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Eric Sprott: "There Is No More Silver Left"
Eric Sprott made an appearance at Casey Research Gold and Resource Summit where in addition to providing a succinct summary of all his monthly letters from the past year, whose forecasts are all gradually panning out, he spoke about the prospects for gold, and particularly silver. We will leave it to readers to parse through the brief must watch clip, but here is the punchling for those wondering why increasingly more distributors are reporting indefinite lack of physical silver inventory: "There's $22 billion of silver available in the world, of which the ETFs
already own half, and between you guys and us we probably own the other
half... Which means there's nothing left."
h/t John
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But every ZHer has, like, truckloads of this PM.
He must be missing something.
If you had watched it instead of race to post #1, you'd hear him explain why the reported numbers and reality don't jive. The fact that every ZHer has silver support his claim that "there is no silver left" in the vaults. It's all a shell game now.
1- already seen it and 2- i respect and agree with most of what he has to say.
Your jealousy for a 1st post is clear. Better luck next time - if you try hitting F5 every 5 seconds on the main page you should 'win' next time.
ZeroPower - do you agree/know ETF's "own half the Silver" as he says? . . . . sounds like bollocks, thought the ETF's traded on derivatives of the smoke fumes from Silver smelters!
I don't particularly know, but i do tend to agree with whatever information there is available.
SLV, SIVR, etc, they all state "The silver bullion held by the trust is inspected biannually by the independent metal assayer, Inspectorate International." So, unlike an oil ETF, these are actually supposed to hold the underlying and not just swaps and futures based on the commodity.
You could reach your own conclusions by the info presented here and elsewhere.
Silver has become a hoarded investment grade commodity; and the physical investment demand is consuming any areas where industrial demand has tapered off... any significant price drops, try and acquire the physical metal. But as theres so much pent up demand, I cant get myself to pay 5 bucks over when i can play something like Sprott.
BTW: wtf happened to palladium over the last 2 days? buy op?
Only problem I see is historically over 1000's of years the gold:silver ratio has been 16:1 (I think based on in ground ratio) - but for the last 100 years it has been where it roughly is now 40:1.
So why cant it stay around this area for sometime and not take decades if not centuries to get back to 16:1, let alone overshoot like Sprott mentions?
I fully understand the manipulation argument but how long have US interests been engaged in such activity - maybe 60-80 years?
Ted Butler says that the price manipulation of silver at the Comex dates back to the mid 1980's. Before that, the typical historic price ratio was largely holding. For instance, the peaks of price of gold and silver circa 1980 were just over $800 and just over $50 respectively, 16:1.
Silver was never CONSUMED in industrial applications until the invention of photography. Since that time, world stockpiles have been almost totally wiped out.
Any attempt to make a "reversion to the mean" argument is thus useless. That is, unless we have been dumping an equivalent proportion of our gold stockpiles into the Mariana Trench.
Supply, meet demand, and aggressive price suppression policies that have encouraged overconsumption.
In the 40s, 50s and early 60s gold was artificially priced at $35/oz, and the govt made every effort to hold silver below $1.29/oz (which I think was the melt value of silver coinage). That was a ratio of 27:1...
The govt gave up in 1965 and went to the current clad coinage.
"The silver bullion held by the trust is inspected biannually by the independent metal assayer, Inspectorate International."
Doesn't stop them from LEASING it the rest of the year.
And, w/only one or two exceptions, you cannot redeem shares for the REAL thing.
Period.
1 kg aussie kookoburra anyone? YES YES YES!
www.silvergoldsilver.blogspot.com
1.eeeeooooooooooww...
2. Hard to believe considering your sardonic post and general bashing of the PM's.
3.If you only agree with 'most' of what Mr.Sprott said, name something you disapprove of and why, please.
Thats fine, i actually stopped PM bashing since around last summer when i could clearly take a hint that we're in the next bull market in them. I do however still bash the Nostradamus' who appear here once in a while claiming $50,000/oz anything.
I like his views on precious metals in general, but more specifically, he believes Au:Ag ratio should be 16:1 (way too high for Ag - eoy was ~45:1). Also, being a huge energy bull, he's been massively wrong on Nat Gas since 2008 when i first heard his views on it (to be fair, many people have).
