Silver shortage?

Discussion in 'Coin Chat' started by koantoss, Sep 2, 2008.

  1. Cloudsweeper99

    Cloudsweeper99 Treasure Hunter

    You SHOULD be able to take delivery, but the COMEX has limits on how much physical silver can be delivered each month. The majority of participants have no silver. And the vast majority of the contracts are settled in cash, not bullion, so the paper market sets the COMEX price for physical and not the other way around. Physical silver is a tiny piece of the silver market -- remarkable but true.
     
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  3. rhoggman

    rhoggman New Member

    Suposedly the supply problems are worsening....

    I bought as much silver as I could from my local coin shop.

    I think silver is attractive if you can buy without major premiums.
     
  4. Droidicus

    Droidicus New Member

    I came across this today and found it interesting:
    [​IMG]

    This is a graph of worldwide silver production by date, here is some firmer data about US and worldwide production and utilization: http://minerals.usgs.gov/minerals/pubs/commodity/silver/mcs-2008-silve.pdf According to these sources we are currently (as of 2007) producing approximately 660 MILLION Troy ounces of silver per year. This is a massive amount, I am not sure if everyone is aware of just how much of the stuff we actually wrest from the earth each year.

    ~Droid
     
  5. Cloudsweeper99

    Cloudsweeper99 Treasure Hunter

    Droidicus, some of these long term charts and figures can be very misleading. For example, the chart indicates that silver production has about tripled in the past 100 years, a bit more than a 1% per year growth rate. This is less than the growth in world population or world economies. Also, 660 million ounces only amounts to about $8.5billion. By comparison, the dividends from General Electric, a single large company, are about $11.5 billion annually. They could buy every ounce of silver mined every year with their spare cash flow. Physical silver is a tiny market by world standards.
     
  6. Jim M

    Jim M Ride it like ya stole it

    There is no shortage of Silver. There is however a shortage of dealers willing to sell Bullion for a loss. : )

    I talked to our local dealer this morning and he has bags and bags of 90% and probably over 1k of the ASE, not to mention the Bars and Rounds. He just refuses to sell it at todays prices. Its out there friends, just not being sold.
     
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