There is quite an enigma going on here in the silver market. The price is around $23 an ounce, yet when I go out looking for actual silver to buy, funny enough…there isn’t any available. If you can find it, it was going for $28 minimum a few days ago.
Would someone care to clue me in on the secret here?
I’ve got two theories myself, one of which must triumph over the other:
1) Silver demand is enormous, and pricing has been artificially pushed way too low, probably through the paper markets. If you sell, you’re a sucker, because the well connected are front running the blood (they probably helped make) to rob you in broad daylight. More importantly, small time players are not invited to buy here – You’d better be dropping $10K allotments or piss off.
2) PM brokers are in deep. They ventured outside of the normal safety of the bid/ask spread, taking on larger than life long positions in a way that would make Jon Corzine blush, and now that pricing has collapsed they can’t afford to sell at the lower pricing, so they’re waiting out praying some put orders come along the line while yanking their own inventory off the market.
Either one of these could explain why, just a few months ago, I could literally shower myself with silver bullion, but now can’t find anything smaller than 100 ounce bars.
A healthy silver market should have lots of smaller denominations available for purchase. The lack of all small ounces for sale seems relevant. A large move will be coming, and I’m betting either silver prices make a total recovery, or you’re going to see a lot of these silver and gold prop shops that sprung up everywhere since 2009 get incinerated.
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they’re out to get you, cain!!!
Eyes everywhere
dont say that chivo. here’s what been happening by me.i came into a boatload of cash.went to my local coin store guy,(he’s been there for over three decades).so i ask,how many ase’s you got left,he says none.no bars in any denomination what so ever.he had four bags of junk,pre 64 quarters.here’s the catch,19 bucks,for every dollar,4 quarters=1.1 oz.of silver.says he doesn’t know when he’ll expect to get delivery of anything,coin wise.not even gold coins,or 1/10th oz. this man is nervous,he has been in the coin business all his life and like you just mentioned,what creeps me out,because i had the same thought a few weeks back,that this will/could put these small business’ out of business just so the masses cant get access to any,cause thats how i am viewing it. also,there is a reality that they could be sitting on ase’s and not selling any till the price goes up,after all,it is their prerogative to do so.but i cant see that happen,if there very business means staying in it.or shuddering the doors.this guy used to have ase’s going back to the early 2000’s that nobody wanted and he was selling for15 bucks apiece,when i was buying ase’s from him for 17 back in 2010.on ebay the prices are double. so yes,something is very wrong,and something nasty will come with it.i surmise this because when i do some sherlocking,by speaking to these shop owners,who give two shits about the inter webs,and then read all the sites,with comments from around the world,only points to a few things.1:something shitty is about to happen to our monetary system.2: the system crashes,and no one,especially the us government will be without gold and silver.with the two largest mines closed,it’s gonna be mighty hard to come by any precious.but let me ask you chive, do you have the balls to short the metal over a friday saturday,or sunday? i didn’t think so……………….
You left out raised margin requirements for Gold/Silver. Only big boys are allowed to play.
As for physical silver – same story here. I buy silver coins (and sometimes gold) from local jeweler few times per year. He keeps zero in inventory for weeks now. Price $30 for less than 10 coins, with delivery “sometimes later” (he actually said that). Last time I bought silver I paid less than 30, while futures where much higher than now.
Just because you are paranoid doesn’t mean they are not out to get you… he-he
My novice opinion- Perhaps at the coin shop level weak holders have puked out of their positions, leaving the strong holders, who are not selling here.
usually if you frequent coin shops,the first place you go to sell……is a coin shop. you will get the premium exiting the trade/sale,just as you went in.no if,ands, or buts about it. banks cant even get any.i was there yesterday,no can get. they will sell you bunch of saqajuwia’s(sic) gold plated dollar coins,but those are trash,i have some 09’s.but not many.
so in other words, you have no clue
the gold dealer market is basically irrelevant from a gold/silver investment viewpoint
how do you figure that.at the retail level,dealers ALWAYS get a discount,not much mind you,but thats why there is a premium of a few bucks over spot. now the mentality is”if” there’s none to be had from regular channels to bring to retail, then the price will double. as you are seeing now,,,,,,,,,if you can get it……it’s brilliant if you think about it…..none of the worlds’ exchanges don’t have to even lift a finger and come out with a new spot price,as in lifting it…….the retail buyer will do it all for them. you are witnessing it right now.
I see plenty of silver for sale here, especially the austrian philharmonic is cheap right now for some reason. $4 over spot still, but it can be bought.
https://comparesilverprices.com/
Also NW Territorial mint has great prices on their brand silver
http://bullion.nwtmint.com/silver_nwtmintbullion.php
1 oz. rounds and bars for $25
See it says that, but I put some in the cart and suddenly the price goes to $27.50 and there’s an x by the order, which I think denotes out of inventory
ill go with door #1. the silver futures market is a laughingstock. on a good day, the COMEX trades an entire year’s worth of mine production. that’s not hedging – no one hedges an entire years worth of production in 1 day. that type of action is players with deep pockets pushing the market around because its profitable to do so. sure – you can make money shorting silver to 22, but if mines stop hedging at that price because its below their all in cost of production, who are the natural sellers of futures? it can only be speculators. since speculators cant deliver metal to close their short, they’re eventually gonna get squeezed and have to buy it back. if you cant find small demonetization silver at this price, silver here is the wrong price, and those shorting it are gonna get carried out the front door in a major way. its not complicated, but you have to wait for confirmation before jumping on the silver short squeeze from hell bandwagon.
