So you like silver, eh Bunky?

topstuf

Silver glut

This marks the 2nd straight week that the US Mint has failed to sell-out of the week’s production, further validating our report last week that the Mint will soon be ending Silver Eagle allocations for the Authorized Purchasers for the first time sine June of 2015. Junk 90% Silver premiums continue to fall on the wholesale market, another indicator that wholesale supply of investment grade silver is healthy at the moment. Premiums on Private mint silver rounds and silver buffalo rounds have also declined to levels not seen in several years as the private mints that ramped up silver round production several fold over the past 12 months are now experiencing a touch of over production. This has been confirmed by news we can now confirm that one of the two largest silver refiners in the US has dumped hundreds of thousands of generic silver rounds onto the wholesale bullion market to help clear excess inventory.

Gee, what a surprise.

BAJJERFAN

Originally posted by: topstuf

Silver glut

This marks the 2nd straight week that the US Mint has failed to sell-out of the week’s production, further validating our report last week that the Mint will soon be ending Silver Eagle allocations for the Authorized Purchasers for the first time sine June of 2015. Junk 90% Silver premiums continue to fall on the wholesale market, another indicator that wholesale supply of investment grade silver is healthy at the moment. Premiums on Private mint silver rounds and silver buffalo rounds have also declined to levels not seen in several years as the private mints that ramped up silver round production several fold over the past 12 months are now experiencing a touch of over production. This has been confirmed by news we can now confirm that one of the two largest silver refiners in the US has dumped hundreds of thousands of generic silver rounds onto the wholesale bullion market to help clear excess inventory.

Gee, what a surprise.

I checked the Mint's production figures last night and I thought the MTD of 1,382,500 ASEs seemed kind of low. I also mentioned to a fellow board member last night the fact that one AP has been advertising 2 MB or more quantities of ASEs at 19 cents over spot [25 cents over for 1 MB] for several weeks might suggest a measure of saturation in the market.

BAJJERFAN

Originally posted by: topstuf

Silver glut

This marks the 2nd straight week that the US Mint has failed to sell-out of the week’s production, further validating our report last week that the Mint will soon be ending Silver Eagle allocations for the Authorized Purchasers for the first time sine June of 2015. Junk 90% Silver premiums continue to fall on the wholesale market, another indicator that wholesale supply of investment grade silver is healthy at the moment. Premiums on Private mint silver rounds and silver buffalo rounds have also declined to levels not seen in several years as the private mints that ramped up silver round production several fold over the past 12 months are now experiencing a touch of over production. This has been confirmed by news we can now confirm that one of the two largest silver refiners in the US has dumped hundreds of thousands of generic silver rounds onto the wholesale bullion market to help clear excess inventory.

Gee, what a surprise.

Also I wish they would use the same number for spot price that others do.

cohodk

I hope you guys know what this means.

topstuf

Originally posted by: cohodk

I hope you guys know what this means.

Well, for quite some time, I have decided that for my OWN stash, I will NEVER AGAIN add silver.



Being an industrial metal......in a world of more likely governmental collapses.....my bet (with my money) is on gold and only gold.



With the codicil that having SOME silver is a good thing, but never more than 15-20% of whatever gold you hold.



Or I'm wrong.



But doubt it.



In my 30+ years of bullion dealing, NOTHING has gutted more clients than silver.



And yet they become crazed by it.



Silver is not poor man's gold.

It's poor man's silver.

piecesofme

Originally posted by: cohodk

I hope you guys know what this means.

Tell us oh wise one if for nothing else, it'll be on record as a non-encryptic stance that you are so good at. Hey, be nice, that's a compliment.

jmski52

What does it mean?

lol

I think it means that retail demand has tapered off a bit.

Most of what I've read in the past 10 years would have us believe that retail demand is a virtual drop in the bucket of all the factors that affect silver prices.

We're always told that silver is more of an industrial metal, and if this is the case then silver's recent modest rise means that the economy isn't crashing.

We're always told that silver gets consumed and that a shortage is always looming, (except for those prolific mines in Mexico which obviously has to be a factor to consider).

