large ringWhile Eric Sprott was speaking with The Doc this morning, Sprott’s Rick Rule was on CNBC discussing gold, silver, platinum, and palladium in the midst of the latest cartel raid on the metals.

While Rule’s entire interview is a MUST WATCH, the below clip was an absolutely classic response to CNBC’s claims that jewelry recycling will prove to bring massive supplies to the market:

In terms of gold and silver with supply, you have to think about historically mine supplies, but there are no substantial inventories of platinum and palladium. It has gone up a smokestack, it has gone out a tailpipe or been turned into jewelry. If you think your wife’s ring is supply, ask her. You’ll find out it isn’t

When asked which precious metal Rule would recommend owning he responded:  I would own the whole bullion suite.

Rule’s full interview is below:


Silver Bullet Silver Shield Slave Queen Collection  at SDBullion.com!!

Slave Queen 2

 

 

 

SD Bullion

  1.  
    My Experience today in LCS—
     
     
     
    Today 2/20/13, as part of my weekly Phyzz accumulation of at least 4 oz Silver a week…I hit my favorite LCS…..
     
    Empty show case. Told no Silver ASE available for at least a week. Told -Sold Out- of Gold coins too.
     
    Nonchalantly said, “Was thinking maybe people might be panic selling??” The reply I got was very interesting. Dealer said, “Are you kidding? No one is selling. In fact, I’ve seen more first time customers today and yesterday than in a long long time. And had to turn most of them away.”
     
     
     
    So, I pushed on to a different LCS…one that is a little more expensive, but gives a better buy price…thinking it’d be full of panicked sellers.
     
    Empty.
     
    I have never seen the place empty.
     
    Have never been there when I couldn’t get a Gold Eagle or Gold Buffalo.
     
    But none there available today.
     
    Asked about a tube of ASE.
     
    Sold out he says.
     
    I see about 20 Canadian Grizzly from the Wild Life Series in the show case; First time my eyes have ever actually seen one. Guy say they picked them up yesterday only Silver they bought back lately.
     
    Interesting I think to myself.
     
    So how much for one of these, I inquire pointing at the Girzzly. You can have ‘em for $49 a piece he says…..I know that’s a fair price…but spot was at $28.50 as I walked in—and say, “I’d like to have one, but that’s too rich for my blood”….and leave another LCS with buying anything…..

    • Wow, that is comforting that there are some stronger hands out there other than the few here.  My LCSs were a different story.  While I was there at 11am 3 guys came in selling small amounts of silver.  I stopped in again at 4pm to see a guy lugging in 2 junk 90% bags.  Another shop I called said he is still are not buying as they have more stock from earlier in the week to get rid of so they aren’t buying until it starts moving.
      Luckily I picked up my favorite, painted ASEs, at spot. Soaked in water, they return to their glory!

  2. Hi! Doc I would love to find that ring she’s wearing on the beach with my Metal Detector. Lol
    Maybe I should take a break and buy me some low denomination Platinum and Palladium. Mmmmmmm Na, I’ll stick to my Silver.

  3. Very telling intel 4 OZ.  I plan to buy 100 or so of the plastic coin cases and put in some Canadian Silver Eagles, 1989 series.  If we get a booth at the Reno Gun Show to offload a few spare guns etc , I plan to test the market for silver coins, going for the greed factor to see if anyone bites at $50 per coin.  There are precious metal dealers there and with 20-30,000 buyers in attendance, this will be test of whether these coins can be sold for a profit.  If so, I’d buy back into the silver round market with a profit too boot.  It will be an interesting test. I’d be selling for $20 over spot since these coins are high grade. 

    • What’s a “Canadian Silver Eagle”?  New wildlife series coin?  US-Canada combo coin?  Typo?  Any which way, it might be good!  Lol.
       
       

  4. Have tried my best to purchase from LCD.
    Visited just last week.  Wanted 3.46 each for dimes!
    Has variety & supply, but price is out of sight.
    Paid .2213 each today.
     
    AG12K, you may want to try something other than Maples,
    some may be skeptical with the counterfeit issues reported lately.
    Good Luck!  Let us know how it goes,

  5. On some other BS. I have a good friend that owns a jewelry shop.  He jokingly showed me a $20,000 platinum diamond ring he was working on to replace an insurance claim.   He explained how some guy paid $800 a year to insure it for that past 15 years, so far had been a 32k investment. The insurance company sent him a similar setting and diamond from a wholesaler that came with a $2,300 inventory slip and a $23,000 appraisal. How do they give an appraised value 10x more than they just paid out for it? Guess that’s all part of the insurance scam. If you ever need a fancy piece, just find a jeweler that does insurance work and get it wholesale.

