This page has been archived and commenting is disabled.
Guest Post: How Much More Demand Can Silver Handle?
From Jeff Clark of Casey Research
How Much More Demand Can Silver Handle?
The numbers for silver demand are starting to make some market-watchers nervous. The U.S. Mint sold over 6.4 million silver Eagles in January, more than any other month since the coin’s introduction in 1986. China’s net imports of silver quadrupled in 2010, to 122.6 million ounces, roughly 13.7% of global production. Meanwhile, mine production can’t meet worldwide demand; the only way demand gets fulfilled is from scrap supply.
That is some very hungry demand. Which raises the question, how long can this pace continue?
This is important for various reasons, starting with how demand contributes to price. If demand falls off, our investments could, too.
While I’ve discussed the concern regarding the lack of supply before, which has its own implications for the silver market, let’s focus on investment demand. Frankly, is there room for it to continue to grow? After all, how long can investors continue to set records?
There are a number of ways to measure this – the amount of money available to invest, its percent of total financial assets, its contrast to demand in the last bull market, etc. – but I think the bottom line to answering the question is to compare the biggest silver investments to some popular equities. If they rival that of the stocks we always see on the news and analysts constantly talk about and every fund manager wants to own, then it might be reasonable to assume demand could be nearing its pinnacle.
So how do the world’s largest silver ETF and one of the biggest silver producers compare to the more fashionable equities?
The largest silver ETF, iShares Silver Trust, has net assets of $9.6 billion (as of February 4). This pales in comparison to the more popular stocks trading in the U.S. In fact, SLV has roughly 3% the market cap of Apple. It would have to grow over 43 times to match Exxon Mobil.
Pan American Silver, the largest pure silver producer trading on a major U.S. exchange, has a market cap of $3.72 billion. This is 4.7% the size of McDonald’s. The market cap would have to increase more than 53 times to match Walmart. It is over 62 times smaller than Microsoft.
This isn’t to suggest SLV and PAAS will match the market cap of these other companies, but clearly the masses are still demanding much more of them than the biggest of silver’s investment vehicles.
So how much more demand can silver handle? As much as it takes to make it the household name I’m convinced it will be before this is all over. When SLV is a favorite of fund managers. When Silver Wheaton is a market darling of the masses. When Pan American is Wall Street’s top pick for the year.
Imagine what those bars on the right will look like when most everyone you know is talking about poor man’s gold. The rise could be breathtaking.
Remember that silver rose over 3,646% from trough to peak in the last precious metals bull market; it’s up about 630% in our current run. A return matching the 1970s advance would push the price to $152. This price level is further supported by the fact that this is about where it would be when inflation-adjusted for its 1980 peak.
When you look at the potential growth in market cap of the world’s biggest silver investments, it becomes easy to view any downdraft in price as nothing but a buying opportunity. I know I do.
»
- 20163 reads
- Printer-friendly version
- Send to friend
- advertisements -
He's friends with his mommy. She doesn't like him much, though, as she has to clean his sheets every day. But she loves her little boy. Though she wishes the abortion had been successful.
Brilliant prose. Brilliant !! The part about his mother?, Ahh so tastefull.. and called for no doubt.
Wolbeck said investigators don't know why the victim was collecting silver bars.
Dumb SOB's, Duh!, and a Double Dumb SOB for keeping that much at home, unless he had a real honest to goodness vault time lock bank.( like a built in.)
Inside job, these dudes will be caught quick.
If those bars had been welded together the thieves would still be looking for a forklift!
Where was blythe at that peticular time?
Rumour is...
Blythe and Murphy have recently shacked up together in Vancouver. Local BCBud-Head reporter is looking into it.
Another Cuntspiracy Theory you can take to the bank.
those guys were moving around 2000lbs of silver. bet they wish he had gold bars instead.
Here's a headline I can't wait to see over my morning espresso...
"Sprott opens Physical Only Precious Metals Exchange in Toronto - Comex Collapses upon news release"
2011 Silver Eagles are going for $39.95 at my local coin shop. (And they usually have excellent prices ...) Interested in seeing how long their current supply will last. Took them nearly two months to get this batch in.
Time to find another coin store
My coin guy started todays sales w/ eagles @ 33.65, I do not know if they were 2011...who cares? Shop around and lets get physical! YO
Got to pay up in a bubble yo
Billy, you are the knuckle-dragger who farts during a church service, and then laughs out loud, even though nobody else does, and remains clueless to the fact that the rest of the congregation is utterly disgusted and contemptuous of your self-perceived "humor".
I was able to buy 1000 Morgans from a coin dealer in Chicago for $27 each last week, all fine or better all 1878-1904 and gave him instructions to sell me 1000 more when he could sell for $25, he has them available on E-bay now for $13,999 for 500 ($28) company called Trade Direct. You can e-mail him with an offer below $28, he would probably take $26-$26.50 for 500 or more
I'll pay $30 apiece or trade for all the 1878 morgans you got.
