Wednesday, July 08, 2009

Questionable backing for silver certificates.

I'd like my readers, especially the Canadians who hold bullion certificates to read this most recent work by This is the Mad Scientist Speaking for his look at Scotiabank's silver assets(bullion) vs. their liabilities (certificates).

Remember a silver or gold certificate is just as artificial as a fiat note if you can't trust the issuers promise to fully back the certificate with bullion.


Silver Forecasting said...

hey this is my favorite subject....

The Mad Scientist said...

Have you seen this,

Slide 15.
Even outside of monetary problems silver remains a great investment.

CHR said...

CSB / MS: Here a much more graphical view of this same sort of "shortage" data. Have to find a way to make a picture out of this overly large image.



Major dip! Last buying Opportunity?


The Mad Scientist said...

Thanks CHR.
Very interesting graphic.

Anonymous said...

sell your paper and buy the real stuff, it seems pretty obvious folks.

FlookiiDuke said...

Where are the best premiums for physical to be found? NWTM is looking good to me but I have not dealt with them (or factored in postage to Canada). Scotia has taken too many $$$ from me, while convenient they only have a reasonable price for 1000oz bars. It's time to find a new dealer.

The Mad Scientist said...

I have used both
1) First Majestic
2) J and M

and am happy with both. Both are Canadian based.
First Majestic takes payment only in USD whereas J and M takes in both.

CHR said...

Ooops! Sorry, I didn't see the follow-up questions about where to get physical. I have found two places, depending on what you are looking for ..


Nicely localized to your area. Good for finding folks with junk silver to sell. Have to pay better than your competition in order to get any offers. Not so good for bullion or rounds as everyone wants way too much for these (CDN$4 to $8 per oz premiums); something in the water in Guelph, I guess.

2) Suisse Gold Corp.

I have done a few shipments from this company, located in both BC and Washington State. This is for rounds, bars, Eagles/Maples, etc. For Canadians, you deposit your US Bank Draft directly into a Canadian bank account for the company (no hassle or the expense of a Bank Wire). The shipment is via Canadian Post (surface) with all proper insurance, included in your quoted price.

Have a look, here:

Very good prices but minimum order quantities (to get the best price) are high: 500oz for rounds/Eagles/Maples. Certainly no issue with supply that I can detect.

Tell Richard that Chuck from Ontario sent you his way.


FlookiiDuke said...

Fellow Silver Bugs,

Thanks for your replies. I have used First Majestic for some small purchases but I don't find their prices too attractive. I was however happy with the transaction process should anyone wish to try them.

I will check out your other suggestions. Hopefully we will see another dip into the 12s before the big run up.

Canadian Silver Bug said...

majestic is slow to lower prices on the way down but rarely let the premium go over 1.75, today for example the price is 13.64 US and 15 at majestic which I think is quite fair, the 1 oz premium is 3 at scotia and up to 5 for maples.

North West territorial has better prices IF you make bigger orders, Majestic is keeping it simple with the same premuim for all sizes and all orders. For under 100 oz NWT is 1 cent cheaper than majestic. I found the biggest issue with Majestic was amateurish cust service.

On the way up I've actually bought majestic at .40 over spot because they only change the price 1 time a day. Different business model but I don't think that 1.50ish avg premium is out of line for brand new rounds which they keep selling out of.

J&M: I've heard good things about and they have a lot of misc other stuff like the small mexican gold coins I like and Junk silver at a fair price.

Canadian silver bug

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