What’s the Price of Silver if There’s None to be Had?

We already know that an ounce of Silver is not worth the $23 that COMEX says it’s worth.  No, buyers-investors-scared fiat rabbits are paying more…30% more for the real, hold in your hand “stuff” that COMEX is so badly underpricing.  Let me go back to the beginning, what is an ounce of Gold or Silver worth if and now when an ounce is not available?

The old saying goes, “there’s no rush like a Gold rush“.  This saying always speaks to “greed”.  The coming Gold rush with its roots in “fear” will be unlike anything before it because in reality it will be an all-out, all-encompassing global bank run!

 

2013 Silver Eagles Available Now at SDBullion!

Submitted By Bill Holter, Miles Franklin Ltd,:

…and there was no one around, would it make any sound?  Or wait, a better question is, if there was no Silver to be had…what would one ounce be worth?  And of course, what would one ounce of Gold be worth if there was none to be had…?   No, really, what would it be worth?  Would it be worth what the “COMEX” says it’s worth?  More?  Less?  About the same?  Nothing?  Priceless?  1,500 cans of tuna fish and some toilet paper?  1,500 rounds of ammo?  A pack of chewing gum or a car?   Think about this question, what “would” an ounce of Gold or Silver be worth?

 Do you wonder why I am asking you these questions?  Simple, because we are soon, I think very soon to find out the answer even if you are not asking it!  We already know that an ounce of Silver is not worth the $23 that COMEX says it’s worth.  No, buyers-investors-scared fiat rabbits are paying more…30% more for the real, hold in your hand “stuff” that COMEX is so badly underpricing.  Let me go back to the beginning, what is an ounce of Gold or Silver worth if and now when an ounce is not available?  What is it worth if God forbid…the government loses its mind and makes Constitutional money ”illegal”?  But wait, here is an even better question, if Gold and Silver were to become “illegal/outlawed” in the US but not overseas, then what would they be “worth”?
I know, lots and lots of questions but no answers right?  I am asking these questions because I want you to think, think for yourself.  What does it mean when China, India, Australia, Europe, the US and others are displaying serious shortages of Silver?  And now Gold has become tight also, what does this mean?  Why is the stuff disappearing?  Why now?  Supply hasn’t shrunk but the demand side has been turned on like a light switch!  Demand was brisk coming into this price crash and it was steadily increasing.  In the past (with the exception of late 2008), price hits actually did work to some extent in slowing demand through “fear”.
This I believe has now changed, “this” being what it is exactly that people are afraid of.  In the past, price swoons would work to lower open interest on the paper markets and make people think twice in the physical markets.  I believe that this latest (and most blatant of all) manipulation will be seen as the last straw because a “run” on metal is in progress.  This “run” has the potential of turning into an all out sprint, physical supply absolutely MUST hit the markets and hit them fast if this is to be avoided.  The markets (worldwide) must be supplied and “calmed” or an all out bank run will result.
The “fear” now is not owning precious metals and being “scared” that the price will go down, no, the fear now is systemic.  The fear now is that your bank account gets raided like the Cyprus/template/example.  The fear now is the “government” wherever you may be, fails or defaults.  The fear now is that your central bank does a monkey see monkey do with the Bank of Japan and decides it’s a good thing to double money supply.  The fear now?  In a nutshell is a result of everyone, everywhere being fed a morning noon and night diet of lies that of course never panned out.  People have eyes, ears, lives and experiences on their own, the “green shoots” around every corner propaganda has been proven completely false and hollow.
Finally it looks like the “fear” has morphed from what “they” want you to be afraid of into REAL fear.  Human instinct is taking over and when it comes to emotions, fear is a far greater emotion that greed ever could be.  This “fear” that I am speaking of is, yes you guessed it…the fear of NOT owning precious and in your hand metals!  This is a worldwide phenomenon that began a long time ago but went terminal a week ago Friday.  “Price” seems to have exposed “supply”.  The old saying goes, “there is no rush like a Gold rush“, this saying always speaks to “greed”.  The coming Gold rush with its roots in “fear” will be unlike anything before it because in reality it will be an all out, all encompassing global bank run!  We will look back and see very clearly that the “system” itself was flawed and what caused its own demise.  …of course you will hear “who coulda’ seen it coming?”.  The people making a run on the physical markets, that’s who!  People are finally waking up…   Regards,  Bill H.

Comments

  1. If I am not mistaken, the US Mint is minting PM’s with the People’s silver and gold. They sell it to their “authorized dealers”. They set capriciously rigid preconditions to become an “authorized dealer”. That is where the food chain can stop. Are the “authorized dealers” mandated to sell to wholesalers/retailers at a profit/loss pegging to spot prices. This is the People’s bullion, not the “authorized dealers’”. The supply to Alpha Charley is impeded with 2-4 degrees of separation to owning US PM’s from the US Mint. In essence, “authorized dealers”, wholesalers, retailers are not obligated to sell anything to American Citizens. There is your shortage. The bullion stops 2-4 degrees after the mint sells before I have a chance to get any. This is a problem. A Mint “authorized dealer” can sell directly to a wholesaler/hedge fund who keeps the phyzz locking us out, right? So, call Congress? The Mint can stop minting coins altogether? Or allow unfettered access without 2-4 middlemen? What it is?
    Referring to the Battle of Thermopylae, “Stranger, when you find us lying here, go tell the Spartans we followed their orders.” 

    • @Thomas: We can buy ASEs and AGEs directly from the mint too. I would say that since it is public metal, everyone should be allowed to buy at the same price, regardless of how many they buy. Equal under the law.

    • @Thomas – Congress foresaw this which is why they mandated that the US Mint create enough ASEs to meet the public demand.  Unfortunately nobody in this corrupt government is enforcing the law and ensuring that the Mint uphold the law.

      @RocketsRedGlare You cannot buy bullion ASEs or AGEs directly from the US Mint. Call them up and try…

    • From the US mint website:
      “Aside from the proof version, the United States Mint does not sell American Eagle Bullion coins directly to the public. Instead, the Mint distributes uncirculated Bullion coins through a network of wholesalers, brokerage companies, precious metal firms, coin dealers, and participating banks, a network known as Authorized Purchasers.”
      As for current pricing of available silver, over the last several months, I’ve purchased several hundred face-value worth of 90% dimes, always at or up to $0.30 over spot. The bag I bought 2 weeks ago from the LCS had a premium of $2.00. That same LCS is now charging a premium of over $4 for junk silver…and there’s little available.

  2. I hope that very question will be answered May 1st!

  3. Free markets are one of the most biggest myths in the United States.  We have a captured regulator like the CFTC overseeing wall street banking cartels.

    What we have is a controlled market.  Controlled by futures markets and naked short selling.  Not by real physical supply and demand. 

    Other recent examples of a controlled markets include LIBOR and yesterday I read how the GDP will be adjusted postive 3 percent. Other government statistics that seeme to be controlled include the CPI.

    How to value silver and gold in a controlled market?  That is a great question!

    I have seen several analysts recently speaking about precious metals who have made assertions that precious metals aren’t worth anything because they don’t offer any cash flow or dividend.  But, neither does my savings account.  So, by that definition, my bank account is worth nothing as well.

    If gold was used to back simply the fiat base money supply ($3 trillion), gold would have to be revalued to roughly $11,000/troy oz.

    The United States has roughly $12 trillion in public debt and another $5 trillion interagency debt (money it owes social security, etc…) If the US backed all of its obligations by all of the its reported gold holdings (8,133.5 metric tonnes), the price of gold would have to settle at $65,000/troy oz in order to meet its obligations in gold.

  4. None of my silver is for sale at these phony prices, not even my scrap sterling silver.

    • none of mine either. Im in the uk and im wondering how much longer I will be able to buy at £24 an ounce with spot at £15.30. Buying what I can while there is still a peg to the spot price. Im having to wait 5 weeks for an 8 oz order to be filled!

  5. Saddle, silverrrrr, undeRDRound, RocketsRedGlare, Ed_B, PowerBall, ThreeGs, AGXIIK, Kenneth, and anybody else who I missed –
    Thank you all for sharing your comments regarding that possible purchase of the 40% Kennedy halves.  I decided to hold off and wait for some more 90% to come along.  Heading to the LCS again after work and will heck to see what is in the bin there. 
     
    (Probably cobwebs, ha ha!)
       
    Cheers, 
    Mammoth
     

  6. The May 1st thing is a cool idea, but at this point the retail silver stockpile is in full retard mode so there may not be much to buy!
     
     

  7. Bingham canyon and pascua lama: 35M oz of silver NONsupply anytime in the next decade.

  8. Crikey   Me and a couple of local silver homie troops rounded up some FIAT and placed an order for 200 oz of buffaloes.  I think we got the last bit of phyzz on the shelf at $3 over spot   Happy to get it $26.50 an ounce and delivery in about a week or two.  I am sad that others are having trouble finding silver. 
    If bank runs have not started in earnest with except of the problem-based bank ones in Spain, Italy, Greece, and the other piggies, when the bank runs do start it’s a pretty good chance there won’t be much silver or gold to be had—PERIOD  Am I right on this or is the silver availability a function of the physical price going up enough to get holders to cough up the phyzz
    What happens in China and India when 2.5 billion people who ARE aware of the real value of silver and gold realize there is not an ounce to be had. It’ll make the Calgary Stampede look like the kiddie show.

    • Actually, AGX, there ARE 2.5B people in China and India who know the true value of silver and gold.   And although they don’t all have much money, you can bet hundreds of millions of them DO.

  9. you are right slvrz   The wealth of China rest at the top and the government has $3 trillion in foreign currency reserves but it would not take much for them to make a market that’d be unstoppable  But I think they are already doing this  The HK Gold Society isout of gold and silver and waiting for another shipment from London and Switzerland  Good luck there. The clamor for metals is going to force the price up IMO
    I wonder where the price would need to go to get PMs back into the market and when the price would max out and no one would care to buy more?

