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

[Miloman]

Sorry to get back to the topic fellas.

You know something intrigues me... Back in 2008 and during the first tumble in gold from the 2011 highs, we saw massive queues of people. This time around although there is the claim that lots of silver is being sold, I'm just not seeing queues of people. In fact very few people.

Who's buying all this metal? I'm just not seeing patronage matching the story.

The only thing is that it's much larger purchases. Had a chat to a friend who said "it's probably people who have pulled money out of the stock market and want to sink it into a better investment". It's the only thing that makes sense.

 

[alor]

when customers cash out, its usually substantial...

 

[Silverpv]

Sorry to get back to the topic fellas.

You know something intrigues me... Back in 2008 and during the first tumble in gold from the 2011 highs, we saw massive queues of people. This time around although there is the claim that lots of silver is being sold, I'm just not seeing queues of people. In fact very few people.

Who's buying all this metal? I'm just not seeing patronage matching the story.

The only thing is that it's much larger purchases. Had a chat to a friend who said "it's probably people who have pulled money out of the stock market and want to sink it into a better investment". It's the only thing that makes sense.

Because its all digital now... It's all being sold on EBAY!!!! Ebay has joined the conspiracy of pumpers and dumpers!! dun dun dun!!! Their frigging promotions are making me buy using the click button, at home, at work. The only queue I've been waiting for metals recently is new releases, like Aphrodite!!

Up/Down, its just like stocks. The people with boat loads of money can manipulate the market same stuff different day.. Just try to profit where you can and build what's affordable. Diversity is important as well as a plan. A plan to collect and hedge, while building. My plan also includes actively selling to protect and offset costs.

 

[hamannmj]

Thought so.

if you started stacking near the date you register on ss its clear why you are a bit pissed and you think there are only conspiracy theorists on this board who are still bullish.
its still very profitable to unload 2008-2010 Lunars and buy much more worthless silver. no reason to be pissed even after a 4 year bearmarket

My stack is well in the black on all purchases...

Every single purchase you've made has been perfect timing? Congratulations are in order. Why are you here?

 

[SpacePete]

Sorry to get back to the topic fellas.

You know something intrigues me... Back in 2008 and during the first tumble in gold from the 2011 highs, we saw massive queues of people. This time around although there is the claim that lots of silver is being sold, I'm just not seeing queues of people. In fact very few people.

Who's buying all this metal? I'm just not seeing patronage matching the story.

The only thing is that it's much larger purchases. Had a chat to a friend who said "it's probably people who have pulled money out of the stock market and want to sink it into a better investment". It's the only thing that makes sense.

That's an important observation.

If there's fewer small buyers from the general public (non-stackers) this time around then can we assume that a small number of big buyers are quietly soaking up supply as fast as they can? Are they the so-called "smart-money" that get in before the herd? But then, why? What is their thinking? Is it the same as ours?

 

[mmissinglink]

Sorry to get back to the topic fellas.

You know something intrigues me... Back in 2008 and during the first tumble in gold from the 2011 highs, we saw massive queues of people. This time around although there is the claim that lots of silver is being sold, I'm just not seeing queues of people. In fact very few people.

Who's buying all this metal? I'm just not seeing patronage matching the story.

The only thing is that it's much larger purchases. Had a chat to a friend who said "it's probably people who have pulled money out of the stock market and want to sink it into a better investment". It's the only thing that makes sense.

That's an important observation.

If there's fewer small buyers from the general public (non-stackers) this time around then can we assume that a small number of big buyers are quietly soaking up supply as fast as they can? Are they the so-called "smart-money" that get in before the herd? But then, why? What is their thinking? Is it the same as ours?

I doubt "smart money" sees pm's as money or as a store of wealth for the alleged imminent global currency collapse. I'm assuming they simply see it as any other commodity in which they can make money buying low and selling high.

But I'm not a member of the smart money club so I wouldn't know for sure.....I'm just a simple stacker.



.

 

[The Crow]

Does anyone here have a working crystal ball?

.

I did have! Someone was annoying me the other day. I threw it at them - it worked perfectly!!!

 

[wrcmad]

if you started stacking near the date you register on ss its clear why you are a bit pissed and you think there are only conspiracy theorists on this board who are still bullish.
its still very profitable to unload 2008-2010 Lunars and buy much more worthless silver. no reason to be pissed even after a 4 year bearmarket

My stack is well in the black on all purchases...

Every single purchase you've made has been perfect timing? Congratulations are in order. Why are you here?

No.
I suggest you read the second half of the sentence you used to take me out of context.

 

[Miloman]

Sorry to get back to the topic fellas.

You know something intrigues me... Back in 2008 and during the first tumble in gold from the 2011 highs, we saw massive queues of people. This time around although there is the claim that lots of silver is being sold, I'm just not seeing queues of people. In fact very few people.

Who's buying all this metal? I'm just not seeing patronage matching the story.

The only thing is that it's much larger purchases. Had a chat to a friend who said "it's probably people who have pulled money out of the stock market and want to sink it into a better investment". It's the only thing that makes sense.

That's an important observation.

If there's fewer small buyers from the general public (non-stackers) this time around then can we assume that a small number of big buyers are quietly soaking up supply as fast as they can? Are they the so-called "smart-money" that get in before the herd? But then, why? What is their thinking? Is it the same as ours?

I don't honestly have an answer.

What you are saying is common sense and is what everyone thinks happens. Smart money buys low and sells to the populace buy at the top, it's the old story of accumulation and distribution.

Still, using what little computing power my brain has... I just don't have enough information. We can all agree that silver is cheap and there may be very big money moving in for silver not to flood down (trickle down to the masses).

 

[sammy]

Does this finally mean that the bottom for silver in this current 4+ year bear market is now in the history books?

Is the apparently sustaining volatility in the paper markets driving more investors now to PM's?

Does anyone here have a working crystal ball?




.

My crystal ball only works with 20/20 hindsight ... and even then it's not always right

 

[hamannmj]

My stack is well in the black on all purchases...

Every single purchase you've made has been perfect timing? Congratulations are in order. Why are you here?

No.
I suggest you read the second half of the sentence you used to take me out of context.

You opened your statement with that. I was congratulating you. I applaud you sir. I wish my entire stack was "well in the black."

"My stack is well in the black on all purchases... thanks to your so-called 'casino'.

...and I still hold a stack because I am long-term bullish"

 

[wrcmad]

Every single purchase you've made has been perfect timing? Congratulations are in order. Why are you here?

No.
I suggest you read the second half of the sentence you used to take me out of context.

You opened your statement with that. I was congratulating you. I applaud you sir. I wish my entire stack was "well in the black."

"My stack is well in the black on all purchases... thanks to your so-called 'casino'.

...and I still hold a stack because I am long-term bullish"

Had nothing to do with timing, and I'm not after congratulations... the process of protecting the value of a "wealth preserving asset" isn't all shits'n'giggles (though sometimes I cant help but chuckle at the irony.)
That statement was merely fending off some grossly inaccurate assumptions made by ninteno.
And I'd love to know what-the-turtle all this has to do with my reasons for being here?
But I am guessing I wont get an answer to that one...

 

[hamannmj]

Yeah, you wont get an answer from ME, on all of the reasons for which YOU are here...

Can't help you on that one. We have a LOT of Bulls here that talk about making $$ and they ALL purchased when silver was sub $12, and of course, since they are only in the position of "stack," they didn't sell at $44.

It's just a bit annoying, to be honest...hearing statements of arrogance about every purchase being "golden" (no pun intended) when silver has been down for 5 years, and sideways for 99% of its existence.

Again, congratulations on your stack being "well in the black on all purchases." Something, if I may point out...YOU mentioned, and I offered my thoughts on.

No need to get upset or begin some argument over what you said.

 

[Bad Medicine]

I think there isn't as much physical metal available because it is being acquired.

I think it is being acquired by buyers who want it more than the money used to pay for it.

 

[Silverpv]

There's just a lot of fear right now and people want to protect themselves. Some know how to do it better than others. We're all here for the same thing. We all like the shiny and manage our stacks differently. The main thing to protect against loss, is to not be fearful of selling and losing out on a little bit of profit. If you don't sell, you can't realize profits. Some guys want to hold for their kids, great that just means its taken out of circulation and their kids will likely sell if/when they need money. Unless you are forced to sell, which typically results in red.

I can see demand/supply staying like this until a couple of scenarios play out. a.) Stackers run out of money b.) miners run out of money c.) money runs out of money (inflation) d.) we're all stupid and all metals fall like it did the last 30-40 years after booms e.) banks get into metals and we all start winning again.

Ultimately, we're all in the same game, until we're not.

