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The great disconnect between paper and physical Silver
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Thread: The great disconnect between paper and physical Silver

  1. #1
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    Lightbulb The great disconnect between paper and physical Silver

    The great disconnect between paper and physical Silver



    The market situation in silver is not sustainable long term. It can for sure go on for a while, but not ad infinitum. From a longer term risk/reward perspective, which is the fundamental rationale for physical silver investors, silver is an excellent asset to own.

    Silver started the first quarter at $30.45 per ounce (Jan 2nd 2013) and closed more than $2 lower at $28.30 per ounce (March 29th). During the same time period, investment demand for physical silver was historically strong and all data pointed to accumulation by investors. This evolution asks for an explanation; the answer lies in the paper silver market.

    {snip}
    -- The US Mint has sold a record amount of US Eagles when compared to the first quarter of all previous years.

    -- All silver ETF’s combined increased their physical holdings by some 4.0%.


    MORE AT THE LINK...

    Disconnect?
    I think it's more like a grand silver "market" manipulation by the evil Rothschild kabbal.
    What do you think?
    "I foresee little future in 'the price of silver', I see a huge future for 'the price in silver'." - heartbone
    "The truth is called hate by those who hate the truth." - K

  2. #2
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    Exclamation paper spot @ $26.88

    "Today is a good day to buy."

  3. #3
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    Exclamation Billions of fake (kabbal) silver ounces being DUMPED. Junk about sold out!!!

    http://www.youtube.com/watch?v=-1vyuC4Il44

    Grab those dimes! Hope to trade them one day for 1/10 ounce of Au.

    Supply and demand means nothing in a (fake) silver "market".

    He forgot to mention 'spot' being 10% below production costs... proof enough.

    Achilles heel indeed.
    "I foresee little future in 'the price of silver', I see a huge future for 'the price in silver'." - heartbone
    "The truth is called hate by those who hate the truth." - K

  4. #4
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    Quote Originally Posted by silverheartbone View Post
    The great disconnect between paper and physical Silver
    The market situation in silver is not sustainable long term. It can for sure go on for a while, but not ad infinitum. From a longer term risk/reward perspective, which is the fundamental rationale for physical silver investors, silver is an excellent asset to own.
    Silver started the first quarter at $30.45 per ounce (Jan 2nd 2013) and closed more than $2 lower at $28.30 per ounce (March 29th). During the same time period, investment demand for physical silver was historically strong and all data pointed to accumulation by investors. This evolution asks for an explanation; the answer lies in the paper silver market.

    {snip}
    -- The US Mint has sold a record amount of US Eagles when compared to the first quarter of all previous years.
    -- All silver ETF’s combined increased their physical holdings by some 4.0%.

    MORE AT THE LINK...
    Disconnect?
    I think it's more like a grand silver "market" manipulation by the evil Rothschild kabbal.
    What do you think?
    Horse patootie.

    The arbitrageurs will take advantage any time they can squeeze a one cent difference out of the market. Your fantasy has nothing to do with the reality of how the markets work. And, lower prices can increase investment interest, in case you were unaware of it.

  5. #5
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    Quote Originally Posted by silverheartbone View Post
    Grab those dimes! Hope to trade them one day for 1/10 ounce of Au.
    Supply and demand means nothing in a (fake) silver "market".
    He forgot to mention 'spot' being 10% below production costs... proof enough.
    Achilles heel indeed.
    Production costs are local to purely Silver mines. There is no global Silver production cost because most Silver production is mainly a byproduct of Copper mining, so the Silver production cost is zero.

  6. #6
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    Quote Originally Posted by Matthew Shelley View Post
    Production costs are local to purely Silver mines. There is no global Silver production cost because most Silver production is mainly a byproduct of Copper mining, so the Silver production cost is zero.
    silver being pulled out of the ground as a byproduct may have a cost of zero because they are already mining that ore, but the cost involved in separating and refining and pouring this "byproduct" is not free, therefore silver production is NOT free it costs money to produce it whether they are going in the ground for copper or silver...

