The disconnect between paper and physical silver

valuecreator

valuecreator

Well-Known Member
Silver Stacker
I strongly suggest you watch ALL this video.

[youtube]http://www.youtube.com/watch?v=-1vyuC4Il44[/youtube]
 
This video is somewhat misleading. He focuses on 90% US junk silver being 10% or so over spot at apmex. What he fails to tell you is that 40% US junk silver at apmex is 1% over spot. For this guy to extrapolate that because the 90% US junk silver is highly priced above spot that there is some "disconnect" with paper silver is misleading when he doesnt explore other physical silver coins/bar prices.
 
IMO it is significant.

I have never seen it that much above spot in the last ten years (can't even remember seeing above spot at all).

That means the demand is overwhelming the supply.

All that while the spot is crashing.

The disconnect between the physical market and the paper is starting to become obvious.

In Gold it's even more acute, the premium in Shangai over the Comex/LBMA is sucking all the juice Eastward.
 
This is advice or more appropriately a request, I'm a "reader" not a "watcher", I usually don't watch Youtube videos, preferring to read for my information, can you provide a synopsis for your posts vc?
 
usually I would, but for this one you'll have to invest the time.

What we're witnessing "live" is the bullion banks and the Fed breaking the back of the paper market.

Right here right now.

Just yesterday I was chatting with a geologist that works in the goldfields. He said he's seen his business in worst shape before, but not by much.

The gold and silver price is in complete disconnect with reality.
 
valuecreator said:
usually I would, but for this one you'll have to invest the time.

What we're witnessing "live" is the bullion banks and the Fed breaking the back of the paper market.

Right here right now.

Just yesterday I was chatting with a geologist that works in the goldfields. He said he's seen his business in worst shape before, but not by much.

The gold and silver price is in complete disconnect with reality.
Click to expand...

I agree with you.

... If this big bitcoin move was fuelled in any way by a lack of faith in currencies/banking system then pm's should have obviously risen too. I smell a huge disconnect between paper and physical at this point in time.

I'm looking forward to the day when the Comex tells its first customer "sorry sir, if you want to take possession immediately we'll have to fulfil your contract in USD, not gold/ silver"
 
salty lemon said:
valuecreator said:
usually I would, but for this one you'll have to invest the time.

What we're witnessing "live" is the bullion banks and the Fed breaking the back of the paper market.

Right here right now.

Just yesterday I was chatting with a geologist that works in the goldfields. He said he's seen his business in worst shape before, but not by much.

The gold and silver price is in complete disconnect with reality.
Click to expand...

I agree with you.

... If this big bitcoin move was fuelled in any way by a lack of faith in currencies/banking system then pm's should have obviously risen too. I smell a huge disconnect between paper and physical at this point in time.

I'm looking forward to the day when the Comex tells its first customer "sorry sir, if you want to take possession immediately we'll have to fulfil your contract in USD, not gold/ silver"
Click to expand...
ahh yes the Achilles heal of price manipulation. The correct question for a PM investor is not "Is the price manipulated?" BUT "So the price is manipulated, can it last forever? What will make it end?", So the answers are in dual format. For gold it is central banks asking for their gold back and NOT repeat NOT just leasing it back into the market again like the previous holder did thus ending fictional reserve banking of gold. And for silver it is miners not being able to make a profit therefore not mining, therefore inventory is used in investment/industry is not replaced and both end up in "sorry sir, if you want to take possession immediately we'll have to fulfill your contract in USD, not gold/ silver". For me the big question is not if, but when and haunting me is the saying "The market can remain irrational longer then you can remain solvent". On a side note if I was a manipulator I would invest in mining companies to make sure even if not profitable they continue mining.

Be aware the other side of the coin does not feel losses and has an almost endless bank roll :(
 
Oh stop it, you and your facts :) I just went and created a perfectly good "Perth Mint is out of silver" innuendo thread and you post that :P
 
About a month ago I was at the largest coin dealer in my states capital trying to pick up some coin holders, and while looking around I told him to sell me some silver. I told him to show me what is closest to spot in which he replied the generic ounce rounds and bars which were like 2 or 3$ over spot. I said 90% is cheaper right, he replied with there is a $5 premium over every dollar face value of junk 90% silver. I was blown away, and couldn't believe what I was hearing. He then told me there are cheaper ways to buy it of course, but not from a dealer.
 
if premium goes up while prices goes down, you know something's not kosher.

This being said, i think silver/Gold bugs shouldn't take things too personal, this is turning into a general market meltdown. I was expecting september, but here we are.
 
If prices are dropping while NK threatens nuclear war AND we have bank holidays in Cyprus AND Sovereign debts are not slowing down AND the EU, Canada, NZ threaten to steal savings if they experience bank problems and there is no solution to Iraq, Afghanistan, Syria, Israel AND the BRICS just announced a new global bank to rival the IMF AND Russia just announced an increase to its Gold Reserves AND South Korea just announced an increase to its Gold Reserves AND China is known to be stockpiling gold AND every sovereign leader that threatens to trade in gold has been gunned down AND Central Banks are printing currency like there is no tomorrow AND ... you have a pair of eye's to see with and a brain to think with ...
 
Gino said:
If prices are dropping while NK threatens nuclear war AND we have bank holidays in Cyprus AND Sovereign debts are not slowing down AND the EU, Canada, NZ threaten to steal savings if they experience bank problems and there is no solution to Iraq, Afghanistan, Syria, Israel AND the BRICS just announced a new global bank to rival the IMF AND Russia just announced an increase to its Gold Reserves AND South Korea just announced an increase to its Gold Reserves AND China is known to be stockpiling gold AND every sovereign leader that threatens to trade in gold has been gunned down AND Central Banks are printing currency like there is no tomorrow AND ... you have a pair of eye's to see with and a brain to think with ...
Click to expand...

FLOL :lol:
 
valuecreator said:
if premium goes up while prices goes down, you know something's not kosher.
Click to expand...

I saw this happen just this morning in the SS sales threads and did not assume price disconnect.
 
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