Finally, he's heavily short (CAD/US) financials and cons. discretionary - something which i would be very cautious doing in this uber-liquidity-pump environment.
Well, even though I don't generally like to make specific 'price' calls, and while those 'Au to 50,000 fiatscos!' Nostradami may certainly seem unrealistic today, I always keep in mind the deluge of derision I received when, not so very long ago, I was telling my peers 'Au to 1200'.
As far as Mr. Sprott's energy strategy goes, well there has been 'money' to make in Natty as well as Oil since March'09, though granted not playing the natgas bull etf's (unless you were the proprietor of one, or you have HFT skillz unmatched by any human/machine combo I have ever met), but there have definitely been profitable plays in that sector.
Mr. Sprott is not saying that 16:1 ratio has to happen, he's just using it as a measure, a tell, an indicator, an historical marker. And that is all he is suggesting anyone else do, IMO. If you have a more conservative number in mind, good for you. Bonne Chance!
Personally, risky or not, I think the financial shorts are right in line with his PM outlook. You're right, insomuch as the game can keep going for quite some time, but bullshit is always forced to walk eventually.
OTOH all these things that you allege to 'disagree' with are small potatoes compared to his PM position, so you'll have to forgive me if I find your disparagement of Mr.Sprott's strategy wholly persnickety.
Which makes me wonder whether or not you truly have altered your perspective for the wiser.
Persnickety - great word :)
As i said, you don't have to disagree with me because, as i stated: "i respect and agree with most of what he has to say."
Whether or not my perspective is perceived as 'wise' to an outsider matters zero to me; what i do enjoy is participating in discussions such as these where one can share his thesis and commend/bash fellow posts.
That is funny. Thanks....F5...F5....F5....F5....F5.....
hehehe
ALT+F4 is what elite pwner users hit to get 1st post
There's something even easier to do. Just enter into a Vulcan Mind Meld with Tyler and know instantly when he's going to post the next article.
Just understand that it's pretty cluttered in Tyler's mind. Not for the squeamish or under 21.
I am pretty sure that was some kind of insult (yet again).
there's this whole quantity vs quality thing goin' on here too.
so, i'm the first to reply to the second reply to the second reply to the first.
somehow, i don't expect extra-credit for this week's contribution.
(f5 -f5 - f5 - f5 :^)
EDIT - someone snuck in on me while i wrote! now i'm the second to reply to the second reply to the third reply to the first.
god, i love eric.
you go boy, you go.
Get a room.
If there was no more silver left why is the price only ~$33.0 to $34.0 fiatcons / oz?
If there was really none left wouldn't you think the price would exceed $34?
Just a silly question..... Don't get all crazy.
Manipulation.
Me loves my PSLV!
God, I love the ZHeeple. I do. An entertaining group with NO charge for admission.
Does anyone factor industrial demand into the equation?
NO NEVER! INDUSTRIAL DEMAND IS IRRELEVANT! IF THEY CAN'T GET SILVER AT ANY PRICE THEIR ALCHEMISTS WILL CONJURE UP A SILVER SUBSTITUTE OF SUPERIOR QUALITY FOR LESS! NEW SILVER MINES WILL START MINING A BILLION TIMES MORE OZ'S NEXT WEEK, FLOODING THE MARKET! PRODUCERS SHOULD HEDGE LIKE THERE IS NO TOMORROW! ALL INDUSTRIES THAT USE SILVER WILL END THE DAY AFTER THAT!
HEY, WAIT A SECOND, WHY AREN'T YOU TYPING IN ALL CAPS ANYMORE!?!!!!???!?!?!?!?!?
<~allcaps/~>You better watch out for the Cap Police! It's serious biznass.
I don't miss the ALLCAPS but please resume with addressing us as if we were the jackasses who show up in your courtroom. Love that bit (without the caps).
http://en.wikipedia.org/wiki/Graphene
Graphene will likely replace silver in numerous applications. That will take a while though.
Will it be highly reflective and anti-bacterial too? Can you eat it?
It's not reflective, but it does kill bacteria. My company has something quite a bit better for that though. Use of silver on devices won't continue for more than 5-10 years, as out product is literally 1000 times cheaper, and lasts forever (it catalyzes production of oxygen radicals that kill anything that tries to attach, but has no effect beyond a few cell lengths).
