This page has been archived and commenting is disabled.

Investors Pick Physical Gold Over ETFs In Q1; Comex Registered Silver Just Hit A Fresh All Time Low

Tyler Durden's picture




 

According to an update in gold demand trends released by the World Gold Council earlier, Q1 saw a divergence in purchasing intentions in the gold market as investors focused on physical and shunned paper instruments such as ETFs. Per the WGC: "Global gold demand in the first quarter of 2011 totalled 981.3 tonnes, up 11% year-on-year from 881.0 tonnes in the first quarter of 2010. In value terms, this translated to US$43.7bn, compared with US$31.4bn in the first quarter of 2010, an increase of almost 40%. This was largely attributable to a widespread rise in demand for bars and coins, supported by an improvement in jewellery demand in key markets. On the other hand, ETFs and similar products witnessed net outflows of 56 tonnes ($2.5bn). Redemptions were concentrated in January. Despite the outflows, the collective volume of gold held by global ETFs by the end of the quarter was in excess of 2,100 tonnes equating to more than $95bn. It is useful to realize that ever more investors see gold as not so much a speculative product, and merely as an intermediary between a fiat start and endpoint, but as a wholesale alternative to the fiat system. Obviously the best way to express this view is to focus on the physical market instead of the paper one (which as some investors in SLV have learned the hard way). And speaking of silver, a quick glance at today's Comex holdings update indicates that while total silver continues to flirt with the 100 million ounce total on the downside (hitting a record low yesterday at 100.5 million ounces), following yet another reclassification from Registered to Eligible silver at the Comex vault for a total of 496k ounces (or 6.3% of the vault total), true physical in the Comex just dropped to a new all time low of just 32.2 million ounces.

First, some more from the WGC:

Marcus Grubb, Managing Director, Investment at the World Gold Council commented:

“The resilience of gold during recent volatility in the commodities market exemplifies the strength of the global gold market and its unique demand drivers. High levels of investment demand across the world, strong demand in India and China, the continued strength of the technology sector together with central bank purchasing demonstrates gold’s diverse demand drivers. We anticipate continued strong demand during the rest of 2011.”

Albert Cheng, Managing Director, Far East at the World Gold Council commented:

“Chinese appetite for gold has increased rapidly over the past few years. In March 2010, we predicted that gold demand in China would double by 20201, however, we believe that this doubling may in fact be achieved sooner. Increasing prosperity in the world’s most populous country coupled with their high affinity for gold will serve to drive demand in the long-term. Near term inflationary expectations are likely to support the investment case for gold.”

  • Global gold demand in the first quarter of 2011 totalled 981.3 tonnes, up 11% year-on-year from 881.0 tonnes in the first quarter of 2010. In value terms, this translated to US$43.7bn, compared with US$31.4bn in the first quarter of 2010, an increase of almost 40%. This was largely attributable to a widespread rise in demand for bars and coins, supported by an improvement in jewellery demand in key markets.
  • The quarterly average gold price hit a new record of US$1,386.27/oz (London PM Fix), its eighth consecutive year-on-year increase. Despite a period of price consolidation in the early part of the quarter, it climbed to record highs throughout March and has continued to achieve new highs in April and May.
  • During the first quarter of the year, investment demand grew by 26% to 310.5 tonnes from 245.6 tonnes in the first quarter of 2010. In value terms, investment demand was US$13.8bn. The main growth came from bar and coin demand which increased by 52% year-on-year, to 366.4 tonnes. In value terms, this represented a near-doubling of demand to US$16.3bn from US$8.6bn in Q1 2010.
  • Central bank purchases jumped to 129 tonnes in the quarter, exceeding the combined total of net purchases during the first three quarters of 2010.
  • ETFs and similar products witnessed net outflows of 56 tonnes ($2.5bn). Redemptions were concentrated in January. Despite the outflows, the collective volume of gold held by global ETFs by the end of the quarter was in excess of 2,100 tonnes equating to more than $95bn.
  • Jewellery demand in the first quarter of 2011 registered a gain of 7% from year earlier levels of 521.3 tonnes to reach 556.9 tonnes. This equated to a record quarterly value of US$24.8bn. India and China, the two largest markets for gold jewellery, together accounted for 349.1 tonnes or 63% of the total, a value of US$16bn. China’s jewellery demand reached a new quarterly record of 142.9 tonnes ($6.4bn) up 21% from 118.2 tonnes in the first quarter of 2010.
  • Technology demand remained steady in the first quarter at 113.8 tonnes ($5.1bn). A revision to the fourth quarter figures now means that 2010 was the highest year on record for gold demand in electronics at 326.8 tonnes or $12.9bn.
  • In Q1 2011, gold supply declined by 4% year-on-year to 872.2 tonnes from 912.1 tonnes in the first quarter of 2010. This decline was due to a sharp increase in net purchasing by the official sector and a fall in the supply of recycled gold, which was down 6% on year-earlier levels to 347.5 tonnes from 369.3 tonnes in the first quarter of 2010. Mine production increased by 44 tonnes year-on-year, a growth rate of 7% from year earlier levels, with negligible net producer de-hedging.
  • Central bank purchases jumped to 129 tonnes in the quarter, exceeding the combined total of net purchases during the first three quarters of 2010.

