This page has been archived and commenting is disabled.

GoldCore Comments On Silver Shortages And A Possible Price "Tipping Point"

Tyler Durden's picture


Our friends at GoldCore have summarized recent shortages in the silver market and provide some observations on what this could mean for future silver prices. Curiously, the lack of inventory has happened even as the spot price of silver has consistently declined over the past week (if nominally the decline has been very modest). Just as curiously after the US Mint reported a massive surge in buying, the number of January sales has been fixed flat at 3,407,000, where it was a week ago, and indicates that either buying interest has ceased overnight (unlikely), that the mint is not updating its numbers (likely), or, worse, that the Mint has now stopped selling any form of silver for reasons unknown. Although at the end of the day the only question worth asking is whether JPM feels lucky (again): as we posted last week, the firm has received "grandfathering" protection from position limits, arguably the biggest reason for the recent drop in the precious metal price.

From GoldCore:

Silver Bar Shortages to Lead to Price “Tipping Point”?

Gold is mixed while silver is higher in all currencies today, especially in the weaker US dollar. European sovereign bond yields are higher and the UK 10-year has risen to 3.66% and is close to breaking out after inflation figures surprised the majority of analysts who remain complacent about inflation.

Gold is currently trading at $1,370.75/oz, €1,022.11/oz and £856.57/oz.

click for full size

Equities in Asia were higher as are those in Europe so far today. US equity index futures are mixed with Apple leading to weakness in the Nasdaq; the S&P 500 is flat.


Silver is currently trading $28.81/oz, €21.48/oz and £18.01/oz.

Reports of shortages of silver bullion continue to grow. While there are no widespread shortages in this area and dealers with extensive supplier networks (mints and large refiners) are not experiencing difficulties sourcing bullion inventory, it would be wise to keep an eye on this.

click for full size

Silver in USD – 35 Years – (Weekly). Click for full size

Reuters reported shortages of 1 kilo gold bars in Asia last week. Sprott Asset Management reported that it was experiencing difficulty sourcing 1,000 oz silver bars. Sprott said they were concerned about the “illiquidity in the physical silver market" and said delays in being able to source physical silver highlights the “disconnect that exists between the paper and physical markets for silver."

Zero Hedge reported that Bullion Vault, the digital gold provider, had run out physical silver inventories in Germany (and possibly elsewhere) and was advising clients to buy silver from other sources.

Zero Hedge also reported yesterday that some smaller bullion dealers in the UK were having difficulty sourcing all silver bars and had delayed delivery of silver bars (including 1 kilo silver bars) until February.

This comes at a time when the US Mint has reported huge demand in the first two weeks of January for their very popular US Silver Eagle 1 oz bullion coins.

click for full size

Click for full size

At about $33, €25 or £20 a coin, collectors and those seeking financial insurance have been buying silver in very significant quantities. The 2011 minted coins were first issued on January 3 and in just the first two weeks, 3.5 million coins were sold, according to numismatic web site Coin News.

In January 2009, the silver coins first topped the 3 million sales mark, with record sales totaling 3.59 million for the entire month.

If sales continue at these levels, that record should be surpassed this week. The all time monthly record of 4.26 million silver coins, which was set last November, is clearly in sight.

A recent report by analyst Adrian Douglas of GATA warns of forthcoming shortages of gold and silver bullion coins and bars, and that a “tipping point” will soon be reached that could lead to a COMEX default and a short squeeze which leads to much higher prices. Douglas himself has shown in Le Metropole Café how Comex silver inventories are shrinking and are not far from ten year lows.

The “bear raids” by the large concentrated shorts being investigated by the CFTC, are only leading to increased physical off-take. Indeed, the selling raids may be leading some participants on the COMEX (including large hedge funds) to take delivery or sell futures and buy bullion in allocated accounts.

None of the factors, in and of themselves, suggest that widespread shortages of silver (or gold) bullion are imminent in the immediate future. However, much circumstantial evidence suggests, especially the bona fide reports of difficulty in sourcing large silver bars, that the supply and demand balance in the silver market is very tight.

The more than 80% increase in the silver price seen in 2010 is not leading to an increased supply of silver but rather to a continuing and possibly increasing demand.

This is not surprising as silver is a byproduct of base metals and therefore its price increase will not have led to any material increase in silver mine production. This fact is known by most buyers of silver coins and bars and many of them continue to hold and add to their silver holdings in anticipation of much higher prices.

Silver at $50 per ounce and the 1980 adjusted for inflation price of $130 per ounce are conservative estimates for some silver enthusiasts. They have been proved right in recent years and the extremely delicate supply and demand equation in silver could see them proved right again in the coming months.

Since 2003, GoldCore have written research articles pointing out that the very small size of the silver bullion market would likely see its inflation adjusted high of $130/oz reached in the long term.

Interestingly, were gold to reach its adjusted for inflation 1980 price of $2,300 per ounce, and silver revert to its long term gold/silver ratio of 15:1 (geologically there are 15 parts of silver to every one part of gold in the Earth’s crust) then silver would reach over $150 per ounce.

