Aboveground silver - are some estimates too low?
Overdate
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I have seen recent estimates that the total amount of aboveground (mined and available) silver is one billion ounces or less. This figure seems low to me.
For example, over 250 million U.S. Silver Eagles (uncirculated and proof) have been produced since the program started. Melting of this coin has been negligible, since it has always carried a significant premium to spot and therefore is worth more intact than melted. So that's 1/4 of the alleged aboveground supply of silver right there.
Next, 90 percent silver U.S. dimes, quarters and halves are still available by the bag. Since they often trade at a discount to spot, huge numbers have been melted over the years. But even if only 10% survive, that's still another 200 million ounces of silver to add to the total. Add an estimated 140 million surviving Morgan and Peace dollars, and that's another 108 million ounces. Also add about 44 million modern commemorative silver dollars (34 million ounces), and upwards of 10 million ounces in modern silver proof sets (1992 to date).
The result is that over 600 million ounces of silver - 60 percent (!) of the alleged aboveground supply - exists in the form of U.S. silver coins. That leaves less than 400 million ounces for everything else, including foreign bullion and commemorative coins, small silver rounds and bars, jewelry, and large silver bars backing exchange traded funds and contracts traded in commodities markets.
Even if a substantial portion of the "paper silver" floating around is unbacked by physical metal, I still don't see how the total aboveground supply can be as low as one billion ounces. Am I missing something?
For example, over 250 million U.S. Silver Eagles (uncirculated and proof) have been produced since the program started. Melting of this coin has been negligible, since it has always carried a significant premium to spot and therefore is worth more intact than melted. So that's 1/4 of the alleged aboveground supply of silver right there.
Next, 90 percent silver U.S. dimes, quarters and halves are still available by the bag. Since they often trade at a discount to spot, huge numbers have been melted over the years. But even if only 10% survive, that's still another 200 million ounces of silver to add to the total. Add an estimated 140 million surviving Morgan and Peace dollars, and that's another 108 million ounces. Also add about 44 million modern commemorative silver dollars (34 million ounces), and upwards of 10 million ounces in modern silver proof sets (1992 to date).
The result is that over 600 million ounces of silver - 60 percent (!) of the alleged aboveground supply - exists in the form of U.S. silver coins. That leaves less than 400 million ounces for everything else, including foreign bullion and commemorative coins, small silver rounds and bars, jewelry, and large silver bars backing exchange traded funds and contracts traded in commodities markets.
Even if a substantial portion of the "paper silver" floating around is unbacked by physical metal, I still don't see how the total aboveground supply can be as low as one billion ounces. Am I missing something?
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shhhhh, quiet down, "they" want you to think it's scarce.......
Too many positive BST transactions with too many members to list.
Liberty: Parent of Science & Industry
<< <i>keep going, there is a lot of industrial silver in pellet/granule form, lots and lots of small jewelry items, serving platters, picture frames, brush handles, candlesticks.. >>
I would think that most of the home silver would be in the form of tableware---knives, forks, spoons, serving pieces, etc.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire