Scotia-Mocatta Sells Out Of 1 Kilo Silver Bars

Tyler Durden's picture

It seems that not a day passes by without some major dealer running out of a precious metal in inventory. Last Thursday when we presented the most recent inventory at Scotia Mocatta (alongside the ongoing firesale at the US Mint where incidentally total silver sales in January are now at a fresh all time record 4,724,000 ounces), one of the ten market-making members of the London Bullion Market Association and one of only 5 banks to participate in the London gold fixing, we indicated that of all silver bar related products, the bank only had the 1kg Valcambi silver bar, that was listed 3 weeks ago, in stock. As of today, this object is no longer in inventory even at the unit price of CAD$980.11. Reader S. presents the two logical alternative for what is happening: "This can only conclude two things: 1. They purchased a limited amount (due to low supplies) and was sold off quickly. 2. They purchased a large amount and was sold off due to major purchases." Alternatively, the bank now has the 100 oz silver bar back in stock. We will keep tabs on how long before this also becomes "sold out." Our question is whether the ongoing shortage at most dealers, despite the so-called drubbing in PM prices, is nothing but definitive evidence that just like in stocks, precious metal investors are merely using every drop in prices as nothing more than a chance to "buy the fucking (fisical) dip"?

Compare Scotia-Mocatta eStore inventory as of January 18...

And as of today.

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Turd Ferguson's picture

Yes, by all means, sell all your silver and your silver mining shares. It is in a bubble.

sarc <on>

goldmiddelfinger's picture

They sold out of bulllion, not shares turdy for the purdy. Will you turd, fight Bernake when he turns off QE?

Quintus's picture

'When he turns off QE'? That's funny. The day Ben stops buying $75 billion of treasury debt each month at ludicrous yields I'll step in and buy it myself. Hell, nobody else will.

I think my money's safe though. QE will continue because it must. There's no other way to fund Trillion dollar deficits in perpetuity.

Malcolm Tucker's picture


Algeria might be the next domino to fall because of Bernanke and company. Here are videos of the riots and even the hacking group Anonymous is getting in on the action!

http://fedupmontrealer.blogspot.com/2011/01/algeria-next.html

Bob Sponge's picture

....until the world abandons the dollar and all the dollars held in foreign banks come back to the US resulting in hyperfuckingcrazyinflation.

Campagnolo's picture

that's why the Turd is right about focus primarily on dollar behavior and fundamentals...in the meantime "they" can manipulate gold and silver all they want..until countries start selling dollars, which, from the chart I can see is happening right now.

johnnymustardseed's picture

They will not be able to turn off QE, they are going to have to bail out states and the muni market next.

downwiththebanks's picture

You mean, of course, paying off the states bailed out creditors.

The people get screwed either way.  

satansanus's picture

the muni mess was cleaned up quietly already,

not dragged through idiotic ravings of hank paulson and ben bernanke like the stock market crash,

munis will not and did not destroy the economy.

There are invisible elephants who love the USA

walküre's picture

cleaned up?

what are you smoking?

ZEITGEIST's picture

will you go live with Johhny Bravo once you realize what a moron you are ???? Lots of room left in the trailer park....with food stamps to go..yes..the Russians and Chinese are buying...because ????? They believe in the jewelry market..stupidity like yours is hard to come by.......

fiddler_on_the_roof's picture

During 2004 to 2007, even when FED raised rates Gold went up , actually doubled because monetary base was still expanding then.

I think I need to buy a gun's picture

yeah and volcker had to raise rates 18 fold finally to tame the lion. Its coming i can feel it. Whether they front run everyone and do it overnight or let the markets take care of business.

JonNadler's picture

32 junks for Middlefinger LOL

 

Jamie will not be pleased about this

Hephasteus's picture

33 junks. I think his performance review is going to be problematic.

Math Man's picture

If you had a business, and the product you were selling was falling in price every day, would you buy more inventory?

I woudn't.  I'd tell people there was a 'shortage' and wait until the price stabalized before restocking.

Bigger Dickus's picture

They are hedged. Got it? Hedged!

Their business does not work the way you think.

Math Man's picture

You mean they've been shorting?

