Silver

Since silver spot price has virtually collapsed a few weeks ago, I
believe it is a good opportunity to load up. Called several local
shops to check prices and availability yesterday. One of my friends
and I were prepared to buy 400 to 500 ounces each.

One large shop (local and I have a good relationship here) is asking
Spot+$2.00 per ounce for bar, and Spot +$3.00 for Silver Eagles. This
same shop was selling me bar at Spot + 20 cents for .999 and Eagles at
Spot + $1.75 for years until recently. They said they had a "small"
supply, but did not specify. I have probably have spent six figures
here over past year.

Called a second shop. No availability. None in stock. This is a big
shop, 5 or 6 full-time employees.

Called third shop (know the owner, but not very well). He offered
silver bar at Spot+$1.00 and Silver Eagles at Spot+$2.00. So, I drive
there with cash in hand. Got a whopping 92 ounces of bar and (26)
silver eagles, thus wiping out his entire inventory. I was prepared
to buy 800 to 1,000 ounces. What the hell is going on??

All report that nothing is coming in, and their Silver Eagle suppliers
report long delays for shipping. Spreads are huge between spot price
and sell price. Something strange is going on in the physical
market. Is silver spot price too low??

I am in Eastern Pennsylvania.

Can some of you guys survey your local shops and check availability
and asking prices for .999 bar and Silver Eagles (any year.) Please
report here. This could be interesting.

On Aug 28, 9:54*pm, DanU wrote:
Since silver spot price has virtually collapsed a few weeks ago, I
believe it is a good opportunity to load up. *Called several local
shops to check prices and availability yesterday. *One of my friends
and I were prepared to buy 400 to 500 ounces each.

One large shop (local and I have a good relationship here) is asking
Spot+$2.00 per ounce for bar, and Spot +$3.00 for Silver Eagles. *This
same shop was selling me bar at Spot + 20 cents for .999 and Eagles at
Spot + $1.75 for years until recently. *They said they had a "small"
supply, but did not specify. *I have probably have spent six figures
here over past year.

Called a second shop. *No availability. *None in stock. *This is a big
shop, 5 or 6 full-time employees.

Called third shop (know the owner, but not very well). *He offered
silver bar at Spot+$1.00 and Silver Eagles at Spot+$2.00. *So, I drive
there with cash in hand. *Got a whopping 92 ounces of bar and (26)
silver eagles, thus wiping out his entire inventory. *I was prepared
to buy 800 to 1,000 ounces. *What the hell is going on??

All report that nothing is coming in, and their Silver Eagle suppliers
report long delays for shipping. Spreads are huge between spot price
and sell price. *Something strange is going on in the physical
market. *Is silver spot price too low??

I am in Eastern Pennsylvania.

Can some of you guys survey your local shops and check availability
and asking prices for .999 bar and Silver Eagles (any year.) *Please
report here. *This could be interesting.

You are noting a phenomena that is already well-noted elsewhere (in
the right-wing blogs).

It seems that with the coming of the silver and gold ETFs, we now have
a "paper" spot and a "physical" spot. Starting about three wees ago,
physical spot is much higher. Some people have predicted this outcome
for years.

Obviously, the ETFs don't really have all the actual precious metals
that they are supposed to have. Just another financial scandal
waiting to be uncovered.

oly

Howdy,

Oly touched on part of the problem, but I think there's more to it -
not in a conspiracy sense but just that it's a very odd situation.

As Oly mentioned, right now there's a huge divergence between the
paper bullion market including mining stocks - and the physical
bullion market, particularly for small to intermediate sized demand.

The mint, this month alone, has halted and resumed with rationing, the
sales of 1 oz gold and 1 oz silver due to shortages of planchets. My
local shop, which is fairly large (20-25 employees) still has odds and
sods, but is having trouble obtaining large quantities of eagles and
krugs. Two weeks ago, I rec'd an email from apmex that due to supply
problems they were running slow so if I placed an order, be patient.
Two days ago, I rec'd another saying they had a bunch of silver maple
leafs for sale. kitco is still running a banner disclaimer of the
same sort.

As the price falls, the street demand is soaring and all of a sudden
there is little supply to be had. Curious.

