Shanghai Silver Backwardation Ends, Premiums Down

Shanghai Gold Exchange withdrawals 2014 week 23Chinese gold demand in the past few weeks is not as strong as in the beginning of 2014 or as in 2013 after the price of gold crashed in April, though the levels are slightly higher as they were throughout 2011 and 2012.
On the Shanghai Futures Exchange (SHFE) all silver futures contracts came out of backwardation this past week (week 24), and on June 13, most Shanghai silver premiums over international price closed under 6 %.
The prior week they all closed above 6 %.

The scarcity of silver in Shanghai appears to be easing.
[Read more...]

Chinese Gold Demand An Epic 823 MT YTD, Shanghai Silver Scarce

SHFE silver backwardation june 6, 2014Silver remains scarce in Shanghai, premiums for spot silver this week have been above 6 percent over the international price and some contracts on the Shanghai Futures Exchange (SHFE) are still trading in backwardation.
On June 6, when the SHFE closed, the bid price for the first delivery month silver contract, which expires on June 16, was ¥ 4058 yuan. The ask price for the December contract was ¥ 4053 yuan.
This means that when you own physical silver, or can get your hands on any, you can sell it in June and at the same time buy it back in December for less money.
Silver delivered in June trades over a premium to silver delivered in December, which emphasizes spot demand.
Normally precious metals trade in contango; future prices being higher than spot. [Read more...]

What Was The Primary Miners Break-Even Silver Price Q1 2014?

SRS8The top 12 primary silver miners sold an additional 5.8 million oz of silver this quarter compared to Q1 2013 for a net loss of $78 million in revenue ($550 million – $472 million = $78 million)… whereas by-product revenue increased $105 million.
This resulted in the estimated break-even price for the top 12 primary silver miners of $19.78 or $4.27 lower than the average for full year 2013.  [Read more...]

BrotherJohnF Silver Update: Big Smash Coming in Silver!

freefallBrotherJohnF is back, predicting an imminent BIG SMASH in silver, in his latest silver update:
Billionaires Busted! [Read more...]

The Elephant’s Silver Necklace

Elephant hunting MorganIt’s no secret that demand for the U.S. Mint silver eagles coin has been unprecedented. It is a walk back through memory lane following the 1986 confirmation of the growing (exponential) popularity of the legal tender coin program.
Many are left these days scratching their heads about who is buying all these coins. Retail demand seems soft at best, with stable coin premiums relative to times of relative shortage.
Speculation has ranged from steady domestic demand to JP Morgan or some other large entity quietly or surreptitiously stockpiling silver eagles.
However, the real elephant in the room for silver demand may be the oldest form of silver – the demand for silver jewelry.
[Read more...]

Precious Metals Manipulation Isn’t Hidden, It’s Right In Front Of Your Eyes

Global Conventional Investment Assets Updated 2013 EstimateThere is no need in trying to prove precious metals manipulation, because it’s out in the open… right in front of your eyes.  However, this doesn’t stop the silly games being played by some of the well-known analysts in the precious metal community.
It is the siphoning of the majority of the worlds fiat currency-funds into the Derivative-Paper Market that is guilty of manipulating the values of gold and silver.  If a fraction of these funds moved into physical assets such as gold and silver, their values would rise to unimaginable levels.
The world will be forced to move into Gold and Silver one way or another.
My advice is… you better get some before it’s too late. [Read more...]

First Quarter Canadian Maple Leaf Sales Up A Hefty 24%

Canadian Maple Leaf Sales Q1 2014With the release of the Royal Canadian Mint’s first quarter 2014 report, sales of silver maples increased substantially compared to the same period last year.  While Silver Eagles sales in Q1 declined slightly year-over-year due to a backup at the U.S. Mint, the Royal Canadian Mint reported a 24% increase in Silver Maple sales.
The Gold (and Silver) price manipulation will end one day OUT OF THE BLUE.  There will be no warningAnd of course it will be too late to purchase gold or silver. [Read more...]

Shanghai Silver Remains in Backwardation

SHFE silver backwardation may 23, 2014The physical silver shortage in Shanghai continues… [Read more...]

Harvey Organ: Banking Boys Are in Real Trouble- Massive Derivatives Crisis Looms in Gold!

