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Silver Bullion Demand High - Price Falls and Premiums Surge
Silver Bullion Demand High - Price Falls and Premiums Surge
- Silver imports into U.S. surge 33%
- Silver Eagle demand very robust
- Silver Eagles and Maples see 25% surge in premiums and shortages
- Silver price falls over 3.8% on same day as U.S. Mint runs out of silver eagles
- Total ETF Silver holdings remain robust - over 500 million ounces
- Increase in demand seems to becoming from large entities buying bars
- Silver is great value sub $20 per ounce
Demand for silver has been surging this year as seen in U.S. silver imports, while silver eagles coin sales and silver ETF holdings remain robust. Despite this, silver has again under performed other assets and has seen price falls again this year to multi year lows at $15 per ounce.
Silver in USD - YTD 2015
Silver imports into the U.S. have been substantially higher in every month so far this year compared to the same months last year according to the USGS data. So far, 2,035 metric tonnes have been imported into the U.S. this year - 33% more than the same period last year.
In the same period, industrial usage of silver has been fairly flat, the build-up in Comex inventories has been negligible and sales of U.S. Silver Eagles has been flat - partly because the U.S. Mint lacked the stock to meet demand.
Given that the three sources of demand listed above - which are typically the main sources of demand in the U.S. - have not contributed to the rise in silver imports it would appear that there may be new sources of demand in the silver market with large buyers - private or institutional - buying significant volumes of large silver bars
SRSRoccoreport.com
There is also significant demand for silver in India and indeed in Turkey:
There is a clearly a major disconnect between the price of silver as traded on exchanges and the supply and demand fundamentals. Since the end of January silver prices have declined by nearly 20% - from $18.28 to $15.40 even as demand rises.
Demand for Silver Eagles spiked in the first week of this month leading the U.S. Mint to run out of its entire August inventory of coins. This coincided with a counter-intuitive 3.8% plunge in price last Monday.
It would appear that prices are being forced down. This is likely being done to scare investors away in order to protect some large banks who are net short silver - and for whom a surge in price would be damaging - and possibly to facilitate large unknown entities to accumulate large volumes of silver at a knockdown prices.
Total Silver ETF Holdings - 2006 to July 13, 2015
Whoever these large buyers of physical silver may be it seems likely that they are well connected and well informed. It is speculated that JP Morgan may be among them or at least is acting on behalf of their clients.
It would appear that something significant is again happening under the surface of the silver market. Indeed, premiums for silver eagles and maples have surged 25% in recent days and there are increasing delays in getting delivery of silver bullion coins.
Silver is down 1.5% in 2015 (year to date) and by 35% over a one year period (July 13, 2014). It remains great value vis a vis most risk assets today. Equities, bonds and indeed many property markets look increasingly overvalued and ripe for serious corrections and potential severe bear markets and even crashes.
An allocation to physical silver will again provide essential insurance against financial instability and systemic risk.
Must Read Guide: 7 Key Gold & Silver Must Haves
MARKET UPDATE
Today’s AM LBMA Gold Price was USD 1,154.95, EUR 1,043.13 and GBP 741.59 per ounce.
Friday’s AM LBMA Gold Price was USD 1,162.40, EUR 1,041.20 and GBP 750.30 per ounce.
Gold rose $1.60 or 0.14 percent Friday to $1,163.00 an ounce. Silver also grew $0.12 or 0.78 percent to $15.58 an ounce. Gold for immediate delivery fell for the first time in four sessions, declining 0.7 percent to $1,157.07 an ounce at late morning trading in London.
Bitcoin in USD - YTD, 2015
Gold retreated overnight despite considerable uncertainty regarding the outlook for a deal between Greece and its increasingly aggressive creditors. Gold fell prior to Greece securing a deal and a potential path to a new bailout
Gold had a third weekly drop last week, after falling to $1,147.36 on Wednesday, the lowest level since March 18.
This morning, the increasingly compromised Greek PM Tsipras, has agreed with creditors the reforms needed to start formal negotiations over a third bailout program in five years and remain in the euro.
Concerns about a possible fracturing of the common currency has added to gold’s safe haven appeal this year, but the price has remained tethered to the $1,200 price level despite many risks which would have been expected to see gold rise in price.
Bitcoin has collapsed 10% this morning - showing it may not be the “safe haven” asset that some have recently claimed.
