The Chart Every Silver Investor Should See

There is a chart that every silver investor needs to see.  Especially now, as the Fed and Central Banks continue to manipulate the precious metals lower while propping up the broader stock and bond markets.  Even though precious metals sentiment is at record lows, this normally represents a turning point in the gold and silver markets.

On the other hand, the clowns on the financial networks continue to be euphoric about the broader stock markets as they head toward the heavens.  The Dow Jones Industrial Average hit a new ALL TIME HIGH reaching 17,265 today.  However, if we look at the chart below, we can see a troubling trend.

Dow Bubbles Higher

As the Dow Jones bubbles to new record territory, trading volume heads into the toilet.  This is not a good sign.  The Fed must be holding up the majority of the market as investors with any lick of sense, already bailed out of stocks long ago.

Who knows how long before the Dow Jones Index finally receives a well overdue market enema.  I can assure you of this, when it arrives it will be a very MESSY OCCASION.

Before I get to the CHART every silver investor should look at, let’s take a quick peak at this one.  This chart shows the total American Gold & Silver Eagle sales since the U.S. Mint started its official coin program in 1986.

Total U.S. Gold & Silver Eagle Sales (1986-2013)

From 1986 to 2013, total Silver Eagle sales were 358.5 million and total Gold Eagle sales were 20.1 million.  Thus, we had a 18/1 Silver-Gold Eagle ratio during this 28 year time-span.

You will notice after the collapse of the U.S. Investment Banking and Housing Industry in 2007, Gold and Silver Eagle sales increased substantially.  Even though Gold Eagle sales improved significantly in the years after the economic and market collapse, Silver Eagle sales shot up even higher in percentage terms.

From 2008 to 2013, the U.S. Mint sold a staggering 200.3 million Silver Eagles compared to 6.1 million Gold Eagles.  The Silver-Gold Eagle ratio nearly doubled to 33/1 in this six-year period, due to investors favored Silver Eagles over Gold Eagles.

Moreover, investors purchased more Silver Eagles from 2008 to 2013 (200 million), compared to the 158 million sold from 1986 to 2007.

If current buying trends continue for the remainder of the year, I forecast total Silver Eagle sales to reach 37 million and 475,000 oz of Gold Eagles.  While sales of Gold & Silver Eagles will be lower in 2014 compared to the previous year, the Silver-Gold ratio is estimated to hit a stunning 78/1…. more than double the 33/1 from 2008-2013.

Furthermore, Silver Eagle sales held up much better than Gold Eagles in 2014.  According to my year-end estimates, 2014 Silver Eagle sales will only decline 13% year-over-year, while Gold Eagle will fall 45%.

Now… let’s get to the chart I believe every silver investor needs to see:

Total U.S. Silver Eagle Sales vs SLV Inventory

If we add the total Silver Eagle sales from 1986 to present, it would equal 388.3 million (including the 29,771,000 year to date in 2014).  This is higher than the total inventories of the iShares Silver Trust, SLV ETF which currently stands at 340.4 million ounces.

We must remember, Silver Eagles are high premium Official coins that are not sold back into the market for melt and recycling.  When an individual sells Silver Eagles back to a dealer, the dealer will resell these coins back to other investors.  Which means, the overwhelming majority of Silver Eagle coins are still held by individuals, groups or hedge funds in the market.

Even if we assume that 10% of all Silver Eagles were either lost or sold for scrap (a very high estimate), there would still be approximately 350 million ounces of Silver Eagles held by investors, more than the 340 million held in inventory at the SLV ETF.

After crunching these numbers, I found it quite surprising that there are more ounces of Silver Eagles in investors hands than the metal inventory in the largest Silver ETF in the world.

And, if the rumors are true that the SLV ETF maybe offering paper shares without the real physical to back it up…. then hands down, it makes the Silver Eagle Market a much safer investment to own and acquire.

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63 Comments on "The Chart Every Silver Investor Should See"

  1. Not much substance. First of all, the SLV didn’t even exist until not long ago. So more people have been pouring money into SLV than real silver for years since its incepiton. The more money that goes into SLV, the lower the price of silver will head because it doesn’t create real silver demand.

    It looks like silver continues its daily grind down to 12. This must be torture for you silver bugs. LOL.

    Like I said, you’d be better off stocking up on whiskey. Whiskey prices have outperformed silver for decades.

    • Then SLV is doing physical silver collectors a service keeping the price lower. It’s easy to manipulate price until actual physical silver is depleted. Then what? Eventually that is what will happen. What will control the price then?

    • “It looks like silver continues its daily grind down to 12. This must be torture for you silver bugs. LOL”

      It’s not torture, dumdum. It’s more like an early Christmas. My favorite collectible gets cheaper every day. If Ag drops to 5, I’ll be dancing an Irish jig!

      Would you complain if the price of a new ipad or Galaxy dropped by half? Think through your next comment before pressing “post”, or continue to look like a jackass…

    • Jack

      As the price goes to zero the amount of silver I can by goes to infinity.
      Come on TPTB smack it down to zero I want to own an infinity amount of Silver.
      Sadly the TPTB can’t do this bing the price to zero so my dream to own many tons of it won’t come true.
      Let’s pray the price stay lo or fall further until my Xmas salary arives I want to buy as much as possible !

      And Jack don’t by ceap Silver don’t fight the cartel in make my dream come true. Silver must be reserved only for people who understand that things that can’t go on forever won’t go on forever. Ride your paper Bubble and your shale oil Bubble to the very end, the bankers need some help finding sheepel holding all the paper when the Bubble burst.

      Good luck

    • SLV and GLD is pure fraud.
      Fiat currencies are based on faith and trust.
      Both will expire in time.
      Then what do you have to show for your labor?
      Every one recognizes silver and gold for what they are and represent… free of the manipulations of men.

      • i-shares is a self-admitted Ponzi. Used to hold a few thousand paper ounces until I read the small print, which says: (when the music stops) only those who hold 5,000 oz. or more get silver; those with less will get a (rapidly vaporizing) dollar. When will the dollar vaporize, and Jack and his friends left on a Beanstalk? When the FUSA can no longer back the dollar with lead, i.e. maintain it as global reserve currency at gunpoint (see: Iraq, Libya). And that day is fast approaching. Meantime the Fed, the NY Banksters, and the rest of the Ponzi schemers (ETFs, COMEX, other derivatives) can use their paper scams to pound down silver as low as they want. I’ll just keep buying the hard stuff. Not to make “money”, but because I know that, when the shitstorm hits, one Silver Eagle will buy c. 3 days of food at the local greenmarket. Naturally, I also invest in lead. You should too. Because if you don’t, someone who does will take your silver (or gold), and you will be dead.

  2. A massive beat down in Silver this morning. It never stops. I first bought silver in 2003 and have bought since. My average price is about $17.50. So over the course of 11 years, I have made NOTHING being invested in silver. What a disaster.

    • Too funny. I can buy your house for less ounces of silver today than in the year 2000. Same goes for Gold. It protects your buying power and is a hedge against Govt. Who at this point are loosing their ability to lead and manage what we consider money. Zeroes & ones on a PC screen. I have a book here by Robert Foster. The History of Fiat Currency. The list is over 5000 Govts and their currencies imploding. Good luck. Although I still live the stock market to some degree and real estate. It does not hurt a little of each. So much must information out there from people who just listen to MSM.

  3. To be honest, for you silver bulls, this might be a totally awesome day. You guys really need an absolute fuck you up type of day. Silver won’t bottom until you see a true spike low. Today probably isn’t it. Too many bulls still that just won’t give up. Plus, silver has now broken its low from the middle of 2013. So it will have to find a bottom. Probably around 15-16. I now don’t think it will hit twelve based on today’s violent action so hopefully that will make you silver bulls feel better.

    Meanwhile, it’s really quite in PM land. LOL.

    I’ve never seen so much misinformation in my life.


    • The silver price is only determined by futures speculators for now…

      Will it change that is another question.

      • No it is not going to change. It’s good to see people starting to listen to me over all the constant bullish rhetoric.

        Look, silver was at 50 an ounce in 1980. Silver is at 18 an ounce in 2014 (yes, i know it is up since 2000 but I can guarantee you 99% of all U.S. citizens have lost money in silver). That is a 35 year bear market.