  7. #7
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    Quote Originally Posted by SilverBull82 View Post
    silver being pulled out of the ground as a byproduct may have a cost of zero because they are already mining that ore, but the cost involved in separating and refining and pouring this "byproduct" is not free, therefore silver production is NOT free it costs money to produce it whether they are going in the ground for copper or silver...
    It costs money to produce Copper from the ore, the Silver gets produced because it is considered a bonus, or free money

  8. #8
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    Quote Originally Posted by Matthew Shelley View Post
    It costs money to produce Copper from the ore, the Silver gets produced because it is considered a bonus, or free money
    And the cost to produce the bonus is what? It certainly can't be free!

  9. #9
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    ten years ago every time I paid 6 or 7 dollars for silver a few month later it was back in the 4 handle, I was "wrong" for like 5 years.............. having said that I was able to buy a bunch of coins yesterday for like 23.00 but that was a bargain .............. I have watched this market for probably 15 years, when it finally got through 7 people were talking 10, then 15 then is got clipped for like 4 dollars down one day, then it took forever to get to 20 after the 2008 incident, since going thru 20 it has not come back most of the traders and collectors I know have come to terms that there are larger forces that have a vested interested in keeping prices lower, I really do not know why anymore, I mean from 1792-1971 excluding a few "tail events" silver as 1.00-1.50 an oz 180 years, so I could argue that since silver was price controlled for so long, it could have a twenty or thirty year bull markets.

    as I have said earlier, I think everyone hear has some vested interest in silver whether its coins, bars, futures, paper, plastic etf, etc ...................the fact remains the majority of this recent demand since 2004-2005 in gold, silver, plat and pall is investment demand............I'm not gonna lie..............when I paid 7 and 8 and silver dropped a dollar the next month for 5 years, I really thought it was against me..................... much as the "physical" guys do not want to hear it London, etf's and NY drive the price, it is now the guy who put all his money in silver eagles at 50.00.................... and while on that topic, I am guessing most people hear have hear the dollar this the dollar that.............why would you give the US gov your money and pay a hefty premium to do so ?

    on that note the dxe or dxy was around 82 in july 2007 and silver was 12.00

    I still think silver is in a range of 26 to 36

    I am fishing for a large lot of physical in this area, but when it comes to it, it is just easier to get the exposure in slv or si

    Is there anyone in here that really think the Silver ETF's have not helped the price of Silver, Gold, and any other commodity that is now in "paper" form

    to all the Silverseek guy and gals I still believe in Silver liked it at 4.00 and still like it now, not gonna lie we took a chunk off the table at 40.00 but 1000% in 8 years was not bad

    All futures and etf markets trade way more than there is of the physical commodity, this is not a new exercise, been going on forever

    The one major issue I have in Silver is that for something where the world mine supply or as my grain guys call it the silver growing season, the world is only gonna produce 800 million ounces ?

    How can you have a commercial short, whether it is one person or 1000 people be short 75% of one years production, yes that seems off to me

    there is no there commodity where you could say I want to short 75% of the world's oil supply or wheat supply

    the longer a range is held, the bigger the breakout will be, so if you have the capital and really want silver right now you can sell puts in SI and buy 2 calls for even money about 3.00 away one each side, that makes little sense to me and has usually happened near a "bottom"

    I have read this site for a while and find it very intriguing, the disdain that the physical guys have for the futures and slv guys......................fact is all the longs want the same thing right ?

    I am guessing a lot of people here got very interested in silver at 40 and above, and quite a few have had it since the dog days of the 1990's. These two groups are going to have drastically different viewpoints as the 40 and 50 guys are way under water, while the 4-8 guys could care less, unless you are going to trade professionally why does a one or two dollar move bother everyone? Most all of the commodity and metals correlations have broken down for a while now..............in 2011 the gold silver ration got out to 32:1 now it is 58:1.........Silver lost almost half its value vs gold, yet I dont think many people are sitting hear screaming at the goldbugs? It wa traders who drove the ratio to both levels................ With the BOJ, ECB, BOE and US FED doing what they are doing, this is the first time since last summer, I am really looking to add to my position.....................Look at platinum except for the futures markets, I have found it very hard to buy that at a discount to gold................. and Platinum dropped 90 dollars in the last 48 hours that was coming from some funds in the EU and US, it was not fundamental, but then again what is in this environment

    I wish the best to all silver holders, US and Foreign, as well as SI, SLV, Physical guys, and coin collectors

    best
    Q

  10. #10
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    Quote Originally Posted by broox419 View Post
    And the cost to produce the bonus is what? It certainly can't be free!
    It gets produced as part of the Copper production process.

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