Silver & Platinum Extreme Shortage
Posted by Frugal on October 15th, 2008
I’ve tried to time the bottom of silver to make my “bulk” purchase. The bottom seems to be here, but to my amazement, both silver and platinum have basically “disappeared” on Earth.
Initially, I thought it’s just something temporary. As time goes on, the supply situation should be relieved. But NO! I can’t find any, except the ones at tulving.com, which is charging $5.50 over spot (about 50% premium). I started calling the entire list of US mint dealer, and I gave up after calling 8 phone numbers. Both silver and platinum coins are ALL OUT everywhere on Earth right now. The earliest time that anybody may have them would be 1 to 2 months later.
The crazy thing is that all of these dealers have been out of silver for at least 3 months now. As soon as anything comes in, it gets bought and disappeared. And the minimum amount of purchase is going up. Same for the price premium. All the people that are still buying precious metals are well-to-do people, since the minimum purchase at most places is about $10,000. Certainly, these people won’t be “flipping” coins for a quick sale, since the premium/discount on buy/sell transactions will kill any profitable quick trading transactions.
IF you can still find some at your local jewelry stores, I advise to try at least get some. Yes, it’s really out. I didn’t mean to sound panicking, and I’m extremely surprised for the current state of shortage.
“Nobody can get ANY silver or platinum,” a dealer told me over the phone. Now I start to believe in them. The world is NOT ending. What the hell is going on? I hate to be a conspiracy theorist, but I simply cannot understand the continual fall of silver without resorting to manipulation.
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October 15th, 2008 at 1:57 pm
Check out Ted Butlers commentaries and you will know what might go on. While I think he is a bit over the top, I can relate to his general view. I’m following the silver market for quite a while now and I’ve never seen a situation like this one where a good is not available in any form when prices are falling.
My advice: buy as soon as you can get hold of physical silver. Good luck!
October 16th, 2008 at 5:40 am
Have you tried eBay?
October 16th, 2008 at 1:26 pm
Well, ebay sellers will want a handsome premium + shipping. If you are looking at a big league purchase, perhaps you could do like Jason Hommel is doing and buy the futures contract and take delivery! That would be a 1000 oz. bar, size of a loaf of bread. I agree that there is manipulation in the paper market. Mr. Hommel is taking delivery with the intent of having 1 oz. rounds minted from his 1000 oz bars for resale. He obviously has friends in the biz to get that involved. But you could buy one bar for around $10k, dig a deep hole in the backyard, and drop it down there as a doomsday hedge. Much better than paying a preposterous $5.50/oz premium! BTW, here is where I have bought from, they seem to have stock on hand… http://www.ajpm.com/htbin/silver.cgi Cheers, Peter
October 21st, 2008 at 4:56 pm
Just make sure that when you purchase silver, you take delivery now. Some dealers wil let you pay today, but no delivery for 3 to 4 months (or longer!). If they have no physical product in their inventory, do not give them cash.
Try small dealers in your area. I recently found a dealer with a display in an antique mall. He has a good supply. Check the antique stores and malls in your area.