As ever, it pays to keep an open mind but until bitcoin can display the long term and historical store of value characteristics that gold has done over the centuries and in recent times, it remains prudent to err on the side of caution and favour an allocation to gold bullion and indeed silver bullion over cryptocurrencies.
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time to get your own physical gold..asap
there is a shit storm coming to visit us all... may not be as dramatic as greece ... it may be worse... who knows...
but having a stack of phyzz will prove to be a positive
www.teamramgold.com if you have no cash but want to acquire gold then become an affiliate use your commissions to get it
We are not going to find true value of PMs until the tide goes out.
There you go. Free market at work. The hypo example: Silver $12.60 an ounce. Premium, $11.75 per ounce. The market will not be denied.
It would appear that prices are being forced down.
Gee, ya think? What a fucking genius!!
Meanwhile in the real world; Silver is selling for $15.50 / oz. as we speak; respecting it's bottom support; even while good buying is going on. Everything is fine. I got filled last week on my $54.00 buy price orders for December Crude; which is at $54.45 now; as we have a "down day". Very amuzing. I expect this trade to make a lotta lotta money. There's too many factors that can push oil prices upwards; and too much enthusiasm for the new meme, "oil will go down forever". The S&P500 is getting up towards short it again territory; I"m running sell orders at 2105 basis Sept. I just love muppets.
The only shortage in physical silver is for those seeking to buy physical silver in coin or bullion form. But silver is freely available from numerous other sources. Just like gold, I find plenty of silver in jewelry form, for nearly nothing, in the second-hand markets. But silver was also used to make a shitload of items like bowls, tea sets, candlesticks (beware of weighted ones!) flatware, ad nauseaum. Even after all the big "melt-downs" that have occurred in my lifetime, I STILL find POUNDS of the stuff squirreled away in attics, garages, storage units, etc. And sold off as junk by the owners. Unless it's a really beautiful piece, few dealers even bother, because silver flatware and tea sets are just not in fashion anymore. So, potential sellers get offers of well below meltdown, which is pitiful due to current low prices. They've come to see the stuff as junk with little value, and you are increasingly likely to find a blackened old set with a 25 dollar price sticker on it that contains POUNDS of silver.
People as a rule only start paying attention when prices are going up and headed into record territory, and they start hearing about 'chain-snatchings' on the news. Right now, all they are hearing is it is down, and going 'downer'...So if your coin dealer is having trouble keeping you supplied, consider 'other sources' for your PM needs.
When gold hit nearly 2 thousand, there were Saturday mornings I'd go out with 80 dollars cash in my pocket, and come home with a carload of stuff (mostly antiques), AND more cash than when I left. How? Because I'd buy a ziplock baggie full of old jewelry for 5 bucks that would have a butt-ugly but heavy pair of earrings in 14k (the news takes time to filter down to the market..) and I stopped off to sell them to my gold guy on the way home. Carful of great stuff, AND got PAID to boot! That is a SWEET feeling!
These days I still find the ugly gold, but I don't sell it, even if it IS tempting to do the old "come home with more than you left with" thing. Now I just shut up and stack...
It's OK to buy silver in any form, as long as you have an accurate handle on its purity. Flatware sterling silver is only about 90%, so you have to take that into account. Labs have charged me about $35.00 for an assay test, which isn't horrible if you are buying a large lot of silver. The other option is to buy it in other forms from a reputable source. Schiff Gold, for instance, sells silver "rounds" in "barter bags". They are not the minted coins most people are buying, but are just plain blank rounds of 99.99% silver marked with the weight. The advantage is the sales cost, or premium, is shaved way down from the premium on mainstream coins.
Around here there would be 10 guys clubbing you to get to the head of a rookie yard sale table to snag what your trying to find..
This article is OK, he is not pumping just reporting what appear to be the facts.
PM letter writers have to try to drum up excitement. The only and I repeat only honest appraisal I have seen since the price crashed in 2011 was and is Jim Sinclair. He said, "do nothing".
Don't sell unless you have to. Don't buy. You know the value, so you wait.
He was and is correct. He doesn't have a letter to write.
You see a spike in premiums when the guys the dealer is buying from cannot find supply at the spot price. Thus there is no supply available - at least not at $15 spot. No individuals are selling to the dealers at this price, and dealers are not going to let their $20 inventory out the door at $15.
The wholesalers and private mints will be taking delivery on futures/CME contracts at $15, and we will begin to see some of that come onto the market in a couple weeks - lowering premiums and increasing supply. You won't see junk silver come out of hiding until silver gets back toward $17.
Premium was $3.50 today locally.
I'm in Canada and pay 7% ordering online. Not sure whos paying 25% but I suggest they shop around a little..?
- Slimy
Cheapest I've found is currently $1.75 over spot. SDBullion (1-20 OZ). Gotta look around a little, though.
Unprecedented $4.50 premium per ounce on ebay for Silver Eagles. And that's for 2015 bullion coins that in many cases are probably not even in stock which is leading to $14.50 premiums per ASE on back dated coins. Just go on ebay and look for yourself.
Forget price. Anyday you can swap green paper debt bucks for real physical silver is a good day. Mark my words. One day, you will no longer be "allowed" to do so.
My silver is not for profit or even to protect my wealth, my silver is for use as currency after the SHTF. So I care little what the day to day fixed price is.
It sure can work for that. After a while, it can be traded for the accepted currency. People look at me funny when I tell them they may be buying their groceries in yuan. I remind them that many countries around the world accept US currency. If the US loses its reserve status, the new reserve currency with accepted value is what you will end up with in your pocket. That's if the US doesn't make transactions with paper cash (anybody's paper cash) illegal, a very diabolical way to keep control of your money after they finish destroying the dollar. Then maybe it's back to trading black market with silver and gold. We'll see.
Does SLV have all that metal?
Could it be that people call in a buy, wire the money, the SLV reports holdings commensurate with the new cash level but no silver is acquired? All they really need is enough to satisfy the big wheels when they want to haul some out. Little muppets don't have the option of redemption in metal, why bother with the acquisition?
I see increases of a million oz to the SLV while spot price is tumbling.
Sorry, I don't buy it.
SLV sucks.
Authorized participants can create baskets of shares (50k in a basket) by depositing silver* as well as redeem baskets of shares for silver** whenever they like.
* Comex paper qualifies as physical
** The real metal (possibly from an "Oracle" who sold his too soon).
No. It was used in 2011 to save the COMEX. Becasue when the banker's backs are to the walls, no crime is out of bounds.
I like silver because it has many uses, but they've abused gold about as much as possible and it's silvers turn to be massively manipulated. Oh well, platinum and palladium is still being ignored......
"It's silver's turn to be massively manipulated."
You've got to be joking.
Silver is currently trading at about $15 per troy ounce. Considering the price of silver peaked in 1980 at roughly $141 per troy ounce (in today's inflation adjusted dollars), I think it's safe to say silver has already been massively manipulated -- way more than gold ever will be.
There's no reason for me to ditch my Bitcoins. They've gained nicely in the past several days as I bought early in the month, so I'm still very much ahead. Even so, I use them to buy services and products, not to speculate on or for fiat! If that's the way you roll, then more power to you, but I suspect you miss the point that cryptocurrencies try to make.
Having BTC banks value outside of the banking system. I got rid of one Midwestern bank which started charging a $7/mo fee by a third-party company who should be investigated for RICO! I told the bastards that, but probably got an SAR written up on me. They drank the wrong Kool-Aid as I don't need any of the services and useless rubbish their third-party offers, but they were stoic in stating the fee would be imposed, even if I opted out. They don't like that I'm aware the politicians are bought out and continue selling us further down the river. Just as a highway, that river runs out - in the sea. We drown collectively except those few who wisely set up lifeboats.
It's obvious we're in for negative interest rates, whether overt or covert. I now keep a sizeable amount of my cash outside of the scumster system with a loaded Glock. I do sleep better and don't need their .00000001 % interest so they can retain my Social Insecurity Number.
I'm not going to beat on you for holding bitcoin. My only comment to you would be to watch very, very closely for anything that doesn't smell right as time goes on, because the idea of bitcoin is marvelous, but there are many potential trouble spots. If the money moves there in any appreciable quantity, you can bet more than your bitcoin the "world government" won't be far behind.
BitCoin? LOL!!!
Everyone MUST buy my SuperMegaBlasterCoin. Yes, for a mere $100 each I am willing to sell my limited algorithmic supply of SuperMegaBlasterCoins. They are going to $100,000 and beyond!!! Just send me your gold and I'll email you the coin numbers.
Great!! Tell me how I can get some SuperMegaBlasterCoins!
Awesome! Fabulous!!
Thanks Mom...
"Total ETF Silver holdings remain robust - over 500 million ounces"
Oh yeah? If this even exists why is it not being fed into the physical market?