Why are Silver Prices Falling?

Especially with the white-hot demand for coins

It's one of the biggest mysteries in finance right now.

I mean, it's a real head-scratcher

...
On one hand, demand for silver coins has been off the charts. With so many investors wanting to swap currency for silver, neither the U.S. Mint nor the Royal Canadian Mint has been able to keep up with purchase requests.

In fact, the U.S. Mint actually had to suspend sales of the "Silver Eagles" just a couple of weeks into the New Year - and it still smashed the all-time monthly sales record in January by selling 7.5 million of the hugely popular coins.

And that insane demand carried over into February and March.

After the first two months of 2013, the U.S. Mint had sold nearly 10.9 million American Silver Eagles (ASEs) - a third of its sales total for all of 2012. And on March 18 - the Monday that followed the weekend news about the Cyprus bank-deposit-confiscation plan - the Mint reported a stunning sales total of 638,500 of the silver coins ... for just one day.

But here's the kicker. Despite this frenetic buying, spot silver prices have actually fallen since the start of the year - a conundrum that's ignited fears of a silver shortage and investor allegations of market manipulation by Wall Street.

With this scorching demand for silver coins - and reported shortages of silver-based investments - how is it possible for the metal price to be falling?

One reader, after experiencing this frustration firsthand, recently sent us this query:

For several weeks now, it has been difficult to purchase physical silver at any of the nation's coin shows, and most dealers have a very small supply - if they have any inventory at all. What little silver they can purchase, they tell me, goes out the door quickly as buyers snap it up. Yet the market price of silver remains below $29 to $30 an ounce.


Recent reports note that Russia has made a hefty purchase in excess of 25 tons of silver. Has that affected U.S. supplies? What's the overall outlook? We'd be grateful to hear your take on this. Most of the folks we ask seem baffled, too. - C.C.

Read more at http://www.stockhouse.com/columnists/2013/april/3/why-are-silver-prices-falling-.aspx#jZBDbkAxG91K66J3.99




MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Expect Higher Silver Prices From Soaring Investment Demand

http://etfdailynews.com/2013/04/01/expect-higher-silver-prices-from-soaring-investment-demand/

April 1st, 2013
Diane Alter: For the past few weeks, silver prices have been trading sideways. Kitco notes this tight trading range “could be “basing’ action that can put in market lows and occurs just before an uptrend begins.”
For those investing in silver, that’s great news.
And if you don’t think silver prices will go higher this year, here are three charts showing otherwise.
Higher Silver Prices and Soaring Investment Demand
Recent and ongoing events like sequestration, central bank easing, devalued currencies, and the Cyprus bailout have increased investor de
mand for metals, especially silver.
While 2012 sales weren’t as high as 2011, buying picked up in earnest in the final months of the year as investors raced to protect their nest eggs amid fears of a U.S. recession. As the pace picked up, the Mint ran out of silver eagles in December 2012, forcing it to announce there would no more coins until 2013.
In fact, in 2012 the U.S. Mint’s silver coins sales sold 33.7 million ounces of silver – more than the 33.5 million ounces produced from U.S. mining operations, according to the U.S. Geological Society.
MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Eric Sprott : unusual things are happening in the Gold & Silver Markets

Eric Sprott : This will sound like a conspiracy theory, but unusual things are happening in the gold and silver markets. For example, on Feb. 19, nearly an entire year's supply of gold traded on the Comex in a single day. The same volume of silver trading happened on the commodities exchange. You and I both know that the people selling that much metal cannot deliver it because it is just not available. Yet somehow they are out there, pounding down these contracts and keeping the price suppressed. I would hypothesize that the central bankers know their policy of printing money is the most irresponsible thing imaginable, and they are suppressing gold and silver prices to hide their irresponsibility. When one is printing that much money, gold and silver prices are the first things you would expect to rise. If we saw gold going to $2,000/oz, the price of oil would probably go to a new high and the price of agricultural commodities would go up. Then you would have a huge inflation problem on your hands. Based on my research, I believe the Western central banks have been surreptitiously supplying gold to the market. I say this because the demands I see for physical gold are way beyond the supply of gold. The annual gold supply has not changed in 12 years, and demand just keeps increasing from China, India, the U.S. Mint and silver and gold coin sales; even the non-Western central banks are buying gold. Where is this gold coming from? I think the Western central banks are selling gold to keep the lid on the price so everyone thinks their monetary policies are benign. Nothing could be farther from the truth. - in a recent interview with mineweb


MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Growing Silver Shortage Ignites Demand for Silver Polar Bear Coin

By David Engstrom | March 13 2013 8:53 AM
With silver prices off 10% in the last 30 days, it’s hard to believe there is a growing silver shortage. I liken it to crossing the desert with a canteen full of water. As long as there is at least one drink of water left in the canteen, there is no shortage. And then with the last drink, as you attempt to shake out the last drop, you realize your canteen is empty. But, even then you don’t totally believe it. As thirst sets in you desperately try one more time to pour out any remaining drops. Then, it hits you. Ahh Nuts!
First signs of a silver shortage came when the U.S. Mint announced they were out of Silver Eagles. As the New Year turned, sales were suspended. Then sales resumed, only to be met by record demand and another shortage was announced. We’re not even through first quarter.
While our mint struggled with its own supply-demand dilemma, reports hit the industry that the Canadian Mint had begun to ration its most popular silver coin, the Maple Leaf. Yet, the silver price continued to decline as if to tell would-be investors, “there is no shortage, wait for the bottom.” Of course everyone thinks they can time the bottom and buy in at exactly the right moment. Never mind reports of a shortage, the declining silver price proves any notion of such is folly. After all, Chinese silver is still available. Or is it?
read more : http://www.ibtimes.com/lear-capital-growing-silver-shortage-ignites-demand-silver-polar-bear-coin-1123111#
MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Silver Shortage Coming

 Silver Coins Sell Out


By Swagato Chakravorty
Monday, March 18th, 2013

As of March 11, 2012-W Uncirculated American Silver Eagle coins were not available for purchase anymore from the U.S. Mint.

Since August 2 of last year, when they had gone on sale, SilverCoinsToday reports that 202,504 were purchased. However, that figure is for individual purchases; the coins also form part of the 2012 Annual Uncirculated Dollar Coin Set, which is still available from the Mint.

That means there will likely be more sales for the Silver Eagle coins. Altogether, we’re looking at 220,559 and growing. Nevertheless, back in 2006, sales amounted to 466,573. As recently as 2011, 409,927 coins were sold. Clearly, there is a significant shortfall in sales of the one troy ounce silver coin.

Aside from this news from the Mint, consider that over the past month, silver prices have crashed by 10 percent. Sales of Silver Eagles had first been suspended around New Year’s, then resumed briefly, and now there’s another shortage. All this and Q1 isn’t even over.
read more >>>>>


MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

James Turk ~ Central Banks are Losing the War to Suppress Gold & Silver

Odious debt, also known as illegitimate debt, is a legal theory that holds that the national debt incurred by a regime for purposes that do not serve the best interests of the nation, should not be enforceable. Such debts are, thus, considered by this doctrine to be personal debts of the regime that incurred them and not debts of the state.

MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Eric Sprott likes Silver more than Gold - CNBC

the markets are IMO, being propped up to entice popular investment, like in the first crash in 31. Got the whole population pretty much investing, borrowing etc then pulled the rug out from under everyone. I wouldn't buy any stock w/real money at all...hate that feeling you get when you get ripped off, conned. so why do it, when I know that is the point of the DOW etc going up? any second now, rug...GONE. IMHO

MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

What is a silver shortage, and is there one right now?

What is a silver shortage, and is there one right now?

Following the news last week that the U.S. Mint had run out of its initial production of 2013 Silver Eagles, reports were circulating on industry blogs that the Royal Canadian Mint was next-in-line, and suffering a silver shortage. In other news the FED balance sheet crosses 3 Trillion as they print $85 billion per month. Not only is the fed printing but countries across the globe are expanding their currency supplies.Very interesting how the velocity of US Dollars is at a 50 year low while the money supply triples... which is the only reason that inflation has not yet sky-rocketed. But with the world-wide massive debasement of currencies by printing money out of thin air and chronic massive deficit spending, the prognosis for paper money & world economies is not good. This is all non-sustainable & sooner or later, something is going to give. Don't trust paper, trust PHYSICAL gold & silver in your hands.
MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet