Impact Of CDN Silver Spot Price On RCM/NCLT

I don't think it will affect current prices of NCLT silver, as items such as coins from the RCM have prices at 2-7x silver price.
A rise in silver at 10-15% is quite small compared to this multiple.

However I think late 2016/2017 releases might have a bump in their release prices - as it is a direct loss in profits from the RCM to keep the same prices.
Just my 2c

You also need to look at how much of that change in price is due to the change in value of the CDN $ vs change in the actual world value of silver (loosely defined as in US $s of course). Tends to smooth the peaks and troughs a bit.

Agreed, the value of our Canadian dollar impacts the Cdn price of silver. In this recent hike however, media reports indicate China is increasing the demand of silver as an attractive investment option due to expectations for Central Banks to further reduce interest rates. Another mentions 10% of silver supply is used to manufacture solar panels. If that's true, that's a possible motivation as well.

Spot silver has increased in USD equally or better than CAD

Source:
http://www. (059) Not Allowed - Auto-Removed
* google it

I wonder if any holders of $20for$20 are surprised to learn their coins are still only worth $6 something in silver content and not $26? The manner in which RCM markets their "fine silver" collector coins can be somewhat misleading to newer collectors. I suspect this will cause RCM to lose business from some customers who will chose to put their money into maple leafs or silver circulation coinage where the premium is much less.

The RCM may definitely increase their already overpriced offerings which could further drive NCLT collectors away. But let's wait for a few more days to see if this increase isn't just momentary.

Five years ago some were predicting $100/oz. for the same reasons (semiconductor, solar, China, etc.). Back then I did not see that at all. The reality has been that demand for industrial application steadily decreased during this same period. This was explained by a stagnating global economy. Maybe.

But what is interesting is that bars, coins and silverware - the glut - is what is driving demand up. So this massive stockpile of silver keeps increasing year after year. My guess is that as soon as silver hits $40 you will see an immediate flood of that glut back into the market. Price will drop down again.

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. I also pointed out back in 2011 that the semiconductor industry was moving to cheaper metal solutions and this is absolutely the case. Some solar producers have already switched to aluminum. Device sizes and thicknesses are continuously shrinking so I'm almost certain that technological improvements will outpace usage of rare (and semi rare) metals.

Why would it be any other way? Technology always finds a better, cheaper way to do things.

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. I'll probably be ready to retire anyway... :)

CCF Solar Panel Inc?

Collectively speaking, we already have a fair amount of silver.

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?

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:




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.

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...J3UX20110920