why are Silver sales soaring?

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investorzzo's picture
investorzzo
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why are Silver sales soaring?

The U.S. Mint just reported another record, but this time it wasn't for gold. The Mint sold more Silver Eagles in March and in the first quarter of the year than ever before. A total of 9,023,500 American Silver Eagles were purchased in Q110—the highest amount since the coin debuted in 1986.

While this is certainly bullish, there's something potentially more potent developing in the background. Namely, how this matches up with U.S. silver production. Like gold, the U.S. Mint only manufactures Eagles from domestic production. And U.S. mine production for silver is about 40 million ounces. In other words, we just reached the point where virtually all U.S. silver production is going toward the manufacturing of Silver Eagles. . .Yikes.

http://www.theaureport.com/pub/na/6050

West Oz 9999's picture
West Oz 9999
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Posts: 53
Re: why are Silver sales soaring?

I found that article interesting.. Thanks.. At a retail level (and from the Perth mint) there is also a high physical delivery interest... The message seems to be getting out..

West

John99's picture
John99
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Re: why are Silver sales soaring?

We should all buy metals now, everyone including our friends and relatives. Have told mine they should be at a minimum 50% of all accessible cash, invested into physical metal and have it in hand. The metals will disappear.

paranoid's picture
paranoid
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Re: why are Silver sales soaring?

another respected guru thinks the opposite:

1. Dump your gold and silver. All of it. You can't spend it like money because it is not money. It is a store of value only when people "believe" it has value and that is only when fiat paper money has no value in the minds of those who own it. That will be years from now. We will own gold then.

2. Hold you green back dollars. They are, overall going up and will continue to do so quite a bit this year. When I last wrote all of you the buck was worth .74-cents. It has risen to .81 cents as of late last week. I fully expect it to go to a dollar or more by the end of the year. This means, if you do noting and simply put your money under your matteress, you'll make a 30% profit simply by holding your money as it will BUY MORE than it does not. If you don't want your cash under your mattress (and who does), do not put it in a bank. Very few banks will survive the onslaught to come (especiall those supposedly too big to fail such as the BofA, Wells Fargo, etc.). Put your loot in a fireproof container that can handle 2400 degrees of heat for one hou, U.L. approvedr. Put your loot in a fireproof bag in that fireproof container (a fireproof safe). Hide the safe where nobody but only one person you do not live with and can trust with your life knows where it is. That way, if you prematurely die, the money is not lost forever.

John99's picture
John99
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Re: why are Silver sales soaring?

"Paper money always returns to its real value, zero" Voltaire

sjmvideo's picture
sjmvideo
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Re: why are Silver sales soaring?
paranoid wrote:

another respected guru thinks the opposite:

1. Dump your gold and silver. ...

2. Hold you green back dollars. They are, overall going up and will continue to do so quite a bit this year. When I last wrote all of you the buck was worth .74-cents. It has risen to .81 cents as of late last week. I fully expect it to go to a dollar or more by the end of the year. This means, if you do noting and simply put your money under your matteress, you'll make a 30% profit simply by holding your money ...

And who is this 'respected guru? This is the first I've heard about the value of the dollar going up.

Davos's picture
Davos
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Posts: 3620
Re: why are Silver sales soaring?
sjmvideo wrote:
paranoid wrote:

another respected guru thinks the opposite:

1. Dump your gold and silver. ...

2. Hold you green back dollars. They are, overall going up and will continue to do so quite a bit this year. When I last wrote all of you the buck was worth .74-cents. It has risen to .81 cents as of late last week. I fully expect it to go to a dollar or more by the end of the year. This means, if you do noting and simply put your money under your matteress, you'll make a 30% profit simply by holding your money ...

And who is this 'respected guru? This is the first I've heard about the value of the dollar going up.

I suppose this respected guru thinks that:

  1. A GAAP deficit of 9 trillion with an income of 2 trillion that just covers interest on debt will lead to a strong dollar
  2. That a 1.6 quadrillion unregulated black boxed shadow banking system won't implode
  3. That 1.8 million foreclosures in 2008, 2 million in 2009 and 8 million 90+ delinquent mortgages this year and a wave of Alt-A's and Option Arms equivalent to the 1.5 trillion subprime mess hitting shore this year won't tank anything
  4. That 5 trillion in CRE that is going over the cliff and tied to 2,988 of the 6,000 regional banks won't have systemic risks
  5. States & Pension funds that are insolvent
  6. 22% U3-U6 unemployment will add positively to consumerism

Just curious, the expert: Moron Bernanke or Moron Summers or Moron Geithner?

Ready's picture
Ready
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Joined: Dec 30 2008
Posts: 917
Re: why are Silver sales soaring?
paranoid wrote:

When I last wrote all of you the buck was worth .74-cents. It has risen to .81 cents as of late last week.

Let's hope the dollar is not worth 7 tenths of a cent.

Assuming he meant $.74, and it goes to $.81, does that mean we get an extra slice of bread in the loaf from the supermarket?

gyrogearloose's picture
gyrogearloose
Status: Platinum Member (Offline)
Joined: Sep 8 2008
Posts: 549
Re: why are Silver sales soaring?
John99 wrote:

"Paper money always returns to its real value, zero" Voltaire

Sorry. He is wrong.

