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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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http://thehardrightedge.com/troubledwater/
Article talking about the inflationary levels coming to silver and gold and oil. Prepare yourself
Everytime it looks as though the economic world is falling apart CNBC always drags out the old war horse Abbey Joseph Cohen. I don't know why they think she is relevant.
Because replacing cracked TV screens is good for the economy.
http://www.dylanratigan.com/2011/02/23/indiana-official-use-live-ammunit...
Does anyone know what happens to GLD/SLV shares when people take delivery of physical? Are those shares withdrawn , or do they get watered down and screw the people even harder?
They feed them back to the unicorn as roughage to be shat back out as rainbows and lollipops.
When someone takes physical delivery the shares are canceled by the transfer agent, but remember, to take delivery of GLD you must own $5mm worth, and you must have a broker that deals through DTC (most) and they must be able to accept and store physical, not that they will be storing it but it must be ABLE to, and many fewer BD's are able to, so it's not as easy as calling your broker at Schwab and saying convert to physical
withdrawn. It's a great place to buy if you don't want to disturb the market and you are a fat finger.l
I live here in Mexico City. I would contend that there is plenty. Mexico by the way is big in silver production. Alot of Canadian miners are down here. Today the price of silver here is $433.39 pesos/oz. Figure what the price is in USD based on a fixed exchange rate of 12.17. Works out to $35.59 USD/oz. You can walk right up to a teller window at any one of the Banco Azteca offices and request as many 1 oz. coins as you like.
And there's no additional sales commission beyond the exchange rate they give you? Do you need an account with the bank? Is this true in Tijuana as well?
I'm guessing that Mr. Sprott means there is nothing readily available in a large size. I can go to a coin shop today and pick up ten large in 1oz maples, but I doubt Eric gets his that way.
I stop by the best known coin shop in Austin about once a week to see what they've got. Always plenty of gold, but the last couple months, no eagles or maples, few 10 oz bars, really nothing new and shiny. I had to buy the old tarnished generic rounds today.
the old ones are better for you anyway, more roughage.
Wait a minute.... shalom ben told me I can't eat that stuff....
"I had to buy the old tarnished generic rounds today."
A bowl with aluminium foil, baking soda, a pinch of salt and hot water works wonders on silver tarnish. 10 seconds and it's like magic.
Thanks for the tip.
Make it boiling water and the silver must come in contact foil; flip it around to different sides. Check youtube for videos. The salt is for taste I'd guess because the soda is enough.
There is no more AAPL stock left neither. A bunch of hedge funds owns half of it, the rest is owned by a bunch of retail bagholders.
Sprott appears a little confused. Everything is always owned by someone.
And I own half the air, the other half is George Soros' (which he stole from me).
But Apple can "print" more stock any time they like.
Yes the mines produce silver but there is consumption as well. From the investment point of view in a market like this what matters is how many owners of silver are willing to sell. If most of the silver is owned by people who don't intend to sell at any currently conceivable price there is no investment silver left for newcomers, who must fall back on new production and compete with industrial consumption.
I think that may have been what Sprott meant.
BTW his talk is well out of date and he got very muddled a few times. His written work is always clear and logical. This talk was not.
Ok, i have to ask, what's the deal with the way PHYS trades? That thing has gone no place since May. When gold goes down, it goes down 2x. It's dumped at the close like an ugly bastard duckling. What is it?
Are the people buying PHYS just the weakest chumps you have ever seen or does somebody seriously hate Sprott?
Blythe is that you?
Best way to take delivery take $165,000 take Feb delivery off of Comex before the vault is empty.
No commissions
Today at my local gas station I was waiting for an oil change and an old guy came in and paid for his $10 worth of gas with 10 silver dollars. The attendant took them and tossed them in the register. I waited a few minutes and said - say, I collect those things. Can I buy them from you. He said sure - and I handed him a paper ten.
We are nowhere near a top in silver.
Lucky bastard!
Today at my local gas station I was waiting for an oil change and an old guy came in and paid for his $10 worth of gas with 10 silver dollars. The attendant took them and tossed them in the register. I waited a few minutes and said - say, I collect those things. Can I buy them from you. He said sure - and I handed him a paper ten.
We are nowhere near a top in silver.
They were peace or morgans? Or were they Ikes or Susan B Anthonys? If they were the latter, u gave a $10 for $10. More than likely the Ikes aren't "s" mint 40% silver Ikes either. If you got Peace or Morgan dollars, good for you.
If he keeps that up it could get dangerous.
BTW - I feel really, really bad and guilty.
Are you a good enough numismatist to determine if the silver dollars are genuine or Chinese copys? Some of the copys are pretty good.
Here is an Ebay listing of some replicas made in Hong Kong ...
http://shop.ebay.com/?_from=R40&_trksid=p5197.m570.l1313&_nkw=silver+dollar+replicas&_sacat=See-All-Categories
A search of 'silver dollar replicas' turned up 462 items on Ebay.
In addition there was a link earlier today to a pawn shop in Washington State that purchase a bunch of fake Morgans. They called the cops.
Yah, after you made of with the loot. I could cheat people by rigging my scale when I buy sterling. The thing is, I'm not starving so just making take home pay works for me. Any one who hunts in their hiding places to come up with enough to buy 3 gals. of gas is in trouble. You could have helped him out even if you short changed him and paid $10 a coin. I sleep well at night.
Gold and silver are money, it's as simple as that. Try as they might, a fiat currency backed by nothing with eventually extinguish itself. It's not that I don't believe the world Powers don't have a way out of the current predicament, but it most likely involves precious metals, at least to some extent.
Don't worry, when the shit hits the fan we'll be the last ones to find out. but at least I'll have some gold and silver when it happens.
Gold and Silver To Da Moon!
Be sure and buy my book. It is coming out soon!
Mine too, it's called
"I've already got Mars in my rear view mirror, thanks for asking."
The PM run up of the last few months was due in part to clueless people buying it. Herd effect. PMs were poo-pooed by most financial managers up until silver started it's 17.50-33 run.
Alot of people who bought it have no clue why they bought it, I suspect they'll sell alot of it once the Bernanke finds another way of luring them back into equities.
So you predicate a coming fall in silver price on the skill and cleverness on Ben Bernanke? Well HELL he was time magazine man of the year, right? And he totally called & saved us from the housing bubble.
QE3 and other twisted accounting frauds has nothing to do with skills and cleverness I'm afraid. Long term, PMs are a bull but there's alot of sheeple that bought it that could be shaken out of the PM market.
True, True. The big drops shake out the weak, they line up to buy at the top tho. Past performce is no indication of future outcomes, but I kinda think were seeing alittle squeeze here, gunna be hard to lure people back to the olde Crock Market
That is funny I know many who previously wouldn't buy now considering it.
sold my last silver
at 42.00 $
[ thanx bunky
three decades later
buying it back ....
for alot less...
isn't life grand ...
All 1920s - mosty pretty worn. One 1898 Morgan. They had that nice feel though. I think I got a deal. Kinda wonder why the old gentleman was spending silver dollars to buy gas though. We have a lot of old time rancher dudes around here. Probably don't watch TV, certainly aren't on the internet. I figure he just reached into the cookie jar when he was on his way out the door and didn't have any cash. And the gas attendent - in hius 40's, bvery small town, nice guy but not interested in the world outside his town. Not bragging on myself regarding this deal - my point in telling the story is that there are still a LOT of people who have no idea what is happening with the economy, with silver, with Beelzebub Bernanke, etc. So we are definitely a long way from the top in silver.
Tulving has a load of that shit. I think????
APMEX out of 2010 Eagles.
I'm not. But I have none that are for sale. :)
Robo has all the silver. That is why his apartment is downstairs.
Investors and industrials want and need 100's of million of ounces a year
Oh wait! Tulving has 1/2 million ounces so everything is A-OK.
Laughable.
It is not often you get silver in your change these days, but I heard that distinctive ring at the register and got a '63 quarter the other day, so I am doing my small part...
On reading this article I had a vision :
Silver candelabras...We have two hundred of them. The weigh a ton to carry. The whole building/country mansion of my in-laws is full of them. Somebody told me those old candelabras contain 70% pure silver. Assuming they weigh Five kg each (assuming), that means 200x5x.7 = 700 kgs of silver. One kg is 2.205 lbs. = 35.2 oz. I think.
So 700 kg = 24 360 oz. At 50 USD/oz say my candelabras are worth =
1 200 000 USD (approx.)!
I think I must be dreaming. That 'junk' has been lying in this old abandoned house for thirty years. This sounds like a Reggie Middleton head and shoulders shampoo. Or am I imagining its raining frogs?
Wow. I hate you. lol
Yep, your math looks correct but you'd probably have to pay to have them smelted down/assayed so you'd have to factor in that cost. But I'd take that problem any day. Might be time to lock up the country house.
Can I come out to the country for dinner sometime?
Sprott has filed a preliminary prospectus with the Canadian regulators for an open-ended silver bullion fund. This will certainly cause the physical market to get even more tight.
