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First Gold, Now Europe Running Out Of Silver

Tyler Durden's picture


Earlier we noted that the Austrian mint was on its way to depleting its gold reserves following "panicked buying" from Europeans, who now openly fear the demise of their currency. Now, courtesy of Slim Beleggen, we understand that the situation in the silver market is just as bad and has also spilled over to Germany: the contagion is no longer one of sovereign debt, but of precious metal physical inventory. The primarily silver focused (but holding gold as well) Kronwitter precious metal online retailer is not only not accepting any orders, but has entirely taken down its website.

The only message left for visitors is (translated from German) as follows:

Dear customers,
due to the enormous number of orders we can take at the moment no new
orders via the Internet, email or fax contrary.
All previously purchased and paid for coins are shipped. In order not to delay the extradition unnecessary to ask is to refrain from requesting payment or tracking number. When shipped our you will automatically receive a shipping confirmation. We hope to do everything within two days and then re-open the shop to buy. Thank you for your understanding. Marie-Luise Kronwit

Soon coming to an LBMA vault near you - a run on physical and a total collapse of the 100x diluted Precious Metal market.


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Wed, 05/12/2010 - 17:22 | 347516 Common_Cents22
Common_Cents22's picture

I'm gonna have some gold/silver home buying parties and buy a pawn shop!  

Wed, 05/12/2010 - 18:35 | 347694 cossack55
cossack55's picture

Damn fine idea.  Then sell it to History Channel.  be a star.

Wed, 05/12/2010 - 23:01 | 348273 Carl Spackler
Carl Spackler's picture

Oh my gosh. This is pandemonium.

What about the dentists? 

Will the teeth of Americans now resemble those of the British?

And what of Obamacare?  They - obviously - never figured in the increasing cost of gold and silver when calculating the "decreases" in health care costs!

We are so hosed, but I still have my palladium.



Thu, 05/13/2010 - 09:29 | 348837 Tarheel
Tarheel's picture

very nice :-o

Wed, 05/12/2010 - 18:51 | 347734 Gold...Bitches
Gold...Bitches's picture

no doubt - especially if you only have to pay the rates the 'cash for gold' places do.

Wed, 05/12/2010 - 19:26 | 347826 truont
Wed, 05/12/2010 - 21:13 | 348093 Hephasteus
Hephasteus's picture

Ya but it's confusing. Germans say You speaky de dutch. Spraken de deutshe. So you gotta realize that german people speak dutch. I know it's confusing.

Wed, 05/12/2010 - 22:27 | 348230 WaterWings
WaterWings's picture

Ja. Hier ist Herr Jim Villie. Ausgezeichnet!

Wed, 05/12/2010 - 23:28 | 348329 False_Profit
False_Profit's picture

wundebar!  supa!  wir mussen alles gold gehaben jetzt! 

herr villie is eine ubermench...

Thu, 05/13/2010 - 05:09 | 348577 speculator
speculator's picture

Nein, Niederlaandish is nur schlechtes Deutsch!

Thu, 05/13/2010 - 09:47 | 348879 Hughe Crapper
Hughe Crapper's picture

Also Also, Dutch oder Deutsch. Ich bin ein Amsterdammer. Smelten Sie meine käzen und anschau diese goldmachinen.

Only in Abu Dhabi, the first gold dispenser:

Wed, 05/12/2010 - 17:22 | 347517 BlackBeard
BlackBeard's picture

yeowsah.  And it begins.

Wed, 05/12/2010 - 18:44 | 347715 nuinut
nuinut's picture

If you want physical silver, try here...

They still have good stock, well priced.

I have found both the product and service to be top notch.

Wed, 05/12/2010 - 19:21 | 347823 boiow
boiow's picture

or if you live in the uk. you can get them here.

vat free.

Wed, 05/12/2010 - 20:28 | 348000 DosZap
DosZap's picture

What do the Canucks charge for shipping to US?.

Customs charges?.Also?.

Wed, 05/12/2010 - 20:53 | 348064 nuinut
nuinut's picture

Mine was shipped to NZ, so I don't know, but I did think it was pretty cheap.

$20.30/oz is quoted price today.

Wed, 05/12/2010 - 21:13 | 348091 UGrev
UGrev's picture 

free shipping.

Wed, 05/12/2010 - 21:14 | 348096 UGrev
UGrev's picture

free shipping.

Thu, 05/13/2010 - 02:17 | 348497 reload
reload's picture

Choice getting limited at Sarnia as well now!!

Wed, 05/12/2010 - 23:32 | 348237 justbuygold
justbuygold's picture

There are several recent reasons for silvers recent runup.

1)  Gold is surging due to recent $1 Trillion Europe Bailout and huge demand for precious metals by Europeans.

2)  Scramble by a hedge fund to cover 10 Million ounce short. 

3) JP Morgan investigation for manuipulation of silver market. They can no longer hold the price by shorting more paper while under investigation.

Smart money knows they are dead in the water as any attempt to cover will cause an exposion in the silver price.

4)  Central Fund $375 MM raise yesterday means they needed almost 10 million ounces of silver.  This has essentially dried up any supply to the  Comex and LBMA.

from Ed Steers....

