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Re: Is A Physical Silver Shortage Spike Imminent?

By: Decomposed in ROUND | Recommend this post (0)
Mon, 12 Dec 11 5:15 PM | 107 view(s)
Boardmark this board | De's Test Board 		Msg. 36979 of 45651
(This msg. is a reply to 36971 by capt_nemo)
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I've never believed that there is a true shortage of silver. It seems to be a common metal, generally obtained as a byproduct of mining for every other metal. For that reason, silver has been cheap and virtually no one was mining for it in particular just a few years ago.

Now, however, the price is elevated and quite a few silver mines have opened. I don't think the above-ground shortage is likely to persist.

But (LOL!) I've (theoretically at least, so far as you guys know) got some silver! If its price spikes from here, I won't be complaining!




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Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months


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The above is a reply to the following message:
Is A Physical Silver Shortage Spike Imminent?
By: capt_nemo in ROUND
Mon, 12 Dec 11 6:21 AM 		Msg. 36971 of 45651

Submitted by Tyler Durden on 12/11/2011 - 13:34 Precious Metals

That imbalances in the supply and demand of precious metals, particularly silver, could lead to a shortage of physical product in the future should not come as a surprise to many - it is a topic covered extensively here in the past. Nonetheless, as a useful reminder of the big picture in the silver market, Future Money Trends has released another update video, reminding viewers that if traded purely on fundamentals, there is a high likelihood of increases in the price of silver, and other precious metals. As the authors put it, " There simply isn't enough physical silver to deal with the demand of a fiat currency crisis. As the paper silver market pushes prices down, all hell will break loose in the physical market." While that conclusion may or may not be applicable just yet, when coupled with recent revelations of potential double counting of precious metals at the warehouse level (see HSBC-MF Global story), the situation will certainly get only more exacerbated. Furthermore, should silver miners take Eric Sprott's advice to heart and decide to convert some or all of their product into physical, the market will suddenly recall that in addition to liquidity, prices are also determined by something called fundamentals. And fundamentals, especially in combination with a market risk spike, confirm a price jump may be imminent.

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http://www.zerohedge.com/news/physical-silver-shortage-spike-imminent

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