When I posted 100-oz silver bar shortage developing in US, silver was trading in the $27 range, and lower prices seemed possible. As this is written, silver is trading well above $30, a turnaround that has left many investors still on the sidelines, as I discussed in that post.
It was on the possibility of lower prices causing a surge in silver buying that I predicted a shortage of 100-oz silver bars. However, silver did not drop in price but turned higher, which did create further tightness in the 100-oz silver bar market as some investors bit the bullet and bought. While there is not a severe shortage of 100s, some dealers are out. CMIGS has an ample supply at this time but does not have all hallmarks.
Silver’s price action may be explained by Gene Arensberg’s analysis Near Zero Contango in COMEX Silver Futures.
Also of interest to silver investors should be Arensberg’s post of February 1 where he noted that silver may have another ten bucks in this move. Silver was about $28.50 then, so “another ten bucks” would mean nearly $40 if this turns out to be what he calls a “definition move.”
At CMIGS, we recommend buying silver and gold in physical forms and holding for the long haul. We believe that the world’s political and financial climate make precious metals the right investments at this time. Investing under such conditions does not require subscribing to newsletters. You simply buy, secure your holdings and wait until some form of sanity returns. No one knows how long that wait will be.
Still, Arensberg’s Got Gold Report is an excellent resource for gold and silver investors who want to follow the markets closely. Arensberg provides excellent analysis of the COT reporting in the gold and silver markets, and his work often reveals smart entry points. His February 1 post is a prime example.
Additionally, Arensberg makes junior mining stocks recommendations, which he calls Vulture Bargains. Such stocks offer the potential for substantial returns but carry considerable risks. A
subscription to Got Gold Report runs $200 annually.