"The first story today pertains to the wildly successful offering by the Central Fund of Canada yesterday.  It was the biggest offering in the company's history... and they raised US$376 million, which includes the underwriter's rights.  This translates into about 7.8 million ounces of silver and around 151,000 ounces of gold.  I wonder how long it will take them to get all that silver?  It's a bit over four days of world silver production... and as you know, dear reader, this kind of quantity is impossible to find in the open market.  So, without doubt, they will be standing at the refinery door waiting just like everyone else... including SLV.  The headline of the story reads "Central Fund Increases Equity Offering to U.S.$376 Million as Underwriters Exercise Their Rights to Purchase Additional Class A Shares"... and the link to the story is here."


5) SLV is way behind in obtaining physical silver bars to allocate to its ETF holdings.  Estimates on how much they still need varies but I would guess its as much as 50 MM ounces.

6) Essentially the silver coffers are dry amongst record demand.  It will take prices well above $50 oz to draw any silver back out into the market.

Wed, 05/12/2010 - 17:23 | 347518 Segestan
Segestan's picture

Nice...Got Gold???

Wed, 05/12/2010 - 17:25 | 347521 BrianOFlanagan
BrianOFlanagan's picture

a preview of what's to come here when the people wake up.  Get some physical while you still can!

Wed, 05/12/2010 - 17:26 | 347524 Sudden Debt
Sudden Debt's picture

But what if the wearwolves come back... and the vampires...

Dude... are we in a mess or what...

Wed, 05/12/2010 - 20:20 | 347986 bigkahuna
bigkahuna's picture

the zombies...

Wed, 05/12/2010 - 21:20 | 348107 UGrev
UGrev's picture

The kind you have to shoot in the melon.. that's what my .308 is for :)

Wed, 05/12/2010 - 21:52 | 348176 PierreLegrand
PierreLegrand's picture

.308 double tap to their dead heads....

Wed, 05/12/2010 - 22:21 | 348213 hedgeless_horseman
hedgeless_horseman's picture

The movie is wrong. 

.308 no double tap required. 

.380 definitely double tap, or better yet, Mozambique.  2 in the chest, one in the head.

Even better,  screw the .380 and get a Rohrbaugh R9 for less than an oz of Au and it still fits in your jock strap.

Or best, and you know what I am saying darling....

Saiga 12 , bitches!!!!!!!!!!!!!!!!!!!!!!!!

Wed, 05/12/2010 - 22:51 | 348261 merehuman
merehuman's picture

During times like these desperation at times leads to suicide and murder.

Please remember me in your will. Thank you in advance.

Wed, 05/12/2010 - 23:20 | 348314 Howard_Beale
Howard_Beale's picture

You are coming along merehuman...looks like MsCreant got through to you and good to see your sense of humor coming through! Nice post.


Wed, 05/12/2010 - 23:03 | 348279 UGrev
UGrev's picture

.308=nothing left of head after 1 shot. 

Saiga 12 FTW(CQB)

Thu, 05/13/2010 - 11:19 | 349158 downrodeo
downrodeo's picture

Japanese steel...

you don't have to reload a sword


Wed, 05/12/2010 - 17:26 | 347527 jkruffin
jkruffin's picture

I hope all those derivatives JPM has puts their ass out of business forever.

Wed, 05/12/2010 - 19:31 | 347856 SWRichmond
SWRichmond's picture

you and me both

Wed, 05/12/2010 - 17:30 | 347529 Hulk
Hulk's picture

Thats your sign post up ahead,your next stop,  the no PM zone

Wed, 05/12/2010 - 19:57 | 347948 cougar_w
cougar_w's picture

Yeah I saw that episode. You know how it ended? The government required everyone to redeem their PM holdings for Treasuries at a set price within 30 days or face a felony.

I don't see how anyone sees pushing the fiat govvies into a PM-free corner is going to end in anyway other than martial law. Remember, these people are modern-day Visigoths.

Wed, 05/12/2010 - 23:38 | 348349 False_Profit
False_Profit's picture

...yeah, but the visigoths were defeated as well.


Gott mit uns...

Wed, 05/12/2010 - 17:35 | 347531 Crab Cake
Crab Cake's picture

Time to take delivery, if you're in paper.  Run don't walk.

Time to get the final preparations in place, TSHTF very soon.  July is my bet, if we're putting down lots. Smoke'em if you got'em.

PS Better get any cash you might need out of the banks too, if you haven't already. 

Wed, 05/12/2010 - 17:28 | 347532 silvertrain
silvertrain's picture

  Oh but the comex can settle in cash..It says so in the fine print..

Wed, 05/12/2010 - 19:16 | 347803 Rusty_Shackleford
Rusty_Shackleford's picture

I've often wondered how exactly this worked.


It would be like going into a store and saying "Here's $100.00.  I'd like that coat there with a $100.00 price tag on it.  The clerk then takes your $100 looks at it and then hands it back to you and says "OK, we're all settled up then."

How long would this store stay in business?


So I'm trying to buy Silver for cash, but instead of Silver, your just giving me my cash back?



Wed, 05/12/2010 - 19:19 | 347816 Gen X Gen Y Hybrid
Gen X Gen Y Hybrid's picture

Actually, it is like the store owner saying that he really doesn't feel like selling the coat anymore and gives you back $125.

Wed, 05/12/2010 - 19:48 | 347917 Rusty_Shackleford
Rusty_Shackleford's picture

Not much help if you needed the coat because you were cold.

Especially since now, when you look around, the prices of coats in every store are now $130.

Wed, 05/12/2010 - 20:01 | 347952 cougar_w
cougar_w's picture

And to extend your analogy a bit, once you are dead from exposure because you couldn't get the coat when you needed it, the coat merchant rifles your corpse for the $125 he "returned" to you, knowing for a fact you have that much at least on you.

They want to know who wants gold, then they know who to go after when they want all the gold back. It's worse than a bad transaction ... it's a trap.

Wed, 05/12/2010 - 20:14 | 347978 Oracle of Kypseli
Oracle of Kypseli's picture

I don't get it. You can buy 400 oz bars for $497,600 each at this moment by phone and have them delivered by armored truck anywhere in the world. Why do you want to deal with comex?


Wed, 05/12/2010 - 20:37 | 348025 Hulk
Hulk's picture

Cause I'm 25 bucks short!

Wed, 05/12/2010 - 21:32 | 348131 WaterWings
WaterWings's picture

(Ernie laugh) k-k-k-k-k-k-k

Wed, 05/12/2010 - 22:11 | 348201 Hulk
Hulk's picture

If only I had traded in my Ca RE, pre crash, in for 3 of those 400 ozers,

being 25 bucks short wouldn't be an issue! Yah right...

Wed, 05/12/2010 - 22:03 | 348187 Trial of the Pyx
Trial of the Pyx's picture


Wed, 05/12/2010 - 23:22 | 348318 Howard_Beale
Howard_Beale's picture

LMAO...I'm $42 short.


Thu, 05/13/2010 - 08:12 | 348698 Hephasteus
Hephasteus's picture

Haggle with them. They'll do it to make a sale. This is how I got my $80,000 dollar porsche for the low low price of $79,950. Because they had pity on me. And I totally took advantage of them.

Thu, 05/13/2010 - 08:12 | 348696 genieous
genieous's picture

Good price for tungsten, IMHO

Wed, 05/12/2010 - 21:58 | 348182 Mr Creosote
Mr Creosote's picture

Get possession of physical PM so you don't end up like Admiral Ackbar

Wed, 05/12/2010 - 22:12 | 348203 nuinut
nuinut's picture

I don't know what the hell it was about, but I got more laughs out of this...


Wed, 05/12/2010 - 21:03 | 348076 Kayman
Kayman's picture

Hey Rusty

Wrong example.  You go to the store, buy the coat for $100, and tell the store owner to hold the coat until you come back.

Meanwhile, the store owner sells your coat to someone else, over and over again.

Then you all come to the store looking for the coat that you all think you own.

And there are no other  coats in the store.  Welcome to the world of Fractional Ponzification.

Wed, 05/12/2010 - 21:24 | 348115 UGrev
UGrev's picture

oldest trick in the book. I used to hear about people getting punked with their cars. They'd buy a car, find out it was stolen, then it would get stolen and sold again.. and again. and again.. 

Thu, 05/13/2010 - 00:11 | 348396 silvertrain
silvertrain's picture


Wed, 05/12/2010 - 19:25 | 347841 ExistentialSkeptic
ExistentialSkeptic's picture

The theory is (as the exchange's defenders are at great pains to explain) that the vast majority of the "buyers" on the exchange NEVER expect to take delivery, and the vast majority of the "sellers" on the exchange NEVER expect to have to make good on their offer of metals, but both are actually take a bet on the direction of price fluctuation over the contract period and plan to settle the difference in $FRN. 

Weird how that's considered "price discovery" in a real-world virtually non-consumable commodity, but that's the "excuse" they defend.

Love the analogy, BTW!

Wed, 05/12/2010 - 20:39 | 348032 DosZap
DosZap's picture

You opened up a point likely VERY well known to 98% here.

ALL the  Physical ETF's, and Physical Holders( BullionVault, etc), are subject to Gv't seizures.

There is nothing they can do to protect your GUARANTEED ,ALLOCATED holdings.

It would MAY be a tad more difficult if your holdings are in Zurich, rather than U.K., but....once the Swiss buckled..........bottom line, we are all SOL.

IN your control  trumps any form, IMHO.To get you a felony conviction, they have to find it first.

And if it get's that bad.......................well, you'd best already know what you intend to do.

Wed, 05/12/2010 - 21:38 | 348143 Barmaher
Barmaher's picture

Chances are much higher that you will be subject to a home invasion robbery and at the risk of having your head blown off you'll give up your "in your control" PMs than the US government seizing gold from a private Zurich vault.

It doesn't matter how clever you are at finding hiding places or how secure your safe is when somebody has a gun to your (or your wife's, son's daughter's) head(s). 

Wed, 05/12/2010 - 22:11 | 348199 Nathan Smith
Nathan Smith's picture

There are ways to the fact that you own PM's and guns.

Not that I know from experience.

Wed, 05/12/2010 - 22:43 | 348240 akak
akak's picture

"Chances are much higher that you will be subject to a home invasion robbery and at the risk of having your head blown off you'll give up your "in your control" PMs than the US government seizing gold from a private Zurich vault."

