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

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

[dennisw]

video from turd Ferguson....you know his blog? http://tfmetalsreport.blogspot.com/

[Errant]

I think eventually, COMEX silver pricing will become meaningless. When that happens, the price of silver will skyrocket until physical markets take control and reestablish some kind of relative value.

[DUMBGRUNT]

IIRC the Hunt brothers were on the other side of a deal like this and ended with more then a haircut.

[coloradan]

They claim that’s their plan. Milk COMEX/JPM until they croak.

[djf]

You actually could see $15 silver.

But you won’t see that unless you also see $30 bbl oil.

Just the way these things work...

Don’t hold your breath!!

[Errant]

I suspect this story is nothing more than a well written story to excite.

Possibly, but where there is smoke ...

Besides, there's all that newly created currency by ALL the central banks looking to trade for something real (e.g. silver, gold, commodities and so forth).

[editor-surveyor]

>> “Only about 10% of the contracts are ever traded for silver. That’s it, in a nutshell.” <<

.
Not sure about the 10% figure, but basically yes, and most speculators don’t have the bread to take delivery anyway, so usually they are safe.

[cowtowney]

Are you suggesting silver will go to $15?

[Dr. Sheldon Cooper]

Even if that is true, why keep doing it. Thats like buying silver at $80 and selling it at $35 continuously. You know you will keep losing, so why keep doing it. Its better to simply default and pay less

Unless your losses are taken care of by several hundred billion "missing" TARP/Stimulus dollars.

[misanthrope]

Whose website? When?

[Errant]

Last I read shares were 15% above premium. So lets say an oz of silver there costs you 40$ right now

Are you sure you're reading that correctly? 15% above spot is over $5 and eagles at APMEX are less than $4 over spot in quanity.

[Ghost of Philip Marlowe]

You recall correctly.

[cowtowney]

Investors (Hedge funds) are standing for delivery or being bought off by JPM (et al) for paper money. Then, the funds buy more the next month, knowing full well they can stand for delivery or be bought off. This can not continue for many more months before JPM is broke. See Max Keiser.

[SeeSac]

to pay them 80% over the spot

So we are told ...

[djf]

I’m not sure I know who/what/where is the mechanism whereby they decide what to publish as the “spot price”.

We will probably end up seeing it as some kind of weighted average from major dealers/sellers.

Ask/Bid type averaging. But no matter what gets accepted as “official”, it would have to be based on true metal exchange, not futures or paper contracts.

[Ghost of Philip Marlowe]

It’s amazing that they can get away with it.

Personally, knowing what is going on with TARP and the QE’s and debt and the global economic situation (China’s bubble, etc.) I don’t see how silver and gold can come down much from where they are. Sure, there will be dips, but I think this is the new support where they will remain.

[cowtowney]

here is one source:

http://www.kitco.com/market/

Spot is like any other commodity. There is a market. Several sites link to it. Some are delayed a few minutes.

[Errant]

And I was hoping for a downward correction.

LOL, I've been waiting on same since $18 to add a bit more.

[misanthrope]

“Unless your losses are taken care of by several hundred billion “missing” TARP/Stimulus dollars.”

This theory intrigues me. Makes some real sense.

Chinese are also relieving the markets of a bunch of physical.

With the national stockpile gone, consumption far outrunning production, and the public waking up to the whole situation, silver has a very good chance of being the investment of the century.

[editor-surveyor]

>> “but I think this is the new support where they will remain.” <<

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Until the soverign debt crash starts heading toward deflation :o)