PM supply article

[jim4silver]

I wonder how much of a premium the buyer paid for the Krugs? The gold is worth over $4.1 million, which is not a lot of money with respect to the very wealthy of the world. If just a few of these types loaded up, the supplies would really diminish.

Jim


http://www.bloomberg.com/apps/news?pid=20601116&sid=acH4WhPh1WJ0&refer=africa

 

[phillips24]

Compared to the "paper wealth" (fiat money) of the world, none of the PM markets can handle much. Thats what makes it such a bargain at these low prices. Jason Hommel of www.silverstockreport.com has very good articles on this subject and others in the PM markets.

Also on the supply side, interesting how the US Mint is now "rationing" its gold 1oz pcs to dealers. Same thing with the SAE's. Investors can't get enough of these.

 

[jewelerdave]

I wonder what is going to happen when things settle down and people are not acting on emotion...oh wait, we saw that a couple weeks ago...CRASH DOWN! now things are heating up again...then they will cool. Lost of PM buying, not much selling.

I have a feeling that most investors will hang on rather than sell once a crash correction happens. The physical buyers that is. No one is going to drop money only to lose money on it a couple months later. They will hold and hoard hoping things come back.
This is what is leading to shortages. People holding onto physical when there are big swings. It may take years for the newer PM buyers to finally unload what they bought during this time frame in history.

fascinating to watch.

 

[jonhls]

Dave,you seem to have a pretty good handle on pm market,where do you see it bottoming out at.How long do you think it will be before we see 20 again.I"m thinking that after election and the fed starts raising rates it will bring the dollar back up and cause anouther drop in prices,Im just trying to get a handle on how low they will go.I hate to say it but i think if we go thru a prolonged increase cycle we could hit 10-11 range pretty easy.I dont see it staying there long term and i dont believe it has anythinbg to do with supply,it just seems when rates go up all commodities take a whuppin.My curiousity isn't so much the drop as it is how long before a bottom establishes and a recovery begins.Just curious on your opinion...thanx and hh jon

 

[TxTim]

It seems like we're seeing a true shortage of physical PM's. The spot or "paper" price is based on futures contracts.
Try buying an once of silver at spot or a little over right now- you can't. It's all about $2 over if you want to buy it.
It's real easy to find buyers at the level it is right now. It's heading up.

 

[solariscool]

This current price drop is total paper manipulation, done so large banks could load the boat in a big way on the cheap. I don't think they can hold it this low much longer. There are just too many supply issues going on for the price to be this low. Wall Street still has billions of write downs coming, a big bank or two need to close still.... they cant hold silver down much longer.