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Silver Buyers Keep Stacking And Demand Higher ... Yet Prices Fall
Silver demand keeps increasing ... silver prices keep falling ... hmmm
Recent interview on silver: 'Get REAL: Silver'

Total Global Silver ETF Holdings - 2006 - September 2014 (Thomson Reuters)
The silver price has remained subdued this year, falling just less than 5% year-to-date, and is now near a 14 month low. Naturally, investor psychology has been affected by the price weakness.
Quoted today in Bloomberg News, Mark O’Byrne, director of GoldCore said that “sentiment remains quite bad in the silver market.”
Its well accepted that investors in the financial markets are known to experience cycles of emotion, from excitement and euphoria, through to fear and panic, before the cycle turns again after despondency and goes back to hope and optimism.
Although the silver price weakness has damaged psychology, some interesting trends have emerged which appear to be signalling that the core silver retail and indeed institutional investor remains resilient and is even using the current price weakness as a further buying opportunity.
The overall trend in the silver market currently appears to be, when prices weaken, investors continue to hold and in some cases buy more. While the price has fallen, overall holdings of the silver ETFs still remain near an all-time high. This would suggest that silver investors are now expecting higher prices again due to continued industrial and investment silver demand.
Globally, 26,000 tonnes of silver are mined each year and about 7,000 tonnes of silver is recovered through recycling and scrap. Industrial demand accounts for 14,500 tonnes, jewellery demand for 8,000 tonnes, coin demand for 2,500 tonnes and photography for 1,700 tonnes.
This totals nearly 27,000 tonnes so leaves about 6,000 tonnes as a residual, some of which goes into the physically backed silver Exchange Traded Funds (ETFs).
The investor base in physically backed silver ETFs is predominantly retail, one element being that silver is more affordable than gold to retail investors. Gold ETFs have a higher proportion of institutional and hedge fund investors. For US based silver ETFs, retail investors account for 80% of holdings.
Retail investors tend to have a longer term investment horizon and these silver ETF investors are mostly long term buy and hold investors. Recent updates on the flows into these ETFs and their total holdings point to continued accumulation across-the-board by these retail investors. It appears that the current price weakness in the silver price has if anything, encouraged these retail investors to accumulate additional holdings.
Reuters calculated this week that the world’s six largest silver ETFs saw an additional 104 ton inflow last week and now hold 17,135 tonnes of silver in total between them. The massive iShares Silver Trust represents over 60% of this total. The iShares ETF recently reported its biggest one day inflow in the last 4 months.
Bloomberg calculates similar data but includes more silver ETFs than Reuters in its calculations. Bloomberg reports today that the holdings of silver Exchange Traded Products (ETPs) that it tracks have now reached 19,900 tons, which is near the all-time high of 20,121.5 tons which was reached in October 2013. According to Bloomberg, ETP holdings have risen 2.7% in 2014. Silver ETFs did not see any large outflows in 2013, unlike in gold where gold ETF holdings fell by more than 30% in 2013.
The latest Bloomberg survey of silver analysts shows a median price estimate averaging $20 for the last quarter of 2014, increasing to $20.40 next year.
Some silver mining companies have hedged part of their output so that they can sell their output at specific prices, even if the price falls, such as at $18 for Coeur Mining. Likewise hedging can backfire as prices rise and they remain committed to sell their output at a lower price.
At the Denver Gold Summit, yesterday, Keith Neumeyer, president and CEO of First Majestic Silver Corp pointed out that after all the talk by the London Bullion Market Association (LBMA) of greater transparency for the new LBMA Silver Price and wider market participation in the auction, nothing much has changed:
“Any time you have a small group of people fixing a price, it’s prone to manipulation,” he said. “There’s no change from how it was done before to the way it’s done now – it’s just a different group of players and now they do it on a computer.”
To that we would add that the “group of players” is still not all that different since only one player has changed. The old Silver Fixing process had three participants, HSBC, ScotiaMocatta and Deutsche Bank. When Deutsche Bank announced in April that it was pulling out of the Silver Fixing, it precipitated the move by the LBMA to create the new Silver Price.
