Friday, August 08, 2008

Looking for silver in all the wrong places


I've been having a hellish summer not just because of the weather but the expectation that I can manage a 2 1/2 person job alone for 4 of the last 6 Weeks, arggg.

This frenzied state has left me little time and too sore (carpal tunnel) to blog much recently, but since this was so important I thought I'd share it with you while I try to wolf down my Tim Horton's Chili (mine tastes so much better)

On the few occasions I've gotten away from my desk this summer I've bolted over to the Scotia Tower or the coin dealers to see who if anybody has some silver, for the most part I've come up dry. While Scotia did have 6000 maples 2 weeks ago they've had very few bars since winter and when they do they never stay in stock too long.

This week while on a jaunt with a fellow metals investor we went over to a Jewellery mall in downtown Toronto. This building has open vendors on the first floor but also has 16 more floors containing manufacturers, custom jewelers specializing in insurance replacement, gem importers, diamond setters and wholesalers and 1 lone refiner. ding ding ding, we have a winner.

While the powers that be make sure there is little to no silver available for us retail investors in the normal places like Scotia Bank they cannot allow the Jewellery industry to report shortages or the game is lost.

So guess what? I've found silver in many sizes, comparable prices to online retailers like Border gold and unlike Scotia they don't ask for 2 pieces of I.d. They do ask you name and number but since they don't ask for proof, what you tell them is your business. They also buy scrap at fair prices so you don't need the pawn brokers or outfits like the "cash man"

So for my few GTA readers who can't find silver you want to go to

GOLD EXPRESS REFINING LTD
SUITE 401
21 Dundas Square
Toronto, ON M5B 1B7
(416) 363-0584‎

If you score big, send me a one ounce finders fee, or even a silver dollar.

For those of you in different cities I suggest that you find out where the jewellers buy their silver. Since I suspect the PTB will be reluctant to squeeze this market, they should be able to sell you or perhaps even order you what you want.

With this weeks correction, do it now and buy buy buy!!!

11 comments:

Steve said...

Thanks for the tip.

Burton S. Blumert advises those interested in obtaining precious metal coins to develop a relationship with coin store proprietors.

"While the powers that be make sure there is little to no silver available for us retail investors in the normal places like Scotia Bank they cannot allow the Jewellery industry to report shortages or the game is lost."

Please explain (or point me to an earlier post--or write a new post).

Lord of Wealth said...

The market in this case is broken and is being short circuited by manipulation.

The market makers such as the big dealers, the commodity exchange and the industrial users who don't want the price to go up say there is no shortage and point to the silver stocks at the Comex warehouse and the ETF bullion, etc However if there was no shortage why is it the sizes that retail investors demand 1-100 oz bars, rounds and coins have been nearly impossible to obtain for the last 8 months?

The warehouse stocks are all in 1000 bars, and futures are in 5000 ounce contract so there is no relation between what the market offers and what the average retail investor wants. Since the additional demand from such investors is what has been driving the market in recent years the price should be rising enough to disuade them from the market or the market should be converting the big bars to small bars and meeting demand. This year the U.S. mint sold a years worth of production of silver eagles in the first quarter, could not meet reorders, and eventually rationed their vendors.
In Canada the Maple leafs have been hard to get and bars nearly impossible. Australia, dido people trying to get silver certificates converted to bullion have faced excusses and delivery delays(see previous post)

The 2008 silver year book claims the level of silver surplus should be increasing this year yet the retail availability is declining. So what's up?

The market does not work because the people who control the silver market both actively supress the price in the futures market by flooding the paper market with contracts for silver that does not exist, and at the same time curtailing the supply of silver to investors and mints who make small bars by having monthly delivery limits and shipping delays, or selling unbacked paper certificates to dumb marks and diverting demand away from the real commodity

Scotia bank which owns one of the comex silver depositories Scotia Macotta has no silver to sell me but a refiner/jewellry supply down the street does, in quantity. To me this says the market is fixed and the silver is being kept cheap and sold to industry by keeping me and fellow metal investors from buying it, only I found some and have squealed. Bwahahahah!!!

nitroglycol said...

Arrgh... don't get me started on Scotiabank! I went there last week after finding that my usual dealer was sold out. After wasting twenty minutes on bureaucratic nonsense I came out of there with two badly overpriced Maples. I should have told them to get stuffed when I realized what the price would be after their surcharges, but I'd wasted enough time that I couldn't bring myself to leave empty-handed.

Anonymous said...

Maybe "investors demand" should pose as "industrial demand" in order to get "physical supply" from "industrial supply" such as:

www.silvaloy.com/brazing_reference.php?page=2

Just an idea from your "truck driver" reader

Anonymous said...

Hi Lord of Wealth,

I posted a comment before on one of your blog entries, in particular about the shortages of silver/Scotia Toronto downtown.

Thanks for the recommendation. I went down today to Gold Express Refining Ltd and picked up a 10 OZ Englehard for $165 USD.

What was nice was no paper work except for a simple invoice, no service charges, bar charges, etc. Just get buzzed in, and thats pretty much it. Although, they seemed very busy.

-G

LoW said...

Of course they are busy, my thousands of readers are rushing them off their feet ;)

Anonymous said...

The Cash Man? As in Russel Oliver? haha I remember that guys commercials from when I lived in Toronto. I think he got arrested for buying stolen goods once or twice.

Ian said...

Thanks for the tip. Picked up 30oz faster/cheaper/easier than Scotia today. $17.50 CDN/oz, pretty good for physical.

Low said...

Not a bad price at all, the one coin store I know who has some wants 18.70/oz for 10s

Did they have more?

Not that I have the money this month but I like to keep up with things. I'm actually fixating on getting some more junk silver right now.

Anonymous said...

Just went in there today, they're running low on bars. Only had some 100 oz bars by T&T (or is that TT?) and the guy complaining that he didn't know why he couldn't get any small bars lately. Are the jewellers starting to run low? They did have grains for sale if I wanted them...

Canadian silver Bug said...

Thanks anon, what was his asking price for the 100 oz bars?

CSB