While this seems über bullish to those who know little about the silver market, some silver enthusiasts - and there are many - believe that in time, silver will be valued at the same price as gold as huge quantities of silver have been used up in industrial applications since the Industrial Revolution of the 19th Century and throughout the 20th Century and into this millenium.

In these unprecedented financial and economic times, it is important to have a long term perspective.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 01/18/2011 - 16:28 | 884938 EscapeKey
EscapeKey's picture

No everyone will be too busy buying up Netflix and Apple shares, you know, TRUE stores of value.

Tue, 01/18/2011 - 16:34 | 884961 goldmiddelfinger
goldmiddelfinger's picture

Are you saying cash 4 clunkers was a one time event?

Tue, 01/18/2011 - 16:38 | 884982 Arius
Arius's picture

that depends on Stve Jobs' health i would think...

Tue, 01/18/2011 - 16:35 | 884966 watchingdogma
watchingdogma's picture

So you're saying that back in 1800 - when the G/S ratio was about 15/1 - silver's primary commercial application was photography?  Brilliant - I hadn't thought about that...

Tue, 01/18/2011 - 16:38 | 884978 goldmiddelfinger
goldmiddelfinger's picture

In 1800 silver was used for financial transactions, unlike now. Did you think of that? Maybe you paid your mom's electric bill in pieces of eight?

Tue, 01/18/2011 - 16:47 | 885022 watchingdogma
watchingdogma's picture

Nope - I was just responding to your dumb ass comment:

"BTW, the 15/1 Gold/Silver ratio was prevelant during the days of non-digital photography- back then silver's primary commercial application"

Which is hardly true on many levels - but we don't expect dumb-asses to actually research anything these days - everyone passes - no child left behind!


Tue, 01/18/2011 - 16:52 | 885038 goldmiddelfinger
goldmiddelfinger's picture

You can't see how ridiculous you look trying to out wit my argument.

Tue, 01/18/2011 - 16:55 | 885046 watchingdogma
watchingdogma's picture

I can see how rediculous your arguement was, but there was very little wit involved.  Mostly just ignorance.  I don't think you were trying at all - but I may be mistaken and you may truely be just another dumb-ass.  But why are you still at it?  I thought you sold all of your PM's - or are you feeling a little insecure about your decision?

Tue, 01/18/2011 - 17:02 | 885071 goldmiddelfinger
goldmiddelfinger's picture

I want to save your soul from the perdition of hard currency

Tue, 01/18/2011 - 17:08 | 885091 Beam Me Up Scotty
Beam Me Up Scotty's picture

I'll trade you all of my post 1964 coins, for all of your pre 1965 coins face value for face value.  After all, a quarter is just a quarter right?


Tue, 01/18/2011 - 17:12 | 885109 flacon
flacon's picture

+++ LOL!

Tue, 01/18/2011 - 18:07 | 885343 Shell Game
Shell Game's picture

Bathroom wall. Somewhere, America:

Tue, 01/18/2011 - 20:17 | 885747 Chappaquiddick
Chappaquiddick's picture

I think you're part of Comp Sci undergraduate research program which is to build a computer entity called a cyber troll that incites people on ZH on issues of real substance with inflamatory remarks refuting self evident truths.

The result is the xtranormal staccato style type dialog displayed by butt fuck (GMF) and some jolly useful research results to aide in the next generation of troll funfesting.

Hey MIT - go fuck yourselves!

Tue, 01/18/2011 - 20:22 | 885767 merehuman
merehuman's picture

dont stop now....Fuck you NSA < FBI IRS And the rest of you yahoos.

I say we all create our own government!!! What we got now is just robbers.

Tue, 01/18/2011 - 17:20 | 885141 gaoptimize
gaoptimize's picture

May I suggest that the specifics of the applications (or not) are irrelevant to the annual supply, demand, and inventory above ground.  Everyone will make up there own minds at any given price.  We heard the growling bears when silver was less than $12, even louder at $20, and they have mostly gone quiet around $30, when they should be much louder.  A physical shortage is becoming worse, and something will step in to fill the role of discredited fiats when that time comes.  Silver is my hedge against bad policy, monetary and fiscal.  It could therefore never be high, thick, and prickly enough.

Tue, 01/18/2011 - 17:23 | 885158 Temporalist
Temporalist's picture

It is amazing how altruistic PM bears claim to be.  Thank you so much for continuing to participate in the stock and fiat ponzi bubble!  It is exactly people like you that provide continued bullishness for PMs.

Tue, 01/18/2011 - 17:52 | 885273's picture

You can't see how ridiculous you look trying to out wit my argument.

So you're continuing to insist on the widespread use of silver for photographic purposes before cameras were invented? Where's your documentation?

Tue, 01/18/2011 - 18:04 | 885341 goldmiddelfinger
goldmiddelfinger's picture

When did I say that? Meanwhile before cameras it was used as currency. A medium of exchange, Something it is not used for today.

Tue, 01/18/2011 - 18:11 | 885377 Polarny
Polarny's picture

What about medium of exchange over time? 

Tue, 01/18/2011 - 18:28 | 885447 tmosley
tmosley's picture

It is not used as a medium of exchange today, therefore it will never be used as a medium of exchange.

