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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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Agree - big mark-ups for Elsa Peretti and Paloma Picasso designs at Tiffany.
Has no relation to the spot price.
~Misstrial
You must be new. There was an article on ZH a month ago about collapsing margin for Tiffany. They ARE raising prices...
Yes they certainly are. I had to pay them a visit for my wife's valentine's day present.
For women it's commonly referred to as "flowers and jewelry day", but for men it is commonly referred to as "steak and blowjob" day... good to pay the fiddler every once and a while...
No, no, that day is on Mar. 14th.
http://www.steakandbjday.com/
Sylvia,
The shortage is near. Major stocks of silver are gone. Industrial users will just pay higher and higher and higher prices to get the metal..they are rapidly becoming more important in the market.
We are indeed not far from panic buying to suck up every ounce available.
Yes, indispensible and a small percentage of the total cost of inputs for most uses. Gotta have it or your line shuts down -- how much does that make it worth?
ETFs own jack shit. They own a paper claim on the underlying asset and that paper claim will be paid out in paper once there is a default. Problem solved. Paper bitches start lubing your assholes.
Correct. They own the paper but there is nothing to back it up. How ironic!
great vid. painful to pay 3x's the price for what was bought a few years back. still thankful, though.
Silver on ebay is now selling at premiums to the likes of Gainsville and APMEX. Havnt been in the game long but in Nov, Dec, Jan this was not the case.
Thoughts?
You ain't seen nothing yet
I gave up on ebay a long time ago because I could never do much better than Gainesville or APMEX, and I perceive that I'm less likely to get ripped off. That said, APMEX has been flaking out on me recently, so I'm less sure of that now.
Would you please expound on that? I use APMEX a lot and haven't had any problems...yet.
I've only ever used apmex, and no problems with the products, but their last two deliveries missed the ship date by over a week.
Nothing too terrible, still good quality and price, but my last order was a bit frustrating. I wrote them this email (with dates replaced by approximate time intervals), to which I have not received a response for quite some time.
Dear APMEX,
I would like to confirm that my customer service experience is consistent with your company policy. I placed an order [over a month ago], the payment was received [several days later], the check cleared my account [in another day or 3], the order was shipped [a few weeks later], the order arrived [a few days later], and I discovered that a coin that I'd paid for was not present, and that someone had written in pen that I'd get a refund. I immediately emailed that I did not want a refund, and instead wanted a similar coin. That email was not answered. I emailed again [several days later], and that email was not answered either. I would think that sometime between date 1, when my check cleared, and date 2 (2 weeks later), when the order was shipped, that someone could have at least put the refund check in with the coins, or notified me that APMEX was holding my money for gold that I would not be getting.
That is outrageous. They definitely should give you a similar coin of your choice. Refunding your money is arbitrage on their part (between the price you paid and the current price).
Crap, now I'm going to have to start looking for a new bulk supplier. That is not an acceptable accident. What if they had decided to do that a a $1000 face value bag of junk silver?
Please keep us updated on the situation.
Tulving is perfect for bulk purchases, but I can't afford regular orders from them.
So you would recommend Gainsville then?
http://www.gainesvillecoins.com/
Im looking to do a large purcharse of bullion. Local dealer is not capable of handling.
I came across their site, but still unsure. I am researching for peace of mind before ordering.
Thanks
In a few words. China is buying PMs big time...both government and citizens. India is buying gold big time both government and citizens.
Mid East and SE Asia... Same as above.
America's citizens have not been encouraged by US Gov to purchase PMs... In fact, citizens have been discouraged from doing so.
I was in China last year and talked to a bunch of their fund managers. You know what? They still favor paper.
Okay?...I have a friend of a friend, who knows a guy, who onced live in China but now lives in Russia and he says, the China people don't even like chinese food...
eBay is the place where a smallish buyer can pick up silver by the piece with low or no shipping cost. I am selling common silver rounds (not coins) at $34 to $36 per ounce now and no shipping. Trading the income for ASEs, natch.
Rocky, can you divulge your ebay seller name, or would that be a waste of anonymity? If not, I'll assume that this is you:
http://cgi.ebay.com/JAY-STRONGWATER-SWAROVSKI-ROCKY-RACCOON-595-NEW-RARE...
No, but I did sit for the original modeling. Quite an accurate rendition.
I would *never* buy any PMs on eBay. The place is a known outpost of counterfeiters or those who are unknowingly selling counterfeit coins, primarily made in China.
http://coins.about.com/od/worldcoins/ig/Chinese-Counterfeiting-Ring
The Chinese have coin counterfeiting down. There's even a video of a Chinese counterfeiting operation.
~Misstrial
They are counterfeiting the rare silver stuff and old chinese coins. To my knowledge, they aren't faking silver eagles, silver maples, and such(they fake pandas, though). The only old silver 90 they fake are the rare morgans/peace dollars, such as the CC coins and 1921/28 peace dollars.
Buying generic silver on ebay is relatively safe if you go with a US seller with perfect feedback. I've made literally a hundred different buys for gold/silver on ebay and never had an issue. The exception being a gold chain that ended up being just a 5% heavy plate(I knew I was taking the risk from the price).
Plus, getting 7% kickback at Ebay doesn't hurt either.
Obviously, never buy from a Chinese seller.
Are these fakes real silver, or some other metal?
It seems to me that they are going after the numismatic market more than bullion. If they were after bullion, they would be doing Eagles, etc.
Counterfeiters making fake Eagles would have the Secret Service on them real fast (Eagles are legal tender).
I presume anyway. W/ BHO running this show, well maybe not.
I just typed into Ebay search 'Silver Dollar Replicas'...got 462 items...All of these are counterfiet US Currency.
Why are these clowns not being prosecuted by the Treasury Dept?
http://shop.ebay.com/i.html?_nkw=silver+dollar+replicas&_sacat=0&_odkw=silver+dollar+reproductions&_osacat=0&_trksid=p3286.c0.m270.l1313
cuz it suits TPTB to have counterfeit PM's sure if it was counterfeit paper they would be on it.
maybe an email to what ever dept. is supposed to police counterfeit
To this point ive only bought silver eagle rolls using your same method of only US 100% sellers.
No issues other than one lot that was advertised as BU but was a bit less, not a problem IMO.
I did buy a Gold Maple from a seller in France that did not ship. was refunded by ebay in less than 2 weeks. Live and learn.
Correct. And the numismatic Morgans and Peace Dollars are being fabricated from coin silver (90%). The silver content is a minor cost and it makes the "coin" weigh out correctly. They are faking PCGS and NGC slabs as well, so beware!
In the world I see – you're stalking elk through the damp canyon forests around the ruins of Rockefeller Center. You'll wear leather clothes that will last you the rest of your life. You'll climb the wrist-thick kudzu vines that wrap the Sears Tower. And when you look down, you'll see tiny figures pounding corn, laying strips of venison on the empty car pool lane of some abandoned superhighway.
Awesome visual swissinv.
ORI
ORI, have you not read the book?
Which one ID, I sense it's called Project Mayhem?
Do enlighten.
ORI
Fight Club, Chuck Palahniuk. I believe there was a movie starring some guy named Pitt...
Or seen the movie?
I like your comments tm, you should read "Snow Crash" by Neal Stephenson, way before it's time, amongst many other prescient themes in the book they refer to the current billion dollar bills(US) as "gippers", our old friend Reagan.
Project Mayhem was supposed to be a big parody, but these days people really seem to dig what Tyler was talking about.
Yeah, my first edition has a delightful forward by Chuck P. that makes it quite clear that he had no idea of the significance of what he was writing.
Cool! Then I'll be able to wear my leather pants with my badass boots. In public. In Rock Center.
Bring on the collapse. Fetish, bitches.
/sarc
Goign to shop for some tomorrow. Last time there was such a spike, dealer had to make 5 calls to his boss, determine that I a customer in good standing, then handed it over.
Banks don't want to give in such an environment.
Too much upside reward potential, not so much downside risk.
ORI
http://aadivaahan.wordpress.com/2011/02/23/666/
Good luck ORI. I last bought at $17. We drove 70 miles to a big name dealer but I wire transfered funds several days prior to the trip.
PMs were waiting when we arrived. No hastles. We drove home carefully and did not stop till we reached our destination.
I don't know what would happen if I tried this again today.
Did you get my post about Philly? Do you know about the rioting in India? What is going on there?