    • “I wonder where the price would need to go to get PMs back into the market and when the price would max out and no one would care to buy more?”
       
      As the price rises, demand will rise as well.  As you suggest, there will come a time when people simply cannot pay more.  It will not be a lack of desire, however, that determines this but a lack of suitable funds.  That sounds like a great time to be a seller.  But what to accept for our ounces?  Dying paper currency?  Probably not.

  10. AGXIIK, Since PM’s are one of those odd things in which demand increases as the the price does, there will be a rush of people trying to get on the bus when the current downtrend reverses itself.  And this in itself should push the price up even higher.

  11. I remember that now Mammoth
      Willie calls it a Giffen Good.  More demand, higher price. That could lead to a synergistic effect as demand and price ratchet upwards   That is closely dependent on supply  But if the price hits $35-40-50 or higher per oz I imagine that more silver will flow to the demand side as people cash in on their new found wealth in silver price increases.  The harsh reality of the in(hyper)flation has not rotated to the US yet.  Argentina, Venezuela, Cyprus are feeling the very real effects of hard inflation that is creating a very solid gold and silver price when someone can buy these PMs with US dollars or another currency that has not be subject to local controls.  Maybe controls, real or threatened, will goose the US market.Not that the market hasn’t been goosed but I think it’s due to the low price.
      Something has to wake up the general population that the silver train is leaving station. All aboard for the Giffen Flyer Then we will probably see some real price rises. Maybe even a full bifurcation of the paper and physical prices

    • “Maybe even a full bifurcation of the paper and physical prices”
       
      EEK!  Bifurcated in our prime, no less.  lol
       

  12. No silver to be had?  Physical silver supplies are at 10 year highs and GREW by 1mln ounces last week.  Hardly the signs you’d expect if there was in fact no silver to be had.
     

    • Where are those supplies? They sure aren’t in the gold and silver retailers.

    • Supply is half of the equation.  Whatever the supply, demand seems to be out-running it.  Check the on-line silver sellers.  Many of their products show as “delayed” or “out of stock”.  Doesn’t sound like massive abundance to me.
       

    • Depending where you are geographically you’ll find different stories, many are on backorder, many others have plenty available.  Physical supplies are not the coins and bars you’re looking for, but in 1000oz bars.  It will take time to convert that to physical.  It is coming.  Also, it is the 1000oz bars that underly the paper market.  If those prices remain well under physical coins you’ll see plenty of people arbitraging the market and cash/paper prices will again converge with normal premiums.  Only question is will paper price be $20 or $30 when that happens… wish I knew!

  13. That’s right Ed  First it’s Don’t ask Don’t tell.  Then it’s gay marriage.  The next thing you know you’ll be bifurcated. 
    Have you been  bifurk’d today?  Be first on the block.  If you’re old enough, Ben Gay will do it for you.

  14. The CFTC said that what the house is doing at the comex is not manipulation.  OK so it’s not manipulation.  It’s fraud.  When you dump anywhere from 200 to 800 million ounces of Silver onto the market electronically in one trading day when you only have 40 million registered ounces for sale that is blatant fraud.  The secret service is supposed to protect the money supply but they have let the FED take a dump all over it.  What a bunch of morons.  Look at a 650 year Silver chart.  That’s what Silver is worth.  OK so Silver used to be manufactured by captured prisoners of the rival civilization. It was kind of deadly to manufacture Silver back then but then again now there are 10,000 more applications for Silver than way back. So it is probably worth less than its 650 year high price. Anyway I don’t know either. A lot. That’s what it should be worth.

    • Fraud isn’t fraud in a world where fraud has been Legal for the last century. It’s all above board to turn everything into a Ponzi scheme and capitalize off of destroying peoples lives in a world where people en-mass were stupid enough to condone it. It’s law of the Jungle. People who didn’t know this then I guess were simply the prey in the jungle. If you sit down at a poker table and it takes you any space of time to work out who the chump is…..Then….It’s YOU :)
      Time to take the Yacht for a 2 year sabbatical and don’t forget the fishing rods, solar panels and reverse osmosis filters.

    • “Time to take the Yacht for a 2 year sabbatical and don’t forget the fishing rods, solar panels and reverse osmosis filters.”
       
      Yeah.  Not to mention a ton or so of TP.  ;-)
       

  15. ALL Fractional Monetary Systems (Fiat and LMBA/FOREX) are NOW breaking. Trade Deflation and Over-Capacity in commodities producers combined with Monetary Inflation, is a pretty clear historical indicator unless you are in a football and beer induced coma. This is the suck in motion that a Super Black Hole does before it explodes latrine style….eye of the storm, Category 666 Global Fiat Cyclone from my nightmares. The only solution to this one will be martial law planetary wide….but definitely in the USA; the world reserve currency gives the USA a front seat for this mass cinema shooting. Nobody smacks down PM’s like this unless they are playing their last cards.

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