Silver Shortage? Yes or No

[Copper Catcher]

Reading various reports on the web some people claim there is a silver shortage. Maybe it is a lot of smoke and mirrors or maybe it is real? Other people state boldly that silver is in fact rarer than gold.

See comments here: http://www.marketbust.com/2009/08/quest ... -gold.html

However, one interesting commentary I read recently stated that there was no real physical shortage at all and once the price rises to a certain dollar amount people who are now holding silver, speculating the price will increase, will soon flood the market with bullion and there will be more than enough silver for all industrial purposes.

What do you think? Is there a real physical shortage or not?

[Tourney64]

No major physical shortages, but not enough physical silver to cover the options that are out there.

[tbram88]

I was at the LCS today and they are short on 90% junk coin, so much so that they raised they're buy price to spot. The box that they sell junk out of is usually full and today there was only about 1/10 as much as usual.

Seemed to have plenty of bullion bars and rounds, but low on coin.

May not mean anything, but they have never been this low before.

Bob.

[argent_pur]

Dealer shortage? Perhaps. Fabricated silver shortage? Possible. Shortage of COMEX silver? Not yet.

Any silver dealers that bought at $31 are just holding that inventory until the price goes back to that level. Although I'm sure that some dealers are just plain ol' running out of stock.

[whatsnext]

Above groung silver in .999 form there is not as much of, but think about how much silver was worked by silversmiths over the years in this country.
There are alot of silverware sets out there that havent been on the market for hundreds of years. nobody knows how much silver is in china,russia, or india in trinket or ware form that has been passed down.

The "shortage" is only for investment grade really(i think). Coins here are like religious icons in asia/india/russia/europe, they get stored away and taken off the market.

There is unpreceded demand right now so, when a real squeaze happens the heirs to granny and grampas coins/siverware/religious icon will cash out.

From what I have heard there is less above ground than has been in along time but how accurate are these accounts. just b/c it is off the market does not mean it is gone forever.

Industry demand is increasing, but really they dont use that much and if the squeeze happens the mines will pop up out of no where(I think) to supply.

I dont trust industry face value information. Everybody wants to present a illusion for something they sell to increase the likelyhood of profit .

Salesmen are just that salesmen they have something to sell you, so buyer beware.

I'm not saying silver isnt valueable, but really how much information can you just take a face value in other areas of your life? So invest but dont bet the farm.

As for the greatest wealth transfer in history. I have to say with my luck the idea of me moving up without work work work is nice but I'm not holding my breath.

The dead cat bounce mick moloney speaks about isnt written in stone, He says it is a 60% chance. He also says 10 bucks for a barrel of oil. That sounds bad, almost like my new wealth will not matter.