Physical vs. Paper Silver
Posted by Investment Rarities on October 6th 2011 in Bailout, China, Federal Reserve, General Economy, Gold, India, JPMorgan, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!
“The primary driver of physical demand has now become the nonsensical price of paper silver, as determined by the Comex,” according to a post at TF Metals Report that addresses the price disconnect between physical and paper silver. “Silver sales throughout 2011 have remained strong but, in a reversal of previous trends, demand has actually decreased as price rises and increased as price falls.” He further observes that “The demand is not just a U.S.-based phenomenon,” which is reinforced by Arabian Money‘s Peter Cooper, who details supply problems that Middle Eastern buyers are having, and, predicts that “something has to give and it’s the price of physical silver rather than the Comex price … If you can find any silver these days you will pay quite a substantial premium over the spot price. But pay it because that is probably still a bargain compared to where silver prices are going.”
Related Links:
Reuters: Gold rises in thin trade on Europe hopes
IBT: Gold prices book two gains in a row, silver surges more than 5%
Hard Assets Investor: Gold/silver ratio suggests silver-buying opportunity
Minyanville: Bullish signs for stocks, silver
GoldCore: For Asia, silver may be ‘The new gold‘
USA Today: Gold’s long-term outlook positive despite short-term dip
Mineweb: Analysts mostly unfazed by gold price volatility and raising 2012 forecasts
Globe & Mail: Rich socking their money into ‘catastrophe’ portfolios
KWN: Michael Pento – Fed’s time bomb & impact on gold market
Money Morning: Load up on gold and silver as Bernanke dives off the deep end
Bloomberg: Nassim Taleb: World’s ’problem’ worse than ’08
Zero Hedge: IMF advisor: “In the absence of a credible plan we will have a global financial meltdown in two to three weeks”
Matt Taibbi: Attorneys General settlement: The next big bank bailout?
Reuters: Venezuela says gold repatriation to start in November
Bill Bonner: The battered goldbug hotline