$35.57/ oz. is the price here in Mexico based on a fixed exchange rate of 12.17. In pesos it works out to $433.00. Certainly there isn't a shortage here given the fact that Mexico is a prime producing country.
- Moved -
In defence of Keynesian and goverment spending................. wait for it................
May I suggest there is no goverment and for sure there is no channel for spending without corporate leaks or indeed vortexes.
Certainly from a European context all or most state utilities are privatised or on the cusp of privatisation.
Believe it or not there was a programme in Ireland to increase the electricity price to make it more attractive to private enterprise !!!!!!!!!!!
That was certainly a weird logic but the mantra of privatisation is always more persuasive - nah , natural monopolys are just that - natural monopolys.
Indeed the state gas company now wants to provide electricity and the state electricity company now wants to provide gas !
Given the number of phone calls I get to SWITCH the double jobbing must be quite extensive.
This is a corruption crisis as far as I see it - the west has no core values anymore.
The transmission mechanism has broken down somewhere in the minds of men.
We argue so many theories on this and other websites; we debate Keynes, Austrian, Capitalism, Communism, Socialism, Fascism, Democrats, Republicans, inflation, deflation, stagflation, fellation, cunninglinguism; you name it, we argue it all.
Because of the corruption, we have no real test, no real data at all, about any of these debates. Because of corruption, we have no system. My friend, it just got too big, the system, our lives, the complexity. No one was watching the store, they were involved elsewhere, and then one day we woke up and realized that corruption was the norm, the fabric of the culture itself.
Sad damn day. We will have to deal with it locally. The places that can fly straight first will have the strongest recoveries, such as it is.
Yea MsCreant , it has been terminal for perhaps 20 years or more - 1987 was the last chance saloon - we have no values to set ourselfs against both moral and monetory.
I'm scared .............. hold me
May I ask what the hell happened to all the hippies espousing free love and enlightenment? Seems to me that either they or the "squares" of their time are running the show now. Did the drug addled hangovers wear off only to be quenched by a healthy dose of corruption or is this a new phenomenon inspired by those polo wearing, incestuous, ivy-league motherfuckers from the Northeast? Corruption goes a ways back by many names, I think it just finally became cool in the 80's. No offense to Northeasterners (except those who keep re-electing Bawney Fwank).
One thing the hippies did accomplish was to eliminate the military draft in the US. After the hippie era and Viet Nam ended the military decided that the only way to maintain a large standing military was through an all volunteer military.
My personal take on this is that most Americans now have no idea what the military is really like because they have no minimum aquaintence with it. Americans watch movies about the military and assume they portray a more or less real picture of what it is like. Not true.
The generation that went through WW2 did have a real taste of the military. After WW2 many well received comedy movies were produced showing just how FUBAR the military was. How long has it been since a comedy/parody military movie has been produced/released? A comedy movie about the military released now would fall on dumbfounded eyes and ears...The public would not know what to make of it because they lack a frame of reference...Because they have not spent any time in the military.
This lack of understanding of the military has led to a disconnect between the citizens of the US and what there government and military are doing in the world. US Citizens have no idea what their military is like nor what it is doing.
If one reads Gibbons, 'Fall of the Roman Empire', one will find a similar disconnect occured there. Rome began with citizen soldiers but ended with a professional army and navy...While most citizens were enjoying bread and circus.
MsC,
indeed, we humans are brilliant at recognizing and capitalizing on arbitrage...
yet this, in a world where our clans fail to scale well after more than 100 or so of us in a group (let alone 7-billion, most of us in cities of millions), there is nothing but arbitrage available, based purely on our genetic inability to keep the gaps in complexity under control.
we simply can't handle what we've become, and our various crutches (i-phones, etc.) have become god-given rights in the minds of the addicts.
i would assert that what little chance we may have had to counter our primal directives with cultural corrections (nature vs nurture), was long buried with the advent of an MSM that has been allowed (if not encouraged) to pander to our most hedonistic tendencies. witness 'married-with-children' (longest running serial), jersy-shore, or any of the reality shows... 'nuff said on that.
it's the dude selling shaved-ice and condoms outside the burning 9/11 towers... and he's got a line of folks buying that goes around tower 1.
always great to see your posts. not enough hours in a minute...
