19 February 2012

Catch Up

Been stockpiling the following for comment:

Silver shortage vs coin shortage

I've been on this issue for a long time, now I have backup from David Morgan: In 2008 there was no shortage of all silver per se, but there was a shortage of coins, bars and other retail “investment” items. The evidence: Much higher premiums back then for small silver products on the street versus the commercial price for average 1,000 ounce commercial good delivery bars in late 2008 and early 2009, since then corrected. I also note that he says it is a myth that silver is currently in shortage.

India's love of gold

Here in the West the average person (and Buffett) has no idea of how pervasive gold is in East society. Mineweb notes loans against gold as collateral was one of the country's fastest growing businesses. Though many Indians continue to use the glittering metal to flaunt their family wealth, most working in the informal sector, have few choices to borrow money and resort to pawning their family jewels rather than taking the longer route of bank loans. and By the end of November this fiscal, total credit issued by banks grew at around 20%, while organised gold loans grew at 50%, making it an increasingly important source of liquidity. Typically, most loans are repaid within four months, since most Indians prefer to hoard their gold.

Need to watch that word "hoard", which can become a dirty word. See this The government had raised the import duty of gold and silver to curb import of precious metals which result in huge outflow of dollars outside the country. Much better you save by giving your money to bankers and if you won't then Vietnam again leads the way with plans to "mobilize" Gold Bullion held by Vietnamese citizens "in service of the national socio-economic development".


Gata reports WSJ as saying Venezuelan officials completed a two-month process of repatriating 160 tons of the country's gold holdings Monday, by welcoming home the final shipment of the precious metal from Europe. Where are those excited gold bulls with the thought that the withdrawal of some 150-200 tonnes of gold from the Bank of England and bullion banks will force a squeeze on traditional stockpiles of gold?

Did Bankers Deliberately Crash MF Global to Crash Gold and Silver Prices? I can't split between JS Kim and Jeff Neilson for people who have come out of nowhere to be sudden gold market experts. Short answer to JS Kim - no.

Gold Commission

When I see Newt Gingrich calling for a gold standard I start to get worried. How much different is a gold standard under the control of a central bank from fiat? When I see mainstream articles discussing the issue, I wonder if the central bank gold standard is put up to sideline the Ron Paul open currency approach?


  1. This week I heard that the Chinese 3000 tonnes per year of silver export is now unavailable!.
    Also a story about the depository of the Bank of Novascotia.
    Harvey Organ & son Larry fought a battle to inventory their own metal!
    The depository held Eric Sprotts fund metal but little else!!
    Hypothecation??,leased?? stolen??
    just borrowed like MFGlobal??
    Wake up!!

  2. Having just watched Tom Morgan's presentation,good stuff!!,similar to Mike Maloney's,Robert Kiyosaki,etc.
    Me? I started trading in 1976.
    You do not need to be in the the business!,to know your stuff' = 'expert' knowledge/opinion,
    do you understand???.
    Low grade ore = high extraction costs
    = high exploration costs = $+++++

  3. corection: David Morgan

  4. Further to hoarding, see this http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=145713&sn=Detail

    India's top policy advisory body, the Prime Minister's Economic Advisory Council headed by C Rangarajan, has urged government to discourage gold imports into the country and rather channel savings into formal financial instruments.

  5. Bron,

    I am reading there are shortages looming for purchases of silver "in size", source being loco London...any views?



  6. left a comment at TF's site, we haven't been shipping from London so don't know the state of the market there, but we are quiet in Perth