Unless I’m some kind of silver leprechaun, you all must be surfing the wrong sites, because I can buy all the 1oz rounds I want for $25.
Try it
pawn stars,the tee vee show on history channel.old pops who owns the famous shop along with his son and grandson is a pm freak,and silver is his thing.this one kid comes into the shop with 115k worth of silver. he had one brick that weighed,oh ill say about 27 pounds. so what his kid did, for his dad,he took the brick to a refiner,had a shit load of one oz.rounds made up with his dads picture and the pawn shop on it. you can buy them from the pawn shop on line for the sum of 60 dollars……………so here we have an 80 year man,been deeply in the pm’s all his life,knows exactly what spot price is from day to day,yet sells one oz. rounds for 60 bucks…………..so when Narwahl makes a claim he can buy them all day long for two bits………well, i call bullshise
Providentmetals.com- silver is up this morning, so they’re $26 now. OPM 1oz rounds
You’re welcome
thanks for the site.yes they have the rounds.but thats about it.ase’s and all the rest are out of stock,and the eagles are twice the spot price.which proves my point,that “if” you can get an eagle it will cost double of what spot is. no matter, the rounds are legit, and thats what really matters. thanks
http://www.providentmetals.com/bullion/silver/private-slv/1-ozt-rd.html
Thanks for the site. It didn’t say they couldn’t provide. I played with the ordering function, trying to trick it.
But I’m not actually trying to buy right now, so I ended backing down.
If anybody uses this site and hits a problem, let me know.
I buy from them frequently and have never had a problem. You can sell to them as well, but you have to be selling a minimum of $1000 worth. They’re actually buying at 10 cents over spot right now.
hey Nar.thanks again….i just got 10 eagles from them.they are 2010’s a tad more,but definitely not double the price. bought them right around 2 this afternoon,and they ship today…….
Why 2010’s?
Okay good, here’s somebody that works. Thanks for the link
not one problem…i played with it also,then,i just said f’it and bought some.i cant believe they had any 2010’s.i couldn’t find them anywhere.
Arbitrage opportunities end. Period.
The gap has to close and it will eventually. Doesn’t mean we go higher or lower. Unless you want to believe that it’s not possible to make a risk free profit right now by taking delivery.
I’ll vote for door #1.
I’ve been watching premiums on CEF run more and more negative as silver/gold prices recover. No enthusiasm from the general public as far as I can see.
Went to a small coin show over the weekend. Two or three buyers of PMs, that’s a lot for a small show. I sold a 100 oz bar for $23/oz. They’d buy 10 oz bars at $26, and plenty of demand for 1 oz bars and coins. As many as I wanted to sell. Kind of the same story last year at a different show, some guy was buying gold eagles, $50 over spot, as many as you want to sell. Don’t know what these people are doing with this stuff, but seems like they have deep pocketed buyers already lined up.
My wife just showed me a Chinese newspaper. The story (in Mandarin) said Chinese buyers are crowding jewelry shops, and “they are buying gold like cabbage”.
Why do I get the nasty feeling we are somehow getting slowly screwed?
Just saw this on Marketwatch: http://blogs.marketwatch.com/thetell/2013/05/02/chinese-housewives-buy-300-tons-of-gold/
It’s not just housewives in China. The China Daily also reported Thursday that Hong Kong retailers were overwhelmed by all sorts of shoppers from the mainland seeking cheap gold over the three-day May Day holiday, with long lines outside gold shops, blocking streets and sidewalks. That echoes what happened in the wake of that historic gold drop on April 15, with shoppers reportedly swamping jewelry stores across Asia. Writing for the South China Morning Post on April 16, George Chen, whose penname is “Mr Shangkong,” wrote of China’s love affair with the shiny stuff.
This is basically word for word what was translated by my wife in my post above.
I will go with option 3.
Manipulators are moving gold from the US to LONDON in order to claim inventories are limited in the US. Then the big players unload on the bounce and use the surge in demand to dump their large supply on the masses giving them the very high probability trade by manipulating perceived supply and demand.
Meanwhile those paying attention in the US believe prices should be higher, so they have no problem buying.
If they get caught, they will blame this on the “hunt brothers” so to speak when they are just the scapegoat…. Just as they did last time.
Risky theory. Moving gold overseas is hard because, at least according to my friends in the insurance market, nobody will cover it. Not even Lloyds.
Even for ordinary people, moving things of value across the USA can be risky. Drive through certain states with tags from certain parts of the country, and odds are the police will stop you and seize cash or precious metals as drug money.
I have nothing to do with the attorney at this link, it’s just a Google result:
http://www.josephhollander.com/civil_forfeiture.cfm
You damn right a big move is coming. Eight dolla on the way.
Lol reminds me of my crude to $60 call.
thats like telling a person like my self that apple will go to 300.but who gives a fuck if i owned it at 93………..now,,axs me if i give a fuck. because i sure don’t