Why should any rational dealer keep inventory on a product when the replacement cost is increasing parabolically? They're only going to fill orders at the spot price+.
Why do rational farmers hold grains off the market during low yield years?
The + is what you are missing. Price over spot increases as physical becomes more difficult to get...a greater profit on each item iows.
The "shortage" is not a lack of silver, it's just a lack of silver for immediate delivery. You can still buy silver, but the dealer is only going to order it in the exact quantity needed. This applies all the way up the food chain to the refiners. No conspiracy theory needed, it's just common sense.
Not all coin/bullion shops are JIT delivery, or drop shippers if you prefer. Some are still selling inventory that they purchased at much lower prices... But, I agree, they are not the norm.
You're so wrong it's not worth the time to explain it to you.
Explain it to me then, please. Are you having trouble sourcing silver?
Also, I should have asked you a long time ago--is your silver hedged?
Trouble sourcing silver? Nope. But that is only for my own type of silver dealing. Mostly coinage, very little bullion non-monetary silver. If I placed an ad in a local newspaper I'd be deluged with sellers, hence, I don't. Most average dealers bring it in the front door and sell it out the back. The spread takes care of itself by using normal discounts from spot. Ain't rocket science. The folks who hedge are those who actually use silver in fabrication of some sort, jewellery and electronics for example. Coin/bullion dealers are retail operations which is quite different.
Major dealers keep inventory just as a grain elevator operator keeps grain inventory. Look at the inventory that Kitco and Tulving. There's not a major delivery problem there. You guys just don't get it. Dealers make their money off the buy/sell spread and not from the price level at which they are sellling to the buyers.
This is all pretty simple if you have a basic understanding of basis quotes. Why don't you go to Antal Fekete's website where you can get some insight as to what's going on?
Why do people insist on making the same dumb jokes and comments in every thread that pertains to precious metals?
derp, just print some more silver, deeerp
How about some Led Zeppelin, When the levee breaks. http://www.youtube.com/watch?v=xbJQT2eDseA
thanks,
on the Sucker Punch trailer to boot!
The better question is why do Ben and Timmy insist on making the same dumb jokes every time they get on television?
derp, the economy is fine and QE is working, deeerp
"Derp" what an original thought. I'm sure you never heard that somewhere else...
Uhhh... I do think he was just trying to make his point.
Meh... back to the interwebs with you <sarc>
http://thehardrightedge.com/2011/01/30/50-physical-silver-by-april-2011/
Will cause 50$ physical silver by April...
100$+ by end of 2011...
Yeah, whatever ... there might not be any left, however there is always someone willing to sell and there is always more coming out of the ground.
Working for a company that uses about 20 tons of silver per year, we have no problem getting silver any day of the week.
Excess last week was 5000 tons..sitting.
160 million ounces? Where? Sprott needed 3 months to get 20-25 million ounces.
I wonder what Sprott ultimately expects to do with that silver.
It's owned by his investors of course, hello.
... Not sure what Sprott expects to do with all that silver ... but I am sure the Chinese can think of something to do with it.
Feel free to be complacent.
When the exchanges melt down after the remaining silver is gone, your easy supply will be gone, and your boss will have you driving around to bullion shops looking for bars.
IMO, if the exchanges melt down then the US and the western world, in general, have much bigger problems because it will mean that the dollar is gone ... completely dead.
Becauese I read ZH from time to time these days (and much less than I used to) I am constantly asking the silver sources and the people I know in Bolivia and Peru if there is any problem with the the source of silver.
The only thing that I can conclude is that there is no physical shortage however there are:
a) people who believe the US and the dollar will melt down and think that gold and silver will save them.
b) there are other people who want to make money (fiat) by selling their silver at a higher price ... and that strategy generally works for a while as it did in the dotcom and housing bubbles
I do not think that there is combined strategy (unless it will be trading silver for SDRs at whatever the bankers will give you .. because there is not enough industrial demand to use the current and growing supply.). Either there is an expectation to use silver as money or there is an expectation that the dollar will survive and at some point in the future be sound again.
