Sunday, September 25, 2011

Bullion shortages

I am seeing on message boards that some bullion dealers are closing down or running out of physical silver. Silver could go into the $20s but bullion may be hard to get.Some places are closing their websites because they do not want to sell below $30 an ounce. I think they simply do not want to take a loss on their silver inventory that they may have paid $40 per ounce for. This reminds me of 2008. 
   I checked some of the bullion dealer websites. Dimes are out at Apmex and they raised the spread on the other coins. The shortage isnt severe yet.  Silver is around $29 at 11:17pm sunday.  The problem about waiting for the price to go down is there may not be much to buy. This happened back in 2008. Silver dropped like this in 2004 after a run up, then 2008, and now it is happening. I think this is a trading pattern with silver but I am certain it will go back up again.  If this happened to one of my stocks I would sell it and not be happy at all. Companies can become penny stocks like Fannie Mai did and not ever go back over $1.00 again.  Silver will recover though just like it did the other times it fell in price; the budget shortfalls and faulty fiat money is still there and nothing has changed about silver itself.  They can't issue more shares of silver and gold like they do with stocks. We may have to wait a year or so to see $40 silver again though. If the economy picks up silver will be in demand for industry as well as investment. At 11:37pm sunday silver is $29.25 at Kitco.

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