Play

end badlyHarvey Organ joins the show this week for an EXPLOSIVE and MUST LISTEN Metals & Markets discussing: 

  • Massive US gold exports: NY Fed stealing sovereign nations gold- Harvey states ALL CUSTODIAL GOLD AT NY FED has now been shipped to China! 
  • GOFO Negative & silver backwardation with huge physical premiums in Shanghai- shortage looms
  • Death-blow to the dollar- Russia/China $400 B Gas deal a decade in the making is official
  • Eric Dubin explains how after years of rumors, COMEX default could come this summer!
  • Eric makes the case for a 50% upside move in silver coming in 6 months, while Harvey states that the cartel is nearly down to their last ounce of gold, & AN OVERNIGHT REVALUATION OF GOLD TO $4,000 WITH NO-BID SELLERS IS COMING IN 2014- PERHAPS AS EARLY AS JUNE!!

“The fun starts when the run on COMEX begins- $1.4 quadrillion in derivatives will burst in 2014 in a full-blown implosion! -H.O. 

The SD Metals & Markets With The Doc, Eric Dubin, & Guest Host Harvey Organ is below: [Read more...]

The Doc: Is There a Better Investment Opportunity Than Silver?

gold & silver sold outThe Doc joins Wall St. for Main St.’s Jason Burack for a wide reaching interview discussing current precious metals demand through the eyes of a retail bullion dealer, the current supply/demand situation for the ammunition and firearms market, and The Doc’s take on the overall macro-economic situation- how long do we have before a complete systemic collapse? 

The Doc’s full interview with Wall Street for Main Street is below: [Read more...]

U.S. Exports 128 Metric Tons Of Gold Jan & Feb 2014… Supply Deficit Increases

U.S. Gold Exports Jan & Feb 2014As Russia, China and the other BRIC countries work towards a system that doesn’t include the TURD called the U.S. Dollar, Americans have less and less time to prepare for the GREATEST TRANSFER OF WEALTH…. in history.
Not only did the U.S. export 128 metric tons of gold in the first two months of the year, its supply deficit continues to increase. 
While gold exports to Hong Kong fell in February, Switzerland imported another 28 metric tons of gold during the month, more than twice the 12 metric tons it imported in January.
If we look at the chart below, we can see where the United States exported the majority of its gold.

[Read more...]

Firsthand Account: Investment Grade Silver Shortage Developing in China

china bank runWe have well documented over the past few months the unprecedented flows of physical gold and silver being drained out of Western vaults and shipped East.
SD reader Ji Hai Shan, an American currently residing in China, has provided a boots-on-the-ground first-hand account which substantiates our recent claims that spiking silver premiums on the Shanghai Gold Exchange indicate a shortage of the physical metal in China.

“3 months ago, when I inquired about buying some more bars, they said that I would have to wait a month.
So, yesterday, I stopped by the shop and was told again that I would have to wait a month. 
The affordable investment grade bars are in shortage.”

Ji Hai Shan’s first-hand account of the developing shortage of investment grade silver in China is below:

[Read more...]

Silver Stealth Buying

silver rushSilver has suffered as a market pariah this year, dragging along doggedly near major lows.  Investors have seemingly abandoned it to chase the Fed’s general-stock-market levitation, an affliction plaguing most of the alternative-investment realm.
But rather provocatively, silver buying remains quite strong even in this dreary sentiment wasteland.  This stealth buying will likely explode once gold starts running. [Read more...]

Silver In Backwardation- Sudden Premium Spike Suggests Physical Silver Shortage Hits Shanghai

Two events currently suggest a possible shortage of physical silver in Shanghai.
The first; premiums for spot silver on the SGE have been rising significantly since March 17.
From the weekly Chinese SGE reports we can see Shanghai silver prices have reached a premium to international prices of 4 % (official SGE numbers as of 4/30).
If you compare the LBMA silver fix with the SGE closing price for Ag on May 9, the premium on silver in Shanghai has reached 5.3 %.  [Read more...]

BIG Move Coming: Silver Is More Oversold Than At Any Time In The Last 20 Years!

monthlysilverEveryone in the precious metals community is scratching their heads over the recent behavior of the price of silver.   At the end of the day, the severely depressed price level can only be attributed to the extreme degree of manipulation and price containment activities of the Federal Reserve and the U.S. Treasury’s Exchange Stabilization Fund team (which is officed in the same building as the NY Fed).
Besides containing the upward price movement of gold and silver in order to support its effort to prop up the dying U.S. dollar, the question is, why is silver being hammered like this with Comex futures?   Ultimately, I believe a severe shortage of unencumbered physical bars for delivery into India and Asia has developed.  More on this in the next few days.
In the meantime, you can see from the 20-yr graph of silver that silver is, by far, more oversold than at any time in the last 20 years: [Read more...]