Graphene, bitchez!
(sorry, had to. long CVV)
You're new he?
Yea new he, just started yesterday. How 'bout you Belgian Waffle?
> If there was really none left wouldn't you think the price would exceed $34?
You may regret writing that rather than doing something about it.
Doesn't he know that the FED can print commodities now?...oil, silver, whatever u need.
Ben & Blythe installed this over the weekend
http://www.dimensionprinting.com/
http://h10088.www1.hp.com/cda/gap/display/main/index.jsp?zn=gap&cp=20000-13698-16013-16015_4041_100__
he needed bigger sheets to hit the trillion(s) mark faster... thusly, above.
Yeah.....but can Sir Bernake pull a sword out of a stone ?
he's got to take his dick out of the world's ass, first.
+0.999
Spilt my MakersMark. F'ing funny.
I replied to the first post-do I win a prize?
Yes you do!
I can't view the video clip. Anybody else have this problem? Thanks.
I can't view it on my android mobile. Probably just as well since I am driving.
This explains what happened when I didn't buy silver...
http://news.yahoo.com/s/ap/20110222/ap_on_fe_st/us_odd_billboard_flap_jonestown_3
there is some left, my teeth fillings and girlfriends earings are in the Oven smelting at this very opportune moment
BREAKING NEWS- ISRAEL LAUNCHES ATTACK IN GAZA 3:09 PM EST
JUNK? Really? I believe the term is GFYS!
http://www.huffingtonpost.com/huff-wires/20110223/ml-israel-palestinians/
Hope she wasn't still wearing them.
Silver Bitchez!
There's PLENTY! Just remember the 80's when EVERYBODY dumped all that SILVER they had in forks, and pitchers and such?!? Well they will all just dump all that silver on the market....wait...what's that you say? Wal-Mart Chinese forks aren't silver?! Well they sure LOOK silver to me...Bye the way, when does the new season of Jersey Shore start??
I diversfied a few years back and purchased a modest 300oz of Sterling in the form of everything from globlets, bowls, flagon, silverware, pitchers, whiskey flask, plates, shot glasses, tea kettle, etc. Great deals to be found on Ebay with sterling. Purchased most of it under spot. I think my little sterling collection is much more beautiful than the coins and bars. Plus I actually use them and benefit from the anit-microbial properties inherent to Silver.
Nice!
It started already, you missed Ronnie crying after Sammie left after Ronnie smashed her stuff after Sammie was all over some guy in the club after Ronnie broke up with Sammie after Sammie punched Ronnie in the face after Ronnie made peace with J-Woww after Sammie and J-Woww got in a fight again.
Duh.
The Hunt Bros were just ahead of their time, that's all.
Nelson and Bungle...looks like JPM is trying to out do their fiasco, but on the flip side....and, as usual, the taxpayers will bail them out.
LOL
LOL is so AOL and Yahoo. You've got mail.
What is the ZH equivalent? Something edgy and dark.
LOTR
SIMP?
LOL, bitchez?
MUAHAHAHAHAHA?
Let the games begin!! OOps, they have already started; the score at halftime is SLA 28; Blythe 3. Too many punts, Blythe; your offensive line sucks.
Just buy Ammo instead...
Go long Lead!!!
http://www.barnesbullets.com/
go long copper, tungsten and brass!
""Just buy Ammo instead...""
Within a month...Oil/Silver/Gold will be sold for food across Africa/Asia and European's 4 Billion citizens.
These revolutions are heading east from North Africa and will end up in China.
North America's Pacific Northwest and especially Canada's four Western Provinces is the safest quadrant on the planet.
Canada's four western provinces with a plethora of natural resources and only 12.5 million citizens is a nobrainer location...
http://seenoevilspeaknoevilhearnoevil.blogspot.com/2011/02/vancouver-bcworlds-most-liveable-cities.html
Nice and cold during the winter too, keeps out the vagrants and invading armies.
Actually, the rest of us Canucks are a bit jealous of how warm the winters are in Van.
Wikipedia:
The annual average temperature in Vancouver is 10.1 °C (50.2 °F), amongst the mildest in Canada. It is located in a USDA plant hardiness zone of 8, similar to Seattle, Portland, Amsterdam and London, as well as places such as Atlanta, Georgia and Raleigh, North Carolina, far to the south. The warm Japan Current usually keeps winter temperatures mild, especially along the lower-lying coastal areas.
Bunch of pussies.
Recall the last winter Olympics in ... Vancouver? Warmest ever. They had to truck in snow from the mountains for events nearer to sea-level. Surprised the Arch-Duke has failed to refute this typical American mis-conception.
Did you also know that the southern-most point in Canada (Pelee Island in Lake Erie) is farther south than northern California? Prolly not, since most Americans can't even find AMERICA on a world map. The blind leading the PISSED OFF. No wonder the world's so fucked up!
I would think the upper Midwest-grainbelt would be a good bet too? Been thinking of relocating to the Dakotas or Iowa.....of course the winters suck from what I hear, but I am told they have fairly good infrastructure
Unless you want to freeze your ass off,and have a war when everyone and his dog Blue shows up.
I prefer to stay where folks know how to shoot, and have plenty enough to go around.(which way it goes, depends on your attitude).
And all those shooters sure will have a moral compass when the shit hits the fan i presume.
Nice plan.
And all those shooters sure will have a moral compass when the shit hits the fan i presume.
Nice plan.
We dont need one. Just dont stand in front once the shooting starts.
Arch Duke of BC realty?
Tim Geithner said the US economy is better than any other major economy. Apparently, he didn't look up.
Please please please tell us all how much your house in Vancouver appreciated over the last 15 yrs. (again)
You are one determined dude. Are you a local real estate agent up there? Maybe the prez of the Chamber of Commerce.
@Rorschach: I see a badger wearing a helmet and an ascot, in a flight jacket.
Close?
Tell him to try Feebay.
OT: Latest News From RAN Squawk
IMF says further weakening of USD would lead to more balanced growth
IMF says China CNY remains substantially undervalued
WTF? Does the IMF not know the CNY is (more or less) pegged to the dollar? Is Geithner now working for the IMF?
Yes. Yes.
They all work for the IMF. That will be the new world central bank and our new boss. Bank on it.....
bank on nothing... everything's up for grabs and turned inside out in 5 years time... any authority figures (pass sick bag) pushing anything on society are going to find their wagging fingers rammed where the sun don't shine
Absolutely CORRECT!
We are trying to inflate, yet ALL OF THESE fucking countries keeping their EXPORT HAPPY pegs to the USD are not letting the trade flows balance!
THUS, the entire WORLD is seeing inflation.
The ZH idiots keep blaming Benocide but he is responsible ONLY for the dollar! Food inflation in Egypt isn't OUR fault! Benocide only controls the DOLLAR price.
The answer is for other countries to ACCEPT their role in the trade imbalances and stop trying to have us BALANCE our budget AND support their fucking bloated export ponzis
More dollars pour into speculation in ag commodities, reducing supply, and raising prices in ALL currencies. Not all of these Middle Eastern nations have dollar ties.
Why do you keep trying to give Ben a pass?
You're an idiot. Yes of course geithner works for the IMF. Where do you think his turbo tax scam came from. It was IMF money he hadn't paid us taxes on.
http://en.wikipedia.org/wiki/International_Monetary_Fund
Lighten up, h, I was making a joke. Of course Turbo Timmy used to work for the IMF.
You just don't get it. There's no used to about it. If you work for the fed you work for the IMF. Greenspan worked for the IMF. It's just the way it's organized.
Tell us something we already didn't know. T-18 days and counting. This is serious folks.
I agree that this is serious. Question:
Why T-18? March 13th? Is it the Euro bond rollover?
Just asking.
After that date, I believe the whole house of cards really begins to unwind- Irish general elections, debt ceiling vote, single EU bond vote, Feb28th silver expiry rolls over and those are the planned events. Couple that with the potential for the whole M.E. to explode into anarchy, and we could see $150 oil, $70 silver. Time will tell. I don't like to put time frames on major events but....
I give it alittle over 30 days:
http://standfordelivery.com/stand.php
March 13/14 begins the rush to buy food/water/gas. March 29th begins Armageddon...
We shall see, yet I am trending toward agreement with you at this point. Things look real hairy out there right now!!
March 29 doesn't fit my schedule, can we move that to the 4th of may?
