RE: Stay Ahead of the HerdGood post silverstocks3
" majors " got taken in early dec out before the jr's rolled over.
I've nibbled back in to a few old favs in case i'm wrong but firmly in cooper's camp.
GLTA...p
Cooper coupled with this....????
For all those confiscaters out there..:)
.....information aboutthe market (physical silver) tightness has been “blown out of proportionby the silver conspiracy theorists who are trying to portray this as amuch more cataclysmic event for the silver market.”......
No..really? DUH.........:)
CPM Group: Reports Of Physical Silver Shortages ‘Limited’
16 February 2011, 5:26 p.m.
By Kitco News
https://www.kitco.com/
Thereare some spot shortages in the physical silver market,but they arelimited to higher purity metal in specific forms and locations at most,said commodities research and consulting firm CPMGroup Wednesday.
Therehave been reports of shortages of physical silver circulating in themarket, CPM Group said in a research note, bu tinformation about themarket tightness has been “blown out ofproportion by the silverconspiracy theorists who are trying to portraythis as a much morecataclysmic event for the silver market.”
CPM Group explainedthat the tightness comes from the fact thatrefiners do not make 1,000ounce bars, rather they make something called“silver shot” – also knownas grain, powder, flake and/or sponge –because of demand frommanufacturers.
“They do not waste time, money, and energy castingbars astheir user clients do not want bars, and demand for sponge isvery highdue to increased demand in electronics and solar panels,” CPMGroupsaid.
One-thousand ounce bars in silver purity of 0.999, thegooddelivery grade, are plentiful, but they said there is tightness inthehigher purity 0.9999 and 0.99999 for two reasons. One, investorsarebuying more metal and two, refiners would rather sell higherpurity silver in sponge, not bars.
Demand for photovoltaic cellsused in the solar panels hassurged, with growth accelerating in thesecond half of 2010, they said.The silver flake or powder used in thismanufacturing must be of ahigh grade, which explains why there istightness for silver of high purity. While producers of this specializedsilver are increasingsupply, there are only a few producers that sourcesilver to thephotovoltaic industry currently.
CPM Group said ithas heard of only a specialized instance ofactual supply tightness inthe physical market. The firm added thatthere is talk in the market ofshortages of 100-ounce investment-sizedbars and coins, but itsinvestigations dispute this. CPM Group said itsurveyed Fidelitrade,Kitco, and Northwest Territorial Mint in thefirst week of Februaryabout the supply of these metals. “There werehundreds of thousands ofounces in 100-ounce bars available forimmediate delivery, and NWTM said it was steadily producing more eachday,” CPM Group said.
Regardingthe rise in silver lease rates and the slight backwardation in MarchComex futures prices, it said that lease rates are higher, at 0.8%versus 0.3% previously. Still, it said 0.8% lease rate is still verylow, considering in the past 30 years lease rates have ranged between 3%to 6%. They also attributed the backwardation in futures to marketcongestion.
“In conclusion, there are short-term marketdevelopments along the lines of what CPM has repeatedly said to expectin February and March 2011, and there is spot tightness in high puritysilver cast intobars as opposed to sponge. The rest is noise,” theysaid.
By Debbie Carlson of Kitco News dcarlson@kitco.com