Chances are that you either an idiot or a bankster-paid troll, with your scaremongering and wild exaggerating of the threat of home break-ins and violent death at the hands of burglars.

The original poster was exactly correct: the MUCH greater risk of losing one's wealth, in ANY (and every) form, is from our increasingly tyranical and rapacious government, NOT from isolated individual thefts.

Thu, 05/13/2010 - 02:27 | 348504 Barmaher
Barmaher's picture

Thefts aren't so isolated when they're happening to you.  Gerald Celente predicts an increase in this type of violent crime.  I don't disagree.  I live in the Bay Area.  Plenty of violent crime going on today already.  That's only going to get worse as police forces are being cut and prisons are being emptied.

Chances are I touched on a subject that you'd rather not think about. Why is insurance not available for your home gold/silver stash at any price?

The threat from government is the best reason to vault overseas outside of any banking institution.  


Thu, 05/13/2010 - 03:00 | 348517 akak
akak's picture

Thefts are probably rampant in the Bay area where you live due to gun control limiting or preventing honest citizens from defending themselves from intruders, any of whose lives are immediately forfeit by virtue of breaking into someone else's home.

Where I live, there are FAR more gun owners than non-owners, and coincidentally (or not), home break-ins rarely occur, and are almost a sensation when they do happen, as any would-be intruder around here is essentially almost committing suicide by attempting to do so.

Besides all that, hiding even $500,000 worth of gold securely in one's home is almost child's play, and to suggest that one takes one's life in one's hands by doing so is to argue that one also is taking one's life into their own hands by merely living there.  If you feel you are safe at night in your own home, then why are your hidden posessions not as well?

Lacking ANY other alternative, one could always use the time-tested method of burying one's gold in one's backyard.  Primitive, but effective.

I think the largest contributor to the danger of theft of anyone's private stash of gold or other valuables are that person's own loose lips.

Wed, 05/12/2010 - 23:44 | 348357 SilverIsKing
SilverIsKing's picture


How will you know which homes actually have PMs?  BTW, my wife, son, and daughter have all taken a long vacation.  You are SOL.

Thu, 05/13/2010 - 12:04 | 349314 Barmaher
Barmaher's picture

If things ever get to the point where we need to actually use or PMs for food or other necessities then it will become apparent who has PMs and who doesn't.  Hope your wife son and daughter are enjoying their trip.

Thu, 05/13/2010 - 12:04 | 349317 hound dog vigilante
hound dog vigilante's picture

At the risk of feeding the trolls, an explanation of the risk(s) that individual homeowners may face when TSHTF...

Bad guys will ransack urban & suburban businesses. Among those businesses are locksmiths, hardened safe sales, etc. Receipts will be combed-over for obvious/primary targets. Many believe that bad guys HAVE ALREADY harvested such key purchase/delivery records electronically (incl. PM sales) and many homes/targets have already been staked-out.

Before you dismiss such a scenario as extreme paranoia, consider the fact that our government does EXACTLY THE SAME SORT of transaction/receipt/delivery record collection and analysis, for similar reasons (confiscation, agitator profiling).

Bottom line is that there are people out there who actively harvest and analyze purchase and transit records, and they know a great deal about what you have hidden or locked away. The only question is whether these same people will one day ACT on the data...

Thu, 05/13/2010 - 08:26 | 348728 papaswamp
papaswamp's picture

I understand your point...but if the economy collapses..getting that gold from Zurich to the house so you can spend it for food and water...might be a little difficult. Always have at least some on hand. Bury it somewhere if you are worried about being robbed..seriously.

Thu, 05/13/2010 - 11:57 | 349284 Barmaher
Barmaher's picture

I agree with that 100% and keep an emergency supply on hand in case things get like you've described.

Wed, 05/12/2010 - 17:29 | 347535 Hephasteus
Hephasteus's picture

Oh no the gold bugs and silver bugs are doomed. If there's none for sale how can it's price go up? LOL

Wed, 05/12/2010 - 17:31 | 347540 silvertrain
silvertrain's picture

 I think moodys just downgraded the comex to junk status...

Wed, 05/12/2010 - 17:31 | 347542 Hulk
Hulk's picture

I wonder what an ounce of silver, deliverable today, would fetch in Europe now?

Wed, 05/12/2010 - 17:35 | 347556 Hephasteus
Hephasteus's picture

It doesn't matter. You can't even buy silver with gold much less eat it. It's worthless. Worthless I TELL YA. We've been had. Hoodwinked Bambooozled!!!

Wed, 05/12/2010 - 17:41 | 347573 Hulk
Hulk's picture

LOL, you left out "hornswaggled, so I will most graciously add it in for you:


It doesn't matter. You can't even buy silver with gold much less eat it. It's worthless. Worthless I TELL YA. We've been had. Hoodwinked Bambooozled Hornswaggled!!!

There, its done. Time for a nap...

Wed, 05/12/2010 - 18:00 | 347614 monmick
monmick's picture

What about "enfirouaper"?

Wed, 05/12/2010 - 18:16 | 347647 Hulk
Hulk's picture

You woke me up for that? Ok , here goes:

It doesn't matter. You can't even buy silver with gold much less eat it. It's worthless. Worthless I TELL YA. We've been had. Hoodwinked Bambooozled Hornswaggled Enfirouper Betrogen Ingannato Estafado Enganado!!!

Threw a few other languages in there so that no one fells left out

Wed, 05/12/2010 - 19:38 | 347881 Waterfallsparkles
Waterfallsparkles's picture

I happen to agree.  What good is Gold if the Country is in shambles?  Another ponzi scheme in my opinion.

Gold has no industrial use.  You cannot eat it.  You may not be able to exchange it for food or other needs.

Why are they trying to get People to buy Gold?  Is it to take Money out of the Economy and the Money system?

Wed, 05/12/2010 - 19:42 | 347899 akak
akak's picture

Uh oh, you hear that guys?  We can't eat gold!

Have you EVER heard that before?  I certainly never did!

I guess we all wasted our money, and 6000 years of history have just been negated by one simplistic moron!  How dare she!

Back to the monetary drawing board, I guess .....

Wed, 05/12/2010 - 20:44 | 348046 e_goldstein
e_goldstein's picture

I've heard you can drink it:

mmmmh, gold.

Wed, 05/12/2010 - 20:48 | 348052 RockyRacoon
RockyRacoon's picture

Damn!  And I was planning to have gold steaks and silver salad for the rest of my days here on earth.  I guess I'll have to dump all of it now since it's useless.  Crap.

I'd say your waterfall lacks a bit o' sparkle.

Wed, 05/12/2010 - 23:18 | 348309 Sespian
Sespian's picture

+1 That waterfall is one sparkle short. -Your definitely the funniest racoon on ZH!

Wed, 05/12/2010 - 20:48 | 348054 DosZap
DosZap's picture


Well, you CAN'T really eat it...but, try eating without it.

Damned hard.........

Wed, 05/12/2010 - 19:43 | 347902 Hulk
Hulk's picture

"It was horrible. Horrible! Like lightning it struck. No one was prepared. You cannot imagine the rapidity with which the whole thing happened. The shelves in the grocery stores were empty. You could buy nothing with your paper money."

  Friedrich Kessler, a law professor at Harvard and University of California  Berkeley, who experienced the Weimar Republic hyperinflation as interviewed by Ralph T Foster in his book "fiat paper money"

An ounce of silver would let you get by for about a month, back in the good ole Weimar days

Any further questions?

Wed, 05/12/2010 - 19:46 | 347907 trav7777
trav7777's picture

same can be said of FRNs, dumbass

Wed, 05/12/2010 - 20:52 | 348063 DosZap
DosZap's picture


since immediate responses get overidden here asap often, I like to address my answers/opinions to the person who said it.

Not that I am telling anyone to do likewise, but, your response, has left me clueless, as to WHO you were responding to.

Not trying to be a smart ass, just sayin', it helps with the FLOW of the Forum.

Wed, 05/12/2010 - 20:01 | 347950 Onehunglow
Onehunglow's picture

How do you think your federal reserve notes will taste. It amazes me that the best arguement that people can produce is you can't eat Gold. What you need to understand is that it is a hedge against inflation. It preserves your wealth. You can't eat your flatscreen TVs. Why do countries buy it? Why did China advise their people to invest in it? Why has it been around over 3000 years? What do you think your FRNs will get you when the SHTF?

Thu, 05/13/2010 - 09:53 | 348062 RockyRacoon
RockyRacoon's picture

The sparkly waterfall person is a Master Bates understudy.  Just learning the ropes.  Be gentle.

Wed, 05/12/2010 - 20:54 | 348067 DosZap
DosZap's picture


Don't forget Deflation either............

Wed, 05/12/2010 - 21:37 | 348140 WaterWings
WaterWings's picture

King Tut is not happy you left him out of the picture.

Thu, 05/13/2010 - 00:42 | 348428 Howard_Beale
Howard_Beale's picture

King Tut, Funky Tut--Steve Martin

Wed, 05/12/2010 - 21:39 | 348146 saulysw
saulysw's picture

Anyway, as I have pointed out before - you can eat it. See further --

Don't see any web sites called ... just saying....

Wed, 05/12/2010 - 21:16 | 348101 citizen2084
citizen2084's picture

better keep all those FRN$ so you can eat them.

Wed, 05/12/2010 - 21:25 | 348119 Busy-Body
Busy-Body's picture

I don't know about you, but I use my gold to coat my temporary bikini-clad supermodel girlfriends that help me cheat at gin rummy when I visit Miami Beach because they've been speaking with British MI-6.....

h/t Ian F.


Wed, 05/12/2010 - 21:46 | 348158 Cistercian
Cistercian's picture

 Gold has many industrial uses.One of the most critical, and pertinent here,is the tiny connections to the chips in your computer.They are wires finer than a hair, and they are pure gold.

 Saying gold has no industrial use is ignorant.

Wed, 05/12/2010 - 23:51 | 348371 False_Profit
False_Profit's picture

agreed...isn't it also useful for making a lining that is impervious to an emp?  xrays?  nasa would be suprised to hear that it has no industrial use as well...never corrodes? no, i can't think of a single industrial use...