 

[sterling-nz]

If what we have heard in many previous threads about less than 1% of the world population stacking then with a GROWING population base and the odd newbie thrown in then of course there is going to be more demand.
Nothing to do with "fear" or "protection" simply a similar number of people stacking on a % of population basis.
And the stackers we already have are going to grab a bit more if they think it is "on sale"
"on sale" is yet to be proven though, i feel we are going lower.
But what do i know aye?
May be this time it will be different , LOL

EDIT: Clearly i am here because i stack and am a long term bull, but i am for the time bearish.
Silver will have its day again and when people stack pumping the price up to the previous highs i WILL SELL and make great gains.
I did not have the quantities in 2011 to get rich, but next time around i will.
Silver is not all we do of course, i like it because many of the coins i collect are made of silver and people really have no idea about its value.
That bowl i posted recently is a prime example, it was priced the same as all the plated junk yet i could take it and have it melted for more than 5X what i paid for it.
Gold is similar , but a few more people realize that gold has value than silver.

 

[Silverpv]

If what we have heard in many previous threads about less than 1% of the world population stacking then with a GROWING population base and the odd newbie thrown in then of course there is going to be more demand.
Nothing to do with "fear" or "protection" simply a similar number of people stacking on a % of population basis.
And the stackers we already have are going to grab a bit more if they think it is "on sale"
"on sale" is yet to be proven though, i feel we are going lower.
But what do i know aye?
May be this time it will be different , LOL

EDIT: Clearly i am here because i stack and am a long term bull, but i am for the time bearish.
Silver will have its day again and when people stack pumping the price up to the previous highs i WILL SELL and make great gains.
I did not have the quantities in 2011 to get rich, but next time around i will.
Silver is not all we do of course, i like it because many of the coins i collect are made of silver and people really have no idea about its value.
That bowl i posted recently is a prime example, it was priced the same as all the plated junk yet i could take it and have it melted for more than 5X what i paid for it.
Gold is similar , but a few more people realize that gold has value than silver.

It has a lot to do with fear and protection, that's why they call it a "safe haven", "storage of wealth". If your hypothesis was correct then gold prices would've jumped prior to 2011 and would look more like the world population growth chart, which is a hockey stick with no drop, since there hasn't been a drop in population.

http://www.worldometers.info/world-population/

If you really want to get rich, don't invest in gold or silver. Invest in securities like rich people do. PM's at most will only grow 2x-3x and Silver 2x-5x, from where its at. If you "invested" there's a number of markets that did very well since 2011, even after the latest 10% correction in the US. market and corrections, the avg is higher than it was by many times.

There are a number of reasons people go in and out of this PM game, none of which is wrong. Whatevers right for you, keep doing it.

 

[Pirocco]

... when silver has been down for 5 years, and sideways for 99% of its existence.

In terms of fiatcurrency.
Not a stable reference. A sloped, fluctuating one.
In terms of other products, silvers price has fluctuated alot.
For example, in terms of dollars, silvers price hung around $5 for 2 decades.
But alot other prices, have changed alot during it. A house doubled, tripled. So silvers hang, in real terms, wasn't sideways. It was losing.
One that intended to buy a house, and used silver to save towards it, and silvers price hung, and the houses price doubled, lost half.
Which is the very same loss of someone that bought at $30 and sold at $15, with house price hanging inbetween.
At another (just a more recently chosen term) side of this fluctuation, silvers price tripled (+200%) over 2005-2015, and a house didn't (anymore), far off.
It isn't silver that does something, it's people that do, some make bad decisions, some make good decisions, and that applies to any product that is speculated on. Stocks come, stocks go. The best time to buy is when stocks are low / few buy. The worst time is when stocks of the product are high / alot buy. Doing the opposite of what most do. When alot positivity around, stay out or get out, even when alot negativity around, it means big stocks because people that bother/care have a reason to do so. When nobody talks about it, get in. Maybe the next time to buy silver is when all the dealers that became dealer the past decade quit the job again. When their shops and internet forums vanished again.

 

[clear]

Hi Pirocco, welcome back.

 

[silversearcher]

What shortage ? I expect the second coming of Christ soon. It won't be long before Mike Maloney uploads his sob story on youtube and panic. Of course the premiums will shoot up temporarily for a month or so. Seen and heard it all before. For the newbie, do what I do. Pick up your fishing rod for the time being relax and wait it out. Then reload at the right time and buy. And of course if premiums get silly flog some inventory off on Ebay...Cheers