The dreaded, but often overlooked Cuatro de Mayo. You have been warned.
Often overlooked indeed ! LOL very good. I'm tempted to get to work on a nice internet conspiracy story about the infamous malafeasian Indians in South America who predicted the end of society on "El cuatro de Mayo"; but I'm afraid to find out how many alledgedly sane people would pile on and support the whole thing; probably thousands.
Sure; no problem.
Try again, you are not starting Armageddon on my birthday!
March 14 is pi day - yum!
March 13/14?
This is so close to the famous 'Ides of March', so why not make it March, 15?... the date upon which Julias Ceasar met a group of friends bearing daggers...according to Shakespeare...who penned the famous 'Beware the Ides of March'.
From Wiki...
'The Ides of March (Latin: Idus Martii) is the name of 15 March in the Roman calendar, probably referring to the day of the full moon.'
...and...
'The Ides of March was a festive day dedicated to the god Mars and a military parade was usually held.'
http://en.wikipedia.org/wiki/Ides_of_March
March 4, US govt. shut-down.
Maybe they don't matter much, though ....
Eric Sprott's DA MAN!
In other news, you might want to see how the press, the SEC and Bernie Madoff conspire to screw over other Americans:
http://strikelawyer.wordpress.com/2011/02/23/interesting-lesson-in-journ...
We really ought to be buying silver and gold. As much as we can. The government is hopelessly corrupt and the press is a lapdog for them. We have to get our news from outside the system, we should probably keep our money there too.
A+....if you don't trust them for honest reports why would you trust their currency? ..or as a friend once asked me regarding Nixon, "Would you buy a used car from that guy?"
You pal around with Jules Pfeiffer?
"Eric Sprott's DA MAN!"
You got that right!
Along with Bill Murphy, John Embry and my all time favorite ass kicking Jackass... Jim Willie.
Not only is there no more silver left but there is no gold left either...
"My argument, and the argument of many informed analysts, is that the USGovt has no possession of gold whatsoever, having leased and sold the entirety of Fort Knox, then sold European gold, then sold Chinese gold.
So the recent estimates of $7000/oz gold or $8000/oz gold make little sense if the monetary aggregate is divided by a gold reserves quantity likely to be ZERO, bound by lies at worst and myth at best.
Therefore, the potential Gold price is infinite, since division by zero cannot be done.
This utterly basic point escapes many conventional analysts, who have yet to benefit from any independent audit of the gold reserves. The claim of national security is given, but the reality is more like national insecurity!"
http://news.goldseek.com/GoldenJackass/1298494800.php
I think, though, that unless it has been physically transferred - like some people think happened with For Knox in the 60's - the leasing and whatnot won't matter. The US will renege on any pledges it has made on the gold it physically possesses, and will just keep it as its own.
Possession is nine-tenths of the law.
http://strikelawyer.wordpress.com
A year ago, it took me 2 1/2 months to get delivery on 2 $100 bags of junk silver. I can't imagine how long it would take now. I think the silver train left the station some time ago and will only be picking up speed from here.
Doclox: Time for you to see your LOCAL coin dealer, I can get a hundred bag of junk in my hands in minutes. The security of quick delivery makes me sleep better at night.
what's the best form of physical silver to buy for a long-term 'stash' (not to 'trade') . . . junk or minted coins (Eagles/Maples) or bars ? and why ?
my local coin dealer sells junk for a tiny (1-2% over spot) whereas 1oz Eagles are $2.75(8%) over spot . . .
If it's for long term, I'd go with junk. The only argument for not holding junk is it might be trickier for a quick sell. With coins, the premium tends to be more a fixed price than a percentage, so you probably won't get a the same percentage premium if you sell at $50 for example.... I've also gone for junk because it's easier to pass off as family heirlooms for capital gains tax purposes (but that's specific to the tax in my country)
Junk is going discount to spot. Watch the spreads. For example, Tulving's selling junk below spot but he's selling bullion above spot. That's telling you how tight it's getting.
Tulving will ship to you free and overnight. He has over 200 bags inventoried.
Excuse my ignorance. Is sterling silver flatware considered junk? Is it worth buying?
I've been melting down old photographs like there's no tomorrow.
LOL. yeah, there you go.
criminal banking syndicate / t.v. blather ~ ~ ~ that's why i cancelled my cable & used my money to buy silver !