And next, a quick glance at the Comex happenings, where the recent silver rout has done nothing at all to moderate the ongoing collapse in reigstered silver (and luckily we are not holding our breath until that predicted by some reverse reclass from Eligible to Registered silver occurs).

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 05/19/2011 - 21:33 | 1294147 Arrowflinger
Arrowflinger's picture

Darned. I wanted to buy silver at  $25 again.

Gonna have to make what I have accumulated do.

 

Thu, 05/19/2011 - 21:45 | 1294181 Quixotic_Not
Quixotic_Not's picture

Don't lose hope, there's probably gonna be a couple of very expensive pseudo-corrections still coming courtesy of the TBTF Banksters and their stooges Timmay &  Banana Bernank.

After the lies and rampant manipulation has petered out -- about the time .gov will be forced to hyper-inflated debt to keep with their check kiting scheme - then it'll be off to the races!

Don't think we'll hit $25, but $30 spot is a definate possibility...

Good luck finding some poor stooge desperate enough to sell his physical for less than a 20% commish!

Thu, 05/19/2011 - 22:24 | 1294286 JW n FL
JW n FL's picture

i will buy the whole way down.. the lower it goes! the more i buy!!

 

gold and silver!

Thu, 05/19/2011 - 22:41 | 1294327 Michael Victory
Michael Victory's picture

Stack it.

That's what T's doing. <flashback>

When he starts selling.. loogout.

 

Fri, 05/20/2011 - 09:50 | 1295166 f16hoser
f16hoser's picture

Concur. Many of my buddies are saying one more dip into the high 20's. Get your powder ready. If I see 28-30 I'm rolling-in HOT!

Thu, 05/19/2011 - 21:46 | 1294196 tmosley
tmosley's picture

There was never a chance you would be able to get silver at that price.  Paper, perhaps, but not real metal.

Thu, 05/19/2011 - 22:56 | 1294363 Diablo
Diablo's picture

why is that? because dealers will just jack up their premiums? or something else?

(im a noob, just asking)

 

Thu, 05/19/2011 - 23:10 | 1294406 tmosley
tmosley's picture

Physical demand remains.  If the paper price falls, premiums will either rise, or the dealers will fast run out of inventory, as we have seen even with this dip, which only took us back to March prices.

Thu, 05/19/2011 - 23:21 | 1294457 Diablo
Diablo's picture

tks. cheers.

 

Fri, 05/20/2011 - 02:45 | 1294746 Texas Gunslinger
Texas Gunslinger's picture

Sorry, but that's just nonsense! 

The only reason you're paying a premium is because it's easy for the retail coin stores to jack the small, naive, easily duped, retail investor for profit.  The "pitch" of imminent currency collapse, or death by inflation, or JP Morgue, or "price doesn't matter" are fantastic sales pitches and smokescreens to jack the dumb money for profit.  Let's be honest, paranoid doomers are great customers because they're the most emotional; emotion is the salesperson's best friend. When you see a huge difference between physical and paper, it means you're getting jacked.  

Even Sprott admitted yesterday (or day before?) on that Max Keiser interview posted on ZeroHedge that he could buy all the physical he wanted at spot price.  

Paper = physical, at least in terms of price for the real players in the silver market.  The highly jacked prices you're paying is a rip off, but you can't see that because you're so blinded by emotion. You are the quintessential example of an investor who is far too emotionally attached to his investments.    

The silver carnival barkers (which you seem to be the ring leader) have convinced everyone that premiums on physical are a result of distrust in paper.  That's RETARDED! You're paying premiums at your goofy coin store because you're so damn emotional about it, and the retail coin market knows this.

 

 

 

Fri, 05/20/2011 - 04:15 | 1294817 ffart
ffart's picture

Sprott was talking about "junk" silver bags. Which I have no idea why they aren't more popular. A $100 face bag of dimes would be way more tradeable than some 5oz american the beautiful coin.

Fri, 05/20/2011 - 06:01 | 1294859 Al Gorerhythm
Al Gorerhythm's picture

Weren't you on the other day saying that your two main mentors are your coin dealer and your hope dealer (pastor)? I thought that that was where you divided your time, unless he is one and the same person.

Can you ever make a post that is backed by researched analysis not just opinionated conjecture or assumptions? Your posts are a waste of time and argumentative jibes.

Edit: I can't recall Sprott saying that he could buy plenty of it at spot. From my take he said he had a hard time finding it. I am about to watch it again. 

Fri, 05/20/2011 - 12:15 | 1295721 ZapBranigan
ZapBranigan's picture

Don't waste your time AG, Tex Shitslinger is an epic failure.  Period.

He's just a reincarnated username of one of the fucktroll posse members, possibly Smailes or Hamy.  When he first showed-up, he acted all humble and bumpkin-like, exspousing the virtues of his coin-dealer and the Biiiiible Belt, (Bill Burr emphasis) but now, within weeks, he's a full-blown (no DSK emphasis) fucking expert on everything and a major paper-ophile. 

Two words: Uber Troll. 

Three more words: Immediate Junk Click.

Fri, 05/20/2011 - 06:19 | 1294873 smlbizman
smlbizman's picture

going to miss you after saturday...

Fri, 05/20/2011 - 07:00 | 1294889 tmosley
tmosley's picture

As if anyone believes you, or ever believed you, dog food troll boy.