Normalcy bias.

Tue, 01/18/2011 - 19:57 | 885702 lawrence1
lawrence1's picture

My friend, we must ignore the stupid, ignorant.. by responding at all we encourage them to believe that they are taken seriously. Ignore them, dont even junk them... they dont deserve even that energy.

Tue, 01/18/2011 - 16:48 | 885027 faustian bargain
faustian bargain's picture

silver was used for financial transactions, unlike now

you may be one of the shrinking number of people not waiting for that particular shoe to drop.

Tue, 01/18/2011 - 16:55 | 885045 goldmiddelfinger
goldmiddelfinger's picture

That's usually a sign that the shoe that falls is a giant one and it falls on the crowd.

Tue, 01/18/2011 - 20:07 | 885726 cosmictrainwreck
cosmictrainwreck's picture

??? whatchu talkin' 'bout Willis?

Tue, 01/18/2011 - 16:36 | 884969 Turd Ferguson
Turd Ferguson's picture

The Turd is not quite ready to buy just yet...but he's getting close:

Tue, 01/18/2011 - 16:38 | 884979 oddjob
oddjob's picture

Call options on ZSL provide more than adequate protection.

Tue, 01/18/2011 - 16:42 | 885000 goldmiddelfinger
goldmiddelfinger's picture

Hedging what you're afraid of will never make you rich grasshopper. Meanwhile get behind the wheel minion. I need to go rob a fort.

Tue, 01/18/2011 - 16:46 | 885019 oddjob
oddjob's picture

I am tired of carrying your fucking golf clubs!

Tue, 01/18/2011 - 16:50 | 885034 goldmiddelfinger
goldmiddelfinger's picture

But I must have my clubs carried by a man in a suit and tie!

Tue, 01/18/2011 - 16:56 | 885053 oddjob
oddjob's picture

Dont junk Auric...he's working on GrandSlam.

Tue, 01/18/2011 - 16:40 | 884990 homersimpson
homersimpson's picture

Whatever. You look like a panicked short trying to make up for the past couple years.

Tue, 01/18/2011 - 16:44 | 885011 goldmiddelfinger
goldmiddelfinger's picture

Sold all PM Dec 7, 2010. Ring the bell at the top sometime. It's not just fun, it's profitable.

Tue, 01/18/2011 - 16:49 | 885031 watchingdogma
watchingdogma's picture

So when PM's climb - we'll expect a change of avatar and userid.  Billiant!

Tue, 01/18/2011 - 16:57 | 885055 goldmiddelfinger
goldmiddelfinger's picture

Should I be true to you and NEVER buy it back?  Hah.  Dogma is your name not mine. Lower my son, lower.

Tue, 01/18/2011 - 16:50 | 885033 quasimodo
quasimodo's picture

Well good on you, and a move you are sure to regret in the not too distant future

Tue, 01/18/2011 - 16:59 | 885060 goldmiddelfinger
goldmiddelfinger's picture

That's exactly what my real estate told me in 2005 when I sold 3 homes.

Tue, 01/18/2011 - 17:25 | 885159 watchingdogma
watchingdogma's picture

So sold your RE 2 years early - and now you've sold your PMs 10 years early - I don't think you should be bragging about your market timing.  I think a capital preservations arguement could be made - but not market timing.

Tue, 01/18/2011 - 17:47 | 885251 goldmiddelfinger
goldmiddelfinger's picture

Hit the absloute tip top in East Fla and LA, CA real estate. Within weeks.

Tue, 01/18/2011 - 20:14 | 885743 JonNadler
JonNadler's picture

me too, i sold 50 houses in  LA in 2006. They're just jealous of us G

Tue, 01/18/2011 - 23:27 | 886216 goldmiddelfinger
goldmiddelfinger's picture

I just have one ex wife. You must be a pig

Tue, 01/18/2011 - 20:42 | 885821 Blano
Blano's picture

For the record, that was the year Buffett sold his vacation home as well.

Wasn't Bernard Baruch quoted as saying, how he made his money in the market, that he "sold too early?" 

Just sayin'.

Tue, 01/18/2011 - 17:40 | 885222 JohnG
JohnG's picture

Sure you did.  Riiiiiiiiiight.  Sure.

Show me the closing documents liar.

Tue, 01/18/2011 - 17:52 | 885271 goldmiddelfinger
goldmiddelfinger's picture

easy for you to say.

Tue, 01/18/2011 - 18:28 | 885450 JohnG
JohnG's picture

Easy for you to DO.

Tue, 01/18/2011 - 20:45 | 885830 Bendromeda Strain
Bendromeda Strain's picture

when I sold 3 homes

Oh yeah, I saw those. Brown units - named Refrigerator, Washer and Dryer...

Tue, 01/18/2011 - 16:59 | 885061 Cognitive Dissonance
Cognitive Dissonance's picture

So you sold your paper PM on that day? Then you never owned PMs, just an IOU.

Tue, 01/18/2011 - 17:00 | 885066 goldmiddelfinger
goldmiddelfinger's picture

Sold Coins and bullion. I still tinker w micro cap miners.