Wed, 05/12/2010 - 23:10 | 348291 Sam Clemons
Sam Clemons's picture

It is rare.  Good luck exchanging something that can be created with no labor whatsoever with something that took labor to create such as food or gas.

Thu, 05/13/2010 - 04:33 | 348571 tip e. canoe
tip e. canoe's picture

you forgot okie-doked

Wed, 05/12/2010 - 19:32 | 347863 hack3434
hack3434's picture

Parking money into metals is a wonderful way to slow down the velocity of money which in turn hurts the banks in the long run. Won't be surprised if metal holders get labeled as "financial terrorist"...I say bring it on! 

Wed, 05/12/2010 - 19:46 | 347908 Hephasteus
Wed, 05/12/2010 - 23:53 | 348370 DaveyJones
DaveyJones's picture

been thinking that for a while along with encouraging people to withdraw out of the big banks and a host of other things that might label you the terrorist

Wed, 05/12/2010 - 17:36 | 347562 Crab Cake
Crab Cake's picture

A fiatsco on Tuesday?

Thu, 05/13/2010 - 00:45 | 348430 Howard_Beale
Howard_Beale's picture

Gotta hawk the store on this one...go to for all your Fiatsco products. Can't even remember if I made a mug...too tired. Window shop and check out the fun...good for a laugh if you don't have the FRN's!

The ZAZZLE STORE is a ZH approved fundraiser and all proceeds go to Zero Hedge.

Wed, 05/12/2010 - 19:12 | 347786 Janice
Janice's picture

Per the spot market at 7:02 EST from, silver is $19.47 per oz.  Gold is at an all time high, silver should be as well.  I read an article about a month ago that described the break, I have forgotten  the terminology, but the point where paper products no longer represents the actual cost...inflection point?  Help me Cheeky!  However, I believe that we are witnessing that moment.  The sale price of the physical silver that I own is most certainly NOT $19.47 per oz.....I'm thinking $100 per oz.

Wed, 05/12/2010 - 20:58 | 348072 DosZap
DosZap's picture


Legally it was originally sposed to be 15-1, turned out coinage was skewed, and it was like 15.3-1.............then it went to 16-1.

Last I bought was @ 63-1.................

Some dunce JPM, figured out a way to Demonetize Slvr, and make it a Commodity..................

It's really's money like Gold...............

Thu, 05/13/2010 - 00:47 | 348432 Howard_Beale
Howard_Beale's picture

And a good thing to eat dinner with too. Nothing like sterling silver place settings.

Thu, 05/13/2010 - 03:02 | 348520 akak
akak's picture

Absolutely, Howard!

Isn't sterling silverware luxurious?

I feel like a king eating with it!

Wed, 05/12/2010 - 17:35 | 347555 Selah
Selah's picture

Anything and everything is for sale; It's only a matter of price...


Wed, 05/12/2010 - 19:01 | 347586 Hulk
Hulk's picture

Somebodies took you serious...

Wed, 05/12/2010 - 19:48 | 347919 Hephasteus
Hephasteus's picture

They just have to learn to be more careful.

Wed, 05/12/2010 - 23:03 | 348278 merehuman
merehuman's picture

Oh no the goldbugsand silverbugs are doomed.  great sarcasm. Subleties are easily missed in the written word without lenghtier context.. May junkers glory in their ignorance. Prost!

Wed, 05/12/2010 - 17:30 | 347538 Quackking
Quackking's picture

Got Lead?  Cerberus Capital does.. -

Wed, 05/12/2010 - 22:47 | 348257 robobbob
robobbob's picture

How involved is Soros with Cerberus now? And why would Mr Open Society globalist, whos pushing the UN International Small Arms Treaty that they keep trying to sneak through, own a stable of American arms companies?

Thu, 05/13/2010 - 08:09 | 348690 UGrev
UGrev's picture

Soros always cashes in on the guy with the ball. Doesn't matter if the guy with the ball is on the wrong team or not. Money is money and if Cerberus is making it, you can bet your gonads he'll have his claws in it and then bail when they drop the ball. Only he'll be the one calling the shots on when the ball gets dropped so he can cash in on the way out too. 

Wed, 05/12/2010 - 17:33 | 347548 BlueDonkey
BlueDonkey's picture

Perhaps this is JPM propoganda?  It's lack of supply raising the price, not JP's exit out of the manipulation game?

Wed, 05/12/2010 - 18:23 | 347665 Burnbright
Burnbright's picture

If you mean they are doing it to lose more money off of

Wed, 05/12/2010 - 18:47 | 347725 silvertrain
silvertrain's picture

 what I was thinking..Commercial longs 32k     shorts 97k  on the cot report from may 7th..

Thu, 05/13/2010 - 05:20 | 348579 speculator
speculator's picture

You know what "commercial" means here? Means they deal in physical and hedge their inventory with paper shorts. We have no idea what their book is, and a lot of the traders on those desks are long-time PM bulls themselves. 

Wed, 05/12/2010 - 19:41 | 347895 Waterfallsparkles
Waterfallsparkles's picture

REALLY good point.

Wed, 05/12/2010 - 17:34 | 347552 JJ McApe
JJ McApe's picture


thats pretty cool! ;>

Wed, 05/12/2010 - 19:45 | 347906 Carl Spackler
Carl Spackler's picture

Just back up a truck and take the whole machine off their hands.

