I would imagine that the majority of future markets today represents a buying that doesn't want to get a commodity delivered and a seller that is not a producer. Thus making it a speculative market today. I don't know why people still think it's mainly a nice simple fundamental market like how it was in the old days.
Simple new kilo bars. My normal vendor is sold out after this last dip but still taking back-orders. Other sources of the same product that still have stock are holding at about $12 to $15 more per kilo.
Pirocco, again agree how the futures market should be used but it is full of speculators. Just look at the derivatives market! but IMHO this isn't the case for silver.I'm not disagreeing with its roll, hedging, benefits for suppliers and producers, etc SgBuyer, I understand its all hard to get the futures market and you are pretty much there on the fundamentals. Paper does remains as paper until the paper long buyers (commercials or could be the non-commercials/non reportables as a 'long' simply means the 'buyer' in the contract) demands for physical delivery of silver (assuming they are allowed to do this by contract, yes they can ask for physical delivery or settle in fiat). Of course, by then, there won't be any physical silver that can be bought at any reasonable price a possibly and hence the short squeeze. Maybe to help with some of the jargon - 'commercials' refers to commercial banks and 'non-commercials' refers to non-commercial banks (eg hedge funds). The 'non-reportables' are basically the rest which include small investors Leo25, agreed. Its sad that there is no free markets currently but expect after a huge financial thumping, we might learn the lesson In simple, my original post was only wanting to share a bullish indicator I saw of the commercial banks (who have been net short - aka sellers) switched to net long (aka buyers) on Comex. I have no accurate idea where the price could go but don't see much more room as hitting production costs for the primary silver miners. If the spot did drop to $9/oz, it would be almost impossible to buy without a massive premium (meaning minimum production cost + dealer markup) or weak physical investors needing to sell in the secondary market (small supply quickly purchased)
yeah, I can not find the palladium coins now https://www.bullionstar.com/buy/palladium someone must have taken them off the shelves
there are big consumers from Japan doing their own mining is South American Mines for such a case, what is the need for futures markets ??
Suppliers of 'raw' products and consumers/manufacturing of those 'raw' product's will always both benefit from an agreed future price. Take an example of booking international travel 12 months out. The airline can provide me today with the price as they have locked in the supplier for fuel (Avgas) and have a reasonable control over other costs (wages). The supplier of fuel (Avgas) has a guaranteed customer and can the produce his 'raw' product with the knowledge of the sale. Take a mobile phone manufacturer looking to supply production of x number of units. Once they can secure the 'raw' product's at an agreed price with the 'raw' suppliers, they can take pre-sales as cash flow for the business. Win/Win as Pirocco pointed out. Ok I have given unrealistic future market use examples but trying to give an equivalent real world example which might make more sense? Leverage (with margin's) encourage's speculation which influences the market. Agreed it ludacous that a 'paper punt', with no intention of taking delivery (in most cases) should control any physical market (not just the metals) but thats the world we live in
Have not really noticed the kilo bar price trend as the dealer premium is pretty high in singapore for kilo bars. Doesn't make sense to get kilo when it's possible to get 10 oz at lower premium. It sucks that there's no p2p bullion community over here so dealers are the only source of bullion.
you are right, kilo cost more per oz than the 10 oz on offer, 10 oz bar cost $201.75 kilo cost $663 p2p market will be available again in the future, more people are buying than letting go its just a click away when buying from online
Interesting that 10oz has less premium- in Australia is the opposite 10oz is about 1 dollar an oz more than buying kilo. 10oz $224 Kilo $674
You can check the prices on malaysian dealer sites, they are somewhat much more expensive than you can get in Singapore, Australia or US. Not sure if it is due to GST or insurance.
I was offered some very good deals while in Kuching but we were traveling into the bush I wasn't going to lug bullion with me. I also wasn't sure what transiting through Singapore with it in my carry on luggage would be like.
Cheapest 10oz bar I can find is AU$218 https://www.ainsliebullion.com.au/p...d4d1-bb8a-441d-b9e7-05f179538490/default.aspx