We're always told that silver is such a small market in comparison to other capital markets that it won't take much of a push to move it. I'm inclined to believe that if retail demand does pick up, it will definitely become a factor. I think that emotion in the retail market is usually the main contributor to price spikes in the silver market.

I'm inclined to think that silver's recent modest rise is more in sync with gold's recent strength, and is reflective of it's monetary component, and I think that uncertainty in the monetary system will keep it that way, along with gold.

What does cohodk think it means? I'm interested as well.

1957joe

I like silver! I always have. I always will. there is a time to buy, a time to hold and a time to sell.
Like anything else that is an investment.......BUY LOW, SELL HIGH. when others are buying, SELL.....when others are selling, BUY.
markets and demand change in a heartbeat.
right now, I am in a buy/hold state.
did I say I like silver? I LOVE SILVER.

ricko

It is always fun to watch when the predictions start....and always there are two opposing sides...Cheers, RickO

mhammerman

"Silver is not poor man's gold.
It's poor man's silver."

Sig line material.

One of the nice features of buying silver is that the purchase is similar to buying a stock where you can get a share for spot plus a small premium similar to a broker fee. You can buy a hundred shares or five shares, depending on your budget. Another nice feature is that silver is very liquid in that you don't have to wait for a settlement from your broker, you just take it to the b&m and walk out with your cash. With silver, people with not too much cash that want to have a stake in the game can certainly find a chance to play. Same scenario for gold, it's just a little more pricey.

What us metal mavens see time after time is that when the metals are quiet, nobody is interested but let it spike and you can't keep them away. Buy when it's quiet, sell when it spikes...lather, rinse, repeat.

Just my opinion.

piecesofme

Originally posted by: ricko

It is always fun to watch when the predictions start....and always there are two opposing sides...Cheers, RickO

I'm going to go on record as this "development" is a non-issue and will have very minimal impact of the Spot value of silver for the next few to several weeks.

That's not to say something else could drive it one way or the other, but this will not be the cause if it happens.

There, I said it.

AUandAG

I buy silver when I have extra funds.....trust me that is not often. But, not able to buy gold on my fixed budget. So, silver it is and it's never let me down (not yet at least). I sold during the first run up (1989 if I remember correctly) too soon. Sold at $40-41. But it was enough of a sale to put a healthy down pay on my home. Started buying again, ounce at a time as I could, the next year. Then sold again on the second run up at $45-47. Paid the house off. Have since borrowed a bit but what the heck. I'm buying silver again and will sell on the next $40 + run up.



I'm a poor man and silver is my choice.



I would do the same with gold or platinum or corn if I had the funds.



bob

PerryHall

Precious metals are not an investment---they are a means of preserving wealth. I'll stop thinking of silver and gold as worthy of purchase when the government starts balancing the federal budget, starts paying down the national debt, and starts conducting itself in a fiscally responsible manner.

TwoSides2aCoin

Silver eagles are more exciting than manganese brass presidential dollars, but not much more. That's what it means.

cohodk

Originally posted by: jmski52
What does it mean?

lol

I think it means that retail demand has tapered off a bit.

Most of what I've read in the past 10 years would have us believe that retail demand is a virtual drop in the bucket of all the factors that affect silver prices.

We're always told that silver is more of an industrial metal, and if this is the case then silver's recent modest rise means that the economy isn't crashing.

We're always told that silver gets consumed and that a shortage is always looming, (except for those prolific mines in Mexico which obviously has to be a factor to consider).

We're always told that silver is such a small market in comparison to other capital markets that it won't take much of a push to move it. I'm inclined to believe that if retail demand does pick up, it will definitely become a factor. I think that emotion in the retail market is usually the main contributor to price spikes in the silver market.

I'm inclined to think that silver's recent modest rise is more in sync with gold's recent strength, and is reflective of it's monetary component, and I think that uncertainty in the monetary system will keep it that way, along with gold.

What does cohodk think it means? I'm interested as well.

Well, let's go back and review. For the last 2 years all I heard was that demand was increasing, yet price continued to drop.

Now I hear that demand is waning yet the price keeps increasing.

Seems there's quite a bit to be learned here. Some folks figured it out long ago.

derryb

metal price has everything to do with the supply and demand of confidence in many other things when it comes to where to park one's money.