Same here.........
The most overpriced store in my area has them at 37.58. Unless you're way out in the boonies, time to look elsewhere.
Look at Monex:
http://www.monex.com/liveprices?gclid=CPaxzqqZjacCFYa7KgodgXJBeg
Minimum order of 100 oz, but no sales tax, $25 shipping.
You're paying way too much, even for singles. Google your area.
You can overnite MONEX a personal check and they will let you use their postage account. No sales pitch, take your order, send your metal.
Wire it, and maybe shipping is free.
I've used Tulving and found it to be the lowest. Over night shipping is free, and they deduct $15 if you wire. You have to call your order in, and talk to a person. A feature in this day and age. Although you need to purchase a min of 500 oz of Ag. The Nagus hates giving anything away for free; Hannes owes me something for this.
Didn't think the Ferengi knew anything about the concept of "free" :>D
Hello all,
How much should I be paying for Silver American Eagles regardless of year? I noticed the US Mint allows customers to sign up for a subscription for $25.95 per coin. Local coin dealer wanted about $40.00 per coin. That $40 is for the coin, his fee, and taxes. That seems pretty bad to me.
BTW, anyone think we might get a move back down to below $25 anytime soon?
There are plenty of other products which don't sell at a steep premium. I live in the boonies so I don't have much choice of local dealers but the one guy I like likes prospectors.
What is prospectors?
Damn are they gouging your rear.About $6.00 an oz.
Agreed. (I didn't write that I bought them at $39.95 just that they were selling for that price.) I am curious to see how quickly they'll go...
This Friday is expiry for Gold so get some popcorn and settle in for the show. !!
This is WAR !!!!!!!!
Blythe is kinda hot though !
BTFD Biatchez !
P.S.
Just out on Faux Busi news that GM sold 321 thats Three Hundred Twenty One Volts in January
LOL
One Commentator said that "they are not selling" and the other said "That is so short sighted" !! LOL
I love this fucked up place we are in !! sarc/
The Aden Sisters said we are due a correction, back to the 1290 ish range, maybe 1250.00.
I will beleive that when I see it, I hope I do, a few dozen more ounces can't hurt.
Does anyone find it interesting that we always see these (PM's are doomed) stories right before expiry ??
every month!
Nice post Mr. Clark. It would be interesting to know the relative size of the silver market to the Global Stock Market, both during times of low inflation and high inflation. Then we could compare those figures to where we are now.
I reloaded in the high 29's
Zerohedge, why not do a report on www.silverkeiser.com (aka www.bidbullion.com) and the scam they have perpetrated?
They have hijacked the good promotion of the small man trying kill the ugly giant JPMorgan, and profiteered from it to the tune of $5m+. They have taken peoples money and not delivered any of the silver that have stated they would, they do not respond to communications either.
This needs reporting! Tyler, expose this fraud, get to the truth. Expose the scum behind this, fight for the small guy.
They are having difficulty getting Max's likeness just wacky enough.
If you are a victim, report it: http://www.justice.gov/usao/eousa/foia_reading_room/usam/title9/43mcrm.htm
Although I'm not directly affected, I feel for you FunkyMonkeyBoy. I agree that this should be exposed as a scam, if this is in fact what it is.... and it does appear to be. Sad that people buying physical silver are being ripped off.
scamming people out of money is the american way.
every time i buy bullion online, i half expect to get ripped off... just sayin'
Yeah, only Americans do it. Never happens anywhere else. Ever.
LOL!!! ++++++++++++++++++++++++++++++++++++++++++++
LOL!!! ++++++++++++++++++++++++++++++++++++++++++++
Const. Tracy Wolbeck said the suspects... believed to be Chris Powell, of no fixed address, and Bill Murphy, who has recently moved to Vancouver, were wearing tin foil hats. They bruised the sole occupant of the home during the robbery.
NO WAY!!! Is this from the Onion?
Way!...
Would MSM lie?
Or anyone posting on ZH?
And don't forget the immortal words of one of America's greatest leaders:
"You can always believe what you read on the Internet"
-- Abraham Lincoln, in the Gettysburg address, 1866.
*belly snort*
Click on the link. He Onionized the story which, unfortunately, did happen. Names were added to protect the humorous.
But then again I bought spot xag. Not ETF/wanabe mining stocks. Or pretty little buzzards, printed on trinkets.
Worthless mining stocks?
What did Homestake mining company do during the great depression? Cause I'm pretty sure that worthless mining trinket returned 519%.
Might also wanna check the miners for the 70's and evaluate why John Paulson has Anglo Gold Ashanti.