Tue, 01/18/2011 - 19:24 | 885611 oddjob
oddjob's picture

Name micro?...smaller than Rochester Resources?...10 million cap.

Tue, 01/18/2011 - 17:07 | 885087 schoolsout
schoolsout's picture


lie much?

Tue, 01/18/2011 - 17:09 | 885093 goldmiddelfinger
goldmiddelfinger's picture

only with young women

Tue, 01/18/2011 - 17:18 | 885132 George the baby...
George the baby crusher's picture

Sure you do...

Tue, 01/18/2011 - 19:01 | 885552 Hephasteus
Hephasteus's picture

You must be an apple acountant. I can tell from some of the lies you spit out and from havng seen quite a few people lie about their success.

2011 is going to be epic. People are just lining up like nice little ducks in a row to become the biggest butts of the biggest jokes ever told in history of this planet.

Tue, 01/18/2011 - 19:08 | 885567 goldmiddelfinger
goldmiddelfinger's picture

You can see all my posts on here. You will see I sold coins on 12/07. You will also see that I didnt make squat on them (less than 100% for 15 years on silver coins) even though I bot 15 years ago. As I say, generic gold and silver coins are a bad investment and if you like leverage, so is bullion.

Tue, 01/18/2011 - 19:35 | 885641 Hephasteus
Hephasteus's picture

You bot 15 years ago. Man that's amazing. 15 years ago bot technology sucked.

Wed, 01/19/2011 - 19:13 | 888699 impending doom
impending doom's picture

Can you two just kill each other already so we don't have to hear your respective endless prattling?

Tue, 01/18/2011 - 20:11 | 885739 tmosley
tmosley's picture

You must be dumb as dogshit if you bought 15 years ago, sold in December, and only made a 100% profit.

Seriously retarded.  No exaggeration. 

Should have made a lot closer to 1000%.  You would have outperformed basically everything, except for maybe a few stocks.  But buying bullion is more like buying an index than an individual stock or bond.

Tue, 01/18/2011 - 20:25 | 885780 Hephasteus
Hephasteus's picture

Yup that's about the maginitude of the fuckup this guy is. 1 order of fuckup.

Tue, 01/18/2011 - 20:35 | 885806 Twindrives
Twindrives's picture

No one gives a fuck what you have done douchebag.   Go back to your basement and play with your momma's tush.

Wed, 01/19/2011 - 00:53 | 886413 Attitude_Check
Attitude_Check's picture

According to Kitco posted historical data, the average price of silver in 1995 was %5.15 and in 1996 $4.74.  On 7 Dec 2010, the price of Silver was $30.50.  You should have made ~(30.5-5)/5 or ~500% on your money!


You sir are an obvious liar!

Tue, 01/18/2011 - 20:46 | 885831 Bendromeda Strain
Bendromeda Strain's picture

young women

Bad news. You're not the only one lying...

Tue, 01/18/2011 - 17:38 | 885215 JohnG
JohnG's picture

When I see comments like this, I always think:  Show me the trade confirmations.  Then I'll believe you.

Until then, you are just a troll, and worse, a liar.

I'll give you my email upon request to send those confirmations to.

Tue, 01/18/2011 - 20:03 | 885708 lawrence1
lawrence1's picture

My friend, responses to the ignorant, stupid, arrogant idiots like this guy only encourages their kind.  Just ignore and they will eventually go elsewhere.

Tue, 01/18/2011 - 20:27 | 885785 merehuman
merehuman's picture

Assuming you did not lie and truly sold your actual are a total fucken idiot!

I know i am an idiot, but i had enough brain to keep a few for myself.

Tue, 01/18/2011 - 16:49 | 885028 almost_have_a_name
almost_have_a_name's picture

Most likely your phone(s), computers(s) and display(s) all have silver basesd lead free solder (ROHS). Most people treat the new lead free solder just like the lead based solder, they throw it into a landfill.

I Suspect the amout of silver being taken out of the loop is far greater now.

Tue, 01/18/2011 - 17:16 | 885124 Confused
Confused's picture

I junked you.


I'm not sure where to begin. I'm sorry. 

Tue, 01/18/2011 - 17:26 | 885166 JohnG
JohnG's picture

No one, NO ONE, had any cameras in the 5 or 6 THOUSAND years that the 15:1 ratio held.  Period.

Tue, 01/18/2011 - 17:50 | 885263 goldmiddelfinger
goldmiddelfinger's picture

Idiot! It wasn't 15/1 "5 or 6 thousand years ago" AND it was used as currency then as were cockle shells and human slaves.

Tue, 01/18/2011 - 18:01 | 885321 JohnG
JohnG's picture

Yes it was.  Fucking moron.


Where's my trade confirmation proof?

Closing documents proof?



Tue, 01/18/2011 - 18:09 | 885361 goldmiddelfinger
goldmiddelfinger's picture

You are the biggest moron of the year. When a dealer buys your coins and bullion he gives you a check. That's it !! Starting in 2012 you'll get a 1099 tax form when you sell. Why don't you wait till then to sell?

Tue, 01/18/2011 - 18:12 | 885384 JohnG
JohnG's picture

Not selling.