Then, when the new auction was launched on August 15, HSBC and ScotiaMocatta reappeared as participants, bringing Mitsui on board in place of Deutsche Bank. So it’s still the same old usual suspects continuing to fix the silver price each day in London, and there is still little or no transparency about the auction beyond a few netted out buy and sell volume figures.
It remains to be seen when if ever the LBMA Silver Price auction will allow in a wider range of direct participants such as mining companies and refiners.
In the meantime, the retail silver investor, as indicated by the silver ETF flows, appears to be taking advantage of the lower price environment to accumulate additional metal. This is also true in the silver coin and bar market.
Conclusion
In any period of price weakness there will always be some nervousness and fear. But market history invariably shows that this point in the cycle is usually the time when price expectations start to turn upwards.
Silver remains undervalued vis a vis gold with gold silver ratio at over 66. At $18.59, it is some 63% below the record nominal price of $50/oz in 1980 and again in April 2011.
We could see further weakness in the short term as momentum is clearly down. Support is at $18 and below that at $15.
We believe both gold and silver remain undervalued and are in the process of bottoming. We remain confident gold and silver will see new record highs in the coming years. Both will continue to act as hedges and safe havens against the considerable risk in the world today.
by Ronan Manly , Edited by Mark O’Byrne
Recent research and charts on silver here
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20 CAD, or USD?
shipped? I went on their site and it is $7.77 plus a credit card processing fee for shipping. That's for one coin.
Ah you can make money in silver! Greedy buggers
F* the silver ETFs, they only perpetuate the paper silver scam.
I've been stacking for 3 years now. I don't regret a single ounce and I'm certainly not "depressed". The only thing that's depressed is the price of PMs........and they are only artificiially and temporarily "depressed". BTFD
you mean you've been selling from your PM store the past three years and you need to keep people churning out some premiums for you to keep the lights on
Just called Goldline. The cheapest silver bullion is over $22.00 an ounce. Tell me again how there is no manipulation.
OMG you mean there is someone SELLING>?>??? why dont you talk some sense in Goldline into just STACKIN??? how can they possibly sell the BUY OF THE CENTURY??? I mean what care for premiums on sales if silver will revalue to $80,000 'just around the corner' ???
riches awaits!!
This is a multiple bottom breakdown.
T here's no such thing as a "multiple bottom breakdown"; you're beginning to annoy me with your ignorance.
I have given you a 5 year silver chart, its clear. but this also
http://stockcharts.com/def/servlet/SC.pnf?chart=$SILVER,PGPLDANRBR[PA!B13][D][F1!3!1.0!!2!20]&pref=G
triple bottom breakdown Sept 8
With silver below the cost of extraction, even with hedging, the higher cost producers will eventually be squeeezed out of the market lowering output.
Therefore the price must rise, either from demand or a drop in production, but eventually the laws of the supply/demnd curve become inviolate. The magic of everpowerful elites cannot violate those laws forever... ala rent control.
nothing changes on this site... the coin shop sellers flock here to chant 'Keep stacking!!' 'Buying opportunity' buy up buy down never sell ever ever just keep buying from ME and MY premiums!!!
the post above about extraction costs blah blah has been posted here about 99000 times for the past 5 years!!!
Wow, appreciate these numbers, if coin (and delivered bullion?) demand is only 2,500 tons/year when production is 26,000 tons/year etc, then we are miles away from any physical market squeeze ... though we may be near a bottom if the price starts impacting on the cost of new production. Trading under $17.99 right now ...
I was thinking of starting up a small business between now and end of year but damn this PM sale is REALLY enticing me!
Price is in free fall right now. I'm just watching in amazement. Pure lunacy.
The price of paper gold and silver could and probably will fall to zero.
The 'Great Disconnect' would finally arrive. The Chinese are setting up the game board on the Shanghai phyzz exchange they just opened. All we have to do is wait and BUY Moar if possible.
The price of an unenforcable contract (where delivery cannot be made) is ZERO.
CME Group will default on delivery at some point in the future. Most PM traders know that as a fact if they will not admit it publically.
The Shanghai Exchange offers a much better product. People will dump CME Group contracts and move their action to Shanghai because of the way that it has been set up. Delivery will not be a problem. (The Shanghai Exchange actually has the Gold in physical form whereas CME Group does not. CME Group's Gold is levered to the hilt.)
The result of the liquidation of the valueless CME Group contracts causes a surplus of paper that needs to be sold thus the price declines...FOR THOSE CONTRACTS. And the price needs to decline, for those Futures Contracts all the way down to ZERO as those contracts are, in reality, VALUELESS.
The opening of the Shanghai Gold Exchange is the underlying reason for the decline in CME Group Contract prices. Liquidity is being shifted from the West to the East.
The West (USA, UK, and EU) has lost the financial war against the forces from the East. The declining Gold Price is a signal of the capitulation of Western Banks. It seems as if a battle has been won, with the advanceof the $USD Index, but the war has been lost.
So enjoy yourselves while this lasts you fucking stupid anti Gold propagandists. It will not last too much longer as the trade wars will turn into hot wars and will ensure our very own destruction...INCLUDING YOURS.
(I cannot believe that this one propagandist, exartizo, near the beginning of this thread, was writing down Gold while claiming to desire a rising price??? What fucking absurd hypocrisy!!! I BELIEVE exartizo NEEDS TO BE HORSEWHIPPED, TARRED AND FEATHERED.)
Persomally I believe in STABLE PRICES for MONEY as stability is the true foundation upon which any hope of recovery can be constructed. But that requires truth, honesty, and integrity, attributes which are so lacking in the Western Culture today. exartizo is an example of one who is lacking.
All roads lead to gold.
"Silver Buyers Keep Stacking And Demand Higher"
So the headline reads. Then, right below is a graph of global 'ETF' holdings. You don't 'stack' anything with an ETF...
I trust silver, gold. Is Wall Street honest? Are the markets "free"? Are there honest bankers? Oh, lead is good too.
It seems everything is getting trashed right now. Gold, silver, platinum, palladium, and oil are all down 1-2% per day. The broader Russell 2000 index is already in a bear market. Housing YoY is down significantly. This could get a lot uglier before it gets better.
And gold goes to 1400 ... you lose few hundred. Bottom pickers as bad as top pickers.....nobody can do it except by accident.
So long as the reasons are there to own gold...silver because over the longer term it will go much higher...represents safety then buying it already much lower prices is what should be done....even if by chance it goes lower...because by chance it could start to climb. I note now China is going to a gold fixing...for deliverable physical gold...interesting.
supply exceeds demand........
Based on the title, I was hoping for more information on the stacking side.
Maybe some price to premium analysis, which might show the real Physical/Price relationship.
PLEASE SEE ABOVE POST FOR THAT FIRST HAND ANALYSIS/EXPERIENCE.
My Local coin shop has had no Silver to sell for months. Go figure.....
maybe they just don't deal in bullion. you can always find silver bullion on ebay.
http://goldcoinexchange.co.uk/ Go ask him yourself if he deals in Bullion. The thing is, I cant buy from him, the guy that has given me a 'buy' and 'sell' price for years....ebay is all well and good but when you ask a dealer for a buy price and a sell price and then you ask him to sell and told "no one is selling, you'll have to wait".....WHAT KIND OF MARKET DO WE HAVE.....Oh yes....A BROKEN ONE BECAUSE IF NO ONE IS SELLING, FFS, HOW IS THE 'PRICE' a refelection of the market?
NOW.....lets take your last argument, "you can always find Silver on eBay". My dealer would (given the spot price at is at approx £11.50) give a buy of say 10.50 and sell at £14. "Ok Malcolm...I will buy at £14." "Sorry I dont have any.....try eBay for your 1 oz Silver Britannia".... http://www.ebay.co.uk/itm/2007-SILVER-2-1oz-BRITANNIA-NEAR-UNCIRCULATED-... OH LOOK......I AM PAYING NEARLY TRIPLE THE SPOT PRICE.
FOR HISTORYS SAKE....AS OF 20th Sept 2014 with a weekend close (HERE IS HOW THE 'PRICE' IS A REFELECTION OF THE MARKET)..spot is at £10.92. To a obtain a phisical leagal tender 1 oz coin you have to pay nearly a 200% premium over spot and 100% premimum over the dealers quote for a product he does not have.
You may like to respond TOUCHE?
TOCOINTHEPHRASE "HOUSTON.....CENTRAL PLANNERS HAVE A PROBLEM!"
Astonishing!!!!!
Inconceivable!
You just don't give up do you... I will state this for you again...THE FED IS THE ONLY GAME IN TOWN...
Save you analysis for an uneducated readership...
Yes, I believe in gold and silver ownership... You on the other hand are a mouthpiece at best, and a mindless idiot at worse.
I do hate rudeness... But you have really begun to irk me.
And who precisely is your Lordships ire directed against ? The writter of the article ? If the Fed is the only game in town, and their only function is to print paper money which has no backing, does that not mean there is some point in their stance? Their sine wave chart of the stages of a public market is well thought out, and informative to people who haven't studied the history of markets; is this what you don't like ? Why ?
I have been abreast of the charts on metals for years. At best they may give an indication of a coming smack down in paper... at best... You would be better off paying attention to the options expiry if you really want to play the whims of a handful of thugs.
Btw... this same man was predicting a September seasonal surge in metals... I made the same statement to him then... how did that work out? Did he admit his error... no, just on to new predictions.
At least he has you though, doesn't he... and yes, I meant the author of the blog.
Come on! Lord Phlem, live a little. It's Friday you freaks!!!!!!!!!!!!!!
What Bullshit.
Don't you ever get tired of trying to Fleece The Loyal Gold Sheeple like the Lying wall street equity agents?
This is NOT the time to buy gold and silver.
Make no mistake. gold is headed lower, and silver with it, to approximately $900.
I'd be happier if gold went north also, but that is not reality.
Frankly, I hope you meet the same fate as your buddies over at Merit.
"Make no mistake. gold is headed lower, and silver with it, to approximately $900."
Did you mean "gold is headed lower, and silver with it, to approximately $900 (Silver)."
Silver at 900 dollars... Seems like a good time to buy to me... btw... do you have any idea how much it costs to mine an ounce of gold...
Is it all right if we come back and laugh at you when you're proven disastrously wrong ?
$900 is where I think Gold will go too with a 60:1 Gold/Silver Ratio and $15 Silver. I'm saving cash and plan to spend it all when Silver drops down between $15-$16.
Maybe if they raise rates slightly, it will help get the paper price down.
In my humble opinion, you'll be waiting for the rest of your life. The bottom is in. It's all up from here; slowly, at first, and with many a sawtooth; but no new bottoms; that's my prediction; so now you can come back and laugh at me when I'm proven wrong.
Silver we be available all the way to zero. Tons of supply. I will pick up 20 oz when it gets back to 5ish.
I already have exposure to precious metals. If I didn't, I would buy at these levels.
Haha..lol..."exposure". You either have or not with Gold. There's no halfway or "exposure".
With the Silver/Gold ratio over 60 to one; I would respectfully suggest a little more Silver wouldn't hurt anything.
ratio smatio. ratio's mean shit when something is revalued all by it's lonesome.
As price drops Asian physical demand rises exponentially. Just look at the data from last year for China. $900 gold means the market is totally broken and faith has been totally lost in paper gold.
bottom pickers are as dumb as top pickers.
All you need to know is the US still has trillion dollar deficits, Europe and US economies still crap....debt still stastopheric, black swans possibily everywhere ...Ukraine, ME..... and US foreign policiy as stupid and dangerous as it has ever been.
Own gold and silver now....you will fucking die waiting for a bottom.
...except if an accurate analysis ("DO NOT buy gold until it hits approximately $900") saves you a LOT of money.
...btw that's "stratospheric".
I hope your mental capacity and your Sledghammer Type Blunt Instrument approach to investment strategy is greater than your spelling ability, which "sucks" frankly.
Which gold miner would sell you gold at $900 ? very few ! The production price is higher . Keep dreaming !