but it aint so.

DosZap's picture

Dont know about Gold Money, but here's the ass kicking you take at BV.

BullionVault provides an efficient service for dealing and owning gold and silver bullion, free from counterparty and credit-default risk.  It is not intended as a low-cost or convenient service for taking physical possession of either gold or silver bullion.

If you choose to withdraw your gold from BullionVault, your wish will be accommodated only in the form of whole numbers of appropriate bars of varying sizes and of generally accepted gold bullion coins to be selected at BullionVault's discretion.

The withdrawal fee for good delivery gold bars (400 troy oz) will be not more than 2.5% of value.  The withdrawal fee for other gold will be not more than 7.5% of value.

Your wish to withdraw silver bullion will be accommodated only in the form of whole good delivery silver bars (1,000 troy oz) and at a fee of not more than 10%.  The withdrawal fee for one tonne or more of silver bullion, delivered in whole good delivery bars, will be not more 2.5%.

Please note that on withdrawing bullion from the vault you may become liable to taxes which you would otherwise not need to pay, such as VAT sales tax on silver bullion, currently charged at 20% in the United Kingdom.

IOW, make sure your metals are in Zurich.

As you can see, the withdrawal costs are damned high, IMHO.

Sabremesh's picture

As you can see, the withdrawal costs are damned high, IMHO.

Of course you're right, but if you want to buy physical gold to store under you mattress, then you'd be a bit daft to get it from BullionVault! That isn't what they're there for. They offer a service/product that you can't get as an individual physical buyer. Namely that you can buy (part of a) Good Delivery bar(s), and they will store it with a level of security you cannot match by storing it yourself. It is quite reasonable they charge a premium for what is not part of their "core business".

DosZap's picture

Just the facts Sabre, just the facts.Someone said NO delivery, I showed them there were.

Providing info...no axe to grind.

Plus if you can afford a/some 400oz bar/s,and pay the prems,go for it.

What fool would put anything of value under their mattress, much less 500k in gold.

Strider52's picture

I'm guessing that they ran out of $28.50 silver, cuz they bought at $29.95, and won't have any silver until the price hits $30+ again, which should happen amazingly soon.

tmosley's picture

OR the paper price goes to zero as money flees the corrupt west.  Physical will go for 3 or more digits of fiat paper.

Strider52's picture

Harvey Organ says it all:

There is turmoil in the silver pits.




UnRealized Reality's picture

You are delusional. There is NOBODY on this Earth that would Buy/Sell any PM"S at a price other than the paper price!!!!!!!!!!!! You name one person who would be that stupid. I own a lot of both but this old and now new again Bullshit that Physical is going to be worth more then the paper price is ridiculous.

h3m1ngw4y's picture



happens all the time which  planet did he live on the last few years.  id rather say physical "never" traded the same price as paper gold theres always a cost or benefit added

Chappaquiddick's picture

You should familiarise yourself with the terms Contango and Backwardation.

Look at the spot price of gold and look at how much a 1oz gold coin would cost you to purchase - the coin is not at spot and try as you might you won't find it for sale anywhere at spot.  That difference is part commission and part Backwardation.

Historically currencies die regularly and as they do people move out of them and at some point refuse to use them altogether.  That is starting to happen in the US tax system.  They are preparing for an alternate system of tax collection - PMs.  If that trend continuess then they will collect taxes in PMs and one of the few things that instils value into the dollar is the fact that taxes are collected in it.  If they keep chipping away at it, it will eventually fall - and maybe that's their ultimate plan, in any event. 

oddjob's picture

I'll stand by that bitch.people are paying more for physical now than paper prices months and years out.

UnRealized Reality's picture

Yea, WHO? Other then the Club. Premiums do not count. You probably be the first one the sell if the price fall to 800. Your dreaming.

oddjob's picture

When Silver falls to 800, I might lighten up as you say.

And premiums do fucking count,you have to get it in your hand to own it.

