Via Zero Hedge:
Over the past hour Zero Hedge has been inundated with reader comments notifying us that Ampex has, validating the earlier post speculating about a possible silver shortage at the metals distributor, launched a “reverse ïnquiry” in which it will pay “you $3.00 over the current spot price of Silver for your Silver American Eagles. ANY year, ANY quantity!” and “We will pay you $38.00 over the current spot price of Gold for your Gold American Eagles. ANY year, ANY quantity!” So aside from this first public confirmation that one of the biggest wholesale retailers of precious metals is now inventoryless [sic], we can certainly see why Asia has decided to take silver down in the afterhours electronic session.
Editor’s Note: As gold and silver reach historic highs, physical seems to be all the rage these days. If gold was simply an inflation hedge, buyers would be perfectly happy with investing in gold and silver ETF’s and other paper assets. Numerous reports over the last several months have alluded to a metals shortage, and the fact that one of the largest online gold/silver dealers is now willing to pay 5% over the going rate all but confirms that it is becoming increasingly difficult to acquire physical precious metals assets as more investors begin to request physical delivery.
We caution readers that the current market environment is extremely volatile, so significant price swings could potentially occur in either direction. It is our view that recent ‘parabolic’ moves, while potentially signaling an eventual correction, do not change the long term trend for precious metals. Individual Americans, Europeans, and Asians are now beginning to enter the market to protect against geo-political uncertainty, as well as a perceived inability of world governments to manage the economic crisis. Gold and Silver are becoming the safe haven assets of last resort as confidence in paper currencies and politicians dwindles.
We expect to see a continued push higher over coming months and years to new inflation adjusted highs of Gold $2200 and Silver $120, and well beyond these valuations.
Comments…..You go girl I am the farmer gi ve me liberty or giive me death sex drughs and roc and rock and roll m I am the farmer
Very Interesting.
Wonder how many people will take them up on their offer and sell back? Wonder what premium they will charge for the metal once they are re-stocked?
As the currents in the market get more and more torn, things like this will happen. Wow! A *DEALER* paying a premium to buy?
I see this as another indicator that SHTF is close at hand.
Comments…..
These were my original thoughts as well, but then I read an article stating that there is no shortage of physical silver in the world, there is simply a production/fabrication issue that delays shipment to market.
Check out the article titled “More silver than you think” on the 321gold.com website, or click on this link: http://www.321gold.com/editorials/taylor_m/taylor_m_042511.html
Comments….. I will sell all of my metals to them, as long as they pay me with $20 dollar bills(sarc) Andrew Jackson was the man. If anyone does not think he is our 2nd best president( after george washington) should read his farewell address. no wonder the public schools I went to, never brought him up! DONT SELL $HIT PEOPLE! REAL MONEY=silver,gold. DEBT,SLAVERY, AND MONOPOLY MONEY= FEDERAL RESERVE NOTES!
Turn off your radio/PTO BAB{BULL}LINGON}, your pig manure spreader is broken. Thanks for help feeding the world but pull the power back to idle & shut the engine off before you stick your hand in there to repair the grinder gears. Think local again on your farm.
Comments…..
I duno…… sounds a little cheezy to me.
This screams DON’T SELL!
At first it was gold parties, then “we buy gold” commercials and now this… while the whole time Gold and Silver has been going ballistic.
Someday soon, those that do fall for this trap will wish they hadn’t.
Oh, and I have a libor loan for you with no money down and low monthly payments, you can refi two years from now and pull out a chunk of cash!
there’s always a sucker!!!
I sent 300 oz.’s to my ‘dealer’ last Thursday for sale at $42.50. He
should have my cash ready today. As SSPXER stated in above comment,
there is no ‘shortage’ of silver bullion, the ‘high demand’ has caused
inability to produce coins fast enough, it’s a fear and greed bubble.
Now, I know, silver bugs will lash out at me, but look at some of the
comments on some of your often-read websites: eg, “Dollar Index
Plunging! BTFD! Bullionvault has silver 1-2% over spot! Now, do you
think this is just some average ‘Joe 6 Pack’, trying to help you out?
No, you’re being bamboozled, it’s a dealer in disguise pumping up
silver so you’ll be stupid and buy more at these insane levels. Why do
you suppose he provided a link? The MEME, ‘price doesn’t matter’,
has taken over, and everyone’s falling for it. Sell, buy back in after
silver market crashes, probably below $20 in 3-5 months.
Sure…I’ll sell ’em all my gold and silver.
oh, wait. I DON’T HAVE ANY…because by the time I realized I needed it, it was already too expensive.
I can afford a bag of seed. I got land. That means I got something they’ll GIVE me their gold for…. FOOD. I suppose you CAN eat silver and gold. Not much nutrients, though. How about a nice juicy tomato. Much better, huh? That’ll be one silver piece, please. Thank you. Come again.
what they’re paying is chump change to them, they’ve been getting a few bucks over spot on everything what they’ve sold for yrs, most people would say that they’re giving back some, but it’s not even close. Anyone would be foolish to sell their PMs for worthless paper at this point in time.
I’m still riding the roller coaster with my full face gas mask on and they are still giving rides during the ultimate storm. I’ve handcuffed myself in & the depends aren’t working but there are many drain holes in the bottom of the car. Damn them hot dogs are good when we pick up more newbie riders each time. The front car is the cleanest.
Don’t sell a thing. Hold your coins or whatever, hidden. A few dollars won’t save you today, unless conditions are tragic. We are already in deep shit.
Some gold may make the difference sooner or later.
I would only exchange gold for food of long term storage and/or seeds.
I was considering selling some of my PMs for the reasons Max Hardwood has stated. I have enough that selling some for “money” to purchase more preps doesn’t seem like to bad of an idea regardless of what may happen.
That said, I noticed in the recent weeks that even the MSM is reporting on how the dollar is slowly losing value, prices are going up, and what jobs there are are not seeing pay increases that keep up with the growing costs. That is a pretty good sign things are not great in Mamby Pamby Land -economic recovery my arse.
The sunshine looks like it may be hitting the fan economically, but fear not. The sheeple will not revolt as long as they can still go to the store and buy what they want and need. When they can’t do that anymore, trouble will likely abound. Now may be the time to put those last few touches on preps or pick up a few extra of anything you use a lot of or are short on because I honestly think we are in for a rough ride in coming months financially.
Comments…..yeah max, your dealer probably sold “your” 300 oz at $48.50, so he made $1800 plus commision, off you selling, yep, he WILL have your “cash ready today” Just had to “lash out at you” The world is not the same place it was in 2008 when silver crashed last time, I hope you are right, would love to buy again at 18-20, we will see!
Folks, DO NOT repeat DO NOT listen to a word that Max Hardcore Porn or SSPXR have to say!!! They NO/NO clue what they are talking about. They have NO/NO understanding of the underlying fundamentals of the silver market. Any reader of this blog with a modicum of intelligence can easily do some basic research on the internet and learn for themselves about SKYROCKETING investment and industrial demand for silver. Furthermore, JPM and the bullion banks are SHORT tens of millions of ounces and are caught in a horrific short squeeze. Do your research but sure as hell DO NOT LISTEN TO THESE BOZO’s AND TROLLS. THEY ARE STEERING YOU WRONG!
DO NOT SELL YOUR PHYSICAL!! DO NOT EXCHANGE YOUR GOLD OR SILVER FOR WORTHLESS FRN’s! IF YOU DO, YOU WILL LIVE TO REGRET IT!
I’ve seen more people standing at intersections with signs saying they will buy gold for dollars. It reminds me of that scene in It’s a Wonderful Life when Mr. Potter is taking advantage of the panicked people by buying their shares for pennies on the dollar.
Comments….. Sell all your gold and silver and let the DEALER be left holding the bag. I’ll be LMAO! Buy food, water, fuel with your profits!
My gas mask has a tube for hooking up the canteen. Pre-mixed liter of adult red bull, quick dissolving nitro pills, one melted chocolate bar of anti o’bamma exlax milk duds for wrestling beer summits, five table spoons of no boehner grit fiber, two herbal enhancement erection pills for the trump towers, & a bottle of beano to keep it all stirred up during USDX positive and negative G forces. These Scooby Doo depends are needing a change but I’m hoping they stay intact. Damn what a rush! I think the eye of the cat 10 hurricane just did a cpa. Bring your birth certificate, the rides are free.
The Aflac duck is super glued in the seat next to me.
@Max Hardwood, and others who think silver’s price is being manipulated upward:
Perhaps you’re right, and it WOULD be smart to sell at this price and wait for the price to plunge.
But what if that doesn’t happen? Or it DOES fall, but everyone tries to buy at the lower price and you’re unable to get order fulfillment? These are the days to ignore everything but food, water, ammo, and whatever PMs you can get your hands on.
Great way to convince people to buy at the peak…..I’ll bet if the university of Texas calls he’ll be unavailable!
Why don’t you sell yours before you LYBAO?
The key is diversification. Have some PM’s, lots of food, seeds, water, preps, land (if you can afford it), savings/cash, foreign currency, stocks, etc.
Don’t put all your eggs in one basket & you’ll be fine.
I got one of those emails too. If that isn’t a clear sign that precious metals are going higher I DON’T KNOW WHAT IS!
J.P. Morgan got scared Monday & took the market down while London was off thinking about weddings & getting out of town….. Anybody that sells early for fiat paper will regret it badly. 45 day wait time for silver out there at most sites. Have things gotten better?
http://finance.yahoo.com/banking-budgeting/article/112616/imf-bombshell-age-america-end-marketwatch
So, why did silver drop $5 then?
yea like this is going to happen. silver was bogged today buy the masters of disaster but I think having a pocket full of silver is a better option for the future than a pocket full of crisp $10 bills.
The idea of the price falling to $10 is just stupid. With all the dollar printing going on a lot of the damage is done and we’re never going back that low. I doubt we’ll ever see 25 again even on a brief spike. The odds are that there will be more money printed out of thin air which means more inflation. Common sense says hold it. Fear says this and then it says that. The price may swing up and down wildly but that’s just the powers that be shaking people out of the market. It won’t stay down long because that gives people time to get back in. I think we still have to see a time where EVERYONE WAKES UP AS THE DOLLAR CRASHES AND TRIES TO RUSH INTO GOLD AND SILVER. Untill we see that time I think the trend remains UP.
@Max – You made a mistake.
You know, it strikes me as significant that that deal is only for us issued metal. Eventually you will get that sort of offer for *any* certified metal
Then things will really fall appart
You have that correct Entity! Supply & demand.
You have that correct Entity! Supply & demand.
This is a good day, Katie C. stepped down.
Comments…..
Wow….pretty tough crowd here: All I did was post a link to an article which makes the argument that there is not a silver shortage, but merely a production/fabrication issue (i.e., Because the rush into silver has temporarily outstripped stockpiles).
FWIW, I have not sold any of my silver, and will not. In fact, if it slips beneath $30, I will begin buying again.
If you don’t want to read articles which challenge some of the pre-conceived ideas which led you to buy silver in the forst place (i.e., There is a shortage), so be it, but you will be a less-informed investor than I am.
sell now, why wait…
My silver buy in price averages about 6.50/oz. I have no intention of selling at this measly price. When it hits 100, I might part with a bit and buy a new tractor, but the bulk of it I plan to hold until FRNs don’t buy anything any more.
U have me beat Tn. $7 seeds but maturing nicely. Woodn’t consider anything below a century either.
Thanks for your replies, re: above post. I purchased 400 oz silver back
in Sept. for around $23/oz. Obviously, I didn’t buy that much silver
without considerable research. That said, I DO believe silver will go up,
to $100, possibly $150. However, it has to get there geometrically,
with buying support on the way up. The parabolic spike in silver is
rivaled only by the one by Hunt Bro’s cornering market 1980. Pull up
chart weekly silver 1976-Now. You’ll see the 2 spikes. What happened
back in 1980? Silver hit $50, the BOOM! Inside of 3 months it had
crashed to 13.99. This time will NOT be different, I’m afraid. At least
I’m telling you what I have done, and, as you have said, we will see
how it turns out. (I do still have 100 oz’s left, just in case it takes the
moonshot).
A rise to $100 is not a moon shot Max. 50 is just a speed bump.
Speculate in silver. Invest in (physical) gold. Hoard your “lead”. They won’t be making anymore of that after the Changes come.
Precious metals have a long way to go before they peak. The real ride hasn’t started yet. The last year was just the pro’s reallocating their portfolio’s and preppers ahead of the crowd. Take some profit in silver, because there are traders looking to push it down. Then reload on the dip. Double digit inflation is just starting. We ain’t seen nothing yet!
In 2011 …. pm’s go to heaven.
How much will they offer us for our Silver next week?
Buy Silver ! help crash JP morgan.
” The real PM ride hasn’t started yet”
Looking at the chart for silver even I can tell that its probably going to correct hard, but the long term trend is still up.
I sold about 100 ounces last summer at about $20 a piece, and man does it hurt seeing these new prices, which I knew were coming, but was so broke I had to sell. Now I’ve got some cash stacked after working 4 months straight, and prices are too high for me to dare jumping in too deep. I hesitated to get back in at $28-30+ and now I realize my folly. Yet, I am glad that I did get a good friend into buying silver just last summer. After preaching to him over and over about the awesome buying opportunity for silver, he started stacking. Everytime I see him now, I know one way to put a grin on his face is to bring up silver. He was able to get somewhere around 80 ozs. before it started rocketing and he definitely isn’t selling anytime soon, so APMEX will have to shear some other sheep.
Doesn’t anybody own at least more than their mass? You are right about Pb DK but Au is to retire, Ag is to invest unless you use Ag tipped hp Pb.
Anonymous- “the Aflac duck is super glued in the seat next to me” !!! I fell out of my chair! I don’t care who ya are- that’s funny!
Here’s what we’ll be seeing from the street-corner cardboard sign holders in the near future:
Ex bond saleman-Will work for PMs.
Welfare queen- Will work (or do ANYTHING) for cocoapuffs.
Unemployed psychologist-Will manipulate environment for positive reinforcement.
G W Bush- Will kill terrorists for food.
Justin Bieber- Will stop singing for food.
Obama- Will organize your community for food.
Helicopter Ben- Will pay 600 Quadrillion US dollars for food. It’s real currency, I made it myself.
Britney Spears- Will do ANYTHING if you’ll kill Lady Gaga.
Anorexic- Keep your damn food!
Typical prepper- See? I told you. Didn’t I tell you?
Time to change channels….. PM’s are going vertical and so are we!
Max, you you screwed up man! You could sell the your eagles today for $51.00
I bought some at $30 and I bought some more today at $50.
The most interesting thing is, while I was buying, there were quite a few people, the public, selling.
It was at that moment that I knew I was doing the right thing by buying.
Even with the butt-ugly high prices for Au/Ag, I notice that the smaller miners aren’t selling all their PM stockpile. Most are selling just enough to get ready for another season of mining here in Alaska.
By mid-summer, used equipment will be for sale as the newbies find out that placer mining is awful hard work for minimal return. The claim-jumpers will be out in force and I fear some folks will simply vanish. Good thing I will have another garden. Miners gotta eat.
Throughout history, those who mined the miners almost always turned a healthy profit. Maybe this year I can too.
As others have pointed out, no shortage of metal, just a serious backlog in fabrication. Sure there are speculators in PMs. Most lose money aka negative ROI because they are always a few days/weeks late. Oh well, greed keeps them in the rising market and panic forces them to sell as the market drops. Then they wait for it to reach some arbitrary bottom to try to buy in again. They usually lose going up and down until their investing monies run out.
Smart money buys on the downward cycle. It ain’t the spot price per ounce, but rather the number of ounces you continue to accumulate that determines monetary wealth. Price goes up, price goes down. Ounces should always go up.
Commerce will never die. As things settle down, a tangible exchange medium will emerge. Wanna bet against PMs? Yes, you can eat that sack of turnips, but I won’t accept it for rebuilding your Ford 2N governor nor will I accept a sack of peas to sharpen your cross-cut saw. You do have a cross-cut saw, right?
I’ve got insurance & I pull it out and play with it sometimes, but not in public. I don’t show it off because it scares some people & they will talk about me.
Check out those golden stair steps. Going Up?
Follow the yellow brick road. Don’t get off the road.
Comments…..so how come silver crashed today…the 29th….anyone?
I was just about to walk out the door for a meet up at McDonalds and to buy a little silver with some money I made doing some framing work. I checked a site before leaving and had to c all the guy back and decline….silver dropped $4.50 in a blink of an eye, literally and coinflation.com wouldn’t even give an amount for over 20 minutes…weird!! I have no idea what is going on, I am trying to read and understand what some speculate is going on @ forums.silverstackers
Comments…..BJ!
The reason – as I understand it – is that JP Morgan is caught in a “short squeeze”, where they have to pay big bucks if the price of silver keeps going up, and they have to make good on their contracts. These cockroaches are manipulating the market to cover their butts, and people like yourself are being panicked into selling their silver to create a supply on the market. Likewise, while the price of silver is falling in DOLLAR-DENOMINATED terms, dealers are still charging higher prices and premiums, since the market is establishing the price and silver simply is NOT available. Confused? I thought so.
I ended up buying after all and am comfortable for the most part with my decision…..but wished I had waited a few days…or wished I had more money now to buy at the lower prices…oh well hind sight is always 20/20
I have a web site where I give investment advise on penny stocks and stocks under five dollars. I would like to comment about silver its may 6 and silver pulled back to 40 dollars from 50 dollars an ounce. I think theirs a good chance with the way things are going that silver could get to 100 dollars an ounce. I still think silver is more attractive than gold.
BJ, here’s a link to a chart that shows the last three days of activity on silver in real time.
http://www.kitcosilver.com/charts/24hoursspot.html
Right now might be the time to sit tight. Over the next few days, the price may fall further (it went up almost a buck today) or it may rise. In any case, it probably won’t be the wild swing we’ve seen in the last few days. Sit back and watch, when a trend appears, do something, but don’t wait long……
Thanks Johnny V….I now have 27.765 ozt of junk silver in my black suede pouch….I wish I could rub it and make it multiply….LoL