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 Replies: 22 / Views: 4,397 |
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Pillar of the Community
 Canada
2845 Posts |
Quote:There is no premium on x for x, unless the RCM does an about face they are worth face value...... The topic is silver spot price, not face value. And if you don't think some buyers of XforX are in it for the sake of a silver investment, read RCMs product QandA. The topic of silver is one of the most common questions and no wonder...it's heavily advertised as 99.99% pure silver. "An easy and affordable way to own a silver coin that is among the purest in the world." It's easy to understand why young buyers might think they're paying $20 and getting 99.99% of $20 worth of silver. |
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Pillar of the Community
Canada
2845 Posts |
Quote:
To put things into perspective, the worldwide stash is so large that we could produce enough solar panels to cover all the rooftops on Earth and then some
 CCF Solar Panel Inc? Collectively speaking, we already have a fair amount of silver.  |
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Pillar of the Community
Canada
6768 Posts |
Quote:
But hey, if Silver goes to $100/oz. then I'll be the first one to enjoy and cash in whatever silver I no longer wish to collect. This will be the moment, when all the collections (I mean some average RCM 1/2-1oz coins) will finish their way as collectibles at dealers place. The dealers surely will buy for $70 per ounce, and new RCM coins will be priced $400-$500 for ounce....so all the stuff: proofs, coloured, unusual design and shape will be just thrown to the same pile, since the metal content will be important only. Btw, did you know, that Perth issued same design Star Trek coin as 20for20 RCM? But Australian coin: *Reverse Proof *Individual capsule *Bullion price *Mintage 50.000 only (low for bullion) so now, what people will buy - 1/4oz 20for20 , or 1oz for spot with some small premium? Edited by Silveroid
07/04/2016 8:48 pm
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Pillar of the Community
Canada
1581 Posts |
Quote:
To put things into perspective, the worldwide stash is so large that we could produce enough solar panels to cover all the rooftops on Earth and then some
http://www.silverinstitute.org/site...olar-energy/70 million ounces this year for solar panel. SML sales are 30 million ounces per year. So, where that "stash" is, is all important. Can it come from new production, or must it be encouraged out of the hands of investors? Edited by dialog_gvf
07/04/2016 10:14 pm
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Pillar of the Community
Canada
1581 Posts |
The RCM may increase prices. But, they would be smart to encourage the growth of sales, rather than kill that to maintain margins. |
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Pillar of the Community
Canada
2845 Posts |
Quote:
SML sales are 30 million ounces per year.
I'm not sure who sold 30 million ounces per year but RCM sold 10.6 ounces just last quarter alone and they definitely don't hold the world monopoly on silver sales. Wealthy raw bullion investors worldwide are more likely to hold bricks as opposed to SML. But physical silver holdings are only a small portion of what trades on the silver market because it's limited by the storage that is required. Buying or selling of investment instruments such as ETFs and precious metal mutual funds that are secured by contracts that are in essence traded paper also greatly impact spot prices as well. I think it's fair to say the typical collector/investor just goes along for the ride and where it takes us is entirely out of our control. Mexico is known to have huge reserves in unmined silver with cheap labour and low environmental laws. If China wants to manufacture solar panels, I'd be surprised they don't just buy the mines. And as much as the perpetual hype that silver is going to skyrocket to hundreds of dollars an ounce, silver is not used by industry as in the past because, to quote canadian_coins: Quote:
Technology always finds a better, cheaper way to do things.
The same will likely occur with solar panels. Meanwhile the possibility of negative interest rates is mentioned from time to time, particular in EU. It's a feasible option to hold precious metals as opposed to paying a bank to keep ones money on deposit and this could be what's driving the recent increase, particularly because of the Brexit vote. |
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Pillar of the Community
United States
2408 Posts |
@dialog
Correct, and 70 M oz is a small fraction of the total production in 2015 (887 M oz). The world silver reserve is estimated at about 600 thousand tons (almost 20,000,000,000 oz). That amount of silver could fuel the solar industry for the next 3 centuries.
Like with anything else, the "perception or expectation of rarity" can drive price up (momentarily) then reality sets it.
Make no mistake, there is a staggering amount of silver out there.
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Pillar of the Community
Canada
2845 Posts |
Silver spot price seems to be holding at around Cdc $26 per ounce. I thought this flashback to the $50 silver peak in 2011 rather interesting as an example of how the the business of predictions may benefit RCM in the long run and since 2011, the markup of NCLT has also increased. For comparison, according to their 2015 Annual Report, silver sales were 34 million ounces and gold 953 thousand ounces, still under a million. Royal Canadian Mint sees silver sales up 30 percent in 2011 Tue Sep 20, 2011 By Jan Harvey MONTREAL (Reuters) - The Royal Canadian Mint is on track to raise sales of its silver bullion coins by around 30 percent to 25 million ounces this year and to match last year's record gold sales of around 1 million ounces, an executive from the Mint said. Speaking on the sidelines of the London Bullion Market Association annual conference, John Moore, executive director of bullion and refinery services at the Mint, told Reuters investors believed silver had more room to rise than gold. More: http://ca.reuters.com/article/busin...J3UX20110920Edited by wildflowerAB
07/10/2016 09:29 am
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Pillar of the Community
Canada
1581 Posts |
Quote:
Correct, and 70 M oz is a small fraction of the total production in 2015 (887 M oz).
