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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
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I think it's not so much saved you a lot of money as you get more silver or gold for the same price.
No "analysis" is possible; accurate or otherwise. You're delusional, which is far worse than a spelling error.
If gold goes to $900 no one will be selling physical just like in 2008. Of course you can buy paper at $900 if you want. Good luck.
Gainesvillecoins will, you will just have to wait a few weeks.
I ordered from Gainesville last year and the wait was so long I think they were waiting for the stuff to be mined and minted.
Provident Metals is a much better organization than Gainesville with better prices.
Gainesville "lost" some silver I purchased from them years ago and refused to replace it.
Thankfully, the Post Office found it, no thanks to Gainesville.
I purchase some silver at $36 and some in the low $20s. I do not regret any of it and find tranquillity knowing it is in my hand and real.
Exactly. Anytime you get "depressed" pull it out and fondle the PM. Works every time!!!
Silver is nice to hold for minor trades if SHTF. But only gold will carry your wealth forward if a major incident unfolds. Buy, hold, fuggedaboutit, lose it in boating accident. Simple plan for the ages (ask any ueber-garch).
This is a very strange statement. Silver is always convertible into the currency of the day; be it SDR's; World Bumpkins, or whatever the "masters" would have it. And it's price will be very good after the great unwinding. It has exactly the same function in carrying wealth forward as Gold; but at a ration of 60 to one !! Lord have mercy; that;s a blue light special in aisle three, IMHO.
Except...only Gold will be revalued. HUGE difference. Plan accordingly.
Exactly, the CB's don't hold silver.
In the words of John Embry,"those short paper silver are about to have a religious experience."
I think they're praising god about now. That kind of religous experience?
He borrowed that saying from Rick Rule.
And with regard to the exact nature of their religious experience; "those who would sup with the Devil, must needs have a long spoon".
Silver and Gold on sale? Thank you Thank you Thank you Thank you Thank you Thank you Thank you Thank you Thank you Thank you Thank you Thank you Thank you Thank you Thank you and Thank you very much!
Keep staking
Keep staking the Vampire Squid?
Or is your C not working on the keyboard?
Curious since silver is an important/essential and heavily used metal in many products and processes as well as being a monetary metal.
So the more important and in demand something is the more its price will fall.
Wonder what will happen when it falls apart....still wonder the order of events...
If those USD start find their way into the system in a flood.....Rates must go up else fiat becomes confetti.
Neither the order of events; nor the actual events themselves will be reported on by the media. Only the lies of the desperate oligarchs. It is profoundly un-important what the order of events is. Generally speaking, after the disaster becomes undeniable, a scapegoat is picked. This doesn't matter either.
SAT 800; Correct. I think institutional Investors knew the stock market was going to collapse before hand and may have precipitated it. Oct 2005 was the high in Mortgage Bubble, so they were well aware of the coming crash even before 2007. I'd posit that they put Henry Paulson into the Treasury Secretary Position just to control the "context & Narrative".
-The control the Press
- They have many capital controls in place now that they don't call Capital Controls
- They are keeping US Production Down, Consumption is low, Investment is kept low
So could be anything else:
- Political Crisis over the Federal Budget could be the cause
- International Pressure over the Fed Interest Rate, US Debt, and Federal Budget could be it
- Perception by EU OR Asia of Systemic Corruption & a Failed US Government
- Perception that US Military can no longer wage a world war or protect Seafaring Trade Routes
- Bankers may chose the time of Collapse when they see the biggest advantage and their "New Solution"
- The shift of Economic, Banking, Exchange hubs to Asia & back to Europe may create the timing for a new Currency Deal and Bankers will be pulling Capital Out of US Petro Dollar... and triggering & Marking the Collapse
But everyone has the same system with the same levels of debt and worthless Derivatives... so maybe I can't see the "New Solution". Maybe a new global currency is not enough of a difference to get everyone on board. Could "Gold, Silver & a basket of goods" be enough to change the system?
Does the world want to leave the US Dominated New World Order... Is the world(& Bankers) ready to leave the monopoly?
You don't understand; The Mexican National Bank raised pay-out rates on deposits to 96%; in order to "save" the Peso; it didn't work. It never works. It worked once in the special case of the US Dollar in 1980; which was a unique situation. The fiat will become confetti; the rates rising will be merely the sounding of the bell of doom for that confetti.
This is what is known as a "win-win" situation.
adjusted for REAL inflation/buying power of the dollar, Silver costs now about what it did in early 2006.
I'll take my silver stack over federal reserve toilet paper any day.
New normal "price discovery", if its real .... sell it before it goes even lower. The Fed has "discovered" it cheaper to rig the markets than face reality, the look ma "no inflation" trade is getting very over done. Look at grains,oil, metals,,,programed selling.
Coffee below 180.
Because somebody was spotted with an umbrella in Brasil.
Yes, and it will work for the Fed right up until the point that those essential commodities can no longer be delivered, no matter how much they load up those EBT cards.
hedge accordingly.
Tiz national talk like a pirate day, so I beeze talking like me maties
Silva Bitchezzz! Arrrrgh
arrrrrrrggh
Shiver me timbers. This article could have been written 40 years ago. It’s the same song. Argh!
Arrr! Ya scurvy dogs, It's time to swab the deck. Get them PMs in the nettles where they belong. We be needin' them soon and they must be polished and ready to deploy.
Physical silver is nowadays the best investment in the history of the world.
the best investment in the history of the world, at least up until 100 years ago was having as many children as you can and populating the earth with your seed.
Had a chat with a local jeweller the other week. He has been in the PM business for a long time. We are both in agreement that this is the last time PMs will go on sale. There aint no coming back ater this round.
I think even owning as little as 100 maples will take you a long way when SHTF.
is that gold maples or silver ones?
i own a lot of sugar maples too.
I've got blueberries for pancakes. Let's go into business!
If we had some bacon we could have some bacon and eggs -- if we had some eggs.
I LOVE my Physical Silver more than any paper or electronic so called wealth which is an ILLUSION.
And Gold too....
Look at the chart. You guys are all in the denial stage. Your all funny talking about how the only reason PMs are going down is manipulation. It just have been manipulation when they tripled in a few years too huh? Then look where the chart goes. Soon you will hit desperation when your hard earned money spent on a silver is worth a fraction of what it was. Then even further and some of you will cry. And then eventually it will go so low some of you will actually capitulate and sell. Only then is it time to buy.
Silver will be well under $10 when bottom hits. Gold well I to triple digits. Maybe $500-$600 oz.
You may very well be right. PM demand mostly gets taken up by paper PM products. There is no reason to cry manipulation, THAT IS the manipulation.
Every paper product is fractionally reserved. That is a fraud all in itself. If the futures markets ever crash and burn, PMs will be priced differently. Until then, everyone is just a gambler.