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 Replies: 30 / Views: 3,125 |
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Pillar of the Community
United States
1590 Posts |
I just read an article on Kitco that stated that there was a 300 Million ounce, world, surplus in Silver. It stated that industrial usage was way down and would be down for the forseeable future.
THEN made the statement that Silver should hit $45 an ounce with in the year.
What? If all you need to make the price of something go up is to have a huge surplus; maybe I should sell dirt! I mean there is a huge surplus of dirt! Think about it! $1000 an ounce dirt! $5000 in two years!
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Valued Member
United States
81 Posts |
Bizarro world is right brutha! Don't get me started on dark smokey back room theories. I suppose the moral of the story is world currency in general will continue to weaken.
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Bedrock of the Community
Australia
21788 Posts |
What they are meaning is once the current surplus dries up, the price of silver will rise. IS there indeed a current silver surplus?
Perhaps it is just their way of talking the market up - buy now while it is cheap - more business for them!
I do not know the market well enough to get a feeling that this strategy is right or not.
Other more knowledgeable students of the silver price may well consider.
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Valued Member
United States
264 Posts |
As a metals trader myself, I have seen situations where oversupply caused a 6 month drop in price. Then as metal refiners halt production, the price skyrockets when the industrial demand picks back up again.
Moral of this story for me was simple. Pick your low buy and be prepared to ride out the coming storm of price fluctuations!
Also, if you buy silver as a long term investment then this whole topic should mean nothing to you! This long-term silver/gold investor buys because of the devalued world paper currency and over valued world real-estate markets. When SHTF, the world will be trading with PM backed currency to get a fix on the real value of the paper.
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Pillar of the Community
Australia
7096 Posts |
If everyone holding "Paper Silver" converted it into "Physical Silver" That surplus would turn into an extreme shortage in a heartbeat  |
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Pillar of the Community
 United States
1590 Posts |
Lol, well, not really. That surplus is exclusive of silver held to cover the paper silver. Actually most people know that paper silver is worthless; as a pm.
The people who issue paper silver don't have enough real silver to back their paper. I don't think there is even enough silver on the market period to back up all the paper silver.
Paper silver is like fantasy football. It is named after something real but exist only in the minds of the investors.
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Pillar of the Community
Australia
7096 Posts |
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The people who issue paper silver don't have enough real silver to back their paper. I don't think there is even enough silver on the market period to back up all the paper silver.
So, Just another form of "fiat currency?) all built on smoke and mirrors. If this IS the case why on earth would anyone swap one form of fiat for another one  when BOTH have NO solid worth and built on promises from sources that have NO resources to fulfill a contract  |
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Bedrock of the Community
Australia
21788 Posts |
Fiat money and paper currency? Gets me to thinkin': Perhaps it may be worth buying paper futures?  |
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Pillar of the Community
Australia
7096 Posts |
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Bedrock of the Community
13014 Posts |
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If this IS the case why on earth would anyone swap one form of fiat for another one when BOTH have NO solid worth and built on promises from sources that have NO resources to fulfill a contract Paper silver is the best way to make money off of silver. If you like bullion or want silver for other reasons then physical is better but if the sole intent is to make money paper is the way to go. You can buy and sell it in a second and you dont get hit with over and under melt prices buying and selling. |
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Pillar of the Community
United States
1200 Posts |
On "paper silver" --
1. Best guess -- 99.99% of those "dark smokey back room theories" are WAY closer to totally correct than any of us would like to believe.
2. As the old philosopher said, "If you can't see it & touch it, you don't own it."
3. The day large numbers of people demand delivery of their paper silver will be the day the paper pushers all collapse, crash and burn and the day that silver spot triples (or maybe grows by a far bigger multiple) in one afternoon flat.
4. If #3 ever happens, the feds won't be able to bail the paper pushers out, because they don't have anywhere near enough silver to do it with.
5. Then - watch the blinding speed with which the confiscation legislation flies through congress and the even more blinding speed with which Beijing yanks the credit rug out from under Washington.
6. Meanwhile, back in Asia - China is just sitting back... watching... waiting... and smiling...
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Bedrock of the Community
13014 Posts |
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3. The day large numbers of people demand delivery of their paper silver will be the day the paper pushers all collapse, crash and burn and the day that silver spot triples (or maybe grows by a far bigger multiple) in one afternoon flat. Its unlikely. I'm 99% sure theres somewhere in the fine print that to request delivery you have to own far more than the vast majority of people can afford and the ones speculating arent going to ruin what they have doing that. |
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Pillar of the Community
United States
1200 Posts |
BB21 -- You're probably right - I wasn't thinking. Since the paper pushers themselves designed and wrote the contracts, they surely sewed it up so that demanding physical delivery is so badly mummified in red tape requirements that practically speaking, it's impossible. I wonder, though... when you go into one of those contracts, do you at least get a picture of "your silver" (ha,ha)?
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Pillar of the Community
United States
1590 Posts |
Basebal, I agree with all those statements.
Let's face it, the commodities exist, in their present form, soley to make people money. And those who are getting rich could care less how much it wrecks lives or the country/countries. Pump prices are dependent on paper oil. Which themselves are manipulated to raise Corporate profits.
You want to help the economy? Ban speculators from the Commodites. Just like it was before 2002. That will never happen.
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Pillar of the Community
Australia
7096 Posts |
I think it is time to throw the money lenders OUT of the Temple |
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Bedrock of the Community
13014 Posts |
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You want to help the economy? Ban speculators from the Commodites. Thats one solution although its hard to tell how many retirement funds ect that have bought into those. I always laugh when I hear people base Exxon when its more than likely funding a good part of their retirement. At the very least if we stopped politically demonizing some of the commodites it would be a lot harder for them to spin the idea of fading supplies. For other things besides silver just requiring physical delivery would limit how many times it changes hands and could be enough to rein in the cost some. Quote:
I wonder, though... when you go into one of those contracts, do you at least get a picture of "your silver" (ha,ha)? Lol you could start an album of your paper silver pictures. Just out of curiosity though I would be interested to see what the requirements for delivery actually are, I'm sure its got so much red tape its not worth the effort at all. Edited by basebal21
11/16/2012 01:38 am
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Replies: 30 / Views: 3,125 |
Posted 11/15/2012 07:30 am
