Thursday, September 24, 2015

Something's Funny With Silver

New sponsor everyone, but it's not so much a product, but a show and a site I think those of you interested in investing may like.  Future Money Trends.

Ken sent me a sample of one of the shows and though certainly has a guy plugging his services, the discussion about silver was interesting.  Don't know if you've tried to buy silver in the past couple of weeks, but it's GONE, OUT!  And I don't mean the funny money paper silver, I mean the real thing.

Oddly though, the price keeps going down making for some interesting market economics.

Regardless, download or listen to the show and see if you don't like it.


Matthew Bailey said...

I'm sure this is what you meant by "interesting economics", however, I'll play the dunce's role and ask since I'm decent as far as economics goes. If the supply of silver has gone down four times (4 million pounds to 1 million pound they said) and the demand up (I believe they also said that in the video linked?) why has the price gone down? Would it be, possibly, that the price of silver at an earlier time was artificial and arbitrarily inflated? Maybe that question was addressed/answered in the video, but I was busy with other things and listened to it in the background.

Glen Filthie said...

I'm not having any problems. The price per ounce has been stable for the last couple months at least.

Mark said...

I saw the same thing at my local coin store this week. Spot price was about $15, but they had no rounds at all. They only had junk silver and Silver Eagles (for $6 over spot).

Bluntobj Winz said...

The dealer I work with takes pre-orders for silver for the most part, as he has no rounds left anymore. He's telling me the wait has increased from 4 to 12 weeks for one ounce rounds, let alone eagles.

However I was able to buy 5 ounce and 10 ounce bars, which have about a 2 week wait.
If you can't buy small, buy a bit larger. I personally prefer to deal local, but hey, stackin is stackin.

Ron Jon Got It On said...

I looked last week at kitco and they don't have any. My guess is long term contracts when the price was high keep major suppliers from selling now, while secondary market and production/mining is driving price down. What ultimately drives the market price of silver?

Bluntobj Winz said...

@Ron Jon

Production or the retail market is driving the price DOWN? You can't find silver unless you prepay and wait, and that drives the price down?

What drives the paper price down is massive contracts short sold on the comex, or derivatives manipulation.

Spot price is purely paper price. That's why there's a $6-7 premium on eagles, and such a long wait on bullion. Even premiums on physical bullion are going up.

EarlW said...

I'm missing something here. The article claims $6/oz for gold vs over a current market price of $1,000/oz. I'm assuming that they calculate $6/oz by taking the price paid for the existing mine, divided by the millions of ounces still in the ground. The article is ended with an exhortation to buy now 'making this potentially one of the best times ever to invest in the resource sector'.

I know you need sponsors, but this one set off my B.S. alarm.

Good thing they included 'potentially' in there.

I may not know much about the gold market, but there is a big difference between the market price of over $1,000/oz and the claim in the article you pointed us to...

If someone who knows more about this industry can explain it to me and show me where I am wrong, I would appreciate it...