Doublespeak?CPM Group explainedthat the tightness comes from the factthatrefiners do not make 1,000ounce bars, rather they make somethingcalled“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 electronicsand solar panels,” CPMGroupsaid.
One-thousand ounce bars insilver purity of 0.999, thegooddelivery grade, are plentiful, but theysaid there is tightness inthehigher purity 0.9999 and 0.99999 for tworeasons. One, investorsarebuying more metal and two, refiners wouldrather sell higherpurity silver in sponge, not bars.