You were an epic troll when you first got here, but you tried too hard, and now you are just a failure.  Too bad :(

Fri, 05/20/2011 - 07:33 | 1294914 Al Gorerhythm
Al Gorerhythm's picture

"Even Sprott admitted yesterday (or day before?) on that Max Keiser interview posted on ZeroHedge that he could buy all the physical he wanted at spot price."  

That is a huge mislead from you Tex. Your post is obviously antagonistic toward the retail investor. You claim that retail investors are being Jacked at the checkout because the nasty coin shop operator or bullion dealer is ripping investors off by charging a premium over spot spot. Can you please advise us where we can conveniently buy silver at spot?

Back to Mr. Sprott. Nowhere in that interview does he say that there are ample supplies at spot. It took him 6 weeks to get his silver and he stated elwhere that the silver was freshly poured, not a scratch on them. He was stating that his company can buy at spot. Nothing more.

Further more, he stated that he doesn't trust the numbers from the traditional (two) major suppliers of those supply figures. They are unreliable and poppycock. How can you trust numbers that show that supply meets exactly demand, year on year, down to the ounce? Silver is the only commodity on the planet that has had a ablance for years. Not one ounce over demand was mined!

Silver demand is a world wide phenomenon, encluding China and India and 2.5 million extra investors on the planet than the last bull.

Little guys don't move the market but they do save themselves from the mismanagement (if you could call it that) of fiat currencies.

This past price bust was about saving the short speculators. Micro managed to start the decline in after hours trading and then slam the price with 5 margin hikes.  

Ratio should be 16:1 using his research.

Describes using simple math that the Comex is overselling silver with paper promises to deliver. If 3% of traders demanded delivery, the Comex would default.

States clearly that there is simply not a surplus of silver.

 

His last statement was that new investors at the margin would exacerbate the SHORTAGE that we already have.

You either missed all of this other evidence or cherry-picked his statement that he could buy at spot and used it as the establishment of your rant (thesis).

I am not able to give you the benefit of the doubt over this as your previous post have been written in the same vein.

I call bullshit and confirm your tag of Troll.

 

Fri, 05/20/2011 - 08:13 | 1294967 tmosley
tmosley's picture

Good post, but one minor correction.  Little guys DO move the market.  The US Mint moves twice as much bullion as the COMEX each year, and that is just ONE mint.  All of that stuff is going to the "little guy", and for 100% cash.  Why is a product that moves at a rate that is TWICE that of the COMEX trading anywhere and everywhere for such a huge premium?

Why are retailers basically OUT of secondary market products?

The answer is simple--no one is selling.  If no-one is selling, then whence cometh the price decline?

Fri, 05/20/2011 - 11:25 | 1295529 Confuchius
Confuchius's picture

"Silver demand is a world wide phenomenon, encluding China and India and 2.5 million extra investors on the planet than the last bull."

 

We'd guess your investors number is too small by a factor of 1,000.

Fri, 05/20/2011 - 17:04 | 1296758 Al Gorerhythm
Al Gorerhythm's picture

Yup, should have read 2.5 billion. Thanks.

Fri, 05/20/2011 - 11:37 | 1295583 Confuchius
Confuchius's picture

"Silver demand is a world wide phenomenon, encluding China and India and 2.5 million extra investors on the planet than the last bull."

 

We'd guess your investors number is too small by a factor of 1,000.

Fri, 05/20/2011 - 11:58 | 1295690 lix333
lix333's picture

Im in the jewelry business and I can purchase silver or gold close to spot. It comes in raw form, tiny pellots. People out there are paying a premium to purchase gold or silver in coin form. If anyone is interested in buying silver or gold close to spot they should head to the closest jewelry district and look there. Casters are buying silver and gold and any raw metal at close to spot daily. 

Fri, 05/20/2011 - 12:04 | 1295709 akak
akak's picture

Yes, but you are only able to do that because you are not, and you CAN NOT, resell that silver or gold in that form --- it is unverifiable.  That is what the premium on a coin or well-known bar is, the price of verifiability (also the cost of fabrication as well).

Fri, 05/20/2011 - 12:28 | 1295824 lix333
lix333's picture

true and not so true. I can resell that silver and gold any time I want. Does it need to be assayed? yes, but the cost is minimal to do so. Much cheaper to do it this way then to purchase coins. It is against the law for any pawn shop or person that is "buying gold for dollars" to sell gold immediatly but they do it anyways. And, you can go into any "buying gold for dollars" shop and sell your gold or silver there, immediately.  Again all in the jewelry district. 

 

lix

Fri, 05/20/2011 - 12:34 | 1295848 lix333
lix333's picture

Also dealing with coins it sounds like you are vulnerable in price depending on the dealer you go to.  When dealing in raw form you buy and sell at spot +/- some fees that go with assaying. 

Fri, 05/20/2011 - 09:15 | 1295089 jpalm
jpalm's picture

Not trying to be sarcastic. I truly want to know where I can buy silver at spot. Please share the info with the rest of us. Thanks.

Fri, 05/20/2011 - 09:57 | 1295180 Citxmech
Citxmech's picture

Buy what at close to spot? There's a big difference in the premium between say 1k oz. bars and 1 oz. Maples.  Like most things - the more you buy - the better deal you get.

Also, the higher premium stuff is typically a little easier to move - which helps justify the price.

