Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Physical Silver Price is Really $50 per Ounce (80% Premium on COMEX Silver Non-Delivery)
The Market Oracle ^ | Mar 6, 2011 | Chris Kitze

Posted on 03/06/2011 6:27:42 PM PST by Errant

...It was reported that Blythe offered 50 percent premium. That was not even close in our case. We got over 80 percent premium. That's right. Over $50 per contract on the condition that our group sell all our contracts...

These sets of facts from our traders lead us to believe that the paper price of silver may have a difficult time surpassing $36 because if the counterparty at the Comex is so willing to pay north of $50 to dissuade people from standing for delivery yet the paper price of silver is still under $35, then we suspect that losses triggered by derivatives is the main reason for the price suppression of silver. We can see no reason why they would not allow the paper price to go up yet are so glad to pay off the comex contracts to show the world that so few are standing for delivery. In our mind, Comex could default with if as little as 4,000 contracts stood for delivery. We are very curious to see how high the paper price of silver actually trades during this run. Posted by Louis Cypher"

It should now be obvious to all that silver is a fractional reserve system. Just like a fractional reserve bank, when there is more demand for the actual underlying good (i.e. silver or money) than there is a real physical supply for, it's called a "run on the bank". Those who get in line first, get their silver. Everyone else will end up as an "unsecured creditor", holding a worthless piece of paper when the music stops.

(Excerpt) Read more at marketoracle.co.uk ...


TOPICS: Business/Economy; Crime/Corruption; News/Current Events
KEYWORDS: comex; economy; investing; silver
Navigation: use the links below to view more comments.
first previous 1-20 ... 101-120121-140141-160161-168 next last
To: coloradan
makes you go “Hmmmm...”

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

141 posted on 03/06/2011 9:55:23 PM PST by Errant
[ Post Reply | Private Reply | To 139 | View Replies]

To: Rebelbase

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.


142 posted on 03/06/2011 9:58:41 PM PST by dagogo redux (A whiff of primitive spirits in the air, harbingers of an impending descent into the feral.)
[ Post Reply | Private Reply | To 45 | View Replies]

To: Freedom4US

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


143 posted on 03/06/2011 9:59:56 PM PST by dennisw ( The early bird catches the worm)
[ Post Reply | Private Reply | To 137 | View Replies]

To: dennisw

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


144 posted on 03/06/2011 10:03:52 PM PST by Errant
[ Post Reply | Private Reply | To 143 | View Replies]

To: Errant

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


145 posted on 03/06/2011 10:05:04 PM PST by dennisw ( The early bird catches the worm)
[ Post Reply | Private Reply | To 144 | View Replies]

To: dennisw

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


146 posted on 03/06/2011 10:08:04 PM PST by Errant
[ Post Reply | Private Reply | To 145 | View Replies]

To: Errant

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


147 posted on 03/06/2011 10:13:19 PM PST by dennisw ( The early bird catches the worm)
[ Post Reply | Private Reply | To 146 | View Replies]

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


148 posted on 03/06/2011 10:17:29 PM PST by djf (Dems and liberals: Let's redefine "marriage". We already redefined "natural born citizen".)
[ Post Reply | Private Reply | To 147 | View Replies]

To: Freedom4US

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?


149 posted on 03/06/2011 10:20:46 PM PST by dennisw ( The early bird catches the worm)
[ Post Reply | Private Reply | To 137 | View Replies]

To: Errant

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.


150 posted on 03/06/2011 10:24:46 PM PST by UnwashedPeasant (Don't nuke me, bro)
[ Post Reply | Private Reply | To 134 | View Replies]

To: Ghost of Philip Marlowe
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.

151 posted on 03/06/2011 10:26:17 PM PST by Jack Black ( Whatever is left of American patriotism is now identical with counter-revolution.)
[ Post Reply | Private Reply | To 27 | View Replies]

To: dennisw

I’m not asking, but curious nonetheless!


152 posted on 03/06/2011 10:26:37 PM PST by misanthrope (Liberals just plain suck!!)
[ Post Reply | Private Reply | To 149 | View Replies]

To: MCF
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 ...

153 posted on 03/06/2011 10:39:01 PM PST by Jack Black ( Whatever is left of American patriotism is now identical with counter-revolution.)
[ Post Reply | Private Reply | To 102 | View Replies]

To: djf
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..
154 posted on 03/06/2011 10:40:14 PM PST by BooBoo1000
[ Post Reply | Private Reply | To 9 | View Replies]

To: Jack Black
Silver ETF: The Double-Edged Fund
155 posted on 03/06/2011 10:40:49 PM PST by Errant
[ Post Reply | Private Reply | To 151 | View Replies]

To: misanthrope

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


156 posted on 03/06/2011 10:58:48 PM PST by dennisw ( The early bird catches the worm)
[ Post Reply | Private Reply | To 152 | View Replies]

To: UnwashedPeasant
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

157 posted on 03/06/2011 11:26:44 PM PST by Errant
[ Post Reply | Private Reply | To 150 | View Replies]

To: Dr. Sheldon Cooper

Bookmark


158 posted on 03/07/2011 1:35:15 AM PST by RebelTex (Freedom!! It's not just another word.)
[ Post Reply | Private Reply | To 69 | View Replies]

To: dagogo redux

Interesting times indeed!


159 posted on 03/07/2011 3:31:50 AM PST by Rebelbase
[ Post Reply | Private Reply | To 142 | View Replies]

To: dennisw

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.


160 posted on 03/07/2011 3:42:11 AM PST by Freedom4US
[ Post Reply | Private Reply | To 149 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-20 ... 101-120121-140141-160161-168 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson