BNP Paribas Buys Physical Silver At $20.58

20th September 2010

News like that would be totally unimaginable