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Entire silver industry is wiped out

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  • derrybderryb Posts: 36,013 ✭✭✭✭✭

    Yet it's only $28 and some change over at the COMEX.

    The only people I know that can jawbone against what is true with a straight face work over at the FED.

    "Do you hear alarm bells ringing? Neither do I. And that’s a huge problem." - Simon Black

  • rickoricko Posts: 98,724 ✭✭✭✭✭

    Looks like the PM powers did not allow the insanity to drive silver to the moon... Cheers, RickO

  • blitzdudeblitzdude Posts: 5,282 ✭✭✭✭✭

    Back to the gutter. It's Groundhog Day.

    The whole worlds off its rocker, buy Gold™.

  • LukeMarshallLukeMarshall Posts: 1,881 ✭✭✭✭✭

    Silver eagles are still $40 on APMEX, but have moved to “preorder”
    I saw some silver shot 3.99$ over other than that
    No industrial
    No 100oz bars
    No 50oz bars
    No kilos

    It's all about what the people want...

  • joebb21joebb21 Posts: 4,731 ✭✭✭✭✭

    @LukeMarshall said:
    Silver eagles are still $40 on APMEX, but have moved to “preorder”
    I saw some silver shot 3.99$ over other than that
    No industrial
    No 100oz bars
    No 50oz bars
    No kilos

    I have 1000 oz bars at +$3 if you want :)

    may the fonz be with you...always...
  • JimnightJimnight Posts: 10,670 ✭✭✭✭✭

    I'm not so sure it over.

  • LukeMarshallLukeMarshall Posts: 1,881 ✭✭✭✭✭

    @joebb21 said:

    @LukeMarshall said:
    Silver eagles are still $40 on APMEX, but have moved to “preorder”
    I saw some silver shot 3.99$ over other than that
    No industrial
    No 100oz bars
    No 50oz bars
    No kilos

    I have 1000 oz bars at +$3 if you want :)

    Appreciate it , but I can still get those for $2 over from Bullionstar

    https://www.bullionstar.com/buy/product/silver-bar-bullionstar-heraeus-1000oz

    It's all about what the people want...

  • carew4mecarew4me Posts: 3,459 ✭✭✭✭

    @LukeMarshall said:

    @joebb21 said:

    @LukeMarshall said:
    Silver eagles are still $40 on APMEX, but have moved to “preorder”
    I saw some silver shot 3.99$ over other than that
    No industrial
    No 100oz bars
    No 50oz bars
    No kilos

    I have 1000 oz bars at +$3 if you want :)

    Appreciate it , but I can still get those for $2 over from Bullionstar

    https://www.bullionstar.com/buy/product/silver-bar-bullionstar-heraeus-1000oz

    Thanks Luke. That very site you provide as proof of available silver has a newly published article linked at thetop sounding the very alarm the OP is sounding. B)<3>:)

    https://www.bullionstar.com/blogs/ronan-manly/houston-we-have-a-problem-85-of-silver-in-london-already-held-by-etfs/


    Loves me some shiny!
  • LukeMarshallLukeMarshall Posts: 1,881 ✭✭✭✭✭

    @carew4me

    Bullionstar

    I find their articles very informative and up to date with real world issues regarding PMs, and to a degree other commodities.

    Customer service is too notch and shipping, albeit a bit expensive, was super quick - I received an order in two days flat, Singapore to America.

    I read on their site that order volume is extreme but that they have been preparing in recent months by stockpiling as much inventory as possible. I’m keeping an eye on this site as well as others as a gauge of physical availability.

    I will say this, two weekends ago when most American dealers pulled silver inventory (whether available or not) Bullionstar was still accepting orders. I found it a bit ironic that a foreign company would still take your order, but domestic companies were censoring your buys.

    👀

    It's all about what the people want...

  • derrybderryb Posts: 36,013 ✭✭✭✭✭
    edited February 8, 2021 4:54AM

    I would rather a dealer not accept my order if he claims to not have the metal to cover it.

    While high demand is a good thing, it simply shuffles the silver supply to stronger hands. Now we will see if those stacker hands are stronger than those that fill the COMEX vaults. Spot price will be the first indication.

    "Do you hear alarm bells ringing? Neither do I. And that’s a huge problem." - Simon Black

  • carew4mecarew4me Posts: 3,459 ✭✭✭✭

    I feel the retail squeeze is just a high margin pain in the ass for stackers.
    The real action is in the ETFs and that article confirms it.
    I waiting for the first ETF to signal trouble sourcing metal...then you have my attention.

    Stimulus checks on deck too. Weeeeeeeeeeeeeeeeeee!


    Loves me some shiny!
  • derrybderryb Posts: 36,013 ✭✭✭✭✭
    edited February 8, 2021 5:44AM

    I suspect stimmy checks that won't be going into the savings accounts of savers have already been added to the outstanding credit card balance of the spenders. In a nation of debtors most "promised" money is normally spent before received.

    ETFs that hold metal will not signal any trouble sourcing metal. SLV in particular, while it claims to be backed by metal, depends on it's custodian (JP Morgan) to hold the metal and has no need to source metal. SLV is simply JPM's tool to make money from silver investors having providing its investers an average annual total return of only 0.46% since the fund was started in 2006. Don't count on SLV to divulge any internal problems. When you see a fourth letter added to the symbol and a move to an Over The Counter listing, then you will know there were problems.

    Paper markets are ultimately . . . paper markets.

    SLV

    "The assets of the iShares Silver Trust consist primarily of silver held by JPMorgan Chase (JPM), the custodian institution, on behalf of the fund. The fund may hold a very limited amount of cash in special situations. The iShares Silver Trust is passively managed as it does not buy or sell silver to take advantage of market price swings. However, SLV sells silver from time to time to cover its operating expenses."

    "Do you hear alarm bells ringing? Neither do I. And that’s a huge problem." - Simon Black

  • LukeMarshallLukeMarshall Posts: 1,881 ✭✭✭✭✭

    @derryb said:
    I would rather a dealer not accept my order if he claims to not have the metal to cover it.

    Right, and I agree with that ( I remember tulving?)

    What I don’t agree with is hiding inventory refusing orders and then placing that inventory back on the shelf after the price moves a little.

    It's all about what the people want...

  • derrybderryb Posts: 36,013 ✭✭✭✭✭

    @LukeMarshall said:

    What I don’t agree with is hiding inventory refusing orders and then placing that inventory back on the shelf after the price moves a little.

    Many here would pull their listings until the dust settled. As long as the dealers honored completed sales I can't blame them for wanting maximum profit on what was not yet sold. After all they are in business to make money.
    As we witnessed, rapidly rising prices reduce availability - not because it disappeared but because the hands holding it got a tighter grip.

    "Do you hear alarm bells ringing? Neither do I. And that’s a huge problem." - Simon Black

  • @carew4me said:
    I feel the retail squeeze is just a high margin pain in the ass for stackers.
    The real action is in the ETFs and that article confirms it.
    I waiting for the first ETF to signal trouble sourcing metal...then you have my attention.

    Stimulus checks on deck too. Weeeeeeeeeeeeeeeeeee!

    Have to remember also that Comex is ONLY thousand ounce bars! Smaller units have to be either refined or obtained from melting the 1000 oz ingots that are the REAL silver market. :)

  • derrybderryb Posts: 36,013 ✭✭✭✭✭

    "Do you hear alarm bells ringing? Neither do I. And that’s a huge problem." - Simon Black

  • derrybderryb Posts: 36,013 ✭✭✭✭✭
    edited February 8, 2021 12:04PM

    @carew4me said:

    Thanks Luke. That very site you provide as proof of available silver has a newly published article linked at thetop sounding the very alarm the OP is sounding. B)<3>:)

    https://www.bullionstar.com/blogs/ronan-manly/houston-we-have-a-problem-85-of-silver-in-london-already-held-by-etfs/

    Link claims 85% in LMBA vaults belongs to ETFs. And no one sees the elephant in the room - "why is EFT silver (or gold) in a futures exchange's vaults?" There is no need for ETF silver to meet the strict requirements of LMBA (or COMEX) vaults unless it is there for multiple uses.

    Its very likely that ETF silver in LMBA (and COMEX) vaults stands ready to be used to fulfill unexpected contract delivery needs should demand present itself. Such demand would not result in ETF's needing their vaulted physical silver, ETFs would actually be adding more physical silver. This may very well be the reason why outfits like JPM even created PM ETFs - to have a vault supply that is continuously replenished by one party as it is depleted by another. ETFs may very well be their insurance policy when it comes to not being able to fulfill delivery contracts.

    Do not assume the LMBA, COMEX or participating bullion banks play by the rules that were published for the rest of us to live by. I would not be the least bit surprised to find out that the same silver bar serves many purposes (ETF backing, loan collateral, leased out, futures delivery needs, etc.). Like all "money" markets why can't there be leverage with physical PMs? It would be interesting to know just how many people can lay claim to the same ounce of silver in those vaults. Banks legally do it with dollars all of the time.

    "Hey, if the ETFs don't need 'em at the moment let's put them to other profitable uses." Otherwise known as "fractional bullion banking."

    And this is yet another reason to manipulate the price of precious metals - to keep all of the "owners" of a bar from wanting it at the same time. You would have the same crisis (vault/bank failure) as you would if all of a bank's account holders wanted their loaned out dollars at the same time - lower prices reduce delivery demand. And believe me, it would be far from a "fractional" crisis.

    "Do you hear alarm bells ringing? Neither do I. And that’s a huge problem." - Simon Black

  • AzurescensAzurescens Posts: 2,665 ✭✭✭✭✭

    @OliverDePlaise said:

    @carew4me said:
    I feel the retail squeeze is just a high margin pain in the ass for stackers.
    The real action is in the ETFs and that article confirms it.
    I waiting for the first ETF to signal trouble sourcing metal...then you have my attention.

    Stimulus checks on deck too. Weeeeeeeeeeeeeeeeeee!

    Have to remember also that Comex is ONLY thousand ounce bars! Smaller units have to be either refined or obtained from melting the 1000 oz ingots that are the REAL silver market. :)

    Good old fashioned gatekeeping.

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