Hey I bought Aem, and Freeport. A while back. Homestake? Come on man. You're in the dark ages.
Conditions for an asset bubble:
1 Public accessibility to the asset
2 Enormous credit/leverage availability for acquisition of the asset
3- Creative financial engineering utilized to deliver ever newer versions of the asset in demand
4- Systemic belief/reinforcement systems encourage mass participation/ acceptance of the asset
DuPE.
Conditions for an asset bubble:
You forgot the MASS PUBLIC invovement.
Yet to be seen.At least in Gold.
And in '09, Jan/Feb, it was taking 6mos to get eagles, or Mapes(Slvr).By the Mint cases.
I didn't forget anything, look again dufus
With your cranium so firmly planted inside your rectum, you at least have the advantage of never needing to wear glasses (I suspect one glimpse of the real world would send you fleeing right back into the safety of your own anus in any event).
Where do you see the credit/leverage coming from for pms?
I'm on board with silver as a long-term investment. Major money-printing and inflationary tailwind blowing our direction on that account. Buying some physical silver is also the moral thing to do;not to mention that it's one of the only ways us little guys can get some protection from the paper-ponzi sociopaths. On the other hand, if EMs tank or DOW collapses, industrial demand for silver will drop (I know, I know, that'll be a great time to BTFD). I'm a little nervous about that possibility anyway. Anyone else? Turd? Turd? Where are you when we need you man?
Silver purchased and stored in Guernsey, The Channel Islands is VAT/GST free.
I was talking to one of the Guernsey bullion dealers today and they report being completely overwhelmed with demand for physical from all over the world.
I cannot say much more but the sums involved are 'considerable'.
So James Turks $50 an ounce by the end of the year is looking very plausible and may even turn out to be an conservative estimate.
So borrow money to finance more.
Junking you, Billy, is like knocking icicles off the eaves as one walks by --- it fundamentally accomplishes nothing, but sure does feel good!
And just what is the cost per ounce there?., storage fees?.
Pls sir?
And where the hell is Guernsey, here its a breed of a cow.LOL
CPM Group: Reports Of Physical Silver Shortages ‘Limited’
While the folks over at CPM group in this article are not named I'd be willing to bet Jeffrey 100 to 1 Christian is the author of much of the content here. To be sure the bullion banks are pulling out every gun they have to try and jawbone down Silver. Their problem is that VERY FEW BELIEVE THEIR BS LIES ANY LONGER.
http://www.kitco.com/reports/KitcoNews20110216DeC_CPM.html
***** "CPM Group said it has heard of only a specialized instance of actual supply tightness in the physical market. The firm added that there is talk in the market of shortages of 100-ounce investment-sized bars and coins, but its investigations dispute this. CPM Group said it surveyed Fidelitrade, Kitco, and Northwest Territorial Mint in the first week of February about the supply of these metals. “There were hundreds of thousands of ounces in 100-ounce bars available for immediate delivery, and NWTM said it was steadily producing more each day,” CPM Group said." *****
http://www.kitco.com/reports/KitcoNews20110216DeC_CPM.html
If this is true, then we should see silver back at $25 soon... I had told myself that silver @ $20 was a back up the truck moment... I am bullish at $25... or close enough to $25. I doubt that it gets $26 again, but if it does! God Bless!! cause I am off to the races!
My advice, dont take any Russian Gold Coins! and buy something other than Gold bars to trade in every day life.
Gold is great, but! trading for things will more likely be done with silver in day to day life than in $1,000 dollar bills. IMHO.
JPMorgan/HSBC getting desperate to get their hands on physical silver? Have they started hiring finger men?
http://www.cbc.ca/canada/british-columbia/story/2011/02/16/bc-silver-the...
Holy jesus, your attempt to compare silver and Apple+Exxon just made me puke inside my mouth.
So when talking market cap, you decide to pick two of the biggest stocks (by market cap) in the USA? That' jusy plain silly. Too silly.
AND DO YOU NOT REALIZE THAT THESE COMPANIES, or any good standing company, HAS CASHFLOWS, ASSETS, POSSIBLY DIVIDENDS, GROWTH, PRODUCTS, SERVICES.... and the valuation tries to reflects that in someway....
while SILVER IS JUST A METAL?
While I like Zerohedge, some of the stuff they allow to publish here is just plain ignorant.
How did your mouth puke taste?
+1m
Your definition of "Company-in-Good-Standing" is what now?
Does that apply to the TBTF banks too?
Lastly,
On the graph, those are not "popular stocks".
They are some of the biggest brands in the world.
Apple needs silver for the I phones.
Exxon needs silver for electric switches.
Silver is needed by almost all companies
in the wold.When these rich companies
start securing their supply...........
Get the big picture.
