Eric Sprott: "There is No More Silver"

[tsai3904]

Eric Sprott speaking at the Casey Research Gold and Resource Summit.

EDIT: Not sure of the exact date of when this speaking occurred.

 

[cubical]

If there was no more silver then why are companies producing millions and million of ounces every day. Why can I call up dozens of coin dealers and buy silver. I don't understand what he is trying to say, other than the stats are wrong(which sounds like its true).

 

[japes]

If there was no more silver then why are companies producing millions and million of ounces every day. Why can I call up dozens of coin dealers and buy silver. I don't understand what he is trying to say, other than the stats are wrong(which sounds like its true).

So far I've not had any problems buying silver either. Of course I'm only buying 20-40 oz. at a time. It might be different if I added a couple zeros to that. Maybe Sprott runs supply problems because of the quantity he deals in?

 

[ctiger2]

If there was no more silver then why are companies producing millions and million of ounces every day. Why can I call up dozens of coin dealers and buy silver. I don't understand what he is trying to say, other than the stats are wrong(which sounds like its true).

You have to take into perspective that Sprott thinks very big. He knows that if he wanted to buy anymore silver in any significant Qty it would take several months to get it. Large Qty just isn't readily available right now.

 

[tsai3904]

If there was no more silver then why are companies producing millions and million of ounces every day. Why can I call up dozens of coin dealers and buy silver. I don't understand what he is trying to say, other than the stats are wrong(which sounds like its true).

He is not implying that no one is producing silver or it's impossible to buy silver, but that demand is overwhelming supply. Obviously, for retail investors, we're not going to have a problem buying 100 ounces of silver, but the fact that many retailers/wholesalers are noting that many of their products are sold out or they are having problems securing future inventories says a lot about the current demand/supply imbalance. Sprott noted that it took his firm almost 3 months to secure 20 million ounces of silver for his physical silver trust.

 

[cbc58]

he's a bankster in disquise....

 

[fatjohn]

But if large quantity isn't available how come the mint can suddenly go into 5th gear and switch from selling 3 million oz a month to 6 million. Or is that still a small quantity? an extra 3 million a month?
http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=sales&year=2010
http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=sales&year=2011

 

[fatjohn]

And another thing since the start of 2007, the US mint alone has minted 100 million ounces of silver. And I must say that the US is not equal to the world. Countries like india are far more pm minded. So I do not believe that there is only 1 billion ounces of silver available in the world. Not by a long shot.

For example from the french coins: http://fr.wikipedia.org/wiki/Type_Dupré and http://fr.wikipedia.org/wiki/Cinq_francs_Semeuse_(1960)
It is still highly likely that more than 100 million oz maybe even up to 150 million oz of silver in these is still in existance.

 

[pmbug]

Eric Sprott speaking at the Casey Research Gold and Resource Summit on February 21, 2011.
...

Unless I missed something, that took place some months ago in Fall 2010.

 

[pmbug]

If there was no more silver then why are companies producing millions and million of ounces every day. Why can I call up dozens of coin dealers and buy silver. I don't understand what he is trying to say, other than the stats are wrong(which sounds like its true).

Try buying 100oz or kilo sized bars in large quantities. Good luck finding them.

 

[Kelly.]

Try buying 100oz or kilo sized bars in large quantities. Good luck finding them.

http://www.apmex.com/Product/20/100_oz_Engelhard_or_Johnson_Matthey_Silver_Bar_999_Fine.aspx

http://www.apmex.com/Product/35629/100_oz_New_Johnson_Matthey_Silver_Bar_999_Fine_.aspx

http://www.apmex.com/Product/35652/100_oz_Wall_Street_Mint_Silver_Bar_999_Fine.aspx

http://www.gainesvillecoins.com/pro...)pleaseallow5businessdayspriortoshipment.aspx

http://www.gainesvillecoins.com/pro...leaseallow3-5businessdayspriortoshipment.aspx

 

[rckt24]

But if large quantity isn't available how come the mint can suddenly go into 5th gear and switch from selling 3 million oz a month to 6 million. Or is that still a small quantity? an extra 3 million a month?
http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=sales&year=2010
http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=sales&year=2011

as the price increases more silver comes into the market might be an explanation

 

[rckt24]

And another thing since the start of 2007, the US mint alone has minted 100 million ounces of silver. And I must say that the US is not equal to the world. Countries like india are far more pm minded. So I do not believe that there is only 1 billion ounces of silver available in the world. Not by a long shot.

For example from the french coins: http://fr.wikipedia.org/wiki/Type_Dupré and http://fr.wikipedia.org/wiki/Cinq_francs_Semeuse_(1960)
It is still highly likely that more than 100 million oz maybe even up to 150 million oz of silver in these is still in existance.

silver is recycled, recirculated, coins melted, and a lot of silver is thrown away all of the time never to be recycled. I'm not saying I think there are only 1 billion ounces but you have to take these things into consideration.

 

[Arklatex]

I wouldn't discount what he says to say. 100 0z bars are few. APMEX just listed a lot of those, I know because I was looking just the other day. They were sold out of a lot of the 100 oz products, the Johnson matthey. And now they only have 38! This is the biggest bullion retailer in the US I believe!

Also, how much silver is being made available from those poor saps selling to those "cash for gold" programs who are paying pennies on the dollar. All that jewelry is being melted down. How much is coming from that?

I heard a rumor that it was none other than the Federal Reserve financing all those Cash for Gold commercials that played on every channel every day for like 6 months. Don't know if it was true... but it makes a lot of sense. I wouldn't be surprised one iota.

The world's financial system is in it's final stages, silver has gone from $20 to $33 really quick. I don't doubt for one second their is a shortage of precious metal. You liquidate all the paper GLDs and SLVs, and "futures contracts", and I guarantee you their is MASSIVE shortage of physical silver. Most people don't own physical. It's like musical chairs.

 

[cbc58]

i wonder how many are buying silver at this level... or just hoping others do. if you're wanting your holdings to go up in value you tell people there isn't much left - whether it's true or not.

 

[Arklatex]

Bernanke or Sprott? Which one has hidden agenda?

Fed Notes vs Precious Metal

Which one is in limited supply?

 

[tsai3904]

Unless I missed something, that took place some months ago in Fall 2010.

I think you're right. The summit occurred between October 1-3, 2010.

 

[tsai3904]

But if large quantity isn't available how come the mint can suddenly go into 5th gear and switch from selling 3 million oz a month to 6 million. Or is that still a small quantity? an extra 3 million a month?
http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=sales&year=2010
http://www.usmint.gov/mint_programs/american_eagles/index.cfm?action=sales&year=2011

The point is that at current price levels, demand is overwhelming supply. When demand outstrips supply, it doesn't mean that people can't buy what they are demanding, but that prices will have to rise to satisfy demands. Just because the US Mint has sold an extra 3 million a month doesn't mean that there's no supply of silver. It means that there wasn't enough supply at say $25/oz when they demanded it. If Sprott wanted to buy another 20 million ounces of silver and he says that there's no more silver left, it doesn't mean that he's not going to be able to buy silver, it means that he's not able to buy 20 million ounces of silver at current prices. I'm sure there's investors willing to sell him 20 million ounces at $40 or $50 an ounce.

 

[Arklatex]

 

[hazek]

The point is that at current price levels, demand is overwhelming supply. When demand outstrips supply, it doesn't mean that people can't buy what they are demanding, but that prices will have to rise to satisfy demands. Just because the US Mint has sold an extra 3 million a month doesn't mean that there's no supply of silver. It means that there wasn't enough supply at say $25/oz when they demanded it. If Sprott wanted to buy another 20 million ounces of silver and he says that there's no more silver left, it doesn't mean that he's not going to be able to buy silver, it means that he's not able to buy 20 million ounces of silver at current prices. I'm sure there's investors willing to sell him 20 million ounces at $40 or $50 an ounce.

This.