With silver at these prices, Is physical silver being concentrated into fewer hands, or

DNADave

or with more folks taking interest, is it being spread into more households? Perhaps if a big drop were to happen, THEN it would be more concentrated. I know if the price does take a big correction, I'll be buying like a Hunt brother.

cladking

<< <i>or with more folks taking interest, is it being spread into more households? Perhaps if a big drop were to happen, THEN it would be more concentrated. I know if the price does take a big correction, I'll be buying like a Hunt brother. >>




Tough question.

It rerally depends on the source of the demand but all else being equal
higher prices will usually be indicative of more hands and stronger hands.

In this case I can't help but suspect it's primarily stronger hands since it
seems to be an attitude change.

piecesofme

The B&M's tell me almost every time I have visited in the last couple months that they are seeing alot of new faces coming in and buying fairly big purchases. imo, buying alot (let's say, more than 75% of your available cash) all at once is a very big mistake.
Let's be honest, the pm's are severely overbought and its being driven by the Middle East tensions and Oil running. Both events being speculative driven. When things calm down, and they will, will you get caught holding too big a bag of your preferred pm? I wont, as I still prefer cash at this point. That's not to say I wont have some stashed in the sdb...along with the cash.

RedTiger

Record demand for American eagles says the little fish are coming in heavy, so more folks. The really wealthy, the big money, doesn't go heavy into silver because the total market cap is small. Total annual usage is about a billion ounces, so even at $34 an ounce that is $34 billion, and that's for the total demand for all silver in one year. That means elephants moving in the market can distort it, also because of the relatively small size, the silver market is more prone to manipulation. If a herd of elephants moved in real heavy they might never get out because their movements destroyed the market. Also the storage room needed for an appreciable amount, and the labor needed to move it around, is so much more than gold or platinum.

cladking

<< <i>Record demand for American eagles says the little fish are coming in heavy, so more folks. The really wealthy, the big money, doesn't go heavy into silver because the total market cap is small. Total annual usage is about a billion ounces, so even at $34 an ounce that is $34 billion, and that's for the total demand for all silver in one year. That means elephants moving in the market can distort it, also because of the relatively small size, the silver market is more prone to manipulation. If a herd of elephants moved in real heavy they might never get out because their movements destroyed the market. Also the storage room needed for an appreciable amount, and the labor needed to move it around, is so much more than gold or platinum. >>



I don't think it's going to be too long until a million dollars worth of silver
can be stored in a much smaller area. The market cap will increase because
the price will increase and production will increase marginally. It has to increase
every year because the demand will continue to increase.

One of the things fueling silver's success will be silver's success.

This might not be underway but it will happen in the long run. Silver remains a long
term investment ideally. There's nothing wrong with a profit but prices will some day be
much higher than currently.

Wolf359

<< <i>The B&M's tell me almost every time I have visited in the last couple months that they are seeing alot of new faces coming in and buying fairly big purchases. imo, buying alot (let's say, more than 75% of your available cash) all at once is a very big mistake.
Let's be honest, the pm's are severely overbought and its being driven by the Middle East tensions and Oil running. Both events being speculative driven. When things calm down, and they will, will you get caught holding too big a bag of your preferred pm? I wont, as I still prefer cash at this point. That's not to say I wont have some stashed in the sdb...along with the cash. >>



Overbought? No. Middle East? No. This happened before the Middle East and oil. Shortage of metal, developed over many years has exposed the enormous short position. Chances are pretty good that we are going to 40 then
50 and really quickly. If it does correct, it won't be for long.

PinkFloyd

NM.

roadrunner

<< <i>Record demand for American eagles says the little fish are coming in heavy, so more folks. The really wealthy, the big money, doesn't go heavy into silver because the total market cap is small. Total annual usage is about a billion ounces, so even at $34 an ounce that is $34 billion, and that's for the total demand for all silver in one year. That means elephants moving in the market can distort it, also because of the relatively small size, the silver market is more prone to manipulation. If a herd of elephants moved in real heavy they might never get out because their movements destroyed the market. Also the storage room needed for an appreciable amount, and the labor needed to move it around, is so much more than gold or platinum. >>



In such a small market it magnifies the effects of what JPM & Co. did in June-July 2008 by increasing their silver derivative short position from $90 BILL to $190 BILL and crashing the market. Last I checked their "other" metal (ie silver) silver derivative's position was on the order of $120 BILL. Elephants moving around indeed. And back then the silver market was on the order of $10-17 BILL per year.

roadrunner

tydye

I too have noticed more and more unfamiliar faces coming into the shops that I frequent. Many in business attire. Aside from the pickers/vest pocket dealers bringing in stuff it is mostly older individuals >70 selling.

Wolf359

The Forex action in silver this am is insane. Straight up, straight down.

pitboss

Im buying into it.

jdimmick

Lots of new faces buying in now. In fact I have had several come in the past two weeks that dont know how to invest or how they go about doing it , they just herd to buy so they want to buy.

Baley

they just herd to buy so they want to buy.

gosh that's a great line, really enjoying the double meaning of "he(a)rd"

This type of buyer is a clue to calling a top... please let us know when they start lining up to buy, ask about waiting lists, bring their friends, etc.