What's behind the unexpectedly high physical silver demand recently?

silversearcher, are you going to tell all the newbies when the right time to buy is?.

Are you that good at timing?

I have read you posts lately and seems that you would prefer to stack stamps and records
rather than metal, you have this huge bee in you bonnet about the quality of all coins
after 2012, and have a go at people who are distinguished in the metals business (when
you could have just googled Brons name).

What is your agenda, and would you mind sharing some pics of all your Perth Mint
products that are of such inferior quality that makes them just like the car with the
blown motor going just as quick in the wreckers as a milky coin is to a smelters crucible.

This is not THE END, and yes there are retail SHORTAGES

You are entitled to your OPINIONS but please dont post them on every thread here,
its BORING

cheers grant

 

Is There a Silver Shortage?
Louis Cammarosano

http://www.silverbearcafe.com/private/09.15/silvershortage2.html

"Conclusion

Something is amiss in the silver market. Silver prices ARE rising, but they are rising on the premiums paid on retail silver products, not on the underlying physical commodity.

Whether there is an absolute shortage, temporary shortage, production shortage, retail or wholesale shortage, prices of the underlying commodity normal rise in reaction to such shortages.

For example, during the past few years there has been a housing inventory shortage, not an actual housing shortage. Home prices, however, rose in reaction to the housing inventory shortage. When there were relatively few homes for sale, even if relatively few homes were being sold, home prices rose.

"Water Water Everywhere, Nor a drop to Drink"

Similarly, when OPEC cuts oil production, there is a production shortage not an actual oil shortage, but the price of oil rises in response to the reduced availability of oil.

All shortages are solved by price.

No one really needs a silver eagle by any particular date. If American Silver Eagle coins are not available for sale or the premiums are considered too high, purchases can be deferred. A silver shortage may not matter to price until a major electronics supplier or solar manufacturer is informed of a delay in its silver shipment. Such a delay would result in a delay in getting their products to market and a loss of revenues and profits.

At that point, demand for physical silver to be delivered will be met by a market price relative to the available physical silver supply, irrespective of the price "set" on Comex by paper trading of futures contracts.

Industrial producers requiring silver will pay what they need to pay to receive their silver supply.

Electronics manufacturers have paid $45-50 an ounce as recently as 2011 and never flinched. Clearly, they would have no issue paying such prices again if they needed to avoid production delays in their products.

While miners may not be able to ramp up silver production on a (clad) dime to meet excess demand, higher spot silver prices would wrest a lot of existing silverware and coins from investors' hands and temporarily allievate any shortage..."

 

Is that PM positive or negative?


Jim

 

Just took a look at ASE prices. Can't find anything under $400 USD its quite amazing how its jumped up so much.

 

Weird. Wouldn't have thought people were wedded to ASEs enough that they wouldn't shift to some other product. Are other premiums rising as well?

 

I'd be of the same opinion but there must be people who only want ASEs.

Seems like a lot of gouging going on.

Also I had a thought as people "waste" more money towards premiums... it's a bit like margin requirements... seems like the hope is that rising premiums will reduce demand. Can't understand why people won't buy something else.

 

If premiums rise significantly on ASEs, you'd think people would switch to low premium silver. But that's not happening?

 

US citizens now paying only slightly less than we in the UK pay for an ASE even with our 20% VAT. a 49% premium at APMEX.

 

Perhaps it's a GSR thing. It's quite high at the moment. People shifting gold purchases to silver.

 

Gold stackers is at least 2 weeks behind on Low premium too, with no comment on how much longer it might be until they have any yet. Its bad enough they have now marked it with "Sales temporarily suspended - please check back each day" and its out of stock until they can actually source some.

Amazing thing to see really...

 

I am watching the apmex premium on 2015 ase closely. Its 4.99us$ since a few days and unindependet from spot, so no automatc calculation based on %.
What i can't see is the delivery time. Maybe you need to be registered customer to see this.
Anybody who delivery time ?

 

I've noticed that whenever the price of silver starts putting in new lows it becomes hard to find. Last autumn was a good example, delivery dates became a lot longer and it seemed like physical silver was becoming very scarce and I understand that didn't really change until late spring of this year.

 

This morning at least it appears they are ready to ship. The $4.99 is the "as low as" price if you buy a monster box. That is not the price if you buy just a few tubes, etc.

Jim

 

Jim, i try to record some data over time - check http://forums.silverstackers.com/topic-67235-premiums-on-silvercoins.html

 

No surprises there.....

 

Wow, silver actually held over US$15 today. I'm shocked. I would be more shocked if it didn't drop down 4% tomorrow though.

 

Perth builion 100 ounces silver perth mint bar ordered at probably 6 week wait and thats ok by me...