what do you make of this, page-59

Hi domflan

I was talking about the perth mint not having any silver bullion or coins (except very high premium half ounce and two ounce coins) available to sell at all, (and not taking any orders either), this is not your local coin shop or bullion dealer, which mind you, probably also has no silver bullion available for sale TODAY, at anywhere near todays spot prices and also for delivery today and not for delivery in a month or two.

Perhaps the bullion dealers bought their current stock at $40-$45 and dont want to make a loss, I dont know, but I would think most reasonable sized dealers would use futures markets to protect a fair portion of their exposure to movements in metals prices anyway, so for them they make their money on the buy-sell spread, and not the increase/decrease in price.

Will silver appear at $40, how do you know they have it, the big dealers/mint make money from turnover, so why would they not sell silver if they have it available for sale, why will some let you lock in a price now for future delivery if they have the silver in stock now, that wouldnt make sense, unless they can charge a higher premium for immediate delivery, when we start seeing dealers in backwardation, you will really know how tight silver is, are we close? I think so.

Lets hope we get at least back to $40 to find out the answers, but the one real positive I have taken out of the last week and a half is the fact that people arnt rushing out to dump their silver, the price drop didnt panic physical holders, there was no stampede of physical sellers, in fact quite the opposite, people flooded the dealers and mint wanting to buy more, this is a really good sign IMO, people are understanding that there is a difference/disconnect between physical and paper silver.


cheers grant



the above is opinion only and written without prejudice