Wed, 05/12/2010 - 21:01 | 348075 DosZap
DosZap's picture


 abu dhabi

Last place Iwould steal anything,I would not want my dhabi,abu'd........... .LOL

Wed, 05/12/2010 - 23:04 | 348282 merehuman
merehuman's picture

Funny twist .

Wed, 05/12/2010 - 17:45 | 347585 Sudden Debt
Sudden Debt's picture

Pfft... In Germany and Austria you can buy gold in vending machines in large retail stores. It's like going to wallmart and if you feel like it, you can buy 100gram bullions.

Article is in Dutch, so if you want to translate it go to babelfish.


Wed, 05/12/2010 - 18:42 | 347673 Martel
Martel's picture

News like this make me feel gold is in bubble territory. If there are vending machines, it means there is some demand for gold among the average people on the street; among hairdressers, taxi drivers and dentists. And that is bad, BAD.

Also, the gold available through vending machines is 1g, 5g, 10g, 1oz... not bigger. So the clientele aren't buying gold for necklaces etc. but as "an investment" though they are losing 30% on the spot. In other words: the kind of people who often crowd the last stages of a bull market.

I'd be much happier if these companies were just buying "junk" gold, not selling anything...



Wed, 05/12/2010 - 18:48 | 347726 Kina
Kina's picture

Except this isn't the last stages of a gold bull market.

It is the first stages of bull fear and confusion which will last some time as the sh*t hasn't even yet hit the fan.

Gold isn't tuplips or stocks where people fear missing out on a good deal, this is people fearing getting caught holding a bad thing.


Wed, 05/12/2010 - 19:03 | 347759 Martel
Martel's picture

Gold isn't tuplips or stocks where people fear missing out on a good deal, this is people fearing getting caught holding a bad thing.

True, but will it play out any differently? When people fear missing out a fortune, they run to the bank,withdraw their money and buy tulip bulbs. When they fear getting caught holding Weimar-style money, they run to the bank, withdraw their money and go to the vending machine supplying 5g "gold bars". The end result is the same, a mindless buying climax.

I'm counting on the EU to arrange another bailout package in a few years. Perhaps a trillion or two...

Wed, 05/12/2010 - 19:13 | 347796 faustian bargain
faustian bargain's picture

No, the end result is different. First case you've got a bunch of people left with worthless rotting bulbs. Second case you've got a bunch of people

Wed, 05/12/2010 - 19:18 | 347809 Martel
Martel's picture


Wed, 05/12/2010 - 20:07 | 347966 cougar_w
cougar_w's picture

You cannot eat gold but YOU CAN EAT TULIP BULBS!

Bulbs ftw, bitches!11!one!


Go ahead, flag me, I dare ya. Punk.

Wed, 05/12/2010 - 22:31 | 348233 faustian bargain
faustian bargain's picture

lol bulb eating bastard

Thu, 05/13/2010 - 00:50 | 348438 Howard_Beale
Howard_Beale's picture

Audrey Hepburn ate them when she was in her teens, along with mice, at a time when she was also running messages for the resistance.

Wed, 05/12/2010 - 19:41 | 347894 tmosley
tmosley's picture

The difference is that gold, stock certificates, and houses are infinitely reproduceable.  Gold is not.  Therefore, there is no "Oh God" moment when the market realizes that there is far more supply than demand and people start dumping.

This is why gold is money, while tulips, paper dollars, and stock certificates are not.

Wed, 05/12/2010 - 20:57 | 348069 RockyRacoon
RockyRacoon's picture

There are ATMs everywhere and nobody is saying that fiat dollars are a crowded trade.  Oh wait, yes we are.  So, when gold dispensing machines are as prevalent as condom dispensers in filling station men's rooms, gold will be in a bubble.  Yeah, that's the ticket.   Watch for gold vending machines coming to the Exxon station near you!

Wed, 05/12/2010 - 23:12 | 348298 merehuman
merehuman's picture

Machine dispensed oxygen, green rooms with oxygen producing plants time shares or restaurant/library combos will be a big hit in florida soon. Seabreeze will reek of oil.  Harry will fund it.

Thu, 05/13/2010 - 00:05 | 348385 i.knoknot
i.knoknot's picture

these ATMS are running billboards, though... bullion from the Post Offices in India as well.

broadens the audience while it dilutes the audience...

which will win?

i've made my bet.

Thu, 05/13/2010 - 01:14 | 348465 Martel
Martel's picture

Okay... you do have a point there. For both cash and gold, vending machines are just a more convenient way to dispense the product.

However, the kind of investor ignorance that is required for gold vending machines with 30% margin for seller, won't be there forever. Either gold REALLY goes mainstream (in case we get a gold standard i.e. cash backed with gold) or the margins get smaller. Buying a 5g gold ingot is an investment which is not an investment.

Of course, gold vending machines could be just white noise; one of those things that does not warrant any closer look.

Thu, 05/13/2010 - 00:25 | 348411 silvertrain
silvertrain's picture

 Citi and a few other banks sent out a memo to customers about 2 months ago stating that at any time they can request a 7 day written notice on a cash withdrawl from your account..Per the gov... It was posted on   Thats what I call a bank vacation, not holiday... I immediately reduced my holdings to $5..

Wed, 05/12/2010 - 20:02 | 347958 cbaba
cbaba's picture

its not a bad sign,but a good one.That's not enough.

its should be everywhere in every country, like buying a chewing gum.

It is actually money, and it will never go away.. better get used to it.



Thu, 05/13/2010 - 05:23 | 348581 speculator
speculator's picture

I can report that silver coins and gold coins and bars from 1g - 1kg are available OTC at almost every bank in Kiev. 

Thu, 05/13/2010 - 10:06 | 348921 Martel
Martel's picture

The same in Sweden, Finland, Estonia, Latvia, Bulgaria through Tavex. No shortage there. Tavex sells mainly PAMP Suisse products.

Wed, 05/12/2010 - 20:06 | 347962 Francis Dollarhyde
Francis Dollarhyde's picture

Yeah... a 5,000 year old bubble. Average people on the street have always demanded gold. Modern hairdressers and taxi drivers and dentists are just learning what any hairdresser, cart driver, or dentist in ancient Mesopotamia knew. Gold, bitches!

Wed, 05/12/2010 - 20:07 | 347965 Onehunglow
Onehunglow's picture

These vending machines remind me of something similar I see on almost every street corner. I can't for the life of me think what they are called . . . . . . . . . . . . . . . . Oh yeah ATMs!!!!!!!!!! Except its moral hazard and our goverment that is causing us to lose much more that 30% of spot.

Wed, 05/12/2010 - 21:05 | 348082 downwiththebanks
downwiththebanks's picture

And those damned fees . . .

Wed, 05/12/2010 - 20:46 | 348051 merehuman
merehuman's picture

China and germany making gold easily available may be for a new currency plan  and they are preparing their people and the plan. My guess.

In the usa no one is looking out for us but a few bloggers and especially Zerohedge, all of us included.

Thu, 05/13/2010 - 01:19 | 348471 Martel
Martel's picture

China has recommended gold and silver for her citizens, that is true. It could be a part of a long term game plan for a gold/silver standard, or simply an attempt to divert some private money away from the overheating property market.

Germany hasn't done the same. This gold vendor is a private company. As of yet, the fat lady Merkel isn't singing "Buy gold". When she will, it is time to sell.

Wed, 05/12/2010 - 21:03 | 348078 DosZap
DosZap's picture


That's overseas, and we are JUST getting started here..........

When everyone you are around is talking about Gold/Slvr,..................have a plan, to sell.

Thu, 05/13/2010 - 01:25 | 348473 Martel
Martel's picture

That's overseas, and we are JUST getting started here..........

I'm overseas. Good if you Americans are just getting started. Make it a big one.

Thu, 05/13/2010 - 00:08 | 348389 False_Profit
False_Profit's picture

...are we really having this conversation?  you've obviously paid the price of admission to make it this far in to the comments, and in doing so, to say what you said makes you look like a whore in church...

yes, i would much rather see taxi drivers, et al keep their paper frn's: much more stable...

and as for losing 30% on the spot, what has the dollar depreciated since I withdrew it from the bank last year?  according to the price of gold, about 35%...(you forgot to say that gold doesn't pay interest: which i always find interesting and want to ask those people if they have/would invest in berkshire hathaway since it never paid dividends...oh, capital appreciation is ok? well, then...)

i see "everyman" owning/using/saving pm's as an "awakening" akin to the renaissance...out of the darkness of the fiat/frn/fractional reserve dark ages:

and i say "bring it on, it is far too overdue".

Thu, 05/13/2010 - 10:09 | 348485 Martel
Martel's picture

A sizable amount of my wealth is in physical gold. And when saying "sizable", I don't mean 3% or 4%.

Just because of that, it would be irresponsible not to be on a lookout for reasons why gold is a bubble. Fundamentals and market sentiment both support gold, but it is not a one-way street, it never hasn't. Not for me at least. At some point I will convert my gold into real estate or stocks, but since we're living in different corners of the world, I'm looking at a different set of opportunities than you.

So I am a gold bull, but feel uncomfomtable in a crowd. ZH is all gold bulls, so are Marc Faber, Jim Rogers and numerous other market commentators. If you get a lot of flak when expressing a contrarian viewpoint, that is another indicator of an overdue correction.

I am happy to be a whore in church. Beats being a priest in whorehouse.

Wed, 05/12/2010 - 17:40 | 347569 dan22
dan22's picture
Well, if the dollar was really strong then gold wouldn’t have been going up like it is. The dollar is weak because because it is backed by political promises of American politicians (Government bonds and Fannie and Freedie paper which are backed by the Government.) Since the Euro was backed until a few days ago by political promises of German polticians it was stronger for some time than the U.S dollar. But now, when the Euro is backed by Greek political promises the market will punish the Europeans and punish the in a very harsh matter. Source: Gold AND the Dollar are up- what’s going on?
Wed, 05/12/2010 - 17:42 | 347574 Sudden Debt
Sudden Debt's picture

Shit, I just checked it out over here in Belgium and it's like impossible to get silver anymore. Only gold is still a easy buy.

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