I don't know why you seem to think that a COMEX default is the end of the world. It's no more the end of the world than Enron or Lehman. It's just that it is a much larger accounting fraud that will yield a lot more money to those who know what is going on. Supply, meet demand. Now you guys meet the price suppression regime that has devastated global stockpiles that have been built up over some 5000 years.
That is not to say the dollar isn't going to collapse. It will, and this will be a major step down that road, just like Enron, just like Lehman. When that time comes, I plan to be all in on GOLD not silver. I am riding the silver for now, because of its fundamentals.
But hey, feel free to remain complacent. I'm not begging for more competition here. If this were a wider forum than it is, I would shut up.
Why gold Tmos, are you a FOFOA freegolder?
No. Freegold is a fantasy, at best an unstable transition state between a fiat system and a gold standard (whether government imposed or market based). You can't separate the store of wealth component of gold from the medium of exchange component. If you try, you will only get hyperinflation, as no-one wants to hold the medium of exchange, even for a second. If everyone has gold as their savings, they will simply drop the paper currency and transact in gold directly.
I will be in gold because after the industrial panic that follows the collapse of the COMEX, I expect there to be a blow off top in silver. By piling into gold in stages, one can avoid most or all of the loss from the blow off. Gold and silver will continue to be sought after as money as the dollar collapses, but silver will have been pushed too high.
Further, the supply of silver can be ramped up fairly quickly as the price rises, while the supply of gold is MUCH larger, and as such can not be quickly diluted with new production. Silver is good for now because there is literally no supply left to meet current demand, except in my hands and the hands of other speculators. They and I will take our profits in gold when we feel the time has come. As the economy continues to falter, or as it grows again in a sustainable manner on a gold standard, the gold will be worth more and more, which is why you want your savings to be in gold long term.
+1. There's plenty of silver, just not at this price.
Act II.... the socialist-Liberals cry foil in the name of humanity , demand confiscation... NOW!!!
I have no coment...after reading all of yours!
yes, you did
IMHO, it is important to remember that there is not so much a shortage of silver as there is a shortage of monetary instruments of any real value. Gresham's law.
Until the CB's stop printing, smart money will protect itself.
There was plenty of silver when paper had some intrinsic value- ie, it was backed by the production of goods and services of real value.
Until we focus on the production of real goods and services, smart money will protect itself.
Unfortunately, I don't see the USA focused on either. Therefore, silver will continue to rise in price along with gold, oil and food. It is that simple.
Well but the gubmint says credit and spending is economic growth, so obviously that must have intrinsic value, right? If we just keep borrowing and spending, we'll get richer! WOohoo!
Yup, borrow & spend = infinate happiness!! Hey did anyone catch the last episode of Jesrey Shore? I'm dying to know what happened, but got caught up in all this nonsense about angry arabs & PM's. Are they going to make another season of dancing with the stars? That show was schweeet!!
Mr Sprott was obviously addressing a group that owned considerable PMs. Notice that he said ~.8% of Americans own PMs.
That is a believable but laughably small number.
Lots of people are not watching the train wreck. If they were they would be attempting to protect themselves.
I gave up telling my friends to buy silver.They would look at me like I was building an arc on a sunny day.
Same here. I warned our three daughters what was coming about 2001. Warned them again just prior to the housing collapse. One listened in 2006 and she is glad that she did. The other two are now jealous of the one that listened.
...and I have never said 'I told you so'... but the daughter that listened does.
Same here. Only one cousin of mine is a rather large holder of PMs.
My (only kid) daughter sort of gets it, but is too busy working and partying with her friends.
So, I designated myself "The Family Worrier".
(Warrior as well, come and take it bitchez...)
Same here DCRB... The daughters know they will inherit PMs anyway so they can play now and blow their money on big new swimming pools, sports cars, etc.
One has three kids, the others have two each. Between the three families they own ~ 12 vehicles at last count...and, none of their kids have reached driving age.
I watch them in wonder. They are probably typical of what used to be middle class America. We raised them to be more frugal but those lessons didn't seem to take. Oh well, guess they are on the last party train and don't know about the collapsed trestle ahead...and they don't want to know.
+++ luk427,
i may borrow the ark comment!
:^)
Yes. .8 percent is a laughable statistic because it's not true. It's like the 1 percent of people use linux on desktop. It's a lie to make you smaller and more insigificant than you are. They even allow a 1 to 4 percent ratio now when 4 percent is at least linux's desktop market share. It's probably even bigger now.
