- From: rono <overtonr@xxxxxxxxxxxxxx>
- Date: Fri, 29 Aug 2008 04:47:01 -0700 (PDT)
Oly touched on part of the problem, but I think there's more to it -
not in a conspiracy sense but just that it's a very odd situation.
As Oly mentioned, right now there's a huge divergence between the
paper bullion market including mining stocks - and the physical
bullion market, particularly for small to intermediate sized demand.
The mint, this month alone, has halted and resumed with rationing, the
sales of 1 oz gold and 1 oz silver due to shortages of planchets. My
local shop, which is fairly large (20-25 employees) still has odds and
sods, but is having trouble obtaining large quantities of eagles and
krugs. Two weeks ago, I rec'd an email from apmex that due to supply
problems they were running slow so if I placed an order, be patient.
Two days ago, I rec'd another saying they had a bunch of silver maple
leafs for sale. kitco is still running a banner disclaimer of the
As the price falls, the street demand is soaring and all of a sudden
there is little supply to be had. Curious.
The market situation that it reminds me of is when there is
intervention to fix the price of something as in price controls.
Every time this has happened, supply all of a sudden dries up. Why
should I sell something at a price I know is lower than what the free
market would dictate?
And I don't see this as some sort of conspiracy. However, I do most
sincerely believe that manipulation occurs by anyone that has the
ability. If I'm a central banker, my job is to do whatever I can in
the best interests of my CB. If my position entitles me to knowledge
that I can use to my advantage in the market - of course I will use
it. And folks, legality really doesn't have much to do with this as
breaking the law is simply a risk mgt decision.
Right now the paper bullion market and hedge fund selling has beaten
down the POG and POS to below what the physical bullion market
believes is a realistic price. Ergo, buyers are waiting in line to
buy cheap and sellers are going on vacation to avoid selling cheap.
just my two cents,
On Aug 28, 10:54 pm, DanU <hardox...@xxxxxxx> wrote:
Since silver spot price has virtually collapsed a few weeks ago, I
believe it is a good opportunity to load up. Called several local
shops to check prices and availability yesterday. One of my friends
and I were prepared to buy 400 to 500 ounces each.
One large shop (local and I have a good relationship here) is asking
Spot+$2.00 per ounce for bar, and Spot +$3.00 for Silver Eagles. This
same shop was selling me bar at Spot + 20 cents for .999 and Eagles at
Spot + $1.75 for years until recently. They said they had a "small"
supply, but did not specify. I have probably have spent six figures
here over past year.
Called a second shop. No availability. None in stock. This is a big
shop, 5 or 6 full-time employees.
Called third shop (know the owner, but not very well). He offered
silver bar at Spot+$1.00 and Silver Eagles at Spot+$2.00. So, I drive
there with cash in hand. Got a whopping 92 ounces of bar and (26)
silver eagles, thus wiping out his entire inventory. I was prepared
to buy 800 to 1,000 ounces. What the hell is going on??
All report that nothing is coming in, and their Silver Eagle suppliers
report long delays for shipping. Spreads are huge between spot price
and sell price. Something strange is going on in the physical
market. Is silver spot price too low??
I am in Eastern Pennsylvania.
Can some of you guys survey your local shops and check availability
and asking prices for .999 bar and Silver Eagles (any year.) Please
report here. This could be interesting.
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