Several SGT report readers alerted us to this one: Quality Silver Bullion announced this weekend that at least for the immediate future, they are no longer taking any new orders for PHYSICAL silver or gold. In a market where properly hedged precious metals dealers care not about that daily price fluctuations in precious metals, profiting only from the thin markup above spot plus cost premium, this is an interesting development. Because no matter how well any company hedges against price fluctuations, how does one sell product one does not have?
QSB goes on to say “This situation is not unique to QSB.”
As Bill Holter, Rob Kirby, Eric Dubin, Andy Hoffman, The Doc, Bix Weir, The Wealth Watchman and Chris Duane have told us in numerous interviews, thanks to the endless paper silver supplied by the criminal banking cartel led by JP Morgan, Citi and HSBC, the price of silver is likely to go lower and lower until there is NO PHYSICAL SUPPLY available at ANYTHING CLOSE TO THE BANKSTER MANIPULATED PAPER PRICE. We’re not there yet, but we may be getting close.
As our friend Charles Savoie recently penned for SGT Report, Absolutely There is a SHORTAGE of Raw Material Silver
Mint shortages are caused only by blank shortages you say. You know how long this has been going on? In any natural market, manufacturing capacity adjusts to enable transformation of raw material into finished product so that demand is matched with supply. Absolutely there is a shortage of raw material silver. If the housing market were booming, and the timber was available for conversion into lumber but sawmills were of inadequate capacity, the market would add sawmill capacity. Silver blanks are no different in that sense than lumber. There is a silver shortage which is why Dow Chemical, Du Pont, Ferro Corporation and Tiffany & Co. recently abandoned their long term memberships in the Silver Users Association. They hope to sidestep scandal when the blowup transpires. The short profile in COMEX silver is a billboard that someone fears a higher silver price more than they fear the grave.
Unlike cartel paper, the demand for PHYSICAL silver bullion is real.
As I wrote in July 13th,
There exists documented, record investor demand for silver coins from the US and Royal Canadian Mints. India is hoarding more than 30% of the world’s PHYSICAL silver this year. There has been a run on physical silver at the SGE. There is now off-the-charts NEW, record precious metals derivatives positions on the books at CITI and JPM illustrating their concern over capping the metals prices via paper. And now major national Mints are saying, “No Mas!” Taken all together, the case for a shortage of PHYSICAL silver, probably worldwide, is strong.
So, as KWN headlines often scream, the price of silver should shoot far higher at any minute, right?
In a “normal” market a collapse of supply in the face of surging demand would cause the price of an asset to surge higher until supply and demand equilibrium have been reached. However, we are unlikely to see that in the case of silver. Because this is no normal market. In fact, as Charles Savoie has so brilliantly exposed in his Silver Squelchers series, the silver market is the most manipulated market in the history of mankind.
Think about that as you search for PHYSICAL silver to buy at sub $15/ounce prices.
This article originally appeared on SGT Report.