 

Fri, 05/20/2011 - 10:08 | 1295223 akak
akak's picture

Texas Gunslinger,

You were much more entertaining when you were pretending, just three weeks ago, to be an ignorant and semi-literate rube who couldn't find his "CAPS LOCK" key, and whose greatest financial concern was the rising price of dog food at Wal-Mart.

Thu, 05/19/2011 - 23:14 | 1294334 Bay of Pigs
Bay of Pigs's picture

That's just totally incorrect. Gold and silver have been rising and in a bull market since 2001 and QE began in 2008. Seven years later. Your argument holds no water. Real interest rates are negative and are not going up anytime soon. Epic fail in logic and with historical facts.

Move along sonny...

 

Thu, 05/19/2011 - 23:13 | 1294431 sgorem
sgorem's picture

the asshole just wants your retort. don't waste time replying to the trollster.......

Fri, 05/20/2011 - 09:20 | 1295094 Shock and Aweful
Shock and Aweful's picture

QE 2 may end...and there may not be any QE3 for a while....but the damage is already done.  We will still have alomost tripled the amount of money sloshing around the system in 3 years...and we still will have 0% or negative real interest rates...and the last time I checked, these are the exact conditions that force precious metals to go higher.

If the price of metals is completely dependent on the QE programs...then why did gold move from $280.00 an ounce in 2001 up to $900 an ounce in 2008....before any of the QE bullshit?  Why did silver go from $4.00 to $20.00 before the crash in the fall of 2008...before the massive money printing and zero interest rates?

 

 

If you are so sure that the prices are completely corelated to the QE programs...then why not predict that it will be a 75% wipeout...or a 90% wipeout....remember..."it only takes $5.00 to dig it out of the ground - and you can't even eat it"

Come on....if you are gonna be a troll...at least be one with some hairy troll balls....

 

I personally think your full of shit...and you don't know what the fuck you're talking about....so, please do us all a favor and troll elsewhere.

 

Or....How about this....if we don't get the "big wipeout" in 1-3 months as you predict...you go away and don't come back?

 

Thu, 05/19/2011 - 21:35 | 1294162 Tyler Durden
Tyler Durden's picture

Reading a post is recommended before engaging in copying and pasting

Thu, 05/19/2011 - 21:43 | 1294184 FOC 1183
FOC 1183's picture

Apparently not when you're Spalding Smailes. But, it's okay, he'll "have nothing and like it."

Thu, 05/19/2011 - 23:43 | 1294511 akak
akak's picture

This Spalding just HAS to be a psyops bot --- his every post consists of a non sequitur one-liner , followed by a barely or mostly irrelevant, but invariably anti-precious metals, cut-and-paste quote.  This is NOT the pattern of a real poster, much less an honest one.

Thu, 05/19/2011 - 23:42 | 1294489 tickhound
tickhound's picture

Book it boy!  Welcome back... So a re-copy re-paste?

You still holding to your $1150 top in gold?  Or your 1250?  Or is it your $1350 BOOK IT top?

There's a "back in the day" Gaddafi "Line of Death" desperate feel to your posts.... "Ok, if you cross this line, you're f'd... Ok, I see you crossed, I draw new line now... Ok, new line... Oh, now you rrrrreawy in twouble."

Still waiting for your BAC BOOK IT rocketship to do anything. 

You're pure fluff.

Thu, 05/19/2011 - 22:40 | 1294329 mr66
mr66's picture

So what!

Thu, 05/19/2011 - 22:59 | 1294373 Chuck Walla
Chuck Walla's picture

Anyway, Soros is a well known liar, which, being one yourself, I would think you would acknowledge some professional courtesy.

Fri, 05/20/2011 - 01:25 | 1294691 Urban Redneck
Urban Redneck's picture

What has been Soros doing in Africa recently?  Trying to get gold access cheap or get oil access cheap or help the poor people?

Fri, 05/20/2011 - 12:16 | 1295767 ZapBranigan
ZapBranigan's picture

No, he's getting his 'DSK-On'.  Soros hates competition.

Thu, 05/19/2011 - 23:20 | 1294450 sgorem
sgorem's picture

"According to recent reports, the legendary hedge fund manager sold nearly $800 million worth of the yellow metal in the first quarter of 2011, representing a huge reversal in sentiment on gold."

listen dildo for brains, WE invest in, read my lips, PHYSICAL GOLD & SILVER. WE do not worry about ass wipe paper iou's. AND! If ole George did sell $800 million worth of his holdings in the first quarter, JUST WHO WAS ON THE OTHER SIDE OF THE TRADE? SEEMS SOMEONE SPENT $800 MILLION TO, READ MY LIPS AGAIN, BUY IT! 

Fri, 05/20/2011 - 10:01 | 1295189 Citxmech
Citxmech's picture

No shit - and certainly didn't see any corresponding collapse in price in that timeframe either.

Thu, 05/19/2011 - 21:54 | 1294241 Robslob
Robslob's picture

LMAO

Thu, 05/19/2011 - 22:05 | 1294262 Quixotic_Not
Quixotic_Not's picture

Junk it up like a tonka truck!

Thu, 05/19/2011 - 22:40 | 1294324 adeptish
adeptish's picture

A dot from you gets more junks than 99% of us have ever had...

Could you be more of a clueless wanker?

Thu, 05/19/2011 - 21:49 | 1294212 Turd Ferguson
Turd Ferguson's picture

"Next, a quick glance at the Comex happenings, where the recent silver rout has done nothing at all to moderate the ongoing collapse in reigstered silver."

