No Shortage of Silver, Just Silver Bars, CPM Group insists

[bobbyw24]

There are some spot shortages in the physical silver market, but they are limited to higher purity metal in specific forms and locations at most, said commodities research and consulting firm CPM Group Wednesday.

There have been reports of shortages of physical silver circulating in the market, CPM Group said in a research note, but information about the market tightness has been “blown out of proportion by the silver conspiracy theorists who are trying to portray this as a much more cataclysmic event for the silver market.”

CPM Group explained that the tightness comes from the fact that refiners do not make 1,000 ounce bars, rather they make something called “silver shot” – also known as grain, powder, flake and/or sponge – because of demand from manufacturers.

http://www.kitco.com/reports/KitcoNe...16DeC_CPM.html

[Bern]

lol.

Major silver retailers (Perth Minth, ScotiaMocatta, et. al.) report zero availability of large silver bars and there is no shortage of physical silver. OK.

Silver lease rates explode and there is no shortage of physical silver. OK.

Silver futures are moving into steeper and steeper backwardation and there is no shortage of physical silver. OK.

Open interest in the March delivery for silver is in danger of breaking the COMEX, but there is no shortage of physical silver. OK.

Future mining production is being oversold today as miners hedge increasingly greater quantities of future production, but there is no shortage of physical silver. OK.

The silver shortage is (for now) in the large investment products. The CPM Group apparently can't fathom how large investment demand is going to impact silver availability for industry and smaller investment products (like 1oz coins) going forward?

[sluggo]

Financial Sense had an interesting roundtable discussion on this. Audio links at top.

http://www.financialsense.com/financ...ver-roundtable

The consensus among the panel is that there is a production bottleneck, not a shortage.

I have no idea. I just keep buying it on the dips.

[hazek]

Just look at history. Every single time there was a bubble or a shortage people pretend until the very last minute that everything is fine!

Buy the dips!

[jclay2]

31.54 FRN to 1 oz of AG! I will have to call my little 11 year old brother today and tell him the news. Although, I wouldn't doubt it if he allready knows about the move, he checks kitco/market daily. I recently got the kid to invest a majority of his money into silver. It has been a really fun hobby for him and a great opportunity for me to teach him about fiat money and the Federal Reserve. The one thing I have tried to get drilled into his head is, "Don't worry about the price". I explain to him how the Federal Reserve has printed trillions and that the only outcome is high inflation and ultra high silver. he now buys more whenever he has the money. Gosh, it almost makes me want to cry tears of joy...two modern day Hunt Brothers!

[hazek]

The one thing I have tried to get drilled into his head is, "Don't worry about the price". I explain to him how the Federal Reserve has printed trillions and that the only outcome is high inflation and ultra high silver.

But make sure to also explain to him the difference between profit and protection of purchasing power. Even though the price of silver is going up it's not that silver is getting worth more but it's the FRNs that are losing value. It's crucial IMO he understands that!

[jclay2]

But make sure to also explain to him the difference between profit and protection of purchasing power. Even though the price of silver is going up it's not that silver is getting worth more but it's the FRNs that are losing value. It's crucial IMO he understands that!

Very True. I should do better with that. Although, I truly believe silver will profit in real terms as more and more people realize it is a safe haven against currency devaluation. But most of the gain will be an inflation hedge.

[Mark37snj]

Financial Sense had an interesting roundtable discussion on this. Audio links at top.

http://www.financialsense.com/financ...ver-roundtable

The consensus among the panel is that there is a production bottleneck, not a shortage.

I have no idea. I just keep buying it on the dips.

Where do you buy your silver from? Do you have a link?

[sluggo]

Where do you buy your silver from? Do you have a link?

Mostly between APMEX and Monarch Precious Metals, whichever will sell small amounts with the lowest premium.The more you buy, the less the premium.

It's also good to find a local seller so you can pay cash and avoid shipping costs.

[Mark37snj]

Mostly between APMEX and Monarch Precious Metals, whichever will sell small amounts with the lowest premium.The more you buy, the less the premium.

It also good to find a local seller so you can pay cash and avoid shipping costs.

Yeah a local seller is what I am really looking for. I tried to search for one before but I guess Im no guru when it comes to internet searches. Too much cross referenced non local sellers internet sellers came up.

[sluggo]

Check your local flea markets. I've come across some good deals that way. Just make sure you don't buy any numismatics, and you know what the spot price is when you go.

[Bern]

try searching for <city name> gold coin or <city name> coin dealer

[Mark37snj]

Cool, ty for the tips.