  6. Why do you guys buy from Coin Shops? Why not buy Silver direct from the refiners?
    I used to buy 1 troy Oz coins, but the mark up on those things is mad considering that they are pressed, so now I only buy poured bars and numismatics. Rule of thumb, bigger the bar, the less the production cost. But you got to weigh this up with the ability to pass it on, so I have banked on 100 gram bars.

    • WFS- Are there any refiners that sell under spot?  My LCS will sell overstock generics at spot or $1 over.  MPM is usually $2-3 over on their poured products.  If you are getting under spot, please share with us where.

  7. Ed  B  Yup  Duh  Canadian Maple leaf.  The Canadian silver eagle was a brain fart.  We have a lot more Maples than ASE   Its a test just to see what happens.  Hopefully  silver will be ramping upwards by mid April, the time of the show.

    • Lol… thought that maybe you were testing to see if anyone was paying attention.  ;-)
       
      Mid-April?  Drat!  I was hoping for late May on that.  I’ll be bowling in Reno then and thought I might drop by.  :-)
       

  8. I bought 600 Mercs for $1200 this afternoon.  Can somebody tell me WHY any “stacker” would be interested in paying OVER SPOT for any silver coin, period?  Granted, if your a collector, fine. I was one once.  Did that.  Now, I’m a stacker and interested in OUNCES and, at a price that is conducive to purchasing maximum OUNCES with fiat dollars.

    • I take it your talking about Mercury Dimes? 90% silver 10% copper, For someone who is interested in refining the coins down, the more that silver is an alloy the more you got to take the cost of separating the alloyed silver apart. Yes scrap silver can be bought for less than spot but to get it back to a usable industrial form it will take lots of time and energy which will be taken out of the price that someone will pay for the coinage. Most dealers in the UK when dealing with scrap silver will offer a much lower price on buy back than on 999 pure silver or 925 sterling silver.
       
      I do buy American Coinage, mainly for the aesthetics and some of the wonderful artistry of the coins. I love peace dollars, morgan dollars and old walking liberty half dollars. But I think of these coins “as is” and only buy good examples, not for scrap. There are too many of them for any numismatic value, but I take the hit because I like them.
       
      British Silver coins are 925 silver, because this type of silver can be used directly into making jewellery and artefacts and usually will remain in this alloyed form for as long as time itself, I get better prices for junk British silver.
       
      Anything below 925 sterling silver to me I have to accept that its going to be a coin for all time and buy them for numismatics only. Got some nice 1935 Rocking Horse Crowns (.500 silver) and some 40% silver Half Dollars, I like em. Will pass them on as is to another numismatics guy. :)

    • “Can somebody tell me WHY any “stacker” would be interested in paying OVER SPOT for any silver coin, period?”
       
      Sure.  For a couple of reasons, actually.  While I stack silver, I also enjoy looking at my hoard from time to time and like looking at nice looking coins more than I like looking at culls and other crummy examples of coinage.  Most of the US 90% coins I have are BU grade except for the older Walking Liberty halves, which are mostly VF-XF.  Then too, given that US 90% silver coins are sometimes in short supply locally, it becomes difficult to find ANY for sale at spot.  I do find some but the choices are limited and the amounts small.  When I do buy, I prefer to buy in quantity.

  9. Good idea on owning the WHOLE SUITE of pms.   I tried to buy what was best value at the time, while not neglecting to have a decent weighting in gold.    When gold was $1000-1300 and silver was $12-15sh, I was all about silver.    When the market crashed in 2008, I was on the buy for $200-300 palladium.   In 2012, I was a buyer of platinum while it was cheaper than gold, which shouldn’t be…   I think silver has the most potential at $28 relative to other metals at current price, and have always felt silver should be #1 weighting.   I will probably start switching some silver for gold if the ratio declines.    Shoulda done that at $45-49 silver when gold was only $1500ish.  

  10. I visited LSD and saw plenty of Canadian Silver Eagles, Ha ha!
    Also saw fantastic colors & patterns draped over everything that I looked at.  Chances are that at least one person reading this knows what I am talking about because they saw similar things when they dropped acid.  But I digress…
    -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -
    In all seriousness though, I stopped by my LCS who had five new Silver Dollars – the first anybody has sold him in a week.  When I whipped out my freshly-printed http://www.coinflation.com page showing a spot price of ~22.50 for these, he flatly told me the price was $25/ea.
     
    I walked out the door with three of them in my pocket.
    ————————————————————-
    @silverrrrr, nothing wrong with buying those 200 Mercs at below spot price.  It all depends upon whether or not the seller will let you have the coins for under spot.  I have found few who will sell below spot – and I will Certainly Not sell at or under spot!

