I really am befuddled by the price action. I mean, many precious metals dealers are “out of stock”. Tulving, APMEX, Gainseville Coins, Kitco. Go to their websites and see for yourself. Kitco and APMEX websites both crashed today because of demand. The US mint has halted production of American Silver Eagles 3 separate times since December because they can’t keep up with demand. I know that APMEX is buying junk silver from investors for $3.00 OVER SPOT. That should tell you how tight the physical market is.
Last Wednesday night, Kennecot mine in UTAH, the largest open pit mine in the United States had a massive landslide. Kennecot mine produces over 4 million ounces of silver a year. Roughly 10+ percent of the annual US silver production. The massive slide registered as a magnitude 2.4 shake at the University of Utah seismograph station. It may take years to get back to full production and will cost hundreds of millions perhaps a $ 1 billion to restore.
Additionally, with all the money printing and currency devaluation, and confiscation of savings accounts by governments, how can the price be going down???
My only answer is that it deductively must be manipulation by very powerful entities over the paper price.
just bought a couple 10 oz bars on line at Provident. Slow website and it says don't call. Old coots using phones for a couple coin purhcases must be the big rush :) Who calls anymore (and I am an old coot) ?
Have to agree with the other poster abou the SLC open pit mine....not really a factor. Use to fly over that pit a lot when I went into SLC
and I don't think coins and retail bars are a big driver in market either (I have a fair grasp of the obvious....since obviously it doesn't :)
manipulaton my #$%$...."they" don't care much about PM. You weren't crying manipulation when it went up...such are markets, commoditieds, equities, deriviatives, real estate, collector cars...what ever.
I just bought 100 ounces of silver.. a friend of mine bought also 100 ounces. we both have to wait until May 3rd for delivery. These are for Canadian Maples.
But that's ok, I am a patient investor.
Remember that the dealers are not going to sell below what they paid for their own inventory that's why the premiums are so high. Being that silver is now well below all-in cash costs for most miners I am curious to see what happens with them. Will they simply fold up operations or continue at a substantial loss? If they close down some mines then the physical supply will continue to decrease while physical demand continues to increase. The paper price is not real. Want proof? Trying buying silver anywhere right now for near spot price. Silver eagles are going on Ebay for well over $31 bucks right now while the spot price is under $24. These are interesting times.
I don't think silver eagles are a good indicator (obvioulsy). You can buy kilo bars at less than a buck over spot !
And I suspect big retailers, and miners both hedge prices, that is how they stay in business by laying off risk. Buy a bunch at price X, lay off some short, get your premium, close out the hedges....next day...a new day.
All sorts of things available to the miners, like 3 nine hr days, one shift, just enough to keep the lights on, fuel bill paid and make payroll. Shut dn the mine for two weeks and give everyone vacation, delaying action!
not true on production costs...the biggerst pure miners are out of country including eastern europe and china,, and have lower costs, and most silver is from co mining. Who know what the true average global cost is...nobody here, that is for sure.