Cthonic's picture

Don't like selling physical, but needed to rebalance my holdings. Sold a load of 2009 silver eagles to apmex for around $1.50 over spot today. Silver is well bid, as is gold. My 2009 palladium maples, the main reason for the sale and which I've dumped in their entirety, fetched just under spot.

strannick's picture

'Physical costs the same as paper, but premiums dont count'

Premiums dont count? Premium IS the difference between paper and physical. Remember the premiums in 2008? We're heading there again. Premiums dont count? You cant count.

Sudden Debt's picture

Premiums don't count if you have the time to sell it.

If you're forced to sell it as quickly as possible, the melters will only pay spot.

But that's the case with everything. If a buyer sees that a seller is in a hurry to sell. Would you give him his first price? Or would you bring it down as he needs the money as quickly as possible?


UnRealized Reality's picture

 That's right premiums do not count because they are an investment expense. And you proved my point with the 2008 thing. They fluctuate and therefore are an investment expense. Most people should really learn some accounting.

Cthonic's picture

Premiums (as well as commissions) paid are part of the cost basis of an investment.

foofoojin's picture

As long as they base the amount of "moneys" I have in PM terms then of course they can tax me in PM.

quartshort's picture

Please remind me, why then, did the coins shops charge between $4-$6 over spot when PM's dropped like a rock in 2008-09 (to $8 + change)? As soon as silver hit $14 the over spot returned to a much more normal $1.65... ALL the coin dealers here said the paper price was manipulated and they would not sell it. Hell, they were offering to BUY it at over $2 spot for a month!


UnRealized, you gots some 'splainin to do!

UnRealized Reality's picture

It is called profit!!!!!!!! We all pay over COST for everything we buy. I guess the law of business do not apply in the PM market.

strannick's picture

Junked. For incoherent reasoning, and bad grammar.

tmosley's picture

They profit from the spread, not from price fluctuations.  PM dealers are all hedged, or else they don't last very long.

Kina's picture

Right, and this is why JPM pay a premium to make those wanting delivery go away.


The price of gold/silver is spot plus whatever premium JPM are willing to pay to not make delivery.

Tell me what would be the price of gold and silver if most demanded delivery? It would skyrocket.

Sean7k's picture

The paper price does not include the cost of putting the silver into bars or coins. Kitco clearly makes this point. If you happen to purchase some at spot, nice going, but buying from any mint or dealer involves paying a premium. As the premium grows (and it does) it is a reflection of the difficulty in finding physical.

Max Hunter's picture

There is NOBODY on this Earth that would Buy/Sell any PM"S at a price other than the paper price!!

This statement boggles my mind.. When PM's begin their accent (rapid) there will be (3) factors.

1. Paper Price

2. Premium

3. TIME!..

I think premiums will go up, you may have to wait 16 weeks to get a roll of eagles at $5 over spot but you could go to the local coin guy and get them for 15$ over spot same day.. This will be the case when silver approaches and surpasses $50/oz..

UnRealized Reality's picture

That's because people only see what they want to see. Silver is 28.48 right now. Would you pay 30.48 plus the current premium? No, I didn't think so.

greenbear's picture

"There is NOBODY on this Earth that would Buy/Sell any PM"S at a price other than the paper price!!!!!!!!!!!! You name one person who would be that stupid."

Checked ebay lately?  It's a market place where prices for physical (as oppossed to paper) PM's are determined by buyers and sellers.  Let me know if you find someone there selling for spot price!!


"...this old and now new again Bullshit that Physical is going to be worth more then the paper price is ridiculous."

No, it's not ridiculous.  The paper price is based on paper gold and silver, which are more than 100 times greater than their underlying assets.   It's a confidence game that is unravelling.  The paper price will mean nothing when the LBMA defaults.  The price for physical will rise when more people figure out that the supply is 1/100 of what they were led to believe.  Hopefully, your inability to see the difference is not because you hold paper promises instead of physical gold and silver.


Vendetta's picture

bingo.  I can only assume the same when I bought from northwest territorial mint a few years ago ... 'buying on the dips' has its drawbacks, like 2.5 month waits for delivery.

sumo's picture

Incorrect. You can pick up the physical. This is stated in the terms and conditions on the site.

A correction to the story: Silver is stored in London only, in a Via Mat vault. Gold is held in London, Zurich, New York. The silver shortage is in London, not Germany.