  11. @Mammoth   I know.  I know.   That would have been a great trade to switch to gold when the ratio got to 30:1 area.   If you did you sold silver for around $50 and bought gold a little over $1500.   Today, you are still slightly above even with the gold and you can buy almost twice as much silver now if you wished to convert again!   I thought about it at the time, but I didn’t want to molest my favorite metal.   When you could buy platinum for cheaper than gold, I did take advantage of that, I haven’t really bought any gold since it broke out in 2011, but I was a buyer of platinum when it was >$100 cheaper than gold.   
    The Fed can babble all day long about useless jargon, the fact is a debt-based monetary system can only survive as long as it is expanding, and expand it will.   I want to remind all the newbies who didn’t start buying PM until 2011 or later than the severe 30% correction endured in 2008, an epic waterfall decline in mining equities, that it was darkest right before the dawn, and things raced back ricky tick.   In fact PMs outperfomed the Dow and S&P by massive amounts for about 3 years, and this last year or so is just the much needed correction.   
    People are going to keep buying lots of metal.  No one is selling metal, except people who bought too much after the breakout and need to sell some to pay bills or unexpected expenses.    It’s global.  It’s viral.   It lives.  It breathes.
    Whether JPM sells 2 years of mine supply in 20 minutes or not, silver demand exceeds supply.   Supply that has been dwindling for decades.   It’s going into strong strong hands.   Wait until China decides it needs to also have silver to match it’s growing gold reserve!    I believe they ALREADY ARE accumulating silver aggressively could have even had something to do with the move to $49.   There is a strong chance China has several thousand tons of gold now after looking at export/import data!   We are talking well over 100M ozs.   Only a few more years and they will have more than Uncle Schlomo claims to have on the books.  (ha! riiiiiigght! not after all the repatriations start!   That’s going to CLEAN HOUSE!  There’s not going to be any left for Uncle.   That will be the impetus behind the next $1000+ move in gold, which is UP!)  
    So China now has probably $150-200B worth of gold now (marked to Ponzi market.)    That’s a LOT of gold, but it still isn’t much “dollar-wise”in the financial world.   That’s less than most multinational oil companies’ market capitalizations!    We are talking about one of the largest hoards of gold in the world and it’s worth less than half the market cap of many multinational companies!   That right there tells us the gold price is not “too high” or whatever some idiots believe.  
    If China were to merely decide to allocate a mere 10% of their PM reserves into silver that would be $15B-20B!    500-600M ozs silver.   That would be impossible to acquire that much silver at these price levels!   Couldn’t happen with $28.50 silver!!!!!
    Lastly, my thinking is that we may not be putting in the lowest candlestick on the weekly charts, but we are probably going to put the low candlestick on the monthly chart in February or maybe early March.   I still have a feeling there is another heavy scary downleg coming.   There is value in the equity space now, and the miners themselves are going to start finding it thru acquisitions and continued steady results and dividends.   I’d look for companies that were formerly trading strongly and suddenly find themselves down 50% or more for not much reason, like IAG a pretty good stalwart miner with 3%+ yield, less than 10x eps, $1B cash, huge undrawn credit facility, a sizeable niobium specialty operation that is ignored by the market, and has some significant rare earth tonnage as well!    I can’t believe this stock is $7.50.   It was $20ish for 2 years.  Production has been flat the last year and no big increase for 2013, and they did $450M acquisition that the market didn’t like because it was several years out and low-grade, but low-grade works well with cheap power in Canada!  Also, a long term growth pipeline with Westwood and Cote Lake in Canada.   They have 12M oz P&P, another 10-12M oz M&I, and I think 6M oz inferred for a total of 30M ozs gold, it works out to less than $100 per oz EV!   This is a cash flowing established miner.   A year ago even moose pasture stocks had per oz valuations above this!   It’s insane.   I remember how gold stocks got this cheap in 2008, but they had one last brutal spike down that lasted a month but seemed like a year, after which you could back up the truck for the forced selling and it was truly nirvana if you did.

    • “…the fact is a debt-based monetary system can only survive as long as it is expanding…”
       
      Yes, just like any other empire!  Whether military or financial, all empires must expand or collapse.  There simply is no standing in place.
       

  12. I love the idea of trading Palladium, it fits a nice price market and apparently is more rare than Platinum itself according to GeoPhysics.
     
    However, it doesn’t feel right, I know that there is a new ETF for it and that Palladium can now be hall marked, but…nah…Gold or Silver only two options for me.

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