The US mint has just suspended its sale of silver coins. This means the government has lost control and is panicking.
The price has reached 92 dollars per ounce, spot, in the COMEX. I am sorry folks, I can only think in dollars per ounce now, ever since I woke up and started tracking the silver story in September.
There is a massive supply shortage of physical silver all over the world. In the US, the premiums at the coin shops are above ten dollars. Many shops are reporting stockouts.
In Shanghai, the closing price yesterday on the Shanghai Gold exchange was 101 dollars. The SGE is the real market where silver is traded physically and that price is the real price.
Meanwhile, all the factors that we have been talking about that made silver reach here ( 30 percent gain since Jan 1st alone, it was at 50 dollar levels in September) are still intact. Here is the link to my blog post of 2nd December listing out those factors:
Conventional economics tells us that when the price of something rises, demand drops. Well, forget your conventional economics. Watch the panic that unfolds now.
If you are holding silver, don't sell. Don't don't make the mistake of "booking profits", "take something off the table", "reduce the risk" or any of those reasonable sounding anodynes meant for conventional times. These are not conventional times.
Should you buy at 92? I think yes, but thankfully I am sitting on silver that I bought in September at 50 dollar levels and don't have to take that call at this time when prices have run up so furiously.
There is still some supply in the Indian market, and surprisingly, there is no street premium. If you are holding silver only in the form of ETF, you may want to consider converting part of your holdings into physical silver.
Happy Pongal!
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