ScotiaMocatta Sells Out Of Silver Bars

Tyler Durden's picture

And an appropriate story to end 2010 with: ScotiaMocatta, one the world's biggest bullion banks, is now sold out of all silver bars.

Carry on

h/t Omega3ala

 

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midtowng's picture

Maybe they should buy more from JPM. I heard they own lots of "silver".

Bearster's picture

Let's not confuse the manufacturing capacity to make retail bars like 100oz with the idea of a bullion bank "running out" of silver.  When the latter actually happens, there will be a backwardation that will be obvious from outer space.

Don't get me wrong, I am very bullish about the monetary metals, and wouldn't be surprised to see silver +100% in 2011 (or +15%) but to say they are running out now is misleading.  Strong demand, absolutely.  Bullish yes, of course.  But let's not hyperbolize.

Monetary Lapse of Reason's picture

This is not hyperbole... it is really happening.  You have not been watching closely enough.  I have;

It appears that we will hit backwardation in even 12 mo. forwards soon;

http://forums.silverseek.com/showthread.php?23212-Silver-Backwardation

Today, the Sprott Silver Trust, PSLV, hit it's highest premium to NAV ever, over 15% - this is a very strong indicator to me since PSLV is pretty much the only means right now to INSTANTLY get your hands on (via your brokerage acct) allocated, audited, London Good Delivery Silver bars in a vault in Canada.  Or you can try your luck with getting Comex delivery.  PSLV is actually going to become a more meaningful price discovery mechanism than Comex if Comex does not either reform or go bust.     

There is no question in my mind that Silver is dramatically undervalued, and that the extent of the supply vs demand imbalance has been covered up by the likes of JPM and their paper ponzi SLV. 

 

Bay of Pigs's picture

"it's not a shortage, just a delay"

Calling Johnny Nadler....

Al Gorerhythm's picture

That's Nadless to you, sonny. See his latest post on Kitco. It's a fizzer, again.

dlmaniac's picture

Here is the report GATA picked up on what happens when you try to take the physical silver Scotia Bank is supposed to "have it in store" for you. Organic take silver / crash banksters movement, I'd say.

 

Scotiabank gives long abuse to cancer victim trying to reclaim her silver

http://gata.org/node/8837

longontents's picture

I wasn't feeling suicidal enough today, so I read the article.  I liked the closing line: "If she wanted to buy crack cocaine with that silver, or sleep with it at her side, that's her call, because it belongs to her, not the bank. The bully-boy functionaries might want to find a comfort level around that notion."


 

Sean7k's picture

Thank you for the link. I have bought scotiabank metals in the past, but no more. While I always take possession, it is necessary for people to understand that bankers are criminals- plain and simple. 

JonNadler's picture

You took the words right out of my mouth BAy

We got plenty of silver, mucha, but the guy in the mail room quit so we have nobody to mail it out, and we haven't been able to replace him with a new mail room clerk. And then they say we have an unemployment problem in this country, yeah

BrianOFlanagan's picture

that 15% premium for PSLV also means Sprott is about to do a massive follow-on offering!  For some reason, stupid investors never learn - see PHYS.

Bearster's picture

Sprott may be a great way for a lot of people who can only by stock exchange listed securities and want metal.  But it is not the only way.

Sprott has a brilliant model, I bet they can make a LOT more money letting the premium rise and then selling more units than they can from managing the assets.

Freddie's picture

"Sprott may be a great way for a lot of people who can only by stock exchange listed securities and want metal.  But it is not the only way."

What are some of the other ways?  Thanks.

Freddie's picture

Anyone have any feedback about silverbulliontrust.com's gold closed-end fund GTU or Central Gold Trust.  It is a companion fund to CEF or Central Fund of Canada.   It looks like they hold physical gold in trust in Canada.  Thanks.

jeff montanye's picture

you might check jesse's cafe's archives for precious metals funds.  he's an astute observer and chart reader.

Captain Benny's picture

Have you even bothered to read the prospectus?   Basically its _very_ unlikely they'll ever be able to do an offering because they can not undercut existing shares.  Please do not comment on what you do not understand.

SWRichmond's picture

PSLV is actually going to become a more meaningful price discovery mechanism than Comex if Comex does not either reform or go bust.    

That might have been one of its intended purposes....

ConfederateH's picture

Can PSLV, or any PM etf for that matter, be considered "allocated"?   It seems like they have the bars, but you don't have any one of these bars specifically "allocated" to you.  That would make it unallocated.

DosZap's picture

Allocated IF you can foot the bill for the 400oz requirements,.(PSLV) and the HIT on the Prem if you want to take delivery( I believe BV is 20% of your total value).

Perth is the only one I know that has allocated, and unallocated.And is owned by the Western Govt of Austrailia.

Rather expensive for Allocated yearly fees,outside them, I know of no other I would even start to trust.

If you do not have possession,you do not own it.(IMHO)

Because it is subject to seizure any time, and that time is likely less than 24 mos away.(again,IMHO)

BeeTee's picture

Thanks for adding some sanity to this discussion.

My dealer (Metalor, Switzerland) has plenty of kilo bars for sale.

Millivanilli's picture

Apmex and bullion direct are running out of REAL silver as well.

10044's picture

how can they run out of paper silver?! lol

Imminent Crucible's picture

Since paper silver is primarily a byproduct of mining paper copper and paper gold, any cutback in mining of those paper metals could easily lead to a shortage of paper silver.

Or it might be discovered that SLV doesn't have the paper silver it claims to hold.

technovelist's picture

Since paper silver is primarily a byproduct of mining paper copper and paper gold, any cutback in mining of those paper metals could easily lead to a shortage of paper silver.

Or even paper cuts. Ow!

RacerX's picture

I heard paper silver was better.

EscapeKey's picture

Oh yeah, they just discovered yet another hugely prosperous paper silver mine, though its hard to get to, as it's mixed in with paper copper and paper tungsten.

RacerX's picture

yep. the "JPM Organ" has their mitts in lots of paper natural resources.

Jason T's picture

next up: SLV runs out of silver.  :)  

 

I have both SLV and CEF and a little SSRI.

I got killed in fall of 2008 owning SSRI.  fool me once.. so my fingers are crossed.

geminiRX's picture

I hope you mean PSLV......SLV isn't audited and I seriously doubt they have the silver to back their paper. Be careful with SLV....

 

PS: CEF is an excellent choice.

ChanceIs's picture

Silly, silly boy.

SLV doesn't need to be audited.  The JP Morgue is the custodian.  You know...what do they call them...Oh that's right...an SRO...Self Regulating Organization.

It isn't as if they don't keep accounts.  Every time the JJP Morgue wants to drive down the market price a little, it accurately records a debit against the bullion "borrowed" from the SLV vault and sold into the market.

If you look in the SLV prospectus, you will probably find that they can "fractioanally-reserve-out"...say...99% of the bullion. 

 

 

mberry8870's picture

From the SLV prospective:

 

"Funds that invest primarily in equity securities and non-equity-related instruments of the precious metals market. This can include investments in the mining, exploration, or distribution of gold and other precious metals. Funds may also hold bullion."

 

The physical is clearly an afterthought. You are exposed to price exposures, the the physical itself.

ouchtouch's picture

I don't know what prospectus you are looking at but it is not the current prospectus of SLV.  SLV's prospectus makes it clear that it only owns silver bullion, not equity securities or other instruments.

 

http://prospectus-express.newriver.com/PNET/summary.asp?clientid=amtd&fundid=46428Q109

 

JLee2027's picture

Yes, and also has a clause that you can settled in cash and not silver. Because they use fractional reserves...so not everyone gets their silver.  What was the admitted ratio? 100 claims to 1 ounce of real silver.

ouchtouch's picture

Well, if anyone bought SLV in the belief that in the event of Armageddon a silver fairy would show up at their house with the metal then they bought the wrong asset.  The part about fractional reserves and 100 to 1 ratio is fiction, you made it up.  There is no credible evidence that SLV owns anything other than 100% of the silver its financial statements say it owns.

JLee2027's picture

Nope. The 100 - 1 ratio was testimony at the CFTC hearings in March, 2010.  It was reported here on Zero Hedge:

http://www.zerohedge.com/article/former-goldman-commodities-research-analyst-confirms-lmba-otc-gold-market-paper-gold-ponzi

 Using the testimony of a clueless Jeffrey Christian, formerly a staffer at the Commodities Research Group in the Goldman Sachs Investment Research Department and now head and founder of theCPM Group, Douglas confirms that the "LBMA trades over 100 times the amount of gold it actually has to back the trades."

 

Bankers have used fractional reserves for centuries...and always go under when the bank run occurs. It'll happen here too. (And they said Gold, but it applies to Silver as well).

Imminent Crucible's picture

 

The terms of that prospectus are terrifying: "assets are primarily silver" without specifying what "primarily" means or what the balance consists of.

"If certain events occur [what events?] at any time, the trustee will have to terminate the trust."  "Upon termination of the trust, the trustee will sell silver in the amount necessary to cover all expenses of liquidation, and to pay any outstanding liabilities of the trust.  The remaining silver will be distributed among investors surrendering iShares."  

"There may be situations where an Authorized Participant is unable to redeem a basket of shares."  No kidding?  Like what?  This is not my idea of a way to hedge the Bernanke Put with silver.

 

DosZap's picture

I suggest you read the FINE print on ALL the funds...........you will likely decide to NOT put your FRN's there.

Everything is geared to their advantage.NOT the customers.

 

"The terms of that prospectus are terrifying:"

 

Yits and the Yimrum's picture

power to the people Bitchez!

Turd Ferguson's picture

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Temporalist's picture

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Cyrano de Bivouac's picture

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