"Following yet another reclassification from Registered to Eligible silver at the Comex vault for a total of 496k ounces (or 6.3% of the vault total), true physical in the Comex just dropped to a new all time low of just 32.2 million ounces."

32,200,000 divided by 5,000 = 6,440

This is all anyone needs to know as we head into June.

Thu, 05/19/2011 - 21:56 | 1294222 Quixotic_Not
Quixotic_Not's picture

Did someone just drop a turd in the punchbowl?

Thu, 05/19/2011 - 21:58 | 1294248 Spalding_Smailes
Spalding_Smailes's picture


Just borrow more fiat and more gold a cometh ....

 

CARACAS -(Dow Jones)- CVG Minerven, Venezuela's state-run gold miner, is asking the government for 300 million bolivars ($70 million) to boost production after a significant decline in output last year.

The request is the latest sign of the country's struggling mining industry that has been hit by low investment, worker strikes and illegal smuggling of the South American country's vast supply of precious metals.

Luis Herrera, president of Minerven, said the funds are needed in the short term just to bring annual gold production back to its target of 4 metric tons after the company produced only 1.7 tons last year. Minerven would need around $ 300 million to upgrade its facilities and bring output to 8 tons a year, Herrera said.

"We are in conversations with the Central Bank of Venezuela to activate the operations because it has been difficult to get financing through private and public banks," he said in comments published by state-run newspaper Correo del Orinoco.

Thu, 05/19/2011 - 22:39 | 1294323 JW n FL
JW n FL's picture
by Spalding_Smailes
on Thu, 05/19/2011 - 21:58
#1294248

 

 

Just borrow more fiat and more gold a cometh ....

 

****************************************************************

 

http://www.youtube.com/watch?v=o3mW1eGBeoE&feature=player_embedded

Thu, 05/19/2011 - 21:47 | 1294217 Strike Back
Strike Back's picture

That second chart is astounding. 

Thu, 05/19/2011 - 21:54 | 1294233 Ecoman11
Ecoman11's picture

To put that into prospective--US Mint has sold more then half (17,425,500oz) of registered Comex silver inventory in 2011 (YTD).

Courtesy of silverwatchdog on twtiter. http://i52.tinypic.com/25zs2ns.png

Thu, 05/19/2011 - 22:07 | 1294258 cowdiddly
cowdiddly's picture

And to put that in perspective the law states that ASEs must meet demand and be produced from domestic silver. US silver production is only about 38mil ounces. The entire US mine production could quite possibly go to just producing ASEs at this rate. Hence the holdup.

Thu, 05/19/2011 - 22:05 | 1294261 tmosley
tmosley's picture

This is only partly correct.  They must source from American silver FIRST.  Afterwards, they can buy abroad.  And they have been, en masse, from Australia.

Thu, 05/19/2011 - 22:18 | 1294272 cowdiddly
cowdiddly's picture

O. I. C.  I did not know the last part. I have read a story yesterday where the Austrailian Mint is spending a bunch on machinery upgrades to meet increased demand. Makes sense now. Next countrys production up, we might like a few bars with the ASEs. 

Thu, 05/19/2011 - 21:55 | 1294238 Manthong
Thu, 05/19/2011 - 22:06 | 1294253 Ecoman11
Ecoman11's picture

This chart is a must see and shows concentrated sales in Nov-Dec-Jan (US Mint) 1990-2011. What will they do this year?

http://i53.tinypic.com/3494aya.png

Thu, 05/19/2011 - 23:00 | 1294374 Quixotic_Not
Quixotic_Not's picture

See that spike in mid-2002?

That was me  ;-)

Thu, 05/19/2011 - 22:57 | 1294260 Quixotic_Not
Quixotic_Not's picture

Just wait until Timmay and Banana Ben have to kite checks to pay for the Obamessiah's wars!

Can you say *GAME OVER*?

I knew you could...

Thu, 05/19/2011 - 22:20 | 1294275 bob_dabolina
bob_dabolina's picture

Ha. 

Ha. 

What's the endgame here? 

Silver is cool and everything but where are we going with it? All fiat collapses and a new currency comes about.... What's the endgame for silver? You're gona' end up exchanging it for a new currency right? 

Realistically, we're not paying for our cable/internet bill with silver....so where is this going?

If people really think we're going back to a barter style of trade than wouldn't guns/bullets be the best investment? I mean...the man with the bullets is gona' get the silver. 

Why isn't ZH pushing Smith And Wesson Stock? 

Thu, 05/19/2011 - 22:25 | 1294289 FastBoat
FastBoat's picture

You know it's Beans, Bullion and Bullets.

On a side note, wouldn't you trade paper for metal to hold value so that you could at least have some of the new paper?  As opposed to, I don't know, Weimar wallpaper...

Thu, 05/19/2011 - 22:43 | 1294318 bob_dabolina
bob_dabolina's picture

Are you assuming a new currency is based on silver? 

What about commodities that people use on a daily basis? Don't you think those things retain value regardless?

Thu, 05/19/2011 - 23:00 | 1294381 Chuck Walla
Chuck Walla's picture

Gee, silver is an industrial metal, necessary for solar power no less. I guess there will be a market for it after all.

Fri, 05/20/2011 - 07:49 | 1294932 Long-John-Silver
Long-John-Silver's picture

20 grams each solar cell or 2/3 a troy ounce. It adds up quick and is one of the reasons this the government wants to keep Silver prices down. Silver at $50 kills Solar panels as a viable power option.

