Bullion silver is likely to be less pure than coins or small bars, but 1,000 ounce bullion silver bars are cheaper per ounce than the smaller fabricated sizes. Bullion silver is typically available for only a few cents more per ounce than the spot price in the paper futures market. So long as bullion bars can always be purchased at little more than spot price, a business that simply melts the bars would never pay more to melt fabricated silver, even if it is more highly refined. If the business could not buy cheap bullion bars locally, it would simply go long a futures contract and then stand for delivery of the physical bullion silver.
All I can say is this. Yesterday afternoon’s “Miles Franklin All-Star Silver Panel Webinar” was an unmitigated success. Direct questions regarding silver supply, demand, mining costs, inventories, and trading with David Morgan, Harvey Organ, Steve St. Angelo, and Bill Holter enabled listeners to derive a significantly better understanding of how tight the market is – and will likely be – in the coming years. Thus, we courage that you will listen to it on the Miles Franklin Blog – and send it to as many people as possible, the world round.
COT Silver Report - October 17, 2014
Miles Franklin hosted a Webinar moderated by Media Director Andy Hoffman featuring top minds in the silver research community. Panelists included David Morgan, Harvey Organ, Steve St. Angelo, and Bill Holter of Miles Franklin. They discussed supply/demand of gold and silver, mining production, oil prices, trading, and the bullion industry.
“The truth is incontrovertible. Malice may attack it, ignorance may deride it, but in the end, there it is.”
-Winston Churchill Let’s take a look at this quote in the context of physical silver. I don't think it's going out a limb to say that physical silver represents a type of financial truth. The truth is incontrovertible.
The outlook for gold is now more positive than it has been for some time. After a prolonged period of low volatility as funds invested in ever-greater risk, markets have snapped and volatility has jumped. In short, we are swinging very suddenly from complacency to reality.
The first primary silver miner in the industry just announced that it suspended sales of silver during the 3rd quarter due to the low market price of silver. First Majestic suspended sales of 35% of its Q3 silver production. This was a significant amount as it was nearly 1 million oz of its 2.7 million oz production that quarter.
Watching America’s “manipulation organizations” desperately attempt to repeal the rapidly approaching “reality tsunami,” all we can think of – with tremendous fear and consternation – is what the “other side” will look like. With global economic activity and financial conditions far worse than the 2008 bottom – even before “the big one” commenced – we can only pray the “worst-case scenario” doesn’t occur, which even the status quo embracing MSM realizes is possible.
I have thought about writing this type of piece many times before but have only touched on the subject several times. I had decided in the past not to venture forth because I was afraid that what I wrote might be perceived incorrectly and turn readers off to my main message of protecting themselves financially. What I am about to write assumes we will have at least a short period of time where life goes back if not 150 years, but maybe to "caveman days".
Rolly Uloth, President & CEO, Wesdome Gold Mines chats with Vanessa Collette at Canvest Toronto.