The precious metals market continues to experience unprecedented demand for silver bullion products. Even with the Fed increasing its liquidity injections by providing “Open-ended” QE to infinity, the Dow Jones Index today is still selling off considerably…. down 900+ points. There is no way the Fed and central banks can backstop the markets with liquidity and asset purchases if the physical economy is shutting down.
The collapse in the U.S. economy and financial markets have brought about a record buy spree in physical silver bullion never witnessed before. In the past few weeks, precious metals dealers have totally wiped through the available stock. Now, these dealers have to resort to pre-selling future supply with the understanding that metal purchased today will not be delivered for weeks, a month, or several months.
In my newest video update, Massive Silver Buying: Much Higher Prices Ahead, I explain the Silver Market Dynamics and how the decline in future mine supply and rising demand for physical silver will push prices up much higher:
In the video, I discuss in detail how the global silver mine supply is likely to contract considerably over the next two quarters as the worldwide contagion continues to spread. However, the demand for physical silver bullion will intensify as the markets and financial system continue to disintegrate. This will push the price of silver higher as investors move into the precious metals to protect wealth.
Furthermore, the low oil price and extremely low wholesale gasoline price is destroying the U.S. Shale Oil Industry. This is terrible news for the U.S. economy and Dollar. I also explain how the retail gasoline price at the pump in many cities is heading back down to 75 CENTS A GALLON!!!
Here is one of the charts I discuss in the video on the estimated price of gasoline in Georgia (1-2 weeks) and what it will be like in the next 1-2 months:
With the wholesale price that closed on Friday of 61 cents a gallon, that would equal about 93 cents at the pump. But, this would take a week or so for the gasoline stocks to be consumed before this price makes it to the pump. My estimate for the retail gasoline in Georgia in 1-2 months is 66 cents a gallon. However, today the wholesale gasoline price has fallen 20% already IN ONE DAY… LOL!! It’s down to 48 cents, compared to 61 cents on Friday. We may get to the wholesale 35 cents a gallon shown in my estimate above in the next 1-2 weeks!!
Americans have no idea just how bad this global contagion and massive disruption to the supply chain and oil industry. The U.S. Shale Oil Industry will collapse in the next 1-2 quarters and never come back the way it was before. The U.S. was able to say it enjoyed “Energy Independence” for a few months before the entire industry comes crashing down.
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Thanks Steve.
Very pleased I was able to add some 300 ounces of Silver here at the beginning of 2020.
At the moment it appears that acquiring more this year will be problematic at best.
Silver stocks will be replenished and they can always tell ypu to wait one month for delivery pretending that it is temporary. The situation will become dire only when Comex collapses into cash settelment.
Like you, I was fortunate to receive 500 ounces (Monster Box) of Canadian Silver Maple Leaf coins this year. I damned sure didn’t buy them anywhere close to then current silver spot price of $14.32/oz. That WAS the spot silver price then, and it only fell further after that. My price was $18.32/oz. Still, I feel fortunate to have received ANY physical silver at all! That is a very sad commentary!
Strange days in that we consider ourselves “lucky” to have received our order(s) at all!
Here in the UK there is 20% VAT on physical silver but bullion dealers are either out of stock or offering long delays on orders.
JP Morgan and its endless paper silver shorting programme not only made that foul bank billions down the years (they never once took a loss on those huge shorts which would be impossible in a free market), but they got to buy millions of physical ounces at the depressed paper prices they created!
Just crazy that as Covid 19 crashed the central bank invented stock bubbles, silver ended up also hammered to the point where the paper price is now cheaper than a packet of cigarettes here in the UK. Try getting physical for that price. At still only 9 to 1 gold coming out of the ground, the endless bankster pigs trashing a precious metal so as to keep their fiat Ponzi scheme afloat is one of the greatest monetary crimes down the ages.
How convenient that we are all put into lock down and daily sprayed with media Covid 19 fear. Once again the banksters are being bailed out and their fellow big Corp. Buyback maggots also demanding bailouts. Main St.is nicely distracted by a virus. Seems to me we will never know the real truth about this virus.
UPDATE 1-Three Swiss gold refineries suspend production due to virus threat
https://www.reuters.com/article/precious-refining-argor/update-1-three-swiss-gold-refineries-suspend-production-due-to-virus-threat-idUSL8N2BG3ZJ?rpc=401&
Who is going to say there can’t be a snafu or supply chain interruption in some way for silver? I realize most of the above production might have been headed for China and India, but who is to say something[s] won’t hit silver?
No one (reasonable). Silver is currently being hit and will remain under fire. The tricky part is determining the ACTUAL value of PMs.
Comments being screened?
Steve, after trying to post several comments, I am now (a new development?) receiving a pop-up stating “Comment awaiting moderation”. Is this a recent development or a result of something I’ve personally posted in the past.
Thanks much!
And still the average Dumb’Murican dipshit thinks “cheap gas is the best thing evah!” … and that in a month or two their 401k’s, and the stock market, and everything else in their hypnotized, mesmerized, big screen techno-colored lies…Will all be back to being just the way it was, or even better before all of this went down.
Seriously, Why couldn’t they have come out with a virus that only infected and killed stupid people instead of the old and the infirm.
Sometimes, when I’m not scared shitless about all the stuff that’s happening and coming down the pipeline…..
In some twisted way…
I welcome it.
Which is why your faith should be in the Lord Jesus Christ of Nazareth.
Men will fail you,
nature will fail you,
you will fail you,
But God’s love for you is eternal, and all it takes is to confess with your mouth the Lord Jesus, and believe in your heart that God hath raised him from the dead. And you will be saved.
The World has already been judged. We are already condemned at birth. The only way to be saved is to accept the gift of pardon that comes through faith in the Lord Jesus.
Are these words of Jesus, or do you worship the words of Paul? What satanic force told you deeds don’t matter? Study again the parable of seed. Meanwhile, save your skin, as your physical needs matter. Go forth, and buy silver.
Steve,
Great audio/video btw. I have no idea how you can pull all of that together, with great charts, graphics, and data.
Agree
Awesome video. Thanks.
Thanks Steve for the video. The facts are clear and undeniable.
By the way, what is the COVID-19 situation in Latin America, which mine 80 % of silver ? Are the mines expected to be affected ? I do know that mine workers in general are more susceptible to respiratory pathogens than the general population, with consequent higher death rates, and I cannot think of any place more suitable than a mine for spread of this virus.
If this thing finds its way to silver mines and/or associated facilities, these will have to be immediately closed indefinitely and all miners quarantined/hospitalized. Some will R.I.P. Should the mines reopen one day, who, in his right mind, would want to enter there, where physical conditions can border on being horrible, even without the virus.
Should this scenario occur, then the phrase “silver shortage” will have an entirely new meaning.
Mehmet,
It’s hard to know exactly because I don’t know if the governments in South America have enough tests or are testing people. I watched the 1918 Spanish Flu documentary last night and do you know President Wilson didn’t even discuss it in the media? It was HUSH-HUSH because we were involved in World War 1. Interestingly, journalists-reporters that wrote about the Spanish Flu impact in the United States could be arrested. It was that BIZARRE.
They believe that the Spanish Flu started in Kansas and spread throughout the rest of the world. Get this, estimates were between 50-100 million killed. According to the documentary, only 650,000 Americans died from it, but 20 million Indians… WOW!!
So, I have no idea how much the COVID-19 has spread in South America, but I wouldn’t be surprised to see BIG NUMBERS in the next few months.
steve
The Spanish Flu wasn’t the only thing hush hush under that crook Woodrow Wilson. He along with congress snuck the Fed and IRS into existence shortly before Christmas when nobody was paying attention to the criminality being created! ?
Steve, just a little tidbit here.
Weeks ago even before anyone was really talking about COVID19 and (I think) before the first known case in the US I took my kid to the doctor who was frantically washing her hands every 5 seconds. When I asked her about it she said it’s coming and it’s going to be ugly. Then she added that South America will get hit the hardest. Not sure what this will mean for mine operations but there is that.
Unfortunately, it seems that will be the case. History rhymes. Thanks.
History rhymes.
https://www.youtube.com/watch?v=91Bu5pBaBWg&feature=emb_logo
Interview with Jim Sinclair, Bill Holter and Dave.
Watch the Treasury Yields like a hawk. Saw the U.S. three month go negative briefly today.
When bonds go negative yield its going to be go time for PMs.
Back in that 33% rise in Silver which ended in September it was due to Negative Bond Yields increasing to 17T.
Frankly, I tire of being kicked in the teeth for offering my perspective on my experiences with investing in Gold and Silver. That is what assisted me before I got in to PMs, and I just wanted to try paying back the info that helped me.
Trolls and their ilk, are very discouraging at times – as I have NOTHING to gain from my advice or opinions. Yet, accusations still fly. I will not shy from expressing an opinion, regardless.
If any post of mine is of value, excellent! If not, just consider it worth the price you paid for my experiences/opinions. That’s really what the message boards are for.
They’re a rough bunch here for sure…
I can handle it most days. Some days it’s harder. :-)~
now would be a great time for Trump to audit Fort Knox
That would take 1 minute. Walk in, unlock vault, look around, close vault and walk away. Audit result: “And… it’s gone” (classic south park: https://www.youtube.com/watch?v=TGwZVGKG30s)
Gold is back near $1600, silver is near $14 this Monday night. The bullion dealers NEED silver, JMbullion.com says they are paying $18+ for Silver Eagles tonight, a full $4 above spot.
Yep, it’s happening now stackers. Silver bullion has dried up, it only took a few billion dollars to buy em out, now no one is turning it loose.
Sadly, in just a matter of DAYS, a lot of people will be BROKE. No job, no food, no money to buy anything. Let’s see the government bailout every apartment landlord and utility co along with the $60k fancy SUV and truck loans. The U.S. promoted debt, bought debt, encouraged debt, loaned cheap debt. The house of cards is tumbling down now from the bottom and top.
Well said.
I’m sorry to ask such a seemingly dumb question, but I want to get this straight. When these PM dealers advertise for you order (purchase?) now and wait (pay?) upon delivery, it begs the question: Will the price be what is currently listed at spot price and whatever prevailing premium exists when the supply becomes available or are you placing an order for future delivery when supply is available at today’s spot price plus the current premium, that is, locking in a set price like miners or airline companies should be doing with kerosine or diesel fuel as futures to lock in low prices now. Of course, the big question is which will be higher in the future, spot price of Ag or the premiums charged…. or both?
Also, 18 months ago when placed a large order for gold on SD when it was absolutely at the very bottom (Around Aug 18, 2018) the dealer would not accept my check even from Vanguard, a Wells Fargo Medallion signature guarantee ( I could no longer just write a check from my WF checking account due to new capital controls which limited daily and monthly withdrawals. I went back and forth for over a month. SD would not simply let any of my checks simply clear and then shipping the bullion, claiming the purchase had to be done by “bank wire.”
During this time, the spot price rapidly ascended and just as I was about ready to make a bank wire payment arrangement, SD “canceled the order.” I suspect they canceled it because they could now sell it for a lot more money. If the spot price had dropped, however, they would have NEVER canceled the order but instead required penalty fees and or hold me to the order. I understand PM dealers hedge the spot price so they don’t get holding the bag right after the trading on the COMEX closes for a few hours or over the weekend.
So what the hell was really going on? Was my order really effectively a dirty “repurchase” call option disguised as a canceled order? I never made any purchase after that and obviously I’m pissed at SD’s BS. Tom Cloud would have never done this to me I bet.
Hubbs,
The situation as you described it to me seems quite strange and unprofessional. Sorry to hear about that type of service. I don’t know the particulars, but SD should have handled the situation better. I can tell you that Tom Cloud handles his clients differently.
When someone purchases metals from Tom, they get the quoted price and the client’s money is then put into an ESCROW account. Tom is one of the few dealers I know that handles transactions in this fashion. This protects the client’s funds until the metal is shipped. Hubbs, I have had many conversations with Tom Cloud on the HORROR stories in the precious metals dealer industry, including some from well-known competitors.
I decided to sponsor Tom Cloud because he is by far one of the most UPFRONT and HONEST dealers I know in the industry.
steve
It’s one thing to make small purchases like a tube of rounds or coins…and send a check, money order, or bank wire; that’s how you get the “cash” price.
They have your $ and you are relying on their integrity to deliver what you paid for…and almost all will; no problem.
I’d be a bit nervous sending payment in advance for a large purchase like many, many thousands, trusting most dealer’s timely fulfilment integrity…or choice of shipping method.
I bought quite a lot of precious metals from Kitco years ago. They kept the quoted prices and delivered products as promised. No issue with them.
The problem would be more likely in crisis times, 1] if the company’s financial position isn’t strong, or they have taken customer’s money & can’t get product to fulfill orders [which might relate to being slow-pay to their supplier].
I did business with Tulving and luckily I got all my metal but I heard of people getting burned big time
Plate pura,
I heard the same thing. Again, there is a GOOD REASON why I sponsor precious metals dealer TOM CLOUD on my website. If my followers heard the HORROR STORIES about other dealers, even up until recently, they would give TOM a call…LOL. Gosh, so many people still getting ripped off by unscrupulous dealers.
steve
Hubbs,
Unfortunately, your story/experience isn’t altogether unique.
In my experience, the dealer/seller takes your order when placed and to be paid in full. From there, you are expected to wait for your (paid in full order) to be shipped.
Yes, some dealers will “let your order expire” if the spot pricing is below market rates. Failing that, your order would be filled at their convenience.
About 20 years ago, I ordered 125 ounces of generic silver bars from a large, well known company. I paid for the 125 ounces of Silver in full, at the time my order was placed.
Long story short, I ended up waiting 3+ months for my order to be filled. Remember, they had my money all of that time. Many complaints later, this dealer did ship me 125 ounces of silver – just not the brand I originally ordered. But, hey, they threw in a complementary ounce of silver for my troubles. Needless to say, I never bought from them again, and I have no doubt that my business has been missed by them.
Yes, SOME dealers will let your paid for order expire. No matter how much you paid up front and no matter accepting your order in the first place.
A placed order, even if paid for in full, CAN be cancelled by the dealer – FOR ANY REASON – explained or otherwise. Those are just the facts. I’m sorry to hear of your order difficulties and unfortunately, not unique. It DOES suck!
Is it safe to get back into the gold and silver miners now then ?
Is there any chance of gold and silver mines being nationalised ?
With mines or refiners shutting down or potentially shutting down due to pandemic quarantine?
Doesn’t sound like a good tike to buy mining stocks to me, but maybe you have a longer term focus.
I assume you’ve seen the $100 plus move in GOLD Steve!
We are moving into waters not even charted on the maps. Ancient cartographers simply referred to these voids as “Here Be Dragons.”
3 times today Bill!
I know this post is about silver but can’t help but think that this is as good as it gets for gold and probably for silver as well. If the near collapse of world financial system didn’t cause gold prices to skyrocket I don’t know what will. And now with oil prices dirt cheap it’s even cheaper to produce them. Hope I’m wrong but we’ll see.
Give it more time to play out to whatever conclusions
Over last 3 to 4 days, I just stopped watching most of youtube videos from our space, actively using twitter or other social media for commenting etc., except occasional such comment on blogposts like these. Because in my personal opinion I honestly feel we crossed 1 of the most important Rubicons (regardless of the meaningless Ag paper price or Au/Ag ratio).
This is especially true after yesterday (or 2 days ago?) Egon von Greyerz publicly announced that 3 of the biggest gold refiners in Switzerland shut down due to coronavirus & will probably remain shut for many many months.
My objective of the frustratingly arduous last 7+ years has now been achieved I believe (my work here is done), so I better focus solely on the biological safety & security issues now.
COVID=-19 will LIKELY be used by many as a smokescreen/excuse in the days to come.