Yeah but Remix, just imagine what your two favorite stocks would be worth if they were priced in $450/oz silver! Oh, wait a minute.... And don't forget to brush your teeth.
nobody's saying that PAAS is the equivalent of XOM, but that a very few allocable investment dollars would make a large difference in the capitalization of the silver market.
also beware of your investment mantras; XOM's and AAPL's cash flow is denominated in dollars, which ben is busy insuring are worthless. better they flowed silver.
change that avatar, too. please.
Firstly, you pole smoker. You need some transifornication, before you post here! Beat it!
Do not underestimate the power of alternitive
media.I am really surprised how much young
people in my town are really interested in
the truth compared to the elderly.This
renaissance is unstoppable.Awareness is
the key.
Think about it like this: When U.S. coinage (and world coinage) had to be silver/gold there was no such thing as to much silver. It was friggin literal money. Now it's bullion priced in debt backed paper that happens to have 1000 newly discovered uses in the modern world and has been largely consumed. The question isn't will silver demand remain high. The question is will demand for debt backed paper money stored in questionable banking institutions remain high.
When the shoeshine boy tells you to get into silver, that's when it's time to get out!
Mass public awareness has not yet occured, so it's buy.
Blythe and friends are losing control, the price increases... it's a buy, they slam the price... it's a buy.
Their only short term temporary reprieve may be for profit takers at higher support levels and those willing to take cash settlements imo.
But it wouldn't change a thing, they are passing the point of no return on their over-leveraged exposure.
JPMorgan tells us it's a buy, so it's a sell.
I was on this site for 6 months before I ever considered it. I don't know anyone who admits to buying silver themselves. I told one family member I did, I they looked at me like I was crazy. Not a bubble yet.
There is a silver bubble and it's growing like a mother fucker. Inside the bubble are JP Morgan, other banks, SLV, paper silver, and a lot of silver derivatives.
Excellent points Dr Gonzo...
Here is an interesting read from Antal Fekete that appeared originally in ATOL but is pop up free at this site...It's easy to see why China is buying into the silver and gold ETFs that allow physical delivery... China wants the physical, not paper...they have enough paper bs already...as Mr Fekete clearly points out.
Silver and Opium
http://news.silverseek.com/SilverSeek/1297866905.php
By: Professor Antal E. Fekete
on Wed, 02/16/2011 - 19:43
#968582
Silver and Opium
http://news.silverseek.com/SilverSeek/1297866905.php
By: Professor Antal E. Fekete
*********************************************************
Fantastic Read!!! ++++++++++++++++++++++++++++++++++++++++++++
*********************************************************
-- Posted 16 February, 2011 |
Share this article| Discuss This Article - Comments:
3
Source: SilverSeek.comThe opium wars do not belong to the glorious episodes of Western history. Rather, they were instances of shameful behavior the West still has not lived down. Mercantilist governments resented the perpetual drain of silver from West to East in payment for Oriental goods (tea, silk, porcelain) that were in high demand in the Occident, facing low demand in the Orient for Occidental goods. From the mid-17th century more than 9 billion Troy ounces or 290 thousand metric tons of silver was absorbed by China from European countries in exchange for Chinese goods.
The British introduced opium along with tobacco as an export item to China in order to reduce their trade deficit. Under the disguise of free trade, the British, the Spanish and the French with the tacit approval of the Americans continued sending their contraband to China through legitimate as well as illegitimate trade channels even after the Chinese dynasty put an embargo on opium imports. Because of its strong appeal to the Chinese masses, and because of its highly addictive nature, opium appeared to be the ideal solution to the West’s trade problem. And, indeed, the flow of silver was first stopped, and then reversed. China was forced to pay silver for her addiction to opium smoking that was artificially induced by the pusher: the British.
Thus silver was replaced by opium as the mainstay of Western exports. In 1729 China, recognizing the growing problem of addiction and the debilitating and mind-corrupting nature of the drug, prohibited the sale and smoking of opium; allowing only a small quota of imports for medicinal purposes. The British defied the embargo and ban on opium trade, and encouraged smuggling. As a result, British exports of opium to China grew from an estimated 15 tons to 75 by 1773. This increased further to 900 tons by 1820; and to 1400 tons annually by 1838 — an almost 100-fold increase in 100 years.
Something had to be done. The Chinese government introduced death penalty for drug trafficking, and put British processing and distributing facilities on Chinese soil under siege. Chinese troops boarded British ships in international waters carrying opium to Chinese ports and destroyed their cargo, in addition to the destruction of opium found on Chinese territory. The British accused the Chinese of destroying British property, and sent a large British-Indian army to China in order to exact punishment.