        What the banking cabal WANTS YOU TO BELIEVE is that silver is just a boring commodity that isn’t a good investment. And so they control the price and that will never change. In the bible, people ARE THROWING SILVER INTO THE STREET because it is worth nothing at all.

        Get it? We are going down to biblical proportions here folks. The only thing you can do is short the stock market using options for leverage once the Dow/Gold ratio is around 25. That is where it is headed. Stocks HAVE broken its long-term resistance against gold’s secular bull–that means the party is literally over for gold for possibly years, and therefore silver’s party is over. Established today now that it’s broken its 2013 low. It’s no longer a triple bottom. The bottom has now yet to be discovered.

        Protect your wealth now like I said—you have to OWN DOLLARS. Use the DOLLARS to short the market using options when the bull market for stocks finally runs out of steam against the value of real assets.

        And that is how to play it. Stop listening to Steve who is getting more desperate and pathetic by the day (per this pathetic piece on SLV versus Physical).


        • Nobody never bought the silver in 1980 at 50…

          Just look at the Ericsson chart it is worst than silver for the last 35 years…

          Shorting is against my religion, sorry !

          Gold and silver are a bet on the east, period. It is obvious that western central banks and powerz will do everything to hammered them but they left some ammo the last 20 years…

        • jack,

          first of all, you are referencing the bible incorrectly. it is said in ezekiel 7:19 that gold and silver will be thrown in the streets and will be worthless when the day of the Lord comes.

          secondly, gold and silver was and is ALWAYS referenced as true wealth in the bible. gold and silver is God’s money.

          the reason why silver and gold is doing so poorly atm is because the central banks are printing so much money. the world is flooded with paper dollars back by USD that is back by nothing. thats why housing and stocks are doing so well because theres so much paper being injected in our economy

          It is true that stocks have broken through the gold secular bull, but winston churchill once said, “the further you can see in the past, the further you can see into the future.” If you read history, thats how every kingdom and every nation has fallen. by printing money.

          • Well said Conrad, the day of wrath is referred to in Ezekiel. Then it does not matter how much gold and silver you have on that day because that is the day of the Lord.
            The mark of the beast will be the order of the day leading up to that point and all of the Lords children will have to have a means to trade barter or survive on if they do not take the mark. Gold and silver. The Lord will always provide and He has.

        • Jack
          That would be awesome if you started your own blog!! In this blog will you actually show geological data and anything else that backs your point of view? More importantly will you disclose the location of these “gushers” that will be coming on line soon? Or saying more BS and quoting bible passages out of context?

        • ” In the bible, people ARE THROWING SILVER INTO THE STREET because it is worth nothing at all”.

          There are many things in the Bible, some contradictory [at least without interpretation] and a lot more references in the bible to silver as viable money. Silver has been money for more people in more places over a longer period of time than any paper currency.

          There isn’t enough for it to be re-monetized as a national currency, e.g. start making coins for general circulation out of 90% silver again, but it will be money again.

    • Hey Jack…off…don’t like it, don’t buy it. Think it’s a bad investment…don’t but it. Do you really think anyone gives a $hit what you think?

    • You can easily paint a chart of paper derived bets with no intention to deliver. All assisted by the same regulators ,all 14 of them BTW ,who were asleep at the wheel in 2008. Just like thousands of times before Gold & Silver become money when money fails.

  4. Steve, well that didn’t take long for the PM bashers and trolls to come crawling out from under whatever they hide under!

    Thank you for the charts. Very interesting indeed. One point that I would like to make, is that SLV and for that matter GLD. are (IMHO) nothing more than Ponzi schemes. In the words of John Embry, when this thing turns, those that think they are wealthy will have a religious experience! Just as those bashers and trolls will have.

  5. First off, outlookingin, that is NOT what John Embry said. What he said were those short silver would have a ‘religious experience.” And he basically stole that line form his always wrong partner Ric Rule who is an absolute arrogant prick IMO.

    BUT, these guys are so wrong it’s laughable. The only ones that get the religious experience DAY AFTER DAY are the silver longs. You see, the shorts, JP Morgan and Co, our Federal Reserve through their conduit citadel, can set the price to damn near ANYTHING they want. Trust me, when silver rises again someday in the future the silver shorts will not be having any religious experience. They will in effect be the ones LETTING IT RISE.

    Get it?

    P.S. Outlookingin, I have not JUST come out of the woodworks. I might start my very own blog contesting jsut about every single thing Steve ever says—it is almost always universerally wrong or purposesly misleading like like this piece he just put out on SLV versus Physical.

    • Frankly, please put your own blog and do the justice elsewhere !

    • @Jack

      Nothing like a Jack-ass creating a blog. Please let me know when you are going to start so I can draw the picture for the front page. It will probably make us both some money. If we fail, at least we get paid for the comedy. After all every Jackass needs a bridle in their mouth.

    • Some how many of you believe that PM price discovery will be brought to you by the Crimex forever. See China.

  6. Fair enough, RD. I will stop posting here forever. This is my final goodbye. I know you guys are idealistic, and don’t like the hard truth. That so much has become apparent to me. I’m seen as a “troll” even though no one can ever seriously debate what i say because deep down in your own twisted hearts, and you watch your net worth plummet in your very own great depression, that something is SERIOUSLY wrong.

    I wish you all luck here. And I really wish you all could be right to be honest. That we have a corrupt currency system and that nearly 315 million people are oblivious to our freedom’s and liberties being taken away from us I wish we could take the power back from the banking cartel. But THAT ISN”T NOT ONLY HAPPENING–BUT THERE IS VIRTUALLY NO MOVEMENT TOWARD THAT OUTCOME.

    We are doomed. Good luck people,

    • Such a cheery fellow you are! Firstly, do not be so “thinned skinned.” My posted comment was not aimed specifically at you, all though you fall into that general category that was the aim of my post.

      Please do form your own blog. I wish you luck with it, only back up your argumentative points with solid fact based information, instead of your “humble” opinion. Anecdotes we can get any where.
      Unlike Steve who uses solid fact based arguments and conclusions, to come to a consensus, that more often then not is a common sense answer.

  7. Herman The German | September 19, 2014 at 10:24 am |

    Have you watched Greg Hunter and his interview with Harvey Organ?
    If not, please do.

    So how do you explain Harvey statement from today:
    “The silver OI complex rests at 176,966 contracts. In ounces, this represents 865 million oz or 124% of silver annual production. In commodity law generally the OI is represented by 3 to 5% of annual production. These silver contracts are in very strong hands and as I have indicated to you on countless occasions, this will continue to bring nightmares to our bankers. Probably this is as good a reason as ever for the bankers to raid on a continual basis trying to force those longs to puke their interests. We are now in the next big delivery month of September and here, the OI for September fell by 235 contracts down to 389 contracts. We had 251 notices filed yesterday so we gained another 18 contracts or 90,000 additional oz will stand for the September contract month.
    The December silver contract tonight rests at 128,054 contracts for a gain of only 1829 contracts. No doubt the December contract month may provide all the fireworks if our major entity tries to take delivery of much of the comex silver. The estimated volume today was strong at 44,499. The confirmed volume yesterday was fair at 34,364 contracts.”

    Anyway, when inflation picks up and I DO think we are at the bottom SILVER WILL FLY TO MOON!

    Greetings from Germany

    • Great posting and greetings from Dusseldorf. Don´t forget Bear Stearns engagement in silver, their collapse, their saviour JPM; shorts taken at about 18 $. Closure today? Don´t know.

      I was aware of that, but I did not believe, this rotten system could ever survive for such a long time to make us pay for our OWN financial and economic death caused by bankers (i.e. Draghi´s ABS programs and much more).

      That´s it, Jack and others… watch TV, realise what´s really going on.. and you see: the Silver and Gold prices are only what they want us to believe. I, personally do not care about the price any more; nevertheless, I bought 50 oz. saltwater crocodiles today; ridiculous price.

      It´s OK. Prices further going down. Who the hell knows when it´s over; they do think they have control (manipulation), but actually they lost control. Money ($,€) has actually become worthless. Those who sell PM now, or don´t buy will be screwed.

    • Ther will never be price inflation because wages will remain under heavy pressure.

      However, if there are some new bonds problems (not T bonds), gold can regain.

      • Herman The German | September 19, 2014 at 12:24 pm |

        Inflation is not only a matter of wages though (but certainly one bigger factor)

        I just learned a few days ago that mankind already consumed what mother earth is capable to provide this year! And the date is moving faster and faster to an earlier date. Right now we need 1.5xtimes what earth can supply. So we consume the future…

        Gold and Silver are hard assets or 100% money.

  8. Look first for silver as a hedge against the inflation that will come.
    Look secondly at silver as a protection against bank bail-ins and government capital levies.
    Look thirdly at silver as an industrial commodity in increasing demand.
    Look fourthly at silver as money resurgent which may well back the next international reserve currency.

    If you had one choice: Paper or Silver, what would it be?

    Do not confuse paper with silver. Paper silver is cheap but real silver is withstanding massive leverage because it is so valuable.

  9. Silver Curious | September 19, 2014 at 11:30 am |

    That DOW chart is very interesting …. the divergence between volume and price cant last forever …. and the odds favor price trend breaking hard before volume trend breaks, IMO…… when the stock market makes a major fall, it’s very likely the metals will also fall along with the market due to liquidations and margin calls – this will create the mother of all metal buying opportunities ….. so keep some powder dry for when this DOW price/volume divergence breaks IMO.

    • Steve said:
      “The Fed must be holding up the majority of the market as investors with any lick of sense, already bailed out of stocks long ago.”

      And no one here saw the real problem:
      1. The Fed is in fact buying stock.
      2. The Fed can buy all the stock it wants because it can print money (actually, it must do both to keep the bottom from falling out of the global economy).
      3. No one else is buying stock.

      so …

      Eventually, the Fed (and other central banks) will own a significant amount of all the publicly traded companies in the US (and the world). The NSA is already able to keep track of everything that you do. The Dept of Homeland Security can disappear you at a whim. A crash is the best thing that could happen, but, will it?

      Meanwhile, buy a farm, spare parts, other capital goods to keep the food coming in, and then if you have money left over some PMs. If the crash never happens well, you will have had a nice few years and will have eaten well. When (not if) it does you and yours will be the only ones eating at all.

      • If you are the only one eating then you’d might have to life in a bunker and having some spring guns around the house. Good luck then exchanging your silver for food.

        • Max,

          I find it amazing that the two options many investors believe in are:

          1) business as usual continues, so why buy manipulated precious metals
          2) complete MAD MAX collapse, so precious metals can’t buy water or food.

          Why are those the only options? And if you have 2 years of food in storage, why not invest in precious metals as a store of wealth?


  10. SDRocco is the cat damn man!

    Thanks for your diligent works, this one is going up on social media ASAP.

    FREE SHIPPING always at JMBullion 🙂

    Buy low, stack ’em high!

  11. The strange thing about silver is that both the bulls and the bears are right. The fundamentals for Silver are great! However, Silver never trades on its fundamentals. The price is set my trading (unlimited) paper contracts. Consequently, the price is awful!

  12. Galaxy Central | September 19, 2014 at 12:48 pm |


    View from outerspace is that Earth has already mined all the easy silver. When China East sets the price at RMB 1000 per ounce….Please bring along some real goods if you want play in the new trading pen. You might not be allowed to wire out internationally from USA..if you Can ….it Will be a New Fed Note representing less than 30% of the green paper you own today. Not sure on your future FX….1 RMB = 6 USD? also 1 Barrel of Dubaï Light will cost u 150 RMB…Enjoy your paper sandwich and respect precious resources.

    good luck,

    Greg at The Universe Refinery

  13. The leverage in paper iou’s is enormous, worldwide debts are huge. The underlying economies cannot carry all that paper; revenues are going down, so more paper has to be ‘pushed’ to keep the game going. Through CB purchases of state debt, MBS, even stocks. Also intermediaries like state pension funds are being forced to join the party…

    I have read a lot, bit off my tongue every now and then. And i look around, in daily life, on the streets, in my job, neighbours, wages. I work for a multinational. I see what is happening in politics; they put the first domino in isolation before it demands it’s natural place in history.

    Paper games will go on until the party is over. And indeed Steve, due to ‘diminishing returns’ in the fossile energy complex, it’s paper games until reality sets in.

    Enjoy. And buy some real f*cking hard assets on a regular basis. Including metals.

