Physical Silver Price is Really $50 per Ounce (80% Premium on COMEX Silver Non-Delivery)

The Market Oracle ^ | Mar 6, 2011 | Chris Kitze

[Errant]

makes you go “Hmmmm...”

Exactly right! Especially when everyone seems to want physical!!

[dagogo redux]

I went to buy a bunch more physical silver (and a wee bit of gold) yesterday at the reputable dealer I’ve been using for sevral years. They’ve always had so much excess inventory that I had to wonder what all the hype was about.

Yesterday, they had almost nothing left after I bought mine. Almost no bars of any denomination, just a handful of rounds, and two more $100 face bags back in the vault. They looked a bit anxious.

Gold was also in moderately sparse supply: maybe a dozen pure 1 oz coins, two 1/2 oz coins, a handful of various non-pure coins, and one 1 oz bar.

We head for interesting times.

[dennisw]

You sure know your silver numbers! Nixon closed the gold window in 1973 when gold was at $35 and now silver is past $35
Something to chew on

Two Christmas ago ebay had a deal with Microsoft which was promoting Bing search. where ebay purchases got a 25% discount if you jumped through the hoops. This got the silver and gold sellers and buyers into overdrive

[Errant]

Was that TWO Christmas ago? Wow, time flys! ;)

[dennisw]

Christmas before last and for a few months leading up to it

[Errant]

That was one of those deals that seemed to good to be true, but actually was true. MS must have lost millions.

[dennisw]

That was one of those deals that seemed to good to be true, but actually was true. MS must have lost millions.>>>>>>>>>

They were willing to lose millions all to promote Bing search to catch up to google and from what I know Bing search is getting a lot more users than two years ago. So that promotion helped

[djf]

Forex real-time bid price a couple seconds ago 36.27
But the European markets aren’t open yet...

[dennisw]

Anyone who can reel off those numbers has been around for awhile. Silver Wheaton (SLW) was $3.19 in December 2008. Today it is 45

What is Silver Wheaton you might not ask?

[UnwashedPeasant]

APMEX is overpriced for American Silver Eagles.

golddealer.com is reputable and is only $2.70 over spot (I think you can get 100 coins at this price)

A-mark is $2.30 over spot, for 5000 coin minimum.

For privately minted silver ounce coins instead of American Silver Eagles, nwtmint.com is $1.00 over spot, and they are reputable.

[Jack Black]

They have been trading the same as what this article is talking about, ETF’s, which is really just trading on the future price of a commodity (in this case silver).

WRONG! The silver ETF, SLV is *NOT* a futures based ETF. The prospectus is quite clear that they buy and hold actual silver.

One of the reasons the silver futures market is so tight is that the silver ETF has a huge amount of physical silver in their vaults.

Now, SLV *could* be lying, but it would be an amazingly bold faced lie. For instance, they have the serial number of the silver bars that they claim to have in inventory available on a weekly basis listed on their site.

I don't *think* you are claiming that they are running a completely fake Maddoff style Ponzi scheme, I think you really just don't know what you are talking about.

But if you do have some secret information that SLV is a ponzi scheme please share it with us.

Otherwise, please stop making wild unsubstantiated false statements.

[misanthrope]

I’m not asking, but curious nonetheless!

[Jack Black]

I remember an ad that Colt had in the mid 1970’s, it went something like this: In 1873 you could by a new colt Peacemaker with a 20 dollar gold piece, today you still can.

Well a $20 gold piece, according to this site Gold Coin Values has $1386. worth of Gold in it today. (Of course any individual $20 Coin might be worth a lot more, due to rareity).

The price for a basic five and 1/2 inch Colt Single Action Army (the Peacemaker) is listed at around $1140. Here's a list of dealers selling them.

The more things change ...

[BooBoo1000]

Good definition of what is going on. The “ Smart Guys” say the Comex is short about 40,000 ounces of silver to cover all of the contracts. Watch the price of Silver..

[Errant]

Silver ETF: The Double-Edged Fund

[dennisw]

SLW is a flagship bellwether silver mining stock. Everyone into silver looks at its price each day. The big mainstream no-brainer silver stocks that mine in America are CDE, HE and SLW.

UXG is run by a very ethical guy who has been around for awhile. For the non-adventurous you have GDX and GDXJ

http://www.google.com/search?hl=&q=%22ROB+MCEWEN%22&sourceid=navclient-ff&rlz=1B3GGLL_enUS393US393&ie=UTF-8

[Errant]

Thanks for the information. While there's not that much difference in price, I'll certainly check them out.

Have you made purchases from these and if so, how did it go?

Thanks

[RebelTex]

Bookmark

[Rebelbase]

Interesting times indeed!

[Freedom4US]

Surprisingly, have only lost money in mining stocks. Either bought the wrong ones, or became impatient - and sold at a loss. True story.

For a long time, when the metals went up a lot, the stocks went up a little. And when the metals pulled back, the stocks would crater. Even bought a few shares of DZZ, to hedge. Lost money there too. My metal stashes isn’t all that impressive, but the cost basis is good. What it really did was teach the value of regular habit forming saving, investing, and minimizing debt. When we bought our house the bank looked at me like from Mars, my credit score is 830 or something.