British military superiority was clearly evident in the armed conflict. British warships wreaked havoc on coastal towns. After taking Canton the British sailed up the Yangtze River. They grabbed the tax barges, inflicting a devastating blow on the Chinese as imperial revenues were impossible to collect. In 1842 China sued for peace that was concluded in Nanking and ratified the following year. In the treaty China was forced to pay an indemnity to Britain, open four port cities where British subjects were given extraterritorial privileges, and cede Hong Kong to Britain. In 1844 the United States and France signed similar treaties with China.
These humiliating treaties were criticized in the House of Commons by William E. Gladstone, who later served as Prime Minister. He was wondering “whether there had ever been a war more unjust in its origin, a war more calculated to cover Britain with permanent disgrace.” The Foreign Secretary, Lord Palmerston replied that nobody believed that the Chinese government’s motive was “the promotion of good moral habits”, or that the war was fought to stem China’s balance of trade deficit. The American president John Quincy Adams chimed in during the debate by suggesting that opium was a “mere incident”. According to him “the cause of the war was the arrogant and insupportable pretensions of China that she would hold commercial intercourse with the rest of mankind not upon terms of equal reciprocity, but upon the insulting and degrading forms of the relations between lord and vassal.” These words are echoed, 160 years later, by president Obama’s recent disdainful pronouncements to the effect that China’s exchange-rate policy is unacceptable to the rest of mankind as it pretends that China’s currency is that of the lord, and everybody else’s is that of the vassal.
The peace of Nanking did not last. The Chinese searched a suspicious ship, and the British answered by putting the port city of Canton under siege in 1856, occupying it in 1857. The French also entered the fray. British troops were approaching Beijing and set on to destroy the Summer Palace. China again was forced to sue for peace. In the peace treaty of Tianjin China yielded to the demand to create ten new port cities, and granted foreigners free passage throughout the country. It also agreed to pay an indemnity of five million ounces of silver: three million to Britain and two million to France.
This deliberate humiliation of China by the Western powers contributed greatly to the loosening and ultimate snapping of the internal coherence of the Qing Dynasty, leading to the Taiping Rebellion (1850-1864), the Boxer Uprising (1899-1901) and, ultimately, to the downfall of the Qing Dynasty in 1912.
The present trade dispute between the U.S. and China is reminiscent of the background to the two Opium Wars. Once more, the issue is the humiliation and plunder of China as a “thank you” for China’s favor of having provided consumer goods for which the West was unable to pay in terms of Western goods suitable for Chinese consumption. The only difference is the absence of opium in the dispute.
Oops, I take it back. The role of opium in the current dispute is played by paper. Paper dollars, to be precise. In 1971 an atrocity was made that I call the Nixon-Friedman conspiracy. To cover up the shame and disgrace of the default of the U.S. on its international gold obligations, Milton Friedman (following an earlier failed attempt of John M. Keynes) concocted a spurious and idiotic theory of floating exchange rates. It suggests that falling foreign exchange value of the domestic currency makes it stronger when in actual fact the opposite is true: it is made weaker as the terms of trade of the devaluing country deteriorates and that of its trading partners improves. Nixon was quick to embrace the false theory of Friedman. No public debate of the plan was permitted then, or ever after. Under the new dispensation the irredeemable dollar was to play the role of the ultimate extinguisher of debt, a preposterous idea. The scheme was imposed on the world under duress as part of the “new millennium”, shaking off the “tyranny of gold”, that “barbarous relic”, the last remnant of superstition, the only remaining “anachronism of the Modern Age”. The ploy was played up and celebrated as a great scientific breakthrough, making it possible for man to shape his own destiny rationally, free of superstition, for the first time ever. Yet all it was a cheap trick to elevate the dishonored paper of an insolvent banker (the U.S.) from scum to the holy of holies: international currency. The fact that fiat paper money has a history of 100 percent mortality was neatly side-stepped. Any questioning of the wisdom of experimenting with is in spite of logic and historical evidence was declared foggy-bottom reactionary thinking.
The amazing thing about this episode of the history of human folly was the ease with which it could be pushed down the throat of the rest of the world, including those nations that were directly hurt by it, such as the ones running a trade surplus with the U.S. Their savings went up in smoke. The explanation for this self-destructing behavior is the addictive, debilitating and mind-corrosive nature of paper money, in direct analogy with that of opium. The high caused by administering the opium pipe to the patient (read: administering QE) had to be repeated when the effect faded by a fresh administration of more opium (read: more QE2).
If the patient resists, like China did in 1840, then a holy opium war must be declared on it in the name of the right of others to free trade. 170 years later a New China once more demurred against the paper-torture treatment it was subjected to by the American debt-mongers and opium pushers.
But beware: if the West starts another Opium War, this time it is not China that will be on the losing side.
Here in the central valley of CA we've had numerous incidents of Chinese nationals converting vacant Mcmansions into nefarious Pot nursuries. Pretty ingenious actually, and now some background information to go along with it.
Thanks for the history lesson.
Think Asia, Europe, US and Canada. The physical demand is there for a reason.
Ladyzzzzzzz!
The reason I like Silver, is because the douche patrol doesn't --- with bed fellows like Hamy and Harry, I will join the otherside everytime
Silver hoarders(investors) will be more in the sights of Team Obama than Gold.
It will be dubbed as a National Security Interest.
And, they would be more correct than going for the Gold.
Hamy is a parody of Harry, in case you hadn't noticed.
Obama wants in on the action...
http://mineweb.com/view/mine...ail&pid=102055
AGQ, just saying. For all you non-physical buying silver bovines out there.
Thats good n dandy, but thats a GOLD targeted Fund.
Quick scalps, AGQ is the Harrimans and Bushies fund!
One very simple question. Where has all the Copper and Silver that, once upon a time, actually resided in our coinage disappeared to over the last 98 years? The various coinage acts passed by our lovable congress allowed for the recall and confiscation of the precious metal that we once could hold has just vanished, I think not. In all of the discussions I see on the topic of dwindling supplies I never see the fact that over the last near century the Federal Reserve has acquired literally tons of fine coins and replaced them with zinc. Seems that this would provide a substantial buffer to increased demand.
know your enemy
It appears to have been mostly melted, but it's hard to know how much is still around.
245 Billion ounces, spent long ago, bet on that.
can you eat dollars?
http://www.bulkfoods.com/search_results.asp?txtsearchParamCat=9&txtsearc...
I just hate manias. It was more fun investing in silver and gold in the nineties and early 2000's.
However bottom feeding on natural gas and a soon-to-be-washed-out-former-growth-darling has been painful.
There just isn't any value out there. Everything is speculative.
Do you really think anything about gold and silver is anything remotely approaching mania? I think not. I cannot tell you one person that I know that wants to buy gold and/or silver. Most Americans simply do not understand it nor care about it. Sure, some people are buying but many are not. They have a trust in their government daddy and believe him at his every word, even after all that has happened. Sad but true.
I have an in-law, who did quite well for himself with a private plumbing business, who I was attempting to discuss the economic problems with. He literally said, "they just need to keep printing money to fix the problem."
I don't know a single other person from my personal life who is buying physical silver or gold. Even my friends who invest in mining stocks don't buy physical. It's astounding honestly.
For years I have tried to tell some of these rich old people to buy physical. They simply will not do it. They had rather talk to their stock brokers etc and trust them, than listen to a old crazy man whispering bad tidings in their ears. Not only that, but I have never met one person who did not think i was off my nutt for recommending large purchases of gold and silver bullion. They just don't get it and they don't see any problems. How fast things can change and believe me , one day soon they will and then, I told you so, won't be coming from me because it will not really be necessary.
Also one might hear talk about confiscation. Confiscate what? Nobody has any gold and silver in their possession so why would the government go to the expense of trying this? Heck I know they have sold more silver coins at the mint this year than any time in history etc. but I am here to tell you, that almost all Americans are not buying this stuff and don't care about it and they all trust in the system.
My students (HS) are starting to buy it...
Johnny Silverseed bitchez!
HPD,
Zactly............
I have a very close friend(older), who jumped the Chinese Silver train early,he's more than doubled his $.
Problem is, I keep PREACHING to him, SO what?, you doubled paper on paper!!.
Use your head and take the paper profits and sandbag PHYSICAL at home.
He has yet to buy not ONE ounce,NONE.
I want to beat him till bloody,how someone so sharp, doesn't' get it?.
He does not understand the gold and silver bull nor does he understand the concept of corrections and retracement. Heck he needs to look at people who bought gold and silver in 2003 or so, and kept until now in their possession and then he can tell someone about increasing their net worth. Most people simply do not understand how easy it is to do this. They would rather jump in the stream and take a big chance that when the music stops they are not the one left standing. He is playing with fire and he will get burned.
Exactly... most folks, if interested in PMs at all, are selling their silver and gold jewelry and other items, believing they are getting a great deal. The "bubble" bullshit is purely propoganda to bolster fiat. Pure and obvious bullshit.
Sorry but as silver is a limited resource and has multiple non-renewable applications, it's investment by definition.
This is one of those stories that just make you go "hmmm".
LIKE WTF??
Are they in the Twilight Zone up there in Canada? Why would the police make a comment as to whether or not the AMOUNT of silver in the guys house would be criminal??
Did Blythe send the troops to confiscate 25,000 oz of silver to make due on the contracts?
Again,
LIKE WTF????
U.S. Mint demand is a drop in the bucket. A single mine in Nevada can supply it. As for where the silver is coming from check your pawn shops. Tens of millions of people out of work are digging into their coin jars, collections, inheritances, family silver, etc. and selling the silver on eBay or pawning it. There's a lot more where that's coming from. But at the same time, there's a rule about buying and selling - buy when the seller is eager to sell. Sell when the buyer is eager to buy.
Another rule re bullion; unless you are careful, you always by retail and sell wholesale.
I buy spot + 3% and sell spot. Just find a good dealer.
duplicate.
Did it hurt when you pulled that out of your ass?
US silver production in 2009 was 39.8 million toz.
US Mint demand is now running at 6.4 million toz for January.
The math is so easy, William the bastard could do it!
Now, figures on silver recycling: http://www.silverinstitute.org/supply_demand.php
Rut roh, silver recycling has been declining since 2006, through 2009, the last year for which data is available.
People just don't see the fundamentals. This is a character flaw that will lead to the impoverishment of many. Don't be one of them. Or do. I don't care. As others have told me, I am cruel and heartless.
Yeah, Mom and Dad's ancient silver stash has mostly been sold 4 years into the Depression that began in 2007. The US may need to start importing Silver soon just to meet US Mint Demand (assuming Congress authorizes this by updating the Silver Eagle Act).
The world is awash in gold and silver via derivatives. You're a fool if you don't think that money belives it's in play. If they mindlessly were to buy your bogus spume that they aren't engaged they'll kick it, kill your equity base and buy Sante Fe condos instead. You propose the seeds of your own doom as any unprepared asset pumper will because he can't see his own lies. See ya pimp.
Your logic is so flawed it's hard to comprehend. You are the kind of person who needs a good boot fucking to shake up that ten cent head of yours.
What color is you koolade? Ah fuggit who cares about you?
If you become any more incoherent, Billy boy, you are going to be a perfect stand-in for that TV reporter who had the on-air neurological attack and started spouting jibberish during the Superbowl.
You wouldn't know an asset bubble if it were your helmet.
Bite the wax tadpole!
David Morgan tells an entirely different story.
http://www.youtube.com/watch?v=_Ib8ostQ62k
"...this shows the integrity and honesty of this man..." (50 seconds in)
BwaHahahahahaha...!!!
Mike Baloney is a shill.
Old David Morgan's Pump and Dump reputation dates way back to the turn of the last century.
Ask Morgan about how he pumped Sino-Silver extra hard back in 2005. Told subscribers to his scamming newsletter...The Silver Investor"... that it was a screaming buy @ $3+ only to have it crash to pennies a month later.
When I asked him in person about it in Vancouver, all I got was a smirk as he turned and ran off.
Morgan has been, and still is one of the "PM Gurus" that should only be approached with a vaccinated, ten-foot, barge pole when you have on rubber gloves and a toxic gas mask.
Lucky really... only cost a few $k to learn another one of life's little lessons.
The big turn off with him is when he signs off on his news letter....
"It's an honor to be, (me)
David Morgan".
Rrrrrrraaaaalllllpppphhhhhhh!
Providing they don't have other contractual obligations; I be sure the U.S mint for the first time had to go beyond domestik production to strike the precious eagle.
Six years ago, my grandmother died and left me quite a lot of sterling flatware. I was moving cross country and didn't want to fool with it. When you move, you get rid of things. Should say when you move you lose. I gave it away. Stupid.
Hey William the Bastard......You may as well be the Bitch too....
Perhaps it's best to own a variety of hard assests as we transition into a more inflationary time. Precious metals, sure. Maybe a good time to buy a home, some land. Food is hard to stock up on, but you can buy commodity ETFs/ETNs.
The mathematics and the policy all point one way--a declining US Dollar, higher interest rates, and more expensive commodity prices.
Don't forget about other white metals like palladium and platinum. Much more rare than either silver or gold. Also very useful.
Only five or six times money left in the trade? Darn, I guess I'll start looking for greener pastures.
Would you rather have 44.88ozt .999 of the precious or 1ozt .999 of gold?
Land. Acreage. A garden. That's what I'd like. To get my hands dirty, not with city grime, but with soil. And to watch something grow.
One more thing about SLV and trading in general. There are a lot of very large individuals and funds that have substantial holdings of "paper" gold and silver. Many of these large funds got that way by doing their homework. The have the money and the staff to physically go to these vaults and verify that their investments are sound. Jim Puplava did some reporting on this topic last year. (Financial Sense)
But, from a traders point of view. And in particular from a tape reading traders point of view, because that is what I am good at, let me tell you. If it makes the news that any of these funds is fraudulent, you will be the last to know. The big money will have figured it out long before, and sold their shares to you or some other "bug". If the big money finds out that the ETF's do not actually hold the physical, they will start to sell shares, and the spread between paper and physical will diverge. This will be my signal to sell the paper. A sustained decline in price with volume is always my clue to sell or reduce my position. I always avoid a big loss. The trend will change long before the news comes out. This is a fact of the markets.
