Number of silver certificate oz in circulation VS the real thing

Anyone care to guess how much non-exhistant silver in the form of silver certificates have been sold by the banks and other financial institutions.

Here in Canada, most silver certificates are only redeemable in cash and not real silver.

Is it................

100 oz of non-exhistant silver per 1 oz of real silver.

1000 oz of non-exhistant silver per 1 oz of real silver.

1,000,000 oz of non-exhistant silver per 1 oz of real silver.

Seems like there is an endless supply of silver certificates but no real silver to be had.

 

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I don't have enough info to offer an opinion from a personal perspective, but I just watched a YouTube video of SGTBull interviewing Bix Weir where they said 100 to 1 was conservative in their estimates. Whatever the number is, the case to own physical vs. IOU's is as strong as ever.

http://www.youtube.com/watch?v=WfLNxE0wIbc

I would add that (as per the video title) I do not think we will see $1,000 silver anytime soon, though I do think it will likely happen eventually on a long enough timeline. =)

 

I guess the only way to find out would be if an audit was done on every financial institution selling certificates, something that will never happen.I will say every bank I went to, in my pursuit of buying some real silver, they all tried to push mutual funds and if I did want to invest in silver they really pushed the certificates.And of all 4 banks I went to, not one of these employess educated in economics knew anything about the metal.

 

The "hundred to one" story analyzed.

 

Buying virtual silver is about as smart as buying virtual food...why would anyone even consider this?

 

well I'm not saying buying virtual silver is the way to go...but my opinion is this

I bought some silver from kitco's pool account but not exactly for the reason of owning it...

I put in $2504.01 about a month ago, sold and rebuy on the drops...even if it was an 80 cent to $1.20 rise then drop back to where it was...

now by doing this I have been able to accumulate up to $4,189.09

that's my reason for doing it...and I only had to do a few clicks and type a few numbers every day or 2 in order to do it...

I'm glad for pool accounts for just this reason...as for other reasons like to buy in for physical delivery...unsure if I trust that aspect too much...eventually once I hit $5,000-$5,100... I'll put out my original amount if I feel the need to so it's protected and buy the real stuff...and the rest would just be play money for the market...or heck just pull it all out...my plans aren't set and can change on the fly...

 

I think physical bullion is better for long term, and ETF's for a shorter time.

 

Interesting method. Do you know how much of your potential $1,685.08 profit is reduced by the short term capital gains tax you will get hit with?

Day trading silver sounds like fun but the tax implications would be a deal breaker for me.

 

I am glad you can make a few bucks doing this but up here in Canada the tax rate on capital gains is as high as 50%.
I can't see risking my money on paper transactions only to give the government half of it.
Pure silver bars and coins are tax free to buy and I can do with them what I want when I decide to sell.