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Old 05-08-2013, 07:41 AM   #21
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Hi Lars, welcome to the forum.

We're watching the demand for physical metal overwhelm supply (or manufacturing / production) in silver right now. Seems gold hasn't quite reached the same tipping point yet. It's possible the inventory drains to the COMEX, GLD, LBMA are indications that we are at the beginning of the end. Interesting times...
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Old 05-12-2013, 12:53 PM   #22
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Thanks for the welcoming!

I have many years of experience in precious metals. Acting professionally as a buyer and trader (of the real thing) since several years now (don’t know if it’s allowed to post link to the company on the forum, to present myself and my business in more detail).

Regardless of that, I am still fascinated that the price of the physical commodity is set from a paper promise. As you write, there has been a great demand and the premiums on investment silver have increased while paper prices at the same time have fallen. The question from my point of view isn’t when it’s going to happen, but how the paper price and the physical will divide.
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Old 05-12-2013, 02:31 PM   #23
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Originally Posted by LarsL View Post:
Thanks for the welcoming!

Regardless of that, I am still fascinated that the price of the physical commodity is set from a paper promise. As you write, there has been a great demand and the premiums on investment silver have increased while paper prices at the same time have fallen. The question from my point of view isn’t when it’s going to happen, but how the paper price and the physical will divide.
This is something I am struggling to understand as well. Some of my better off friends, who never bought gold or silver before, are now starting to buy some coins in anticipation that they might come in handy someday. If everyone buys just a few coins that seems like it might be a lot of metal being sucked up and going into mattresses, or maybe it's not that big of a deal. India and China? is data from those places really reliable? I can't tell from where I sit what is really going on, so yes, this divergence between paper and physical is concerning to me, and I wonder if there is plenty of metal available to satisfy all the physical demand, or if in reality it's some kind of commodities shell game. Can the big guys just flood the market with metal from the warehouses whenever they want if they see a jump in demand, or is most of this paper metal just a bookkeeping trick? It beats the heck out of me. Maybe Bug can explain it.

Last edited by Aubuy; 05-12-2013 at 02:32 PM. Reason: spelling check
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Old 05-12-2013, 02:39 PM   #24
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Welcome to the Forum.

I went to your site but do not speak your language, so I couldn't really tell what you do. Based on the pictures, it looks like you buy/sell silver.
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Old 05-12-2013, 03:33 PM   #25
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Originally Posted by Aubuy View Post:
This is something I am struggling to understand as well. Some of my better off friends, who never bought gold or silver before, are now starting to buy some coins in anticipation that they might come in handy someday. If everyone buys just a few coins that seems like it might be a lot of metal being sucked up and going into mattresses, or maybe it's not that big of a deal. India and China? is data from those places really reliable? I can't tell from where I sit what is really going on, so yes, this divergence between paper and physical is concerning to me, and I wonder if there is plenty of metal available to satisfy all the physical demand, or if in reality it's some kind of commodities shell game. Can the big guys just flood the market with metal from the warehouses whenever they want if they see a jump in demand, or is most of this paper metal just a bookkeeping trick? It beats the heck out of me. Maybe Bug can explain it.
This is actually something that struck me recently. I have heard twice lately, unknown people telling me that they just invested in precious metals for the first time.

My guess is that there in the western world, precious metals are starting to have a renaissance as an investment and a protection.

The question is how the physical commodity will be traded when all the major precious metals companies set their prices, for buy and sell, based on the spot price.

Originally Posted by ancona View Post:
Welcome to the Forum.
I went to your site but do not speak your language, so I couldn't really tell what you do. Based on the pictures, it looks like you buy/sell silver.
Thanks Ancona. Since we act locally, there has been little reason for us, to translate the whole site it into other languages. We buy silver, mostly in the form of old silverware and jewelry. This describes our website http://www.silverklubben.se/english.html

We also have another site that buys catalytic converters from cars, from which we extract platinum, palladium and rhodium.

The point of purchase secondary materials (scrap) and purify it, is that we can purchase the materials at a price lower than the spot price. Since I have some background and interest within silversmithing, it is pretty nice having that knowledge coming to use.
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Last edited by LarsL; 05-12-2013 at 08:39 PM.
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