The shrill nature of the posts here does give me some pause as to the nearness of a top. I was around in the early '80s and saw that top. There are some similarities to today.
But, I resist the urge to pick tops, or bottoms, and I make money because of that. And I bought my physical a couple of years ago, so now I just sit tight and watch the nervous nellies who are yelling about the market......
know yourself,
gh
Oh, you mean like the "big money" that was boosting the DOW to 14,000+ in late 2007, just before everything started going into the dumpster? Like those traders?
Or maybe you mean the "big money" that continued buying and holding Enron even in the face of the many fraud accusations against them? Like those traders?
Or maybe you mean the "big money" that was NOT selling Bear Stearns right up to its spectacular crash in March 2008. Like those traders?
Or maybe you mean the "big money" who are STILL buying bonds in the face of the most overbought bull(shit) market in history? Like those traders?
You can continue to have your naive and misplaced faith in the "perfect market" hypothesis --- I will stick to objective facts, recognized corruption and fraud, and reality, thank you.
Anyone here have 5 billion to spare? If so, you can buy all the available silver left on the planet.
do you not understand that silver IS money!?
Well said silveristhenew.
I can honestly say I do not know anyone that understands Gold or Silver and the role of PM's as monetary metals.
Its very sad really. Check out an old 'Blast from the past'
http://www.youtube.com/watch?v=IfniG-AdSC4
Hey check out the Royal Canaian Mint (RCM)
They are advertising a 20 dollar .9999 silver coin for a $20 dollar fiat bill
The coin only ways 7.8 grams or so.
And they put a 20 dollar face value on it....
Yea haw..... some one thinks silver is going up...
"The coin only ways 7.8 grams..."
HOT DAMN!
WHAT A DEAL!
Got to go gets mines before they runs outa that thar BarGain delux $20 coins!
Buy these little babies at damn near abouts $100/oz. silver content...
Wait... maybes I should gets me a couple of dem 1oz. Maples instead ???
Red alert......
Goggle up... RCM $20 fiat for $20 dollar silver coin .9999
ZH has far too many greedy lil' fecks that have not been in PMs long enough to feel the pain from the hedge funds unwinding.
When will you figure out that the funds are the ones that are running the silver price? If some mixed strategy fund gets nervous in a Bernanke Put strategy, it will dump silver in a heartbeat.
Go ahead with your silly notions on how you will buy an acre of good bottom land for an ounce of silver. The folks with fifty ounces of silver are the ones with the most silly expectations. ZH has been overrun by the true believers that will get skinned at these prices. In the very long term $30.70 silver could possibly get some appreciation in nominal dollars. I doubt that argentum will ever buy as much as what it did in late 2010, or even now.
Help me out guys. What if you buy xagusd? For example on an Oanda account. Is that different from buying SLV?
I know a smith in Geneva (met at "Salon des arts martiaux" 2010), I want him to forge a silver sword (saber / scimitar) for me...
I have some ideas for the ornamentation (themes around Blythe, Bernank, JP morgue) but need some artwork. Some artist interested? I would pay... in silver rounds!
contact: overflow_84 (at) hotmail (dot) com
Central banks hold in reserve gold as an asset. They hold treasuries and other less savory financial instruments of mass deduction, as assets as well. When you look at their balance sheets, one can observe an exponential rise in paper assets, that they can create to infinity. The old barbarous relic is a little more difficult to acquire, making it rarer in comparison. One doesn't need a 5 year degree in commerce to see which asset becomes inversely proportionally less valuable, when measured in the world of supply and demand theory.
I sold silver short I bought gold long and then I mixed the two with my tea and it went bang in my face. I sued the supplier of tea who sued the seller of gold who sued the seller of silver who sued the buyer of all three. It all came back to rest on my sad face. There was no ace in the hole except the spent leaves in the tea bowl.
PM's - very useful copper-silver ionization and no doubt filters good for cleaning water. I see many here on zh expect massive erosion, pollution, and bacterial effects. Chlorine will only do so much! And I'm sure gold is useful for something...possibly electronics to control the water purifiers? You'll also need to sell your lumps of Ag to makers of nuclear control rods, of course. And catalytic devices of all sorts.
Pardon the X! Entirely forgot the overwhelming need for more important pipes. Flutes, piccolos, saxophones and so forth. Let's assume these go without saying. (Would a hoarder of ingots build them into saxophone shape to better hide their value?)
All very wise...very wise...anticipating oceans rising and constant floods...and musical productions....riverboats?
very wise... (glances at levels of Europe's rivers.) Yes, we need silver...