The market situation that it reminds me of is when there is
intervention to fix the price of something as in price controls.
Every time this has happened, supply all of a sudden dries up. Why
should I sell something at a price I know is lower than what the free
market would dictate?

And I don't see this as some sort of conspiracy. However, I do most
sincerely believe that manipulation occurs by anyone that has the
ability. If I'm a central banker, my job is to do whatever I can in
the best interests of my CB. If my position entitles me to knowledge
that I can use to my advantage in the market - of course I will use
it. And folks, legality really doesn't have much to do with this as
breaking the law is simply a risk mgt decision.

Right now the paper bullion market and hedge fund selling has beaten
down the POG and POS to below what the physical bullion market
believes is a realistic price. Ergo, buyers are waiting in line to
buy cheap and sellers are going on vacation to avoid selling cheap.

just my two cents,

rono




On Aug 28, 10:54*pm, DanU wrote:
Since silver spot price has virtually collapsed a few weeks ago, I
believe it is a good opportunity to load up. *Called several local
shops to check prices and availability yesterday. *One of my friends
and I were prepared to buy 400 to 500 ounces each.

One large shop (local and I have a good relationship here) is asking
Spot+$2.00 per ounce for bar, and Spot +$3.00 for Silver Eagles. *This
same shop was selling me bar at Spot + 20 cents for .999 and Eagles at
Spot + $1.75 for years until recently. *They said they had a "small"
supply, but did not specify. *I have probably have spent six figures
here over past year.

Called a second shop. *No availability. *None in stock. *This is a big
shop, 5 or 6 full-time employees.

Called third shop (know the owner, but not very well). *He offered
silver bar at Spot+$1.00 and Silver Eagles at Spot+$2.00. *So, I drive
there with cash in hand. *Got a whopping 92 ounces of bar and (26)
silver eagles, thus wiping out his entire inventory. *I was prepared
to buy 800 to 1,000 ounces. *What the hell is going on??

All report that nothing is coming in, and their Silver Eagle suppliers
report long delays for shipping. Spreads are huge between spot price
and sell price. *Something strange is going on in the physical
market. *Is silver spot price too low??

I am in Eastern Pennsylvania.

Can some of you guys survey your local shops and check availability
and asking prices for .999 bar and Silver Eagles (any year.) *Please
report here. *This could be interesting.

Oly and Rono;
Thanks for the replies.
So, you guys are reading the same info as me.

I hope I live to see these market manipulators trapped and gutted.
Eventually, it is inevitable.

Maybe this is the beginning of a big blow-off top, maybe not. I can
wait.
Dan

"DanU" wrote in message
...
Since silver spot price has virtually collapsed a few weeks ago, I
believe it is a good opportunity to load up. Called several local
shops to check prices and availability yesterday. One of my friends
and I were prepared to buy 400 to 500 ounces each.



Supplies dry up when the prices go down after a period of time when PM's
have been high valued. Nobody wants to sell, and everybody seems to want to
buy. At my local yokel B&M's gold that had been in the cases for months all
of a sudden disappeared, either it was purchased on the low, or the dealer
pulled it because he wants to hold it for a higher price.

We may not have hit bottom on prices, but if something happens in the
Caucausus or E. Europe you can bet that PM's will shoot up immediately. The
focus of the news is off of the Beijing Olympics now, so news will hit the
frontpage again.

"scottishmoney" wrote in message
...

"DanU" wrote in message
...
Since silver spot price has virtually collapsed a few weeks ago, I
believe it is a good opportunity to load up. Called several local
shops to check prices and availability yesterday. One of my friends
and I were prepared to buy 400 to 500 ounces each.


Supplies dry up when the prices go down after a period of time when PM's
have been high valued. Nobody wants to sell, and everybody seems to want
to buy. At my local yokel B&M's gold that had been in the cases for
months all of a sudden disappeared, either it was purchased on the low, or
the dealer pulled it because he wants to hold it for a higher price.

"Nobody wants to sell, and everybody seems to want to buy."

A scenario that would be driving prices up, wouldn't it? Bill











We may not have hit bottom on prices, but if something happens in the
Caucausus or E. Europe you can bet that PM's will shoot up immediately.
The focus of the news is off of the Beijing Olympics now, so news will hit
the frontpage again.

Bill Krummel wrote in message...
"scottishmoney" wrote in message...

"Nobody wants to sell, and everybody seems to want to buy."

A scenario that would be driving prices up, wouldn't it? Bill

Gasoline:
High demand - prices go up.
Lower demand - prices go up. G

Did you ever feel like you were between a rock and a hard place?
--
Bob R
POVrookie

On Aug 29, 1:03*pm, oly wrote:
On Aug 28, 9:54*pm, DanU wrote:



Since silver spot price has virtually collapsed a few weeks ago, I
believe it is a good opportunity to load up. *Called several local
shops to check prices and availability yesterday. *One of my friends
and I were prepared to buy 400 to 500 ounces each.

One large shop (local and I have a good relationship here) is asking
Spot+$2.00 per ounce for bar, and Spot +$3.00 for Silver Eagles. *This
same shop was selling me bar at Spot + 20 cents for .999 and Eagles at
Spot + $1.75 for years until recently. *They said they had a "small"
supply, but did not specify. *I have probably have spent six figures
here over past year.

Called a second shop. *No availability. *None in stock. *This is a big
shop, 5 or 6 full-time employees.

Called third shop (know the owner, but not very well). *He offered
silver bar at Spot+$1.00 and Silver Eagles at Spot+$2.00. *So, I drive
there with cash in hand. *Got a whopping 92 ounces of bar and (26)
silver eagles, thus wiping out his entire inventory. *I was prepared
to buy 800 to 1,000 ounces. *What the hell is going on??

All report that nothing is coming in, and their Silver Eagle suppliers
report long delays for shipping. Spreads are huge between spot price
and sell price. *Something strange is going on in the physical
market. *Is silver spot price too low??

I am in Eastern Pennsylvania.

Can some of you guys survey your local shops and check availability
and asking prices for .999 bar and Silver Eagles (any year.) *Please
report here. *This could be interesting.

You are noting a phenomena that is already well-noted elsewhere (in
the right-wing blogs).

It seems that with the coming of the silver and gold ETFs, we now have
a "paper" spot and a "physical" spot. *Starting about three wees ago,
physical spot is much higher. *Some people have predicted this outcome
for years.

Obviously, the ETFs don't really have all the actual precious metals
that they are supposed to have. *Just another financial scandal
waiting to be uncovered.

oly

I visited a small coin fair here in the Netherlands, today. I found a
reasonable number and variety of silver and gold bullion coins. There
were also a quite a wide range and an adequate quantity of recent (ca.
1900 to 1920) circulation silver coins. There were also offers of
silver coins (recent issue & 90% Ag, or worse) at 0.40 Euros/gm. This
is pretty high (i.e., $20/Oz), but not unreasonable if there is
another reason to own the coin.

The bullion coins were not cheap. The 1 Oz. US silver eagles were
from 15 to 22 Euros, each which is in the range of 2x spot. 1 Oz.
gold coins were around 700 Euros. Normally, in the Netherlands, one
treats such prices as notional and bargains. I'm not so interested in
those, so I did not try to bargain for them. I did purchase a '44
half dollar and 2 Morgan dollars; they were a little pricey, but
reasonable.

I also discussed the points made on this board about a scarcity of
bullion with some of the dealers. Some said they had not heard;
others said they had tried buying recently in the USA and found the
prices very high. Nobody said they didn't have any or could not get
any.

Gasoline:
� High demand - prices go up.
� Lower demand - prices go up. G

�Did you ever feel like you were between a rock and a hard place?

Anybody who thinks market forces operate on the petroleum market is a
dolt.

Prices rise completely independent of demand, but they predictably
fall
for the brief period before an election every two years, then shoot
back up
after the election.

winwin wrote:
Gasoline:
? High demand - prices go up.
? Lower demand - prices go up. G

?Did you ever feel like you were between a rock and a hard place?

Anybody who thinks market forces operate on the petroleum market is a
dolt.

Prices rise completely independent of demand, but they predictably
fall
for the brief period before an election every two years, then shoot
back up
after the election.

Seems I asked for supporting documentation of this same claim just a couple
of weeks ago.

James