Fri, 05/20/2011 - 00:37 | 1294618 Toxicosis
Toxicosis's picture

No, the new currencies are gold and silver.

Fri, 05/20/2011 - 00:48 | 1294641 TrueStrengthTur...
TrueStrengthTurnsTheCheek's picture

eh you could say that...Its more accurate to say that Gold and Silver have always been MONEY which is different then a currency because they are also a store of value.

Thu, 05/19/2011 - 22:27 | 1294295 tmosley
tmosley's picture

Yeah, what kind of an idiot buys universal money in an economic collapse?

Guns and bullets aren't currency, and never have been.

Thu, 05/19/2011 - 22:39 | 1294321 bob_dabolina
bob_dabolina's picture

No they aren't. 

But guess what tmosely? 

If it came down to you throwing silver coins at me while I have a .45...who's gonna end up with the silver?

Thu, 05/19/2011 - 22:45 | 1294333 tmosley
tmosley's picture

That attitude WILL get you killed very quickly.

Also, you agenda is showing.  AGAIN.

"Don't buy silver, people will just steal it from you!"

Thu, 05/19/2011 - 22:54 | 1294349 bob_dabolina
bob_dabolina's picture

Silver will surely go to $60 in two weeks.

Everyone should buy as much as possible today.

-tmosely (whom doesn't have an agenda) 

 

Thu, 05/19/2011 - 22:51 | 1294356 tmosley
tmosley's picture

And there's the other half of your agenda--discredit any and all silver bulls by any means necessary (including lies), ESPECIALLY those who quickly detect trolls.

You can sleep well knowing you have done your job to the fullest extent of your meager abilities.

Thu, 05/19/2011 - 22:56 | 1294364 bob_dabolina
bob_dabolina's picture

You've discredited yourself enough. 

I'll give you the last word, as I am not engaging in your trivial diarrhea tonight. 

Thu, 05/19/2011 - 23:00 | 1294384 JW n FL
JW n FL's picture

the last time this Country killed the FED and went back to a PM standard.. was?

http://en.wikipedia.org/wiki/Executive_Order_11110

silver was the standard..

Thu, 05/19/2011 - 23:10 | 1294409 dark pools of soros
dark pools of soros's picture

there were some great speaches that went along with that... but now look at those forces..  using US military to clear out desert so JPM can mine in afghan and not for any american interests... just international bankers and business...  they can drop the US economy any time they feel like it and move on to other suckers

 

Thu, 05/19/2011 - 23:31 | 1294476 Bay of Pigs
Bay of Pigs's picture

JW,

I noticed wikipedia went out of its way to include a "conspiracy theory" section to discredit anyone who tried to connect that Executive Order to JFK's murder. 

 

Fri, 05/20/2011 - 01:18 | 1294682 JW n FL
JW n FL's picture

Look... a controled blast.. is a controled blast.. I am not, NOT! and engineer! but 1,000+++++++++++++++++++++++++++++ have agreed with me and I did not, NOT stay at a Hoiliday inn express last nite!

 

as well would be true with the lone gun man.. Now I know what a 6.5 is all about.. and it is a superior round.. to say the least.. 1,000 yards all day every day.. in wind.. but.. when you shoot someone from behind.. they go forward.. not front to back and side to side.. its not a dance.

 

Physics.. save the spin.. the science does not pencil out for anyone with a brain.

 

so, if wiki wants to pull the wool over the sheeps eyes.. thats what they will have to live with..

 

say it enough times and it becomes truth.. kind of thing.

Thu, 05/19/2011 - 23:04 | 1294386 Chuck Walla
Chuck Walla's picture

Good Gawd, this is like watching two faggots slap at each other.

Thu, 05/19/2011 - 23:06 | 1294393 Quixotic_Not
Quixotic_Not's picture

Sounds like you got a chubby just a watchin'...

Thu, 05/19/2011 - 23:22 | 1294433 Clay Hill
Clay Hill's picture

Is that a look of disgust, or guilty fascination on Chuck's face... can't tell.

Thu, 05/19/2011 - 23:08 | 1294415 tmosley
tmosley's picture

And yet you are.  And you keep yapping.

Leave Zero Hedge, and you'll never have to see me again.

Fri, 05/20/2011 - 10:20 | 1295264 Calculated_Risk
Calculated_Risk's picture

He's a .gov troll, theft is their way of life.

Thu, 05/19/2011 - 23:08 | 1294412 Creed
Creed's picture

wrong

bullets are accepted for bus fare in Brazil

by tmosley
on Thu, 05/19/2011 - 22:27
#1294295

Guns and bullets aren't currency, and never have been.

Thu, 05/19/2011 - 23:11 | 1294423 tmosley
tmosley's picture

And empty tubes of toothpaste are used to pay for antacid in Azerbaijan.

Show me some proof, rather than just random anecdotes of questionable veracity.

Fri, 05/20/2011 - 01:16 | 1294685 JW n FL
JW n FL's picture
by Creed
on Thu, 05/19/2011 - 23:08
#1294412

 

wrong

bullets are accepted for bus fare in Brazil

**************************************************************

they only allow 38 cal variants.. just up to a 9mm now / lately (last couple maybe few years)... or someone can correct me.

Thu, 05/19/2011 - 22:25 | 1294296 goldsaver
goldsaver's picture

Only until he meets the man with silver AND BULLETS.

Thu, 05/19/2011 - 23:28 | 1294466 Manthong
Manthong's picture

I'm hedging my bets.

It's Beans, Beam, Buds, Bud, Bullion and Bullets.

Bring it on.

Fri, 05/20/2011 - 00:51 | 1294643 TrueStrengthTur...
TrueStrengthTurnsTheCheek's picture

+1

Fri, 05/20/2011 - 08:45 | 1295025 Truffle_Shuffle
Truffle_Shuffle's picture

+420

Thu, 05/19/2011 - 22:25 | 1294300 Hephasteus
Hephasteus's picture

For the US. Someone will probably shove a nuke up our california hole before long. So get your junks in on robo while you still can.

Economic

    Massive blue collar strikes
    Relocation of key factories overseas
    Extended import-export embargoes/taxations
    Widespread factory shutdowns
    Excessive taxation
    Small business failures
    Insolvency of many banks
    Stock market misdealings/decline
    Drastic construction decline
    Devaluation of real estate
    Increase in corporate crime
    Drop in level of manufactured goods
    Increase of corporate monopolies/takeovers
    Increase in personal bankruptcies
    Widespread layoffs
    Cash as only accepted tender

Natural Disasters

    Major devastation in California
    Earthquakes in new areas
    Inactive craters become unsettled
    Mountains become unstable
    Return of the dust bowl
    Record-breaking flooding
    Tornadoes increase intensity and occasion
    Liquefaction of soil beneath faults
    Intensified hurricane devastation
    Freak wind gusts/accidents
    Soil erosion
    Increased radon levels
    Insect infestation
    Sink holes
    Rapid temperature inversions
    Unusually frigid winters/deadly blizzards
    Seeping natural gas (fires/explosions)
    Widespread surface blazes
    Major quake of the New Madrid Fault
    Greenish hue to atmosphere
    Higher pollution levels

Transportation Accidents

    Plane crashes increase
    Shipping disasters increase
    Higher incidents of train derailments/accidents

Freak Deaths and Accidents

    Amusement park disasters
    Increase in homicide/suicide
    Freak household accidents
    Disease outbreaks
    Several catastrophic propane explosions
    Germ Warfare release accident Gulf War Illness?

Discord Amng Nations

    Grave economic differences
    Arms escalation
    Terrorism increases
    Undeclared wars
    Clandestine dealings between countries
    High-level secrecy

Spiritual Unrest and Awakening

    Questioning masses
    Political church actions
    Government interventions
    Repression from certain religious sects
    Increased UFO sightings
    Interaction with other intelligences
    Acceptance of the paranormal and the afterlife
    Religious sects going to court to force their restrictions on all

Nuclear Incidents

    Several close meltdowns/leaks
    Seeping radioactive dump sites
    Two catastrophic meltdowns One to go.
    Radioactive pollution of land/rivers
    Major accidents of trucks carrying nuclear missiles/radioactive waste
    Radioactive releases caused by geological instability

Civil Unrest

    Resistance movements
    Draft evasion
    Public's discovery of coverups
    Nuclear exchange

Massive Revolts and Government Turnaround

    Taxation refusals
    War resistance
    Policy disagreements within government
    Major upheaval within governments

     

     

Thu, 05/19/2011 - 23:25 | 1294463 plata pura
plata pura's picture

and cats killin dogs and shit too. you knows the last rider be in the saddle when a tom cat just walks up to a game tested heinzl dog and foks um up.

Fri, 05/20/2011 - 01:43 | 1294709 Americant Expat
Americant Expat's picture

Errrrr...nice list...I mean not so nice list or nice list of not so nice things. Anyway, well done!

Thu, 05/19/2011 - 22:33 | 1294311 Korrath
Korrath's picture

Preservation of wealth that can't be destroyed passively through inflation?  Here's the thing about our economy from my perspective; as long as the Fed exists, so does fiat and fractional reserve banking.  That system can only survive by expanding debt.  By default, in the long run, we always go back to an inflationary path.

 

I'm currently holding physical gold and silver in PM stored away in case of a SHTF scenario.  I also intend to do some buying in PHYS and PSLV when QE3 is actually announced so that I have part of my wealth which will be more easily transferable into whatever currency I need, if and when the time comes to make a major purchase.  Such as land, commercial real estate, low yield, tactical nuke, cybernetic upgrades, etc. etc.

 

Gotta be like a carpentar building stairs, keep thinking two steps ahead...

Thu, 05/19/2011 - 22:35 | 1294315 dark pools of soros
dark pools of soros's picture

at the very least - if hyperinflation comes, you can trade half away on the upswing for actual things you like since many might trade great items to get some PMs..

  It is a store of value.  Fixed items like a mortgage are great to pay off with PMs during hyperinflation..  not so much bread since that will fly high too

 

Thu, 05/19/2011 - 23:15 | 1294438 plata pura
plata pura's picture

A paper currency back'd by the precious and gold too, be in the wind. However that ideology has short legs as far as the precious; maybe a gold/copper back'd currency. The element ag is going to be way to precious once it's intente by Providence becomes knowledge and it's highest and best use is utilized as it becomes extinct in the crust.

Thu, 05/19/2011 - 23:24 | 1294458 Clay Hill
Clay Hill's picture

Are you referring to medical usage?

I'm going to try my hand at making colloidal this weekend.

Fri, 05/20/2011 - 00:09 | 1294578 gwar5
gwar5's picture

Glad to see someone is keeping up on the physical vs paper decoupling of PMs. Looks like it continues to be underway.

Via GATA: Hugo Salinas Price thinks a one ounce silver coin can realistically, and relatively easily, be remonetized and circulated this year or next in Mexico with the Libertad. The central bank's set price will be able to go up, but not down, despite drops in spot silver price if the rules are adopted as anticipated. There is much support for it by Mexican pols since there is much anxiety south of the border concerning the loco gringos Norte de la frontera. 

Fri, 05/20/2011 - 00:44 | 1294629 Al Gorerhythm
Al Gorerhythm's picture

Libertads for the Libertarians (who get it). Paper currencies for the Libertards (who don't).

Fri, 05/20/2011 - 00:55 | 1294651 TrueStrengthTur...
TrueStrengthTurnsTheCheek's picture

FREEEEDOOOOMM!!! I feel like mel gibson, but have the mindset of G Edward Griffin. freedom force international kicks ass.

Fri, 05/20/2011 - 01:12 | 1294673 PulauHantu29
PulauHantu29's picture

Yadah, yadah, yadah.....I remember the scare out of GLD tactics back in late 2008 when the etf GLD dropped to 69.9 and scare mongers yelled,"you must buy physical...GLD will crash."

The fact is I bought GLD at that low point of 69.9 and have very well, thank you.

Fri, 05/20/2011 - 05:18 | 1294844 suckerfishzilla
suckerfishzilla's picture

Those last 32 million ounces will take 23 months to trick the banksters out of.  They had 88 million ounces in 08.  Unless that is just 3% of OI contracts stand for deliery in July.  Well I'm not going to hold my breath for that one either. 

Fri, 05/20/2011 - 06:10 | 1294864 aeiou260199038
aeiou260199038's picture

I found the writing to be genuinely funny batterie several of the actors to be engaging and I enjoyed the show’s offbeat style.

Fri, 05/20/2011 - 07:16 | 1294902 overmedicatedun...
overmedicatedundersexed's picture

the silver itch is on..as long as the economic team USA is seen as generic liers and corrupt bankers..all who have faith in FRN's are not looking at the problem of debt and corrupt markets, but living in the normalcy bias of "those in charge are competent and honest men"

when the rule of law is returned to the land then the need to protect one's wealth from confiscation thru monetary policies will remove the silver/gold itch.

 

Fri, 05/20/2011 - 08:43 | 1294969 Monedas
Monedas's picture

During the Hunt Bros. collapse Gold and Pt collapsed too ! This is soooo different this time ! We're down to the short strokes.....enjoy 'em ! Monedas 2011 Arkadi Ostrovski wrote a song titled "I am so happy to finally be back home !" around 1966 . It was about an American cowboy returning to his old Kentucky home to find his loving wife knitting wool socks for him in her rocking chair on the porch ! The Soviet censors were not fooled by Arkadi's shameless attempt to reach out to his American brothers and they deleted the lyrics ! I propose we adopt Eduard Khil's 1966 recording of this song as the Silver Liberation Army's battle hymn ! Enjoy, my little bitchez ! http://trololololololololololo.com/ PS Look at the wall paper ! It is possibly an artistic interpretation of the Russian two headed eagle ? The censors missed that one !

Fri, 05/20/2011 - 08:16 | 1294975 SilverDoctors
SilverDoctors's picture

32,189,189 to be exact.  July should be entertaining to say the least!

http://www.silverdoctors.com/

Fri, 05/20/2011 - 09:09 | 1295073 waldocktrades
waldocktrades's picture

The fall in silver is due to the collective sentiment of ETF investors. The effect of ETF's & CIT's has overwhelmed the commodity futures markets. Blame is incorrectly placed on the small speculators. You can see the second part of this article here.

http://blog.commodityandderivativeadv.com/2011/05/20/cause-of-commodity-...

Fri, 05/20/2011 - 10:04 | 1295198 Reptil
Reptil's picture

another raid going on right now

BTFD

Fri, 05/20/2011 - 10:47 | 1295359 chopper read
chopper read's picture

IN REVIEW: The COMEX has multiple 'margin hikes' on silver futures days before the 'Bin Laden bounce' in the $USD. Silver futures then remain mysteriously below the previously magical $36 level. Meanwhile, "...true physical (silver) in the Comex (vault) just dropped to a NEW ALL TIME LOW of just 32.2 million ounces." ...ALL IN ACCORDANCE WITH THE LAWS OF SHENANIGANS AND DEMAND.

FLASHBACK - March 22, 2011: "But what is not known is that due to the way that its derivatives are written, JPM's losses are exponentional once silver breaks $36 or so. Rumors has it that JPM could be losing as much as $40 billion once silver is above $50. It has something to do with how the derivatives are written with payment tied to the price of silver."

http://goldharvest.blogspot.com/2011/03/is-that-bull-trap.html

 

STAND FOR DELIVERY!  :)

Fri, 05/20/2011 - 21:19 | 1297220 Think Abroad
Think Abroad's picture

I wonder how fast it will take the JP Mortuary to have a ZERO total balance?  I can't wait!  It's all about the PHYSICAL SILVER...!!!

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