This is an interesting dilema.  Either:

A) PM dealer's are not buying inventory and inventing a 'shortage'

or

B) PM dealer's are manipulating the price lower by shorting

or

C) both

Bigger Dickus's picture

For every kilo of silver in inventory, they are short a kilo in the paper market. Their profit is the spread. It's as simple as that.

h3m1ngw4y's picture

i think its futile he doesnt get the idea. lucky he isnt a bullion dealer, he would be long bancrupt leaving a lot of distressed buyers ;-)

i think someone there has done his "math"

SheepDog-One's picture

But the price for delivery of physical is hardly dropping at all, paper silver is though. Numbers on a screen are 1 thing, go in and buy that silver and see what the price really is.

GoinFawr's picture

You'd better not be implying retail is a more realistic price discovery mechanism... Bite your tongue sir!

Spalding_Smailes's picture

Turd,

 

Stopped by the blog today.

So you now use the heavy hand of censorship if someone brings up your on again off again love affair with charts. Use them only if they support your thesis.

The guy was calling a top using charts geez' ....And you went off on him for posting links to his blog- But you posted your blog link 100 times now on ZH and I bet other " high traffic " blog's -

 

If gold breaks 1,320 its " lights out "... Not much support after that.

JLee2027's picture

It's Turd's blog, and his house and rules....is there an issue with this?

My house has rules too...don't come in and shit on the floor that I clean.

Spalding_Smailes's picture

I guess Turd should be happy Tyler does not run ZH like his blog ....

After hundreds of blog spams ............geez'

JLee2027's picture

Oh come on. His house, his rules. What about that don't you understand? You have no say in the matter.

Idiot Savant's picture

Don't worry, Turd is going to banish himself. If gold isn't at $1600.00 by 6/15/11, he will leave ZH forever, never to return.  (his call)

Hephasteus's picture

Oh im postive it will break 1320 and probably run down to 1288. I mean when you get desperate you gotta go all in. Full retard.

Comex is busted. Just like the other london gold pool that preceded it.

Keep eating nice big lunches. We want a good vomit and piss your pants show.

SheepDog-One's picture

Im sure youre right Spalding, its over for PM's, as Russia and China go all-out increasing 10X their purchases. Gee youre real smart.

grey7beard's picture

>> If gold breaks 1,320 its " lights out "... Not much support after that.

 

I think most folks without an agenda would acknowledge $1,280 as pretty well establised trend line support.

Threeggg's picture

Hey,

With the way they are hitting Gold and Silver tonight you would think options expiry and a delivery month was upon us !!!!

Wait !

Expiry is this Wednesday the 26th of JAN 2011 and the next delivery month is February 2011 !!

Oh, I see why the pressure !!!

LOL

This game is getting old !

Load the truck on Wednesday !!!!

BTFD !!!!!!!!!!!!!!!!!

 

GoinFawr's picture

Once again 3G's has it pinned down and squirming.

'They've' done all they can to create a perfect storm:

All the egregious shenanigans with the margin hikes, plus the complete and utter capitulation of the CFTC, add to that a non delivery OP EX... sheesh, I'd wager 'They're' pissed that Au is still over 1200 bitz and bytes of FRN's and silver over 20 of the same.

Business as usual gentlemen.  Not exactly subtle. It'll last just as long as it has every other time too: ie Not very. The only bit of real cleverness 'they've' thrown into the mix this time around is allowing the dollar to take a good *monkey-hammering simultaneously (speaking of bearish looking charts...)which is likely to turn out to be 'their' biggest mistake in a long time.

As we say where I come from on non delivery op ex: C-U-Next-Tuesday

Regards

* smailes'.

DeltaFunctionToronto's picture

Well said.

What many are missing by overemphasizing technical levels is that major trend changes are underway in a host of currencies.

This ends one way, and it is far too obvious to those who have been in this market since 2001.

Rule #1: The speculative public always gets fried - both on the way down, and on the way up.

They chase technical charts, and ignore long-term secular trends.

Rule #2: Major moves require major washouts prior to their advent.

Sentiment must play ping-pong to establish that critical imbalance in buyers and sellers to thrust prices higher.

This gold bull market will be regarded as the greatest bull market in history, and thus complacency will likely afford anyone who does not take it seriously a horn through the chest. A very steep, upward sloping horn with 12 000 written all over it.

 

 

GoinFawr's picture

Deja Vu!

Hey Turd,  could this actually be July 29,2010 all over again? Sure looks like it:

http://img62.imageshack.us/i/july292010.jpg/

...only bigger.

