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Silver Eagle And Junk Bag Shortages Show Underlying Strength Of Silver Market Demand

The price of silver has been steadily falling since April of 2011. Yet the U.S. Mint is having trouble keeping up with demand for One Ounce American Silver Eagles, as gold dealers tell their customers they will have to wait a week to a week and a half for delivery, and junk bags of the 90% silver coins (the silver coins in use before 1965) are harder and harder to come by. Even with this decline in prices, ETFs like iShares SLV are showing a pent up demand for silver that doesn't seem to want to end despite lower prices.

  • March 25: 343,645,323.100
  • March 11th: 342.292.222,100 ounces
  • March 1st: 342.433.205,000 ounces
  • Feb 8th: 335,858,876.200 ounces

The following chart shows overall increase in ETF silver demand has risen the last few years.

While it is easy for those who own silver represented by ETFs to sell with the stroke of a key, why aren't they selling? Perhaps the answer can be found in the mindset of the ones who buy physical gold and silver as many of them own ETFs as well.

People who buy physical silver aren't calling and selling their coins. Why is this? Why do those who buy physical metals not sell when the price drops? We will look at two of the most popular products, One Ounce American Silver Eagles and the 90% "junk" silver bags and try and answer that question.

Read the rest at http://bit.ly/15WoeLA

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The only silver shortages

The only silver shortages that exist are the people who do this ETF trading crap or who put silver in their IRA. You can't just claim shortages because people are choosing to not sell. No duh...the prices are low. It's just artificial scarcity and I guarantee you that you will see the "supply" explode when it starts going up again.

Please come join my forum if you're not a trendy and agree with my points of view.

ramicio

Your first sentence makes no sense at all.

I am claiming shortages because my suppliers are short of supply. Did you read the article? They are two of the largest suppliers in the U.S.

Also, when the price goes higher, you won't see sellers come in until silver is north of $50, the all-time high.

I have seen you make comments on this before. You're a one hit poster that claims YOU know whats really going on and people are supposed to take it as fact.

I do this for a living. I write a blog and have called this market pretty damn good. I also wrote a book about it that does quite well on Amazon.

Author of Buy Gold and Silver Safely
Next book: Illusions of Wealth - due out soon
Also writing book We the Serfs!

Or they are just claiming

Or they are just claiming they don't have anything because the price is low and they don't want to sell it...

People are not going to wait until it hits $50 again to sell their junk silver.

Please come join my forum if you're not a trendy and agree with my points of view.

Right

You're the expert...

Author of Buy Gold and Silver Safely
Next book: Illusions of Wealth - due out soon
Also writing book We the Serfs!

Cyril's picture

BUMP.

BUMP.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

It's a shame all those people are going to lose

all their money when the baking system starts to go down. The precedent has already been set through several court decisions. The money or property is not really yours when it's in a bank. I think I'll hang on to my physical.

Gold standard: because man can not be trusted to control his greed

Haven't You Heard?

"The Price of Gold Doesn't Matter" by Joe Weisenthal of Business Insider
http://www.businessinsider.com/the-price-of-gold-is-pointles...

The comments are better than the story.

Cyril's picture

LMAO. Yeah, right, Joe.

LMAO. Yeah, right, Joe. Please give me the directions to the nearest gold reserves from where I'm at.

I'll be bringing the truck for the pick up.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

But wait a minute.... TX and

But wait a minute.... TX and all the Prechterite cult tell us there is no demand. They tell us Silver should be 2.00 an ounce.

So why is it prices are "falling" or staying stagnant when we have huge demand? Manipulation? of course not.

Cyril's picture

My own speculation

My own speculation is the big bosses of all these 20 something trader kids instructed to pound silver so badly down constantly (despite overwhelming evidence of a demand very present)... well, they are scared, upset, or very wary anyway of silver to start its rallying back up BEFORE gold, itself, does.

That's the last thing they want as I see it : the GSR to drop...

It's currently over 55, and imagine what such a GSR divided by just two would trigger... I'd bet on a massive conversion into gold of only a small chunk of the silver bugs' stacks. I know I would, anyway.

Just IMO.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Good charts!

Silverismoney,those are some good charts and I always like what Santelli says because he keeps it real.

I wrote one article on manipulation as no one can really prove it with any actual data but show the divergence as the zerohedge article shows. What I wrote about in my article however was about how the big players have increasingly entered the gold and silver derivatives market. We know who they are:

Thoughts On Gold Price Manipulation

http://buygoldandsilversafely.com/gold/thoughts-on-gold-pric...

Author of Buy Gold and Silver Safely
Next book: Illusions of Wealth - due out soon
Also writing book We the Serfs!

I wrote this article on silver shortages

I wrote this article on silver shortages at SeekingAlpha.com where I write exclusively for them from time to time.

Author of Buy Gold and Silver Safely
Next book: Illusions of Wealth - due out soon
Also writing book We the Serfs!