Silver Shortage? What, Me Worry?

[webmaster]

Subject:Silver Shortage? What, Me Worry?
By: David Bond, Editor The Silver Valley Mining Journal

Overview: We find this quite curious. It seems that when the price of silver is low, there is a shortage of silver, because people can't get enough of the white metal. When the price of silver is high, there is a shortage of silver, because folks can't get enough of it. Would it be too much of a reach to surmise that there's just a plain shortage of silver?

Link: http://news.silverseek.com/SilverSeek/1218779880.php

[skovaka]

If I was a silver miner, I’d be stockpiling everything I could right now and sending nothing to market. I don’t know how much is available to industry, but my suspicion is that there is a tacit allocation system in operation that is placing industry above investment, and basically damping down investment demand by simply cutting the supply of small size investment products. The logical business response would be for mints to supply investors with coins and 100 oz. bars at a much higher price, but this would supplant the CRIMEX as the holy source of The Price of Silver. Apparently that is being quietly prevented from inside the industry. Hence we have the absurd spectacle of silver plunging dollars per week in price (as if it was lying around unwanted), while investors are crying to buy, and mints are claiming they somehow have lost the ability to crank out 100 oz. bars.

[daman4455]

It will be misleading to say physical silver is in short supply because some retail outlets in developed world have run out of small bars or medallion or coins.It is sheer logistics and none can have control over retail demand. As a retailer I have to pay for huge interest and overheads to build stocks expecting sales to happen when they have not for almost an year during high or low prices. On the contrary absence of stocks explains that retailers or Mints were not interested in regular replacement supplies because there was no REGULAR demand due to mindless speculation in silver. That has killed apetite to own physical silver. The greed of people was fed with fertilisers by interested people and easy profiteering was allowed to be made by speculating in many exchange offered derivative paper markets. By paying small margin when one can own silver and profit and buy more and more with market to market profits who will pay ten times more and buy physicals? This mindless speculation resulted in failure of customers flocking at retail outlets and the apetite to stock metal was lost. In India we are not allowed to trade in physical metal and I know what problem we underwent and how much losses we suffered on loss of return on capital by physical inventory.

I am an Indian importer and I find no problem in sourcing silver even today for manufacturing use. I use to keep inventory of 10 to 15 metric tonnes but I stopped that after September 2007 as it took nearly 8 months to sell the same due to weird speculation.

Now prices are down and manufacturing demand is emanating and I find many wilful suppliers. yes, my customer needs to wait for 5 to 6 days because of time taken to find suitable aircraft to ship and customs formalities.

Kindly do research on your own arguements. I have practically found that they are not true.

[JesterJay]

As I answered to this duplicate post in another thread:
The Industrial User is being supplied at the expense of the Retail Consumer. Or should I say Accumulator?
It won't be long until the Industrial side is saying, "Why didn't someone tell me there was a shortage?".
We just did,
JesterJay

Originally Posted by daman4455

It will be misleading to say physical silver is in short supply because some retail outlets in developed world have run out of small bars or medallion or coins.It is sheer logistics and none can have control over retail demand. As a retailer I have to pay for huge interest and overheads to build stocks expecting sales to happen when they have not for almost an year during high or low prices. On the contrary absence of stocks explains that retailers or Mints were not interested in regular replacement supplies because there was no REGULAR demand due to mindless speculation in silver. That has killed apetite to own physical silver. The greed of people was fed with fertilisers by interested people and easy profiteering was allowed to be made by speculating in many exchange offered derivative paper markets. By paying small margin when one can own silver and profit and buy more and more with market to market profits who will pay ten times more and buy physicals? This mindless speculation resulted in failure of customers flocking at retail outlets and the apetite to stock metal was lost. In India we are not allowed to trade in physical metal and I know what problem we underwent and how much losses we suffered on loss of return on capital by physical inventory.

I am an Indian importer and I find no problem in sourcing silver even today for manufacturing use. I use to keep inventory of 10 to 15 metric tonnes but I stopped that after September 2007 as it took nearly 8 months to sell the same due to weird speculation.

Now prices are down and manufacturing demand is emanating and I find many wilful suppliers. yes, my customer needs to wait for 5 to 6 days because of time taken to find suitable aircraft to ship and customs formalities.

Kindly do research on your own arguements. I have practically found that they are not true.

[silver wink]

Daman4455 , if you have no problems with large quantities of supply, go ahead and buy, then refine to 1 oz , 10 oz and 100 oz bars for sale, that is where the buyers are facing shortage today. Good business for you, can even supply blanks to US Mint and Perth Mint as they have none.

[silver wink]

Originally Posted by daman4455

It will be misleading to say physical silver is in short supply because some retail outlets in developed world have run out of small bars or medallion or coins.It is sheer logistics and none can have control over retail demand. As a retailer I have to pay for huge interest and overheads to build stocks expecting sales to happen when they have not for almost an year during high or low prices. On the contrary absence of stocks explains that retailers or Mints were not interested in regular replacement supplies because there was no REGULAR demand due to mindless speculation in silver. That has killed apetite to own physical silver. The greed of people was fed with fertilisers by interested people and easy profiteering was allowed to be made by speculating in many exchange offered derivative paper markets. By paying small margin when one can own silver and profit and buy more and more with market to market profits who will pay ten times more and buy physicals? This mindless speculation resulted in failure of customers flocking at retail outlets and the apetite to stock metal was lost. In India we are not allowed to trade in physical metal and I know what problem we underwent and how much losses we suffered on loss of return on capital by physical inventory.

I am an Indian importer and I find no problem in sourcing silver even today for manufacturing use. I use to keep inventory of 10 to 15 metric tonnes but I stopped that after September 2007 as it took nearly 8 months to sell the same due to weird speculation.

Now prices are down and manufacturing demand is emanating and I find many wilful suppliers. yes, my customer needs to wait for 5 to 6 days because of time taken to find suitable aircraft to ship and customs formalities.

Kindly do research on your own arguements. I have practically found that they are not true.

Hello damann4455, did you see the post about the Indian futures exchange settling the outstanding contracts for cash last Friday. What is your comment ? Obviously buyers wanted to take delivery of physical but were not allowed to. Do you still have no problem sourcing silver. Your comments would be appreciated.