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

Discussion in 'Silver' started by SpacePete, Sep 14, 2015.

  1. bigsky

    bigsky Active Member

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    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
     
  2. Luker

    Luker Member

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    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..."
     
  3. goldpelican

    goldpelican Administrator Staff Member

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    ASE wholesale premiums jumped AGAIN today.
     
  4. Jim4silver

    Jim4silver Well-Known Member

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    Is that PM positive or negative?


    Jim
     
  5. Silverpv

    Silverpv New Member

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

    Silverthorn Well-Known Member

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    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?
     
  7. Miloman

    Miloman Active Member Silver Stacker

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    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.
     
  8. SpacePete

    SpacePete Well-Known Member Silver Stacker

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

    goldpelican Administrator Staff Member

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    I was recently quoted 14 weeks delivery for generic silver - people are definitely buying it.
     
  10. Rod Panhard

    Rod Panhard New Member

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    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.
     
  11. Silverthorn

    Silverthorn Well-Known Member

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

    HudsonDesign Member Silver Stacker

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    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...
     
  13. ninteno

    ninteno Member

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    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 ?
     
  14. Bad Medicine

    Bad Medicine New Member

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    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.
     
  15. Jim4silver

    Jim4silver Well-Known Member

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    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
     
  16. ninteno

    ninteno Member

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

    goldpelican Administrator Staff Member

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    Today I'm seeing up to $1.10 USD variation in wholesale prices on ASEs in the US depending on the supplier. Getting crazy.

    Apparently a press went down at the US Mint that knocked about 250,000oz off the week's production, which has been reflected by this week's opportunistic price hike.
     
  18. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    No surprises there.....

     
  19. hamannmj

    hamannmj New Member

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    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.
     
  20. Sandgroper

    Sandgroper New Member

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

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