8% is actually a staggering percentage for one specific industry. Quote:I'm not sure who sold 30 million ounces per year but RCM sold 10.6 ounces just last quarter alone and they definitely don't hold the world monopoly on silver sales. So, you get my point. Bullion coin production, which is widely held, is possibly a larger consumer of physical than solar panels. Coins are far easier to shake loose than solar panels. But, a lot harder to collect in massive quantity than silver in the form of large bars sitting in a vault. Quote:
The world silver reserve is estimated at about 600 thousand tons (almost 20,000,000,000 oz). That amount of silver could fuel the solar industry for the next 3 centuries.
Reserves are usually a term referring to known or likely supply available from existing mines. So, that would have to mined economically to become a factor. The question is, how much physical silver is available above ground in a form that is quickly and economically available to industry? |
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Pillar of the Community
Canada
2845 Posts |
Quote:
So, you get my point. Bullion coin production, which is widely held, is possibly a larger consumer of physical than solar panels.
No, I have to admit I'm not getting your point. n 2015, global silver mine production reached 886.7 million ounces. http://www.silverinstitute.org/site...-production/The 30 to 40 million ounces per year that RCM sells in NCLT is such a tiny fraction that if these totals were rounded to the nearest hundred thousand, it would amount to zero. There is no reason for the demands of industry, let alone manufacturing of solar panels, to cause a catastrophic hike in silver prices. On the remote chance that did occur, Chinese solar panels would price themselves beyond what is affordable to the global worldwide marketplace. Either cheaper alternative means to produce solar cells would be found or some other focus would soon take its place. It's a matter of economics and what governments can afford...Canada, obviously not much. |
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Pillar of the Community
United States
2408 Posts |
Quote:
Reserves are usually a term referring to known or likely supply available from existing mines. So, that would have to mined economically to become a factor.
The question is, how much physical silver is available above ground in a form that is quickly and economically available to industry?
That's a very good question. The reserve mentioned does not account for all the silver that is available out there (i.e. junk silver). Silver is just too abundant in the earth's crust to ever become a rarity - at least to the level of gold or platinum. In fact, the metal is primarily produced as a byproduct of electrolytic copper refining, gold, nickel, and zinc refining, and by application of the Parkes process on lead metal obtained from lead ores that contain small amounts of silver. (source: Wikipedia) In other words, even when you aren't looking specifically for silver you find some. |
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Pillar of the Community
Canada
2845 Posts |
Anyone with a keen interest in mining and having the opportunity, a trip to Guanajuato, Mexico is a Must-Do. Extremely educational, absolutely astounding how gigantic some of these old Mexcan mines were, in the thirst for riches. This one has elevator shafts going from level to level and a train in and out. La Valenciana mine: Guanajuato's Silver City "Silver was first discovered in Mexico's Bajio region in the mid-1600s. A century later, Guanajuato was the leading center of silver mining in the world and today, both the city of Guanajuato and its adjacent mines are designated UNESCO World Heritage Sites." http://www.visitmexico.com/en/silve...juato-mexico |
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Pillar of the Community
Canada
1751 Posts |
A very interesting topic. I would need to watch the markets for a few more weeks. I quit watching silver prices in Mar. I got borrowed with it hanging around the $20 mark. Silver price rising would indicate the world market economy would be in a sad state.
I'm not sure I want a worldwide market collapse, just so my silver becomes more valuable? It's seems the only time silver & gold increase in value, is when the world markets are in the crapper.
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Valued Member
Canada
256 Posts |
"Silver price rising would indicate the world market economy would be in a sad state.
" - not necessarily
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Pillar of the Community
Canada
2845 Posts |
Quote:
Silver price rising would indicate the world market economy would be in a sad state.
" - not necessarily
The recent increase is indeed attributed to a sagging global economy and the Brexit vote appears to have panicked the situation even further. While both gold and silver are volatile investments, it times of uncertainty they become preferable as opposed to the perceived higher risk associated to other types of investments including stocks and bonds. That does not mean that people are hauling away truckloads of it --- unit funds basing their value in bullion are presently popular as well. |
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Replies: 22 / Views: 4,397 |
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Posted 07/04/2016 7:18 pm
