Physical Silver is Really $50 per Ounce

[AGCoinHunter]

Saw this over on survival blog. As reported earlier on this forum, large premiums were paid on Feb 25th to buy out contracts.

http://beforeitsnews.com/story/462/380/ ... ivery.html

This just in from Harvey Organ's review of the gold and silver market.

Wynter_Benton update on their recent raid With permission, I can update the results of our raid. It was successful beyond imagination but that "success" has spawned even more questions about the price of paper silver going forward. It was reported by SGS that he heard that on Friday Blythe was offering 30-50 percent premium and that at least 4500 hundred contracts will stand for delivery. I am here to give you a more accurate update (and a first hand account of what happened on Friday Feb 25). Our group was detemined to stand for delivery going into Monday because we were not going to take a 30 percent premium on a price of $33.50. It was reported that Blythe offered 50 percent premium. That was not even close in our case. We got over 80 percent premium. That's right. Over $50 per contract on the condition that our group sell all our contracts. Our counterparty even threatened us with the ghost of Herstatt. They openly admitted that they could not deliver even 20 million ounces to us but that if we stood for delivery they would be sure that they make delivery to everyone else before they defaulted on us which would make us 'unsecured creditors'. They told us directly that they could not allow even 5000 contracts to stand for delivery because they could not deliver a mere 20 million ounces. Like Vito Corleone said, "I'm gonna make him an offer he can't refuse." And indeed we did not refuse as this was our intention all along.

These sets of facts from our traders lead us to believe that the paper price of silver may have a difficult time surpassing $36 because if the counterparty at the Comex is so willing to pay north of $50 to dissuade people from standing for delivery yet the paper price of silver is still under $35, then we suspect that losses triggered by derivatives is the main reason for the price suppression of silver. We can see no reason why they would not allow the paper price to go up yet are so glad to pay off the comex contracts to show the world that so few are standing for delivery. In our mind, Comex could default with if as little as 4,000 contracts stood for delivery. We are very curious to see how high the paper price of silver actually trades during this run. Posted by Louis Cypher"

It should now be obvious to all that silver is a fractional reserve system. Just like a fractional reserve bank, when there is more demand for the actual underlying good (i.e. silver or money) than there is a real physical supply for, it's called a "run on the bank". Those who get in line first, get their silver. Everyone else will end up as an "unsecured creditor", holding a worthless piece of paper when the music stops.

[beauanderos]

Not even sure how to respond to this. So what? Are industrial users going to accept bribes not to take delivery as well? This is only a stalling maneuver, to what end I don't understand. If COMEX is this close to default, those 4000 deliveries that they can't stand for will eventually be exercised sooner or later, by the silver users association, if not the hedge fund profiteers. One way or another, their remaining inventories are dwindling rapidly. So how soon does a two-tiered pricing system evolve? Is ebay a better pricing gauge going forward? Maybe this under the table payoff is the news too big to be ignored that I was alluding to in my other post on price suppression? A number of newsletter writers allege (of course, they aren't God's of prescience) that the best move is to continuously add to one's stash, disregarding the paper price and concentrating on increasing one's ounces. So that's what I'll do. I think that revelation of events like these merely indicates how close we really are to default on COMEX and true price discovery.

[97guns]

the premium is leaking into the physical retail market. i see generic going for $4 over from big dealers, just 8 months ago it was .99 over !!!!

[beauanderos]

APMEX is now selling junk at 33 cents above melt, a few weeks ago they were discounting it.

[Rodebaugh]

APMEX is now selling junk at 33 cents above melt, a few weeks ago they were discounting it.

good eye.......indeed they are.

Wish I had the loot to buy a few 100 contracts and take delivery. Maybe in a different life.

[Lemon Thrower]

tulving and golden state mint prices are the same except for ASE's which is a US mint greed issue, not a market phenomenom.

[97guns]

tulving and golden state mint prices are the same except for ASE's which is a US mint greed issue, not a market phenomenom.

i just looked at apmex this morning $38 generic when spot is $35, dont tell me premiums have not risen .

[Rodebaugh]

tulving and golden state mint prices are the same except for ASE's which is a US mint greed issue, not a market phenomenom.

i just looked at apmex this morning $38 generic when spot is $35, dont tell me premiums have not risen .

You gotta buy a box but you can get them for a buck and a half over spot less shipping.

http://www.apmex.com/Category/520/Silve ... __New.aspx

[Lemon Thrower]

tulving and golden state mint prices are the same except for ASE's which is a US mint greed issue, not a market phenomenom.

i just looked at apmex this morning $38 generic when spot is $35, dont tell me premiums have not risen .

apmex has always been expensive. i will concede that premiums have risen on apmex. but apmex is not the market.

on Tulving, he has Golden State Buffalos for 89 cents over and now has generics for 69 cents over. He also has Amark for 89 over. junk is still 20 cents below. Nucleo exchange has junk at 25X right now. Golden State actually raised their prices to 1.15 over last week and appears to have lowered them back to 89 cents over.

[Jonflyfish]

The market is set where two parties disagree on value and agree on price.
I would not discard the LBMA 12:00 fixing price.

Cheers!

[Lemon Thrower]

OK, you have convinced me. How much of my physical silver would you like to buy at $50/oz?

[IdahoCopper]

Local craigslist ad:
http://twinfalls.craigslist.org/clt/2256199055.html

He's asking $50 each for ASEs. The ad was originally posted at noon yesterday.

[whatsnext]

Sounds like a fish story. They sure did volunteer a lot of information that did not help their nogotiations.

I call BS

[Lemon Thrower]

Here's another one.

viewtopic.php?f=28&t=4124