Junk Silver Dried Up Across the Board, APMEX Merely a Symptom of Overall State of 90% Market

Reuters has highlighted today the brisk demand for gold in India as per the Bullion Cabal’s agenda to manage the precious metal prices in such a way so as to diminish demand. Whereas in India this has taken place by way of a a weak Rupee and thus record setting gold prices, in the US soft, volatile and rangebound prices have kept the precious metals’ out of the news, and so by extension the dollar crisis as well. Here is a quote from a
piece today:

PHYSICAL DEMAND LANGUISHES

Gold demand languished in major consumer India as record-high local prices resulting from the weak rupee kept buyers on the sidelines, traders said, though premiums stayed steady in Hong Kong, Tokyo and Singapore. <GOL/AS>

Traders in India are also waiting for the monsoon to pick up, which could boost the income of farmers, who buy more than half of India’s gold.

Data from three major Mints in Europe and North America showed on Tuesday that gold coin sales fell in the first quarter as the strong demand for small investment products that helped send gold to record highs in 2011 eased.

In the medium-term picture, however, whilst demand fell in Q1, this is in the wake of record setting gold prices in USD denominated terms. If you’ll please remember, in the fall of 2011, gold rose to nearly $2,000 an ounce! But, just as came to pass with silver, whilst everyone was calling for tops of $50 and $2,000 during respective run-ups, the prices collapsed just before the price point, trapping innumerable investors at market’s top.

And now, with silver, we see that junk silver supply as dried up. Distributors were caught on their heels as unexpected big players came out to make Big Buys of coins such as Silver American Eagles. Though there is no shortage of Silver Eagle production at the U.S. Mint currently, some distributors it appears under-ordered after repeat slow months.

Junk silver is a different story. As a primarily secondary market item, it can paint a clear picture of silver demand. And, currently, major distributors – not just APMEX – across the board are out of junk silver completely.  Withdrwaing addicts will soon take to the streets demanding their junk. Premiums have rocketed as can be seen by using the tool of Compare Silver Prices for example. Whereas just months ago Silver Doctors offered junk at 25 cents over spot, the low price at CSP is now 79 cents over spot! That’s more than a 200% increase in the premiums of low offers by United States retailers.  Many prices are even higher than the .79 over spot. The company in question likely has reserves of this product and does not need to tiptoe out onto the open market. As SilverDoctors recently reported:

APMEX has drastically raised their prices (on the silver they expect to receive in 10 days on July 6th) on 90% silver to $1.59/oz over spot for $100 face value bags and$1.45/oz over spot for $500 face value bags.

Be sure to get your free Mercury Silver Dime from the Silver Liberation Army, if they’ve still got any!