Looking at buying physical silver. I can really only afford 10-20 oz. each month righ now. Is $1.50 over spot a good price? Thought I would ask here, since it appears that a few ZHer's seem to have the physical bug.
Shit yeah, I pay +2.50 generally
...For fresh mint date bullion
Lear Capital has silver eagles for $2.65 premium and silver maples for $2.00 premium, any quantity even 1 coin. If you order $1500 worth you can get free shipping with coupon code F7B9E (it worked for me earlier today - web price only, sent them a personal check)
Yeah and I know they're in bed with that Beck guy or Limbaugh or whoever but I couldn't resist that low low premium.
I also ordered from gainesville before for some junk silver any quantiy $0 over spot, their coupon code is NAIUS for $5 off shipping.
Looking at buying physical silver. I can really only afford 10-20 oz. each month righ now. Is $1.50 over spot a good price? Thought I would ask here, since it appears that a few ZHer's seem to have the physical bug.
For .999 pure silver, that is a good price, so long as the product "looks nice". If it is an ugly, or odd shaped bar, it should be less than 89 cents over spot, which is what you can get at APMEX.
I was in the same position as you looking for a good price on small quantities.
Lear Capital has silver eagles for $2.65 premium and silver maples for $2.00 premium, any quantity even 1 coin. If you order $1500 worth you can get free shipping with coupon code F7B9E (it worked for me earlier today - web price only). It also helped me that they will take a personal check or money order in addition to wire for no extra fee. I didn't feel like paying my bank a wire charge.
I also ordered from gainesville before for some junk silver any quantiy $0 over spot, their coupon code is NAIUS for $5 off shipping.
Yeah and I know they're in bed with that Beck guy or Limbaugh or whoever but I couldn't resist that low low premium.
$1.9144688336 is the total melt value for the 1942-1945 silver nickel on February 23, 2011.
Seen him 3x live with the same story. Should be no surprise o you kids. Surprise is that he always wears the same suit.
Seen him 3x live with the same story. Should be no surprise o you kids. Surprise is that he always wears the same suit.
Forget banks. Just keep on buying silver, dig a hole, hide it and dont tell anyone.
How much money would it cost to buy the whole world? Lock, stock, and barrel. Shouldn't the money supply equal the whole world?
I wonder what happened to the the 15,000 Tonnes of silver used in the Manhattan Project
http://www.atomicarchive.com/History/mp/p4s4.shtml
apparently all returned... a couple decades late back to US Treasury
I woulda ran away with it even if carrying all that on my back would have pancaked me. Good for them if they did give it all back.
great
the fuckin idiots who shoulda bought at 5, 7, 9, 11, 13, 15, 17,19,21,23,25,27,29,31,33 and now 35 are back yacking like fuckin morons they are.
You will be eaten that is darwin's way, yes you and your spawn are zombie food
Go to the apple blog and spew there please.
In other words fuck off = you know shit and have always known it but were too busy buying BMW's and 100 inch TV on credit.
Wow what a big thread. I am proud to let everyone know I've been calling myself SLVRIZGOLD since 2008.
I think what Sprott was trying to say was that the once large above ground stockpiles have been reduced to a pile of dust and that from now on industrial users would be in DIRECT COMPETITION with hungry eager bullion buyers and that silver was going to bajillion and was going to make solars look like CDs.
All I have to say is that silver equities are NOT selling at prices that reflect the awesomeness of $30+ silver. Take PAAS. They are producing 23.5M oz silver with a heavy gold byproduct and have cash costs around $6-7. Is this not gynormous cash generation for a $38 stock with ~110M shares? Cheap. And the Wall Street tard analysts have them at $2.20eps - bullchit.
Another thing to love about silver miners - there aren't a whole lot of them (kinda like Chinese Solars LOL) so when the market crowds in to buy they get massive spring coil action as we get later into the bull trend.
He's a brilliant sales person, today he happens to be selling silver.
Convince the fool of the absence of supply and charge any price conceivable.
In gold we trust.
In silver we trust.
In fiat we... well... we ain't got no fiat any more! Hahahahahahaha!
fiat panda is not a bad bet with oil prices spiking out into stratosphere!
I'm wondering what's going on with SSRI. I bought at $36 and it seems to get hammered with every silver CRIMEX spot increase. Spot silver was much lower than now. Is this one of the big ones that might be shorted by the bad guys? I need to make a decision to sell these shares in 3 weeks....please help?
I had to sell an ounce of gold yesterday at a gunstore. I still feel dirty. I'm going to take a Crying Game shower now.