MIKE

Posts Tagged ‘Physical Silver Shortage’

We are at an economic crossroads like we’ve never seen in the history of the world.  Oil production and Silver production have both hit their peaks and we are sliding on the down slope.  As Oil peaks we will be moving into alternative power sources here in the U.S. and solar remains the preeminent option to take it’s place.  Of course, with Solar Power comes the need for physical silver because of it’s superior reflective properties. 

Today Silver is more undervalued than any commodity in existence today, yet it remains suppressed by banking and money powers.  When speaking of precious metals, all media analysts state that Gold and Silver are in a bubble, but all their analyses are not based on physical supply. As you will see below, Silver is also becoming the most scarce commodity.  Here is a clip by Mr. Vision explaining where we stand in the situation with silver and where we will be headed.

Submitted by SRSrocco

The world is about to peak in global silver production. This will not occur due to a lack of silver to mine, but rather as a result of the peaking of world energy resources, declining ore grades, and a falling Energy Returned On Invested – EROI. The information below will describe a future world that very few have forecasted and even less are prepared. This is an update to my previous article Peak Silver and Mining by a Falling EROI. In my first article I stated that global silver production may peak in 2009 if we were to enter a worldwide depression. We did not have the global depression as massive central bank printing and bailouts have thus far postponed the inevitable.

Full report (pdf)

Peak Silver Revisited

Read the original article HERE.

06/01/2011 17:57 -0400
by Tyler Durden
ZeroHedge

About a month ago we indicated that Comex depository Scotia Mocatta “lost” 25% of its Registered (aka Physical) silver after the vault encountered a “reporting reclassification” which saw 5,287,142 ounces of silver moved from Registered to Eligible status, dropping the vault’s true holdings from 11.8 million ounces to 6.5 million. Naturally, the response from the peanut gallery was that this was a tempest in a teacup and it was “temporary” and a-ha, any minute it would reverse, and all shall be well, everyone would live happily ever after, and the Comex would actually have silver available for delivery purposes. We decided to not hold our breath. Which after pulling today’s most recent Comex warehouse data appears to have been a prudent decision, because for the first time ever total registered silver has dropped below 30 million ounces, after experiencing a 5% overnight drop across the board, primarily driven by yet another 1,456,488 ounce “adjustment” of warehoused silver from Registered To Eligible at Scotia Mocatta. As of last night, total Scotia physical silver was now 4,740,447 ounces, a 24% drop overnight, and a massive 60% drop from the total which we captured on April 20. Still think it’s temporary?

Oh, and Scotia was not alone: there were comparable reclassifications at both HSBC and Delaware. But the kicker: total silver at Scotia Mocatta has barely budged. The only thing that has changed is the shift from real silver to “Eligible”, or that which has no warehouse receipt issued against it, or as was described previously “a private arrangement” which has nothing to with the Comex. This is non-deliverable silver! Thus, starting with a ratio of 11.8MM to 8.8MM ounces of Registered/Eligible (or 57%/43%) a little over a month ago (on April 19), the most recent Scotia Moccata physical silver now just 23.4% of the “total.” And just as troubling is that the total amount of silver available for dlivery has just fallen to a fresh all time low. Luckily, we have margin call driven liquidations such as today which will probably buy a few more days before registered Scotia silver hits 0 (but don’t worry: it’s only temporary).

Before (Click Image for Larger View)

After (Click Image for Larger View)

Read the entire article HERE.