Trade confirmations?  Notes?

Tue, 01/18/2011 - 18:14 | 885390 goldmiddelfinger
goldmiddelfinger's picture

You'll get a 1099 next year. My gain is ALL tax free.


47/1 Why?

Tue, 01/18/2011 - 18:54 | 885529 watchingdogma
watchingdogma's picture

Not any longer - now that you have admitted to tax evasion.  They may not be able to strong arm ZH into giving you up - but they have other methods...


Which leads me to believe you're just a full of shit troll, making it up as you go. 

Tue, 01/18/2011 - 19:11 | 885575 goldmiddelfinger
goldmiddelfinger's picture

You can see all my posts on here. You will see I sold coins on 12/07. You will also see that I didnt make squat on them (less than 100% for 15 years on silver coins) even though I bot 15 years ago. As I say, generic gold and silver coins are a bad investment and if you like leverage, so is bullion. So go give your self a BJ

Tue, 01/18/2011 - 20:14 | 885744 tmosley
tmosley's picture

So you sold your silver for $8 an ounce?

You fucking retard.

Tue, 01/18/2011 - 20:38 | 885812 Twindrives
Twindrives's picture

hey brownmiddellfinger, go hump your sister.

Tue, 01/18/2011 - 23:32 | 886223 goldmiddelfinger
goldmiddelfinger's picture

I'm double fisting yer hairy mom, leave us alone son

Wed, 01/19/2011 - 00:35 | 886383 Mariposa de Oro
Mariposa de Oro's picture

He's starting to remind me of a certain president and a missing original birth certificate, lol.

Tue, 01/18/2011 - 20:31 | 885795 merehuman
merehuman's picture

i always get cash. 2012 rules will change before then. 600dollars cap is a good thing .Slows down sales. More folks will keep their gold because of it.

Means the banksters wont get it.

Tue, 01/18/2011 - 21:20 | 885924 DosZap
DosZap's picture


The Gov't gets a 1099 NOW, when you sell.

When you get paid for your Precious, they assume its pure income,with no taxes paid in.

You must prove its not, with your basis.Anyone not doing this, is asking for a visit from the IRS.(when you get caught, and you best keep ALL your recipts).

If you do not leep track of your cost basis, and pay the taxes opn profits, or take a deduct for loss, your asking for a visit.

The only thing thats changed in regards to 1099's on PM's, is the $600.00 minimum.

Tue, 01/18/2011 - 18:04 | 885338 JohnG
JohnG's picture

From ancient times until around 1840 the Gold-Silver Ratio varied between 1:10 to 1:15. Silver was used as currency for 2500 years and as a store of value in the form of jewellery and works of art. The Industrial Revolution of the last 200 years found many thousands of uses for silver as governments have removed silver from circulation as a currency. Now silver is referred to as an Industrial Metal.


Tue, 01/18/2011 - 18:10 | 885365 goldmiddelfinger
goldmiddelfinger's picture

That statement has more holes than a cheese shredder.

Tue, 01/18/2011 - 18:13 | 885387 JohnG
JohnG's picture

Please point them out to me, o wise one.

Tue, 01/18/2011 - 18:16 | 885393 goldmiddelfinger
goldmiddelfinger's picture

The ratio has been better than 40/1 for a decade.

It's 47/1 now.

Those are holes.

Tue, 01/18/2011 - 18:33 | 885458 JohnG
JohnG's picture

No hole there, it's compressing.


85:1, read the chart.


Tue, 01/18/2011 - 19:29 | 885620 goldmiddelfinger
goldmiddelfinger's picture


Wed, 01/19/2011 - 19:18 | 888709 impending doom
impending doom's picture

Good one.

Tue, 01/18/2011 - 21:23 | 885935 DosZap
DosZap's picture


They can refer to it as they wish, its STILL MONEY.

Always has been, always will be.

For those who think differently read the US Const.

Tue, 01/18/2011 - 17:31 | 885181 InconvenientCou...
InconvenientCounterParty's picture

Applications of silver's unique anti-bacterial properties are just starting to get traction.

Anti-bacterial door handles, public restroom fixtures, counter tops etc. A lot of potential there for hospitals and beyond.

RoHs solder use is almost ubiquitous now and it was near zero 10 years ago.


Tue, 01/18/2011 - 18:37 | 885476 bigdumbnugly
bigdumbnugly's picture

public restroom fixtures?

and you thought restrooms couldn't get any more tore up than the ones you have to go in now.

i can just see it... water squirting out of every inlet pipe because the faucets were ripped out.

Tue, 01/18/2011 - 19:56 | 885699's picture

The pipes and whatnot don't have to be solid silver. A microcoating of silver on commonly touched objects does the trick.

Tue, 01/18/2011 - 20:53 | 885858 Bendromeda Strain
Bendromeda Strain's picture

Water filters:

Composition of the Sterasyl ceramic contains pure silver.  This silver is a material designed to significantly inhibit bacteriological mitosis or grow through. The result is that bacterial growth is inhibited from occurring within the Sterasyl ceramic element (which is possible with the other ceramic filter elements).  This silver content insures that filtered water contains levels well below those required by international standards.  Because of the silver, Sterasyl filter elements do not require sterilization after cleaning.

Tue, 01/18/2011 - 17:49 | 885259 Pladizow
Pladizow's picture

Uh-Oh...silver isnt used in photography anymore?

We better all ignore the other 100 things it is used for and just panic sell.

Tue, 01/18/2011 - 17:55 | 885287 barkster
barkster's picture

the recent move from 18 to 30 usd looks like the comparable move in 1st quarter 1979 from about 6 to 8 usd.

if so, whoa, nelly, better fasten those seat belts!

Tue, 01/18/2011 - 19:42 | 885660 rosiescenario
rosiescenario's picture

....biggest single use was Xray plates and most of that silver got recycled....for whatever that's worth.


...since about 75% of silver is a by product of other metal mining (copper, lead, zinc, ect.) if there is a world wide recession and a drop in demand in those primary metals, then there is going to be far, far less silver silver might be a good play on economic depression?????


Frankly the entire copper market is a puzzle to me....copper's primary demand comes from construction...pipes and wiring. Last time I checked building activity was lousy, so I would guess the entire copper market is being driven not by real demand but by investors...and we know how that ends.

Tue, 01/18/2011 - 21:33 | 885961 DosZap
DosZap's picture

Frankly the entire copper market is a puzzle to me....copper's primary demand comes from construction...pipes and wiring. Last time I checked building activity was lousy, so I would guess the entire copper market is being driven not by real demand but by investors...and we know how that ends.


In a word, China,and third world coutries expanding, Speculators last.

Tue, 01/18/2011 - 21:39 | 885963 DosZap
DosZap's picture


Tue, 01/18/2011 - 21:40 | 885967 DosZap
DosZap's picture

dupe,I hate this fkin Server.

Tue, 01/18/2011 - 21:40 | 885968 DosZap
DosZap's picture


Tue, 01/18/2011 - 20:10 | 885724 goldmiddelfinger
goldmiddelfinger's picture

43 junks? Really? Is that a record ZH? This my reply to the first post, which was mine, and I'm 1/2 down the page. Gold bear gets 43 junks and what does that say about gold?

Tue, 01/18/2011 - 20:52 | 885855 dogbreath
dogbreath's picture

it says nothing about gold but much about you

Tue, 01/18/2011 - 23:34 | 886229 goldmiddelfinger
goldmiddelfinger's picture

dogbreath your puke is not food

Wed, 01/19/2011 - 19:22 | 888721 impending doom
impending doom's picture

43 whole people... damn, must be a bubble of epic proportions... Please, someone take all this gold and silver off my hands!!!

Tue, 01/18/2011 - 16:24 | 884928 Larry Darrell
Larry Darrell's picture

".....or, worse, that the Mint has now stopped selling any form of silver for reasons unknown"


I could be wrong, but isn't there a provision in Frankendodd that allows the Treasury to set its own determination of how much "demand" is now, thus allowing them to stop minting whenever they feel like it??

Tue, 01/18/2011 - 16:41 | 884995 Arius
Arius's picture

i read somewhere of a law passed last december that treasury has the authority to do it....i am not sure though how correct this is...

Tue, 01/18/2011 - 17:10 | 885102 Larry Darrell
Larry Darrell's picture

Thanks for the link.

Tue, 01/18/2011 - 17:53 | 885276 SWRichmond
SWRichmond's picture

I'd be delighted if they did something to restrict sales by the Mint; that would be confirmation of supply issues and would cause a panic.  Please, please let them do something like that.  Emporer in no clothes, meet a chill wind.

Wed, 01/19/2011 - 00:59 | 886428 harveywalbinger
harveywalbinger's picture

Maple Leaf bitchez

Tue, 01/18/2011 - 16:25 | 884931 Rahm
Rahm's picture


Tue, 01/18/2011 - 16:28 | 884937 Spalding_Smailes
Spalding_Smailes's picture

Well that 35' year silver clearly shows once the bubble pop's, it's going under $10 for another 20 year.... 

Tue, 01/18/2011 - 16:29 | 884941 EscapeKey
EscapeKey's picture

"...and like most sweeping generalizations, it was probably wrong."

Tue, 01/18/2011 - 16:49 | 885030 Mark Medinnus
Mark Medinnus's picture

Likely true.  But set that chart against the backdrop of 20th century FED/BWI/BWII/TheNixonWindowClosing/TheBernankCounterprinting manipulatory arc, and the PM's - as a store of value - become my investment choice.    

Tue, 01/18/2011 - 17:26 | 885165 downrodeo
downrodeo's picture

+1  ...zing!

Tue, 01/18/2011 - 17:59 | 885302 barkster
barkster's picture

but where will the bubble be when it pops? 200 usd per ounce? 500? 1000?

Tue, 01/18/2011 - 16:33 | 884958 Quinvarius
Quinvarius's picture

Calling something a bubble is like calling someone a Nazi.  You lose the argument by default.