  14. What a bloody DISASTER investing in gold and silver is!! I feel like a complete FOOL for believing everything I read about it and then investing as significant portion of my net worth in it.

    Never again.

  15. Weak hands are dropping like flies these days. And their vitriol is showing.

    • lastmanstanding | September 21, 2014 at 9:23 am |

      No shit Sandman…you either believe in real things from/created by the earth itself, or you don’t.

      It is what I believe and frankly, have no other option.

      “don’t go down without one helluva fight”

  16. I think silver is destined to be scarce so I buy it while it is cheap. I am also considering refreshing my electronics. When the PM manipulation ends electronics from the east won’t be too affordable anymore.

  17. Of all times for the Tard to post an update, i sure hope it’s this weekend!

    should be a real barnburner, & hilarious too where he peels the paint off the walls & tears another strip off the sh!tbag shills in this destroyed sector.

    let’s look to somewhere where they’re in the money & then some:

    one caveat is he should be careful what he wishes for–this chart is the nominal $ DOW, NOT inflation-adjusted which would show a rock solid clear alternating 17.6-year high, then low, accurate to a month, & the best mark to set it to is the SEP1/1929= 1929.67 Roaring 20’s high you see there at left (381) . then 2 X 35.2 forward is the astounding “greedspam Y2K” millennial high 2000.1 bang on.

    far more solid & also of course rarer so easier to find than an 8.6-yr, etc.
    why is this foreboding?—well, we are due right at/near 2017.6- .7 for an inflation adjusted LOW next!
    a mere 3 years hence.

    that says coming out AFTER that low, we will get REAL GROWTH, & how is that possible without shedding all that debt, OR magically keeping it a 0% forever?
    this says we will see an astounding unprecedented liquidation/implosion next 3 years bigger than all the economic implosions in history from ancient rome combined.

  18. This energy renaissance we are experiencing in America is relaxing the fear factor. Gold and silver move on fear so we’re officially in a PM bear market. That being said, the best investment advice now, and in the past 100 years is to stay diversified. Have some gold and silver, own some stocks, put some money into fixed income instruments, own real estate, get a good formal education and have a career. If you stay diversified you’ll be able to weather any financial storm.

    • JTM,

      true but shale oil is going to peak soon probably 2015 but not later than 2016 I think.
      This will be a game changer. When a small amount of investors will recognize this, all bubbles around us will burst.The bull market in PM will come back stronger than ever before.


  19. I buy PM’s cause they’re money, period. The fewer pieces of paper I have to give the better, but any trade of paper for PM’s is a good one.

  20. guys, yesterday’s smack down of silver had its warning in asian session.

    i noticed something rarely seen in asian session. in the span of 6 hours, gold was up and down and up and down , full two 10-dollar round trips!

    the algo that did this was trying to make a statement and trying to clear the field for the full assault.

    let’s see whether shanghai physical premium will come down or not! if it’s coming down and shanghai inventory is re-filled, i’d agree physical is plenty.

    if the shanghai inventory can’t be re-filled and the premium comes down regardless, i will seize the opportunity to jump back in!

    last night or your daytime, the premium jumped to 520+ before easing back to 490! (RMB/kg), that’s 10%+ over comex futures!

    at the peak of april 2011, i had 15 million dollars in my accounts holding a lot of silver, i got fully wiped out by now.

    it is a religious experience, a life-changing experience!

    i have a new understanding of life.

    i will stick to silver although getting rich is no longer my goal ( i may never be able to get that rich again).

    life is someone’s show, someone’s fiasco, someone’s jubilee, someone’s trick or treat.

    life is choice. i chose silver.

  21. Permabears on PM’s like Jack or others who downplay tangible asset accumulation over stocks, bonds, equities, etc. have some valid points.

    But I wouldn’t take one person’s opinion [or ego] who has no cited track record or data or no professional experience [like Richard Russell as one example], over several dozen people who do have that experience, knowledge, and track record. Even excluding all who sell PM’s there are dozens who traditionally recommended stocks, bond, and equities…who now consider such investments toxic.

  22. Clueless and Concerned Silverooney | September 20, 2014 at 1:09 pm |

    This is my concern.

    There seems to be a lot of sales of silver. And it almost looks like everyone has a stash of it laying around somewhere.