Same here, only substitue "mortgage" for "cable". Go to hell GMAC!
I'd venture to say, it's safe not to pay credit card/mortage/medical bills any longer starting now or in a few weeks. There are only a few months remaining of this financial system, and by that time, who gives a shit.IMO. One major earthquake and the whole house of cards comes down anyways.
Eric is right .... the local coin shop is
out of silver....
You can still find cheap silver coins at antique malls.
Flea markets- you can bargin for silver well below spot. Half the sellers have no idea the true value.
I bought some sterling two weeks ago for $18 an oz. I saw on e bay you can get junk coins under the market.
See my post a few lines above. Junk has gone discount to bullion. People want quality now.
You can't even be serious...That's not believable.
Blythe sucks, Dimon swallows
http://marketforceanalysis.com/published_articles_assets/The%20Alchemist...
http://www.kare11.com/news/article/909497/396/Mob-robbers-hit-convenience-stores-in-St-Paul
Obama supporters at their finest hour.
And they are Obama supporters how? Care to explain your comment?
And this has what to do with the silver market?
He's just another racist that is still outraged that we have a black POTUS and first lady. He's also just another idiot, bringing down the aggregate IQ/EQ of ZH.
I'm not sure what BHO had to do with it either. I do find the 'event' rather interesting though. Mob robbery. It would be interesting if it was due to higher costs. Sort of a mini food riot.
Only racism I see is that enabled by someone who brings race into a conversation where it hasn't been mentioned. Obama's incompetence and hypocrisy are certainly off topic, but so is your comment.
OK, smart guy. You explain his comment and why it appears in a different topic. Explain how it's not a comment from a racist pig.
I hate to get into this but he never mentions race he says "Obama supporters" and they come in all races and sizes, IQ's are more standardized among them but race is not a determining factor in supporting Obama.
Lighten up, Francis!
St. Paul-the ugly red headed had-the-hell-beat-out-of-her step child.
Has anyone thought that if there was a true shortage of silver, then the industrial use would begin to be curtailed?
Just like the other REE's, eventually a substitute will be demanded... or at the very least, we'd see the cost increase showing up in those who use silver... ie Tiffany & Co.
The problem is, for many applications, there are no substitutes. Silver is nicknamed the indispenseable metal for a reason.
+ 33.50!
Your right, the substitute is paper silver for investment.
late 2008, only 20 million ounces of silver are left in the US government's stockpile. They sold it all into the markets for i-thingies and cell phones.
Then of course theres these guys working in the backround: http://www.silverusersassociation.org/index.shtml
Now when people stop "investing" in paper silver, yup you bet, i-pods are going up!!
I am curious... Do you have anecdotal info or a link that proves Tiffany & Co. have not encountered increased prices for PM purchases?
Keep in mind that jewelry production is labor intensive...and, I am assuming that jewelers, not retailers, but those that toil at work tables, have probably not received large wage increases.
Tiffany's has increased prices. But don't let that title fool you as there is little total silver weight in those Tiffany's baubles. A "return to T" necklace has less than 2 ounces of silver in it and yet retails for $330 - that's approximately $60 in silver selling at over a 500% mark up. Certainly they can afford some margin compression...
Jewelry retailers sell sterling table spoons in simple patterns for $90. They are mass produced and weigh about 1.5 to 2oz. There is no resale value in them except scrap.
Tiffany's silver is always more both new and used. Its all in a Name.
Im seeing it.. Jewery counters are now filling up with stainless steel and titanium jewery..Very little gold and silver now..
As far as subsitutes, that works both ways..Silver is being used as a subsitute for other high priced metals such as rodium and platinium in cat converters etc..
Agree - this is what I'm seeing too.
Adding to your list: necklaces with ribbon lacing in lieu of gold or silver - Lanvin-style even at Neiman Marcus.
Also feathers, bone, pearls (faux & real), leather, ceramic, enamel, resin (plastic), non-precious polished rock, wood, and crystals and cubic zirconia instead of diamonds or quartz or clear topaz.
~Misstrial
Tiffany's prices have no correlation with silver. They get paid for high style. Check for yourself. Raw materials in a bracelet is <$10, which is < 5% of the retail price.