There seems to be a widening gap between the silver price and physical silver price.
If you have one hour to invest (not burn), take a look at this series of videos. There are 6 parts to it. This is just part 1. You might have to turn on your speaker volume because it's not so clear:
I think silver spot (or paper) prices can be easily manipulated, and some people are trying darn hard to suppress prices. A company can short (i.e. sell) tons of silver futures (futures are just mere promises to deliver silver) to artificially suppress prices. There is, however, a tremendous upward pressure on the physical silver price. So even if spot price were to drop to below $10, it is irrelevant to physical silver price. And from my observations and personal buying experiences, I find that this is true. I used to compare physical silver prices to the spot prices, and was uneasy when physical silver prices seem to rise faster than spot prices. I thought that the sellers are taking advantage of the rise in spot prices by charging more and more premium above the spot price for the physical bullion. This is true in a way, but not entirely true now that we know spot prices and physical prices should not be compared like that.
Anyway, the shortage of physical silver is too great. Already, some major mints are running out of stock. With the huge imbalance between supply and demand, the current physical silver price is laughable.
If you have one hour to invest (not burn), take a look at this series of videos. There are 6 parts to it. This is just part 1. You might have to turn on your speaker volume because it's not so clear:
I think silver spot (or paper) prices can be easily manipulated, and some people are trying darn hard to suppress prices. A company can short (i.e. sell) tons of silver futures (futures are just mere promises to deliver silver) to artificially suppress prices. There is, however, a tremendous upward pressure on the physical silver price. So even if spot price were to drop to below $10, it is irrelevant to physical silver price. And from my observations and personal buying experiences, I find that this is true. I used to compare physical silver prices to the spot prices, and was uneasy when physical silver prices seem to rise faster than spot prices. I thought that the sellers are taking advantage of the rise in spot prices by charging more and more premium above the spot price for the physical bullion. This is true in a way, but not entirely true now that we know spot prices and physical prices should not be compared like that.
Anyway, the shortage of physical silver is too great. Already, some major mints are running out of stock. With the huge imbalance between supply and demand, the current physical silver price is laughable.
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