    If there were to be a uptrend in silver prices, wouldn’t most of the people sell off the silver and cause the prices to sink down?

    Meaning that, because of the abundant holdings of silver in the hands of everyone, that prices will never rise up to the levels prophosized by the silver prophets.

    Can someone help me out here.

    Is it a good thing, from the standpoint of investments, that hundreds of thousands of tons of silver are in the hands of the people?

    • You cannot fool natural intelligent design and the laws of nature and natures God
      It took 58 years to final remove all specie metals backing the Federal Reserve Note.
      It has now been 43 years we have been on “private-corporate” fiat currency.
      Full faith and trust will run out on the Fed Note and will return to Zero as to its actual worth like all parabolic paper has done in the past.

      Specie money “silver and gold” stands the test of natural history since the shekel of ancient Israel.
      Time and history is on the side of specie money.
      I say parabolic paper because they are printing it at a furious pace and nothing is helping the banks or the governments in holding on to their power because of the Ponzi scheme they have started.

      The bigger the boom the harder the bust.
      The laws of nature are cyclical and the progressive will do everything to resist it just because of their hubris and arrogance in believing that paper can be manipulated to displace the economic handcuffs of silver and gold as money.

      There are only two kinds of people, those who work for a living and those who work at not having to work for a living. “Man shall eat his daily bread by the sweat of his brow.”
      Specie money requires sweat from the brow to remove it from the earth.. fiat currencies just rolls of the printing presses.

      Shekel in Hebrew means “to weigh” (shaqal), “weight” (mishqal) and “consideration”(shiqqul).
      Fiat currency has none of these character traits.

    • C&CS – Silver is the “poor man’s” gold.

      Almost all silver held in the hands “of the people” is in the form of coins. Eagles, Maples, Pandas, etc. This form of silver almost never goes to a buyer for its melt value. They are sold to a dealer who re-sells them to other investors.

      You must remember that most of the mined silver goes to industry to be “used” up. Never to be seen again. You are correct, in that to entice silver out of hiding, much, much higher prices must offered. It is precisely that large amounts of silver are held in strong hands, that eventually the price will be forced up.

  23. Jack is jackass

  24. The money supply will continue to increase worldwide. Ore grades will continue to decline overall. The cost to mine will increase due to higher operating costs due to inflation plus lower ore grades. It will become to difficult at some point to suppress the price. Higher production costs and less supply are in the works.

  25. The DOW will suffer perhaps a 50% hit, but the Fed is investing freshly printed fiat it will be up 5x in next 5 years, unfortunately the dollar will be down 80%, and (fortunately) gold up 10X, silver 30x

  26. Jack and TPTB expect a capitulation sell-off. That may happen in the futures and option market, but not in the physical market. The phyzz is in strong hands now, and whoever is accumulating now and/or at lower levels is doing the right play. The paper PM ponzi will soon blow – these PM paper promises CANNOT all be fulfilled, there is not have enough metal. The lower they go with the price, the deeper the hole gets they are in. This whole paper ponzi will blow up badly, and I think even though it might not happen this year, we’re not too far off. With every leg lower, we’re closer to the actual breaking point. The current pricing mechansim (futures) IS the manipulation. Is it some major default (CONeX/LBMA), the new phyz exchanges in the East taking over, some other black swan event that will put an end to the current charade? I have no idea, but I’m watching and continue buying to see the day when the tide turns for good. Best of luck to all.

  27. shanghai physical premium is easing. but inventory is sliding again and made a new low.

    AG(T+D) long are paying delayed delivery to the shorts for first time in 6 months if i remember correctly.

    someone is playing with the spread between shanghai AG(T+D) and comex futures.
    so now this big player is short AG(T+D) in shanghai and long comex futures, and betting on the spread coming down. the player get 0.02% from the AG(T+D) everyday.

    previously, the player was long AG(T+D) and short comex futures. he recieved 0.02% the AG(T+D) long everyday for 6 months! and the spread moved from 150 to 540!

    that’s my guess.

  28. Herman The German | September 23, 2014 at 2:50 am |

    Jim Willie, nails it totally:

    “The Russia & China bond is growing and will result in a marriage, the consummation being a baby called the Gold Trade Standard.”


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