 

I think in the CC there is a picture of proof.

It has some value a a heating medium!!!!

 

Cheers  Hamish

paranoid's picture
paranoid
Status: Silver Member (Offline)
Joined: Feb 27 2009
Posts: 140
Re: why are Silver sales soaring?

And who is this 'respected guru? This is the first I've heard about the value of the dollar going up.

His name is Robert Dean. He has another 'dooms day guru' that he quotes and references a lot. If you PM me I can send you his hotline to listenin on (its public info so I am not violating anything by doing so). 

paranoid's picture
paranoid
Status: Silver Member (Offline)
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Posts: 140
Re: why are Silver sales soaring?

and the dooms day guru is none other than Jim Shepard... AFAIK.

kmarinas86's picture
kmarinas86
Status: Silver Member (Offline)
Joined: Dec 29 2008
Posts: 164
Re: why are Silver sales soaring?
investorzzo wrote:

The U.S. Mint just reported another record, but this time it wasn't for gold. The Mint sold more Silver Eagles in March and in the first quarter of the year than ever before. A total of 9,023,500 American Silver Eagles were purchased in Q110—the highest amount since the coin debuted in 1986.

While this is certainly bullish, there's something potentially more potent developing in the background. Namely, how this matches up with U.S. silver production. Like gold, the U.S. Mint only manufactures Eagles from domestic production. And U.S. mine production for silver is about 40 million ounces. In other words, we just reached the point where virtually all U.S. silver production is going toward the manufacturing of Silver Eagles. . .Yikes

http://www.theaureport.com/pub/na/6050

Demand can exceed consumption. If demand exceeds consumption, and consumption exceeds production - watch out.

compinthegroove's picture
compinthegroove
Status: Silver Member (Offline)
Joined: Nov 8 2009
Posts: 113
Re: why are Silver sales soaring?
paranoid wrote:

another respected guru thinks the opposite:

1. Dump your gold and silver. All of it. You can't spend it like money because it is not money. It is a store of value only when people "believe" it has value and that is only when fiat paper money has no value in the minds of those who own it. That will be years from now. We will own gold then.

2. Hold you green back dollars. They are, overall going up and will continue to do so quite a bit this year. When I last wrote all of you the buck was worth .74-cents. It has risen to .81 cents as of late last week. I fully expect it to go to a dollar or more by the end of the year. This means, if you do noting and simply put your money under your matteress, you'll make a 30% profit simply by holding your money as it will BUY MORE than it does not. If you don't want your cash under your mattress (and who does), do not put it in a bank. Very few banks will survive the onslaught to come (especiall those supposedly too big to fail such as the BofA, Wells Fargo, etc.). Put your loot in a fireproof container that can handle 2400 degrees of heat for one hou, U.L. approvedr. Put your loot in a fireproof bag in that fireproof container (a fireproof safe). Hide the safe where nobody but only one person you do not live with and can trust with your life knows where it is. That way, if you prematurely die, the money is not lost forever.

 

It looks to me like your guru is basing his numbers on the dollar index, which is misleading since the index compares the dollar to other currencies.  The move up was based on troubles with the euro.  Appearing to be a better currency than the euro does not make the dollar inherently good. 

 

I'm keeping my gold.

kmarinas86's picture
kmarinas86
Status: Silver Member (Offline)
Joined: Dec 29 2008
Posts: 164
Re: why are Silver sales soaring?
compinthegroove wrote:
paranoid wrote:

another respected guru thinks the opposite:

1. Dump your gold and silver. All of it. You can't spend it like money because it is not money. It is a store of value only when people "believe" it has value and that is only when fiat paper money has no value in the minds of those who own it. That will be years from now. We will own gold then.

2. Hold you green back dollars. They are, overall going up and will continue to do so quite a bit this year. When I last wrote all of you the buck was worth .74-cents. It has risen to .81 cents as of late last week. I fully expect it to go to a dollar or more by the end of the year. This means, if you do noting and simply put your money under your matteress, you'll make a 30% profit simply by holding your money as it will BUY MORE than it does not. If you don't want your cash under your mattress (and who does), do not put it in a bank. Very few banks will survive the onslaught to come (especiall those supposedly too big to fail such as the BofA, Wells Fargo, etc.). Put your loot in a fireproof container that can handle 2400 degrees of heat for one hou, U.L. approvedr. Put your loot in a fireproof bag in that fireproof container (a fireproof safe). Hide the safe where nobody but only one person you do not live with and can trust with your life knows where it is. That way, if you prematurely die, the money is not lost forever.

 

It looks to me like your guru is basing his numbers on the dollar index, which is misleading since the index compares the dollar to other currencies.  The move up was based on troubles with the euro.  Appearing to be a better currency than the euro does not make the dollar inherently good. 

 

I'm keeping my gold.

If the market convinces your friend to buy gold, buy silver. If the market convinces your friend to buy silver, buy gold.

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