Tue, 01/18/2011 - 16:50 | 885032 almost_have_a_name
almost_have_a_name's picture

Unless it's a nazi run housing bubble

Tue, 01/18/2011 - 20:52 | 885854 Mr Poopra
Mr Poopra's picture

What about Zionists?

Tue, 01/18/2011 - 17:00 | 885062 cougar_w
cougar_w's picture

That depends a lot on the circumstances in play when the calling takes place. There really are Nazis. There really are bubbles.

Tue, 01/18/2011 - 17:59 | 885308 tellsometruth
Tue, 01/18/2011 - 16:33 | 884960 spartan117
spartan117's picture

Amazing that a pro-PM post elicites immediate reaction from the bear-PM crowd.  It's like you guys are paid to sit at terminals waiting for gold/silver threads.  Nah, that's not possible.  Nevermind.

Tue, 01/18/2011 - 21:08 | 885896 JW n FL
JW n FL's picture

the paid gold salesmen have been here a good long while... i took a break for a lil while over them... dont let them stress you, everyone needs to eat. we good master chief?

Tue, 01/18/2011 - 16:34 | 884962 Bay of Pigs
Bay of Pigs's picture

Automatic junk for this ignorant fool.

See you at $40 before too long, troll.

Tue, 01/18/2011 - 16:39 | 884987 Turd Ferguson
Turd Ferguson's picture

Spalding, Spalding, Spalding.

I know you're not a troll but if you keep making silly statements like this simply to inflame and infuriate, you'll soon be branded as one.

Tue, 01/18/2011 - 16:55 | 885036 Spalding_Smailes
Spalding_Smailes's picture


Buy BankofAmerica and make an easy 30%. Take some stress off the wife... ! Hows the mint' chocolate chip ?



Lets talk. Look at the bloodbath, the bloodletting .... People are cold and tired holding onto the miners, when will this nightmare end... ? Can I hold off and get Silver Wheaton at ..... $20.00 ?


....................... " At the global Tier II gold level, the sell offs have been heavier; as much as 34% in the case of US-quoted Golden Star, which has interests in West Africa. Long-time London favourite Randgold Resources, which focuses on Africa, has surrendered 24% of its Nasdaq-quoted value, to levels previously seen as far back as May 2010.

Further down the scale, among gold developers, the losses have been even deeper. Canada-quoted Greystar, which holds a big deposit in Colombia, has shed nearly half its value over the past year. However, before investors, and especially speculators, fall into deep fits of deep depression, there are 100 listed gold stocks around the world (with a minimum market value of USD 20m) that have lost only 12%, or less, of their value.

A good number are positively flying: Australia-quoted Kingrose Mining can be counted among the leaders, but it also has interests in silver and zinc. Canada-quoted Continental Minerals is also in good demand, but its key interests, located in China, are in copper-gold. Then again, there are also "pure gold" focuses which are flying, such as Australia-listed Gryphon Minerals, which focuses on West Africa.

If cash is being taken off the gold stocks table, where is it going? There is a discernible trend of continued switching into copper stocks. Freeport-McMoRan ranks as a Tier I global gold stock, but is typically classified as a copper stock, given its status as the world's biggest publicly traded copper miner, and No 1 in production after Chile's Codelco.

Measured against global Tier I gold stocks, Freeport-McMoRan's stock price has experienced but little selling pressure. Copper has rallied from around $3.00/lb in mid-2010 to recent all time records of $4.50/lb. At these prices, copper miners are spewing cash; few bona fide miners of the metal are unable to make cash profits at $1.50/lb. Prevailing prices represent a bonanza.

Much of the story is summed up by Freeport-McMoRan's market value of $56bn eclipsing the $47bn held by Barrick. Beyond the attraction of copper stocks, cash continues to be pushed into the listed stocks of big diversified miners, most of which produce copper. For now, it seems that investors and speculators are somewhat complacent about listed gold stocks; they may need some kind of catalyst to once again redirect their attention.  " .........................

Tue, 01/18/2011 - 17:10 | 885097 schoolsout
schoolsout's picture

I tripled my money in some miners in about 5-6 months.


WTF are you talking about?


GSS had issues with floods/production.  That's about as far as I got in your cut/paste

Tue, 01/18/2011 - 17:11 | 885105 Turd Ferguson
Turd Ferguson's picture

Spalding, is doesn't seem as if you've been trading PMs and mining stocks for long, or at least not in significant quantity. The "bloodbath and bloodletting" you describe happens regularly in these grossly manipulated "markets" but the secular bull will continue as long as the US Government is broke, the banks are insolvent and the states are bankrupt. 

I'm not selling any of my PMs. You would be wise to buy some.

Tue, 01/18/2011 - 17:15 | 885121 spartan117
spartan117's picture

How's that AIG working out for you?  Time to dollar cost average?  Down only 15% in the last week alone!

Tue, 01/18/2011 - 18:19 | 885406 Richard Head
Richard Head's picture

Too long, didn't read.

Tue, 01/18/2011 - 20:35 | 885805 merehuman
merehuman's picture

i second that

Tue, 01/18/2011 - 16:40 | 884989 lieutenantjohnchard
lieutenantjohnchard's picture

i can't get any at the mint. what price will you sell yours to me for?

