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iShares Silver Trust Message Board

  • dowjonesmel dowjonesmel Dec 6, 2012 2:35 PM Flag

    if we produce more silver than we use ridle me this

    why do all the major and most of the minor miners have conrtacts to buy every once for the next 5 years

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    • Yes, Every ounce that is produced will go somewhere.

      The problem is, that "Somewhere" = Warehouses stuffed full of the stuff.

      All that excess silver isn't be used up, it's just being stored in small and large warehouses. You even have your own warehouse and you plan to dump your silver at some point in the future.

      The problem is that with all of that stored silver, it's as risk of flooding back into the general market at any moment and crashing the prices.

      If we all agreed to hoard gasoline next year, via filling up cans and barrels and tanks and storing it, we could temporarily drive gasoline prices up to $10.00 per gallon..... But then when the bubble topped out, we'd all start using that stored gasoline and the price would crash down to 75 cents a gallon for a good long while because of excess storage.

      Gasoline or silver, that's bought and stored is NOT true demand.

      • 2 Replies to ext4r
      • Wow your theory has worked well over the years eh?
        From 4$ to 34$!
        My theory is its being used and some stored as investment and all those paper shares out there has no silver to back it up so some day the underfunded paper silver farce will blow up!
        Leaving millions of ounces unacounted for!
        I guess that will leave people like me in a good position!

      • stored is not deman, let's see 5000 years of trading tell us that it is. you must have read some book of new wave jibber and know you jumbled in the mined. Above ground stock pile of slive are at and all time low. Silver is a finite resource it is used in so may application that it can't be recovered from and yes some that it can. But like i said if you look world wide stock pile are at a all time low. It must irk you that you post all this suff all day and night. What because ppeople are trying too secure what wealth they can.

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