.8 percent precious metal holders is bullshit. It's more likely about 6 percent.
On what do you base the claim that it's 6%? That's basically 1 out of every 16 people. My own guess, and that's all it is, is that the roughly 1% estimate is right. I know a lot of conservative and libertarian folks and even among the libertarians it's an extreme sort of thing to have some PM's in case . . .
0.8% is 2.5 million people.
Honestly, that sounds about right. When you ask everyone you know whether they have any silver, you get all "nays", and maybe one "yea". I have only come across ONE family who owns silver, and they are a family of survivalists (who happened to be my neighbors--lucky!).
I have convinced five people to buy silver, though they may have just lied to me to get me to shut up about it. I have given out silver as presents to dozens of people, though I never heard if any of them ever bought more or not. Hopefully they did, rather than just selling it at a pawn shop or something.
I wonder how much of Sprotts gold is out of the reach of the US Treasury?
I still wonder how you would take delivery of your share of PM's in the event things got crazy?
Does anyone know how much the silver is worth in the pre 1965 coins? Dimes or quarters. How much is each coin worth at the price of 34$ per ounce?
They are 90% silver. Put them on a scale and do the math. However, these coins often trade at higher margins because they are perceived to be more acceptable as known coins.
Not true. Junk sells at a discount, not a premium, to spot bullion.
Not at large dealers, but on ebay and other sources- it does.
coinflation.com
http://meltvalue.silvermonthly.com/
I prefer charts I can print out:
http://www.coinflation.com/silver_coin_values.html
Pre-'65 is 90 silver, 10 percent other metals aka "junk silver."
To find out the value of each coin, you'd have to contact a dealer and ask.
http://www.pcgs.com/prices/default.aspx
~Misstrial
Skip the dealer and get the info yourself:
http://www.coinflation.com/silver_coin_values.html
Hey RR - t/y for the link - a good one!
~Misstrial
As a dealer I don't like being skipped; but, hey, we're amongst friends.
Danke RR, just what I was looking for...
+1
$1000 face value in junk coins is 715 ounces (+/-) of silver. A silver quarter is now worth about $6.
Which makes gas about $.13 per gallon, in "Constitutional" money, totally negating any fuel price inflation since 1964.
general rule; $1.50 face value = 1 oz silver
actually its like $1.40, dollar coins are slightly better maybe $1.30
I bought a tube of twenty late 50s early 60s quarters about 3 months ago. Paid $150 for them and I didn't really stop to figure out if I got screwed on the deal. I felt sure silver was headed up and I wanted the coins.
They are authentic BUs and are a thing of beauty from a bygone era.
I would rather have them than paper.
Silver/gold never go to zero purchasing power.
Maybe not screwed, but you paid a hefty premium. Hey, don't they sound nice when you clink them together?
Oh they are real. I began collecting coins in the 1950s and have not stopped. I learned a bit along the way and at one time worked part time for a friend in Annapolis that owned a busy coin shop.
Back then there was a big black market in Mexican gold pesos...prior to gold ownership being relegalized. The good ol days. :)
...and as I mentioned these are BU coins. Not priced as scrap silver.
there is 0.715 troy oz of silver in each $1 face-value worth of pre-65 dimes/quarters/halves. therefore a dime has $2.39 worth of silver (using spot 33.50 reference). a quarter would be $5.99 .
Technically, it's .723 iirc. The .715 figure is the one used to account for wear (and they often are); but not always - 1964 Kennedy halves didn't circulate, and 1964 dated quarters are often pristine as well. Most were actually minted in 1965 oddly enough.
Point being the bags are sold by face value, but slick coins won't have near as much metal. Many bags put together were actually some kind of reject coins that were turned in at the end of their useful life by business but somehow made it on the market. Anyone else remember when junk bags were listed on the exchange in tbe paper?
Also note that 10 dimes or 4 quarters or 2 halves don't equal a Dollar - not in Silver. The full silver dollar contains .77 ounce, or 770 ounces troy per 1000 face, versus 723 for everything else.
Does anyone care to comment on the two 3MM SLV transactions, one yesterday and another about ten minutes ago today?????
