Submitted By Bill Holter, Miles Franklin Ltd,:
We woke up this morning to a “new pricing structure” in the precious metals and people are wringing their hands. The following article http://www.paulcraigroberts.
But what has been the response to our “new pricing structure”? Dealers across the US have sold out of many Silver categories and the premiums have risen sharply. The premiums have risen just as fast as the paper markets took the price down. You will still pay very close to or higher than $30 at many shops for Silver Eagles and Maples, junk (if you can find it) is actually higher. So did the price “go down” for those looking to buy and have it actually delivered? Not really and certainly not much if you were able to find it. Premiums on Gold have also risen but nearly enough to offset the drops in paper prices as Gold (above ground stockpiles) were surely pilfered to provide product. I have always maintained that “Silver” was the Achilles heel and would be the cause of any sort of default and it looks like Silver is surely a much tighter market and “just in time inventories” are not keeping up with demand.
