The silver (and gold) shortage

Last year, a few months prior to the big spike in the gold spot price, every pawnbroker in Liverpool, England (where I live) had big signs out begging people to sell them scrap gold. I had a knock at the door from an elderly gentleman offering to buy unwanted jewellery from me.

The "sell your gold" signs came down just before gold hit its peak. Fast forward to today. The gold spot price is looking bearish and I hear a knock at the door. The same elderly gentleman offering to buy jewellery. Once again, the "sell your gold" signs are out at the pawnbrokers.

Anyone else smell a rat?

"I believe the true significance of the Gold Commission is that the politicians and central bankers were so alarmed at such a thing that they made sure it was packed by an array of Keynesians and monetarists." (Ron Paul 1985)

The local gun shows have gold and silver dealers

You Judge A Tree By It's Fruit, NOT its Flower

Miss my buddy SIERRAHPBT, hope he is well.
Anglo is investing in Fuel cell technology, and they produce platinum and palladium.
http://www.fuelcelltoday.com/online/news/articles/2009-07/UT...
grant

Not necessarily, the price of gold/silver can also be based on projected production. For example a mining company discovers a deposit of silver and estimates the load, but doesn't necessarily extract the product. Yet they sell their projected load on the market. For many years silver was down which did not stimulate production, but companies still did exploration. Now with silver high, but the dollar low on the world market the cost to remove silver is higher than it would have been years ago. For example the minimum wage in Brazil was less than a hundred dollars a month 6 years ago at around $75 dollars, now it is around $250 dollars a month, so labor in dollars has more than tripled.
grant

my local coin shop was closed today at 1 o clock ... i thought to myself wow why so early? it was odd ... i normally get my metals from www.monex.com and i haven't had any problems yet

Buying real money, gold and silver, and just sitting on it does not push out the bad money. If you spend and circulate good money in your local communities on local goods and services you create local jobs with your money. If you convince others to accept gold and silver and they spend in on local goods and services they too will create local jobs. Eventually who would accept "bad money" FRNs?
As a matter of fact we don't have to accept FRNs for goods and services as long as we aren't owed debt. If someone wants to buy from me with FRNs I don't have to accept, I can sell to someone who has gold or silver. But gold and silver only have real generating value as money if it is used and accepted in the market. People need to start using it! You can always barter with it. If your silver is worth 13 dollars FRN today, then use it to purchase $13 FRN on the market, probably even ask for a discount of 20-30% by purchasing will real money. Put a sign up in your store or business saying 10-20% discount if you pay in gold or silver. You will have removed goods and services from the market when you pay with gold and silver and will make FRNs less valuable.
We just have to reverse Gresham's law and drive bad money out with good money.
Gresham's law is commonly stated: "Bad money drives out good."
http://en.wikipedia.org/wiki/Gresham's_Law

Buy silver and trade in coins. Don't use or accept FRNs whenever possible and cut up those credit cards.
grant

This article has been edited due to its length. It was emailed to me and I have no link, sorry.

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The Eagle Has Been Grounded

Mint Halts Gold-Coin Sales After Supply Depleted Amid Price Drop

By Ianthe Jeanne Dugan
The Wall Street Journal
Thursday, August 21, 2008

As gold prices tumbled from their highest level ever, investors and collectors loaded up on one-ounce "American eagle" gold-bullion coins. The buying spree came to an abrupt halt this week after the U.S. Mint stopped selling the coins for the first time since production began 20 years ago.

"Due to the unprecedented demand ... our inventories have been depleted," the Mint -- part of the U.S. Treasury Department -- told its dealers Friday. "We are therefore temporarily suspending all sales of these coins..."

The Gold Anti-Trust Action Committee [GATA], an advocacy group, said the Mint's move proved financial institutions are colluding to set prices.

"The suspension is overwhelming evidence ... that the commodities exchanges are being used ... as part of a massive scheme of manipulation of the precious metals, currency, and bond markets," the group wrote on its Web site.

___________

Lisa C.

www.dvds4delegates.com=Ron Paul, the 44th U.S. President

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I'm wrong, the newly issued $1 presidential coins weight 8.10 g and are 77% copper. Whereas a copper penny weighs 3.11 g and is 95% copper, so the $1 presidential coin has less than 3 cents worth of copper and is probably worth about 3 cents. Spend them on local goods and services.
grant

You see the U.S. government wants to play us for fools, they issue some coins with presidents on them wanting us to collect them. If we throw them in a jar or mount them on the wall they lose all generating value to fuel the economy. So far, close to $1 billion dollars of presidential $1 coins have been issued. This means that if we don't use them that 1 billion dollars has been removed from the economy with a coin that probably costs at most 20cents for the U.S. mint to mint. Each time we circulate each and every coin just once it generates 1 billion dollars in the economy. And this is just by using newly issued $1 coins. The more you circulate the coins the more the economy runs without the use of FRNs.
grant

Not if you use converted values. A truely silver dollar can trade on the market for more than 12 dollars. I have used them to do lots of trading. But we don't even have to use the gold and silver coins, since their are plenty of coins to trade with as it is. We have gone from the gold standard in the minting of coins to the copper standard. On an average year their are around 6,800,000 tons of copper mined in the world, where as there is about 1,400 tons of gold mined in the world every year. That means for every ounce of gold there is close to 5,000 ounces of copper. Regardless if the copper is use industrially, it is still brought above ground. I imagine if less homes are being built that there will be less demand for copper wiring in new homes as an example of possible future over supply. Since the new presidential dollars are made mostly of copper and not even an ounce they are far less valuable than a silver dollar.
grant

The big boys are dumping their reserves on the open market to keep the prices down, whereas this raises the possibility of the dealers taking a loss if they sell it to consumers after what they paid for it (a lot more then current prices). This, in effect forces the dealers to cry "shortage" to buy themselves time, thus discouraging would-be precious metal consumers from engaging in owning and trading honest money.