Reports of Silver Demise are an Exaggeration.Submitted by Mark Twain on Thu, 02/17/2011 - 13:07
Just the bars, ma'ame. Just the bars.
Here is a message directly from Jeffrey M. Christian, the man that admitted silver is 100 x over sold in the physical market, stated @ CFTC hearing, March 2010.
He issued a "research note" minimizing reports of shortages in silver. A minimization of a perfectly good exaggeration.
CPM Group: Reports Of Physical Silver Shortages ‘Limited’
16 February 2011, 5:26 p.m.
By Kitco News
There are... spot shortages in the physical silver market... limited to higher purity metal in specific forms and locations... CPM Group....
There have been reports of shortages of physical silver... market tightness has been “blown out of proportion by the silver..." to portray this... cataclysmic event for the silver market.”
CPM Group explained that the tightness comes... 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. [Sponge... to soak up stuff.]
“They do not waste time, money, and energy casting bars, and demand for sponge is very high...” CPM Group said.
One-thousand ounce bars in silver purity of 0.999, the good delivery grade, are plentiful,[$30K each,] but they said there is tightness in the higher purity 0.9999 and 0.99999 for two reasons...
Demand for photovoltaic cells used in the solar panels has surged... The silver flake or powder used in this manufacturing must be of a high grade, which explains why there is tightness for silver of high purity...
CPM Group said...specialized instance of actual supply tightness in the physical market. The firm added that there is talk... of shortages of 100-ounce investment-sized bars and coins... “There were hundreds of thousands of ounces in 100-ounce bars available for immediate delivery...” CPM Group said. [Meaning: not much.]
... silver lease rates... slight backwardation... Comex futures prices, it said...
“In conclusion, there are short-term market developments along the lines of what CPM has repeatedly said to expect in February and March 2011, and there is spot tightness in high purity silver cast into bars as opposed to sponge. The rest is noise,” they said.
"They" had no further comment.
Hi ho, hi ho!
It ain't no trick
To get rich quick
If you dig dig dig
With a shovel or a pick
In a mine (In a mine)
In a mine (In a mine)
- Message from 7 dwarfs
"Snow White" had no further comment.
Best I could do. Sincerely,