Thursday, October 23, 2008

Silver: Gap Between Paper and Physical Prices Widening Daily

We were out for most of the day yesterday, so, I called into California Numismatics' 24-hour toll free recording to find out what happened in precious metals markets. What I heard was quite shocking and the chart below only tells half the story of how the gap between paper prices and physical prices is widening almost daily.
IMAGEWhat you see above is the CNI buy price for 100 ounce silver bars going back more than two years - obviously, things have changed quite dramatically in just the last month or two, a trend that was set in motion in March of this year around the time that Bear Stearns was rescued.

The gap between the price of 100 ounce silver bars and "paper" silver is now around two dollars an ounce!

That's if you want to sell your silver to them.

If you want to buy silver, well, that's been pretty difficult lately as they've been out of 100 ounce silver bars for some time now. But, apparently they've located some one-ounce silver rounds that they'd be willing to sell to you ...for four or five dollars over the spot price!

Of course, in futures markets today, silver was pummeled once again, down almost a dollar to just over $10.

Amazing...

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