I don't know enough to comment, however either Harvey Organ or Jim Sinclair certainly would.
http://harveyorgan.blogspot.com
http://jsmineset.com
~Misstrial
Look out below. This is the parabolic blow out ZHs have been looking for.
We're up over 70% in six months.
Sell now or below $20 this summer. Your choice.
Ever think that maybe the backwardation is just because the miners are trying to lock in these prices for the next few years?
It only costs 5 bucks to dig it out of the ground. If I could lock in my production at 30+ for the next several years, that is what I'd be doing.
You win!
Nobody else figured out the other possible interpretation when TD put up that futures chart.
I'd bet my silver stash we will never see $20 again (in this currency).
Maybe 23 which is somewhere near the 200 day moving average
We won't see 26 again either. Probably not 30.
Why am I speaking to you? You're an idiot.
OK buddie! $5 to dig it out of the ground, and that's because the minig equipment and trucks run on .99 cent per gallon gas?!?! Your really high if you don't think increased fuel costs will be in the future...
Can't you troll somewhere else? Do you really think you will be influencing anyone's decision making process here? Really?
How many names do you guys have? Why do you think it works? How pathetic.
Oh shit! They are on to us! Quick, everyone back to the fed and register new ID's!
lol, Labor Theory of Value.
Did you ever stop to think that may JUST MAYBE that figure isn't a constant everywhere? If it was, I would be digging for silver in my back yard. After all, it only costs $5 per oz, right?
Schmuck.
It only costs 5 bucks to dig it out of the ground.
Oil only costs $20/barrel to pump out of the ground. (If you happen to be fortunate enough to own an oil well in the right oil field.) What is your prediction on when we will see $20 oil again?
And how many oil producers run un-hedged, even with $20 costs?
More or less every gold and silver miner has been running at super low hedge levels recently.
To think that hedging after the price ran 70% is not happening is foolish.
Producer hedging is causing the backwardation. No one wants to feel like a dope for not selling forward at least some of their production after a 70% run in six months.
THIS IS the parabolic blow off top.
Monday may have witnessed the high for the next 20 years.
Goodbye $30+ silver, it was nice knowing you.
Let's just get a timestamp on that one...
Heh, yah the miners are lining up to open hedge books so they can be the 'Ashantis' of the silver space.
Go on, give us the eg we all know about so I can knock it down, and you on your misinforming ass.
Goodbye $30+ silver, it was nice knowing you.
Unfortunately, you may be right. But I am afraid that we may be saying hello to $50+ silver sooner than many of us would prefer. Whatever happens, I have a feeling we are in for a wild ride.
Every time golddealer.com has run out of silver it has been an intermediate top. They are out of 100 oz. The guys there have told me people are predictable. They can often anticipate the future price by their volumes. Lots of people buy at highs.
However i have sworn off topcalls.
Good thing you swore off topcalls. Gold 36000! Read my new book! Coming out soon!
Where in the hell is Beakes?
I have a native bearer who does nothing all day but hit F5.
I'll sell mine right now... $1500 /oz. No problem.
I will take a 10 year call option on it.
I just took 30 oz out of circulation during my lunch break.
Tulving's website right now claims to have over 500 000 oz of silver bullion in stock, which is $16.75 million at $33.50 / oz. Sprott says there's $22 billion of silver in the world, which puts Tulving, one PM dealer, in control of nearly 1% of the world supply. Can that be right, or have I misinterpreted some part of his statement?
0.076%
One billion is not one hundred millions...
Yes, thanks. Still ~0.1 % seems like a pretty large percentage - no more than 1000 others could have such a large position.
Tulving is one of the largest dealers in the world. It makes sense that they have a large amount of inventory, especially given that so much is consumed every year. Global stock to flow is like 1:10. Used to be more like 30:1 (circa 1959). We have DESTROYED the stockpiles, but the price never reflected that destruction. Why do you think that is?
Maybe Sprott forgot about Tulving?
http://tulving.com/goldbull.html
~Misstrial
Forget what ??
If I owe 10,000 dollars, but I have $5 in my pocket I don't have a lot of money and I didn't forget anything.
.
Lots of silver around and more to be had. Blythe just has to naked short another few billion ounces and presto another few billion ounces come into existence. See, easy!