Even the USD action synchs up:

http://img262.imageshack.us/f/july292010usdx.jpg/

UPDATE:

Jesse Agrees. Check the charts.
http://jessescrossroadscafe.blogspot.com/2011/01/gold-daily-and-silver-weekly-charts_25.html
"This intermediate gold top and correction bears a striking resemblance to the May - August 2010 top and correction just prior to gold's amazing breakout rally.

I think the next four weeks are going to be quite interesting in a number of dimensions, and through the chill of winter, a portent of Spring is in the air."

Regards

goldmiddelfinger's picture

Supply is plentiful despite ZH misdirection pump.

Tyler Durden's picture

Misdirection? Please provide us with your best offer on the Valcambi one kilo bar...

tmosley's picture

He's a drive by troll.  He sprays one-liners in every direction against anyone who he disagrees with, but never actually contributes anything.

goldmiddelfinger's picture

Why not stand by what your headline implies?

Tyler Durden's picture

"Scotia-Mocatta Sells Out Of 1 Kilo Silver Bars"

schrock's picture

@goldmiddelfinger

Dude do you realize how stupid you look right now? Just shut up before your whole leg ends up in your mouth.

Spalding_Smailes's picture

 

 

United States Mint American Silver Eagle bullion coins shattered their old annual sales record by nearly 6 million coins. Silver Eagles reached sales of 34,662,500 in 2010, capping their third straight annual gain.

December sales were sluggish — the slowest in 2010, but previous months were mostly on fire and a new annual sales record was already assured following an all-time monthly high of 4.26 million inNovember 2010.

The following table provides US Mint sales figures for each month:

 

" Returning to annual numbers, the chart below highlights how demand for the one-ounce, .999 fine silver coins has jumped since 2008 when annual sales hit 19.58 million from the previous 9.88 million in 2007. The year 2009 held the prior annual record at 28.76 million."

From 10,000 to 40,000    --- Bubble ?

 

http://www.coinnews.net/2011/01/10/silver-eagle-bullion-coins-close-to-n...

 

Bay of Pigs's picture

Record sales again this month means a "bubble"? Why is the price dropping then? Please explain the shortages? Your "logic" if it can be called that, is sorely lacking. Amazingly stupid.

Math Man's picture

Record sales mean there are no shortages.

If you don't have the product, how can you sell it?

Bay of Pigs's picture

Other than waiting weeks or months for those deliveries to show up? Yeah, okay Nadler.

Why is the price dropping with HUGE physical demand? You guys never answer that question.

Spalding_Smailes's picture

 


 

Mornings around here are fragrant: We all wake up to smell the coffee brewing. There's something brewing in the gold market, though, that might not be so pleasant.

Lease rates in the London bullion market have risen precipitously. Well, it's not so much that lease rates are rising - they're pretty cheap compared with their year-ago levels - it's more that forward rates are at historic lows.

 

 

Forward rates determine the pricing of bullion transactions in the over-the-counter market. A decline in forward rates implies one of two things: There's either a scarcity of metal available for swap or lease transactions, or there's heavy forward selling.

 

 

So, which is it? Well, we can gather some clues from the COMEX market. The latest Commodity Futures Trading Commission data show commercial accounts engaging in heavy selling and long liquidation. To boot, money managers have built their largest short position since August 2009 (and, if you're a contrarian, small speculators have taken up their strongest long position in a year and a half).

Given all that, the aroma wafting from the gold market seems to be a harbinger of a sell-off. Technically, gold's stalled now. Key support for the February COMEX contract sits at $1,120 after bulls backed off from a test of the halfway point for the contract's December swoon. A close below that level makes the sell-off case.

If February's price closes below the $1,111 level, the December low at $1,075 then becomes the bears' target.

No guarantees, of course, but at that point, bulls will have to consider how much they're in love with a four-figure gold price. How's that smell?

 

http://www.hardassetsinvestor.com/component/content/article/3/1957-gold-...

Bay of Pigs's picture

Spalding,

Do you have one original thought in that ten cent head of yours, or is it all just cut n paste propaganda? 

JLee2027's picture

Why is the price dropping with HUGE physical demand? You guys never answer that question.

The paper price has dropped.  Paper, paper, paper. Let it go to zero, who cares. Hold physical and you win.

grey7beard's picture

>> The paper price has dropped.  Paper, paper, paper. Let it go to zero, who cares.

 

I see this sentiment quite often.  I was under the impression when one bought physical the purchase price was determined by the paper price.  If I call Tulving to order gold coins I'm going to get a spot plus price.  There has been no disconnect in paper/physical pricing.