Lack of physical silver

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grenfell
Posts: 3950
Joined: Thu Jul 04, 2013 7:55 pm

Re: Lack of physical silver

Post by grenfell »

I can't help thinking that there are bigger risks than that of confiscation . This thread is about the shortage of physical metal. If and as J says it's a big if , the economy were to go that far south that we are back to using precious metals there just isn't the amount needed to go round the amount of people we have. Even if there were just holding it probably wouldn't be an option. It would change hands in the same way as pound notes do nowadays. I'm always drawn to the '30's and '40's as an analogy . Worthless or near worthless currency and pm's did make a comeback but once that was exhausted people started selling their household items , anything to buy food. Gold when used was undervalued and unscrupulous dealers would have murderous "exchange" rates.
ForgeCorvus
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Joined: Fri Feb 08, 2013 11:32 pm

Re: Lack of physical silver

Post by ForgeCorvus »

If theres is a shortage of a resource (in this case silver) then the market price should rise.
Thats when those of us using PM's as a store of wealth flog our silver off at a good mark up and plough the money back into something else, like shall we say gold.
The problem is due to the existence of 'paper silver' there is little to no price rise and so those that hold actual metal don't release it as there is no benefit.

My view on PM's is a pound note is always going to worth a pound, but that pound in twenty years time might only buy 20p's worth of stuff.
A quids worth of gold (silver, platinum, gallium, cobalt or WHY) is only worth a quid today, and in twenty years time should still buy the same amount of stuff in does now irrespective of how many pounds I'd need to buy that gold (or WHY).
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grenfell
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Joined: Thu Jul 04, 2013 7:55 pm

Re: Lack of physical silver

Post by grenfell »

ForgeCorvus wrote: Sun Feb 07, 2021 5:50 pm A quids worth of gold (silver, platinum, gallium, cobalt or WHY) is only worth a quid today, and in twenty years time should still buy the same amount of stuff in does now irrespective of how many pounds I'd need to buy that gold (or WHY).
Which as a rough rule of thumb should give an indication of how long one's stock should last if it comes to the point of "spending" it. If for example and ease of the maths an ounce of gold is £1000 and outgoings are £6000 per year then six ounces should last a year.
Arzosah
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Joined: Fri Jun 22, 2012 4:20 pm

Re: Lack of physical silver

Post by Arzosah »

As I'm tidying and rationalising my belongings in the house, I was thinking about this thread in relation to my jewellery. I've been tidying/ throwing a few things away, but how I store is important too. If I had to bug out at short notice (flood warning; unexploded bomb; fire next door etc) I'd want to take the valuable stuff with me - so I rearranged it so that all the gold and silver is in one little tray. There's bucketloads of tat :mrgreen: The gold is all inherited, and the silver is nearly all mine :mrgreen: so picking up that little tray is now part of my ten minute bug out routine - whether for sentimentality or for sale value during shtf I'll have the choice. Though I'll have to get some repairs done, quite a few clasps of the old stuff are unsafe, apparently. I'm sure it will take a long time for jewellers to re-open!
Moorland Prepper
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Location: On the edge of the Pennines

Re: Lack of physical silver

Post by Moorland Prepper »

Both silver and gold are in short supply at the moment.

I place a gold order on 3rd Feb from a dealer that I've dealt with a lot on the past and am still awaiting delivery.

The effects of Reddit on silver is spreading to the gold market and I understand that the BIS had to enter the market recently causing backwardation. This indicates a massive current demand from dealers trying to cover their positions.

Edit

Just came across this article on ZeroHedge re the silver shortage:

https://www.zerohedge.com/news/2021-02- ... ples-faces

Everyone wants it at the moment
the reverend
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Joined: Sat Sep 24, 2022 12:11 pm

Re: Lack of physical silver

Post by the reverend »

There is not a shortage of psychical silver. There is just a set amount, That's it. Here's how it works. There is a real market and a paper one. For example in the the paper market a dealer may hold five bars of gold but there are 10 'owners' who are all convinced they own a bar. The dealer then has capital and an asset from which they can then draw a line of credit. They can even sell the same 5 bars of gold 100 times. All they then have to do is pray that everyone doesn't ask for their gold at the same time. If you or I were to do that it would be called obtaining money by deception. In the real market you buy a psychical bar of gold, dig a hole and bury the bar. When it's all been bought and buried that's the end of it. In the paper market it goes on forever so there can never be enough psychical silver to back it up because it's a fantasy.
The price of gold is pegged to fiat currency. Fiat currency is paper money for the paper market. This means that the prices pf precious metals can be manipulated. In reality gold cannot be manipulated because there is only a finite amount. It is solid tangible asset that is inflation proof. How do we know???? In Roman times one ounce of gold would buy you 200 liters of wine. In 2022 it would buy you..... yep , you've guessed it, 200 liters.