http://moneymorning.com/2013/04/02/...mand-for-coins-why-are-silver-prices-falling/ It's one of the biggest mysteries in finance right now. I mean, it's a real head-scratcher ... On one hand, demand for silver coins has been off the charts. With so many investors wanting to swap currency for silver, neither the U.S. Mint nor the Royal Canadian Mint has been able to keep up with purchase requests.
One needs to understand that both gold and silver have now effectively been monetized. That is to say, while there is something being traded on futures markets called "silver" it is a monetized version of it, also known as "synthesized". I can open a market tomorrow to trade Jupiterium (rocks from Jupiter, if they even exist!). Now all that will drive the Jupiterium market is someone selling a promise to deliver a kilo of the stuff to someone who wants to pay money (fiat) for that promise. No Jupiterium changes hands, just a monetized version of it. The same thing happens with silver. There is no longer any real relationship between the commodity being bought/sold in futures markets and the real lump of element 49, silver.
Because the silver price is determined by the commodities futures exchanges which is a whole bunch of traders who don't care about the real world, just trading in and out of all sorts of commodities and currencies. The trend is down so they all trade the trend. Why did oil go up to $150 a few years ago and crash back down again, for no apparent reason ?
Paper to physical > 100:1 so physical does not count until it runs out. We saw the same thing happen in 2007/2008 - nothing to see move along. Watch the supplies run out or dealers not adjusting prices lower - then we are near the bottom.
Silver could go to zero! Think about it, a market requires buyers and sellers. If the bullion banks run out of inventory and promise to only pay in ever inflating cash who would take out a forward contract without hope of standing for delivery. No buyers > price falls to where there are at and for a negative return that is $0... end game
Paper silver can go to zero and if the price was zero that would be game over for the paper silver and the Comex but not the physical. The comex would close and the silver miners/producers/recyclers would dictate price as it should be. We need silver for all our Pcs, etc etc etc whatever happens to the paper market will eventually no longer impact physical silver.
This is an interview Greg Hunter (USAWatchdog) did with Dr Paul Craig Roberts on December 11th last year. Listen carefully to what Dr Roberts says starting from 13:36 onwards. [youtube]http://www.youtube.com/watch?v=iGujjO_Za2c[/youtube]
I thought you meant Bitcoins and Litecoins. Litecoins up from $0.80 high on Sunday, to $2.44 high tonight. Gold and silver plummeting. My faith in anything related to wealth is almost at rock bottom.
RetardedMonkey in 2007 / 2008 when we bought Ag for $22 and then it fell to $9.00 people were shocked - it was all over. But is was not it was just starting. Sit back have a beer and watch.
Calm down and watch the nice video I posted. At least watch it from 13:35 onwards for a couple of minutes and chill out.
Physical vs paper. There is not a real thing in paper. As soon we find out it had been manipulated. Like most things. Demand for physical bet you they cant produce them.
The answer is quite simple, the side that bought silver as undelivered 1000 ounce bars with 20% tolerance, is dumping more ounces than are bought as delivered. Also, stackers sell too. I know, I bought about 7 kilo from them, only a fat kilo from dealer. So your 'white hot demand for coins', well, it's what it is: a part of the story, and the whole of the story includes others.
People should start to realize that some fast price uptrends are NOT due to stackers buying. There is a bunch people out there, that suggests that every price move upwards is due to buying delivered silver ('physical') and every price move downwards due to selling silver that wasnt delivered ('paper'). That is a bogus picture. The biggest cause of the $27>$35 uptrend beginning in august 2012 was the futures market's positions taking. The error is that a number stackers bought in that uptrend and sideways, and in the earlier part of the downtrend. So the futures market 'players', succesfully achieved what they want: they had to give a quarter less silver for the dollars than with the $27 spot price it previously was. Remember all the hurah style look at US Mint sales about every month? Well, it was actually the opposite: a real pity. How can you be happy when seeing alot people that try to do the same as you / hedge against fiatmoney inflation, receiving a quarter less silver than they should? That's why I blame that bunch silver pumpers alike Silver Doctors / Zerohedge and some others, they are plain misleading stackers over and over again. It wouldn't wonder me a bit if they are just playing the same Comex/paperbased game in order to suck out blood from the silver markets real traders.
Three words. Dividend Yielding Assets. This is the trade right now.... this will change when the time is right. Silver to 23.75
I wish the yen would go up for awhile so I could load up as I did last year so far in yen I'm paying last year's average price
Cows will yield more calf Chicken produce more eggs Plantation will produce assets Silver and gold will attract more buyers, some times bad hunters.
A newsletter i receive has been saying for a month or so that the bottom will be mid april... time will tell i guess.