Tue, 01/18/2011 - 17:04 | 885077 goldmiddelfinger
goldmiddelfinger's picture

I'll buy all the silver you've got at $17/ ounce..

I BUY GOLD---(at $870 ounce)


Tue, 01/18/2011 - 17:39 | 885219 walküre
walküre's picture

Won't happen. Too many buying all gold and silver closer to $20 / $1000 oz.

Why do you think this dip is virtually a non event?

Is called support.

Something much of the traded paper doesn't have if you take HFT and POMO events away.

Churn churn churn the stocks, gently down the drain, merrily merrily merrily holding on to my silver.


Tue, 01/18/2011 - 21:47 | 885996 DosZap
DosZap's picture


$20 Slvr, Gold $1k, lets talk, you selling?.

Tue, 01/18/2011 - 18:41 | 885482 GetZeeGold
GetZeeGold's picture



I think middlefinger must be the JPMorgue

Tue, 01/18/2011 - 20:09 | 885733 lawrence1
lawrence1's picture

No, some little ignorant asshole enjoying the attention for flamming stupidity.  Just ignore these types and eventually they will go away.  Keep responding to them and they stay around.  Our choice.

Tue, 01/18/2011 - 20:49 | 885837 Chappaquiddick
Chappaquiddick's picture

Its the Stuxnet virus.  This trolling element has recently been identified by a bridge support manufacturer in Minnesota.


Tue, 01/18/2011 - 20:36 | 885807 merehuman
merehuman's picture

you will have to find folks dummer than yourself to buy from.

Tue, 01/18/2011 - 21:39 | 885976 lincolnsteffens
lincolnsteffens's picture

Why would anyone sell you silver when I can get over $18 for scrap sterling??Good luck on your quest. I made over 110% on AGQ in less than a year. If you only made 100% after 20 years you didn't make shit in purchasing power.

Tue, 01/18/2011 - 18:09 | 885363 smlbizman
smlbizman's picture

you can buy them through a subscription...i just did it...after you order cancell the subscript. 

Tue, 01/18/2011 - 16:40 | 884991 Bicycle Repairman
Bicycle Repairman's picture

You'll certainly be right if the FED raises interest rates to 15-20% like Volcker did in the early 80's.  What do you think the odds of that are?

Tue, 01/18/2011 - 16:45 | 885017 lieutenantjohnchard
lieutenantjohnchard's picture

he wasn't around in the early 80's. he doesn't know what 20% inflation, 20% interest rates and dow 742 look like. or oil at $8.00.

Tue, 01/18/2011 - 17:40 | 885223 topcallingtroll
topcallingtroll's picture

I remember. It wasnt that big a deal seriously. I had 9 percent and 10 percent student loans. Later my first house financed at 12 percent. It seemed normal at the time and we were too young and having to good a time to worry. I laugh when i see people afraid of a six percent ten year treasury.

Tue, 01/18/2011 - 17:45 | 885245 walküre
walküre's picture

The Eighties had the US as the SUPERIOR super power and the world was scared shitless of the Red Monsters everywhere. US propaganda instilled fear and intimidation around the world and people eager to accept the US role of supremacy.

Not so much today. Sorry that ship has sailed. The US is bankrupt and the world knows it and won't care one bit when the Dollar gets replaced.

This is inevitable. There is nothing the Fed or the UST or any Congress could do to avoid the collapse. Nothing.

Tue, 01/18/2011 - 17:54 | 885280 Max Hunter
Max Hunter's picture

Don't forget housing was not 30-50% over-valued at the time. Higher rates will bring down the prices.. Count on it.. And it will matter.. It will be a big deal this time.. Even if you are right about the impact last time.

Tue, 01/18/2011 - 21:47 | 885998 lincolnsteffens
lincolnsteffens's picture

Who needs to buy a house now. Just look for one the banks have abandoned and move in. You know maybe you could find one in Florida that some poor pensioner can't  afford any more cause they cut his benefits and wont get any Soc. Sec. increase this year since inflation is only 1%.

Tue, 01/18/2011 - 18:02 | 885330 lieutenantjohnchard
lieutenantjohnchard's picture

i bought a house for $60K (overpaid - youthful mistake) with 10% loan in 1982. going for $300k today. it's been too long for me to remember. were we having fun?

Tue, 01/18/2011 - 18:11 | 885374 smlbizman
smlbizman's picture

9% was nirvana

Tue, 01/18/2011 - 16:43 | 885003 Beam Me Up Scotty
Beam Me Up Scotty's picture

When is the Bernank going to pull a Volcker and jack up interest rates? 

Right, when elephants fly.

Tue, 01/18/2011 - 17:42 | 885230 walküre
walküre's picture

He could certainly try.

That would be the biggest joke of this young century.

Backed by nothing but a printing press.

Has all been tried and done before..

Weimar as one example.. had to deliver debt service payments.. and had less and less revenue to cover the payments.. crank, crank, crank, ssssswhooosh.. there you had the one billion and one trillion Reichsmark bills decorating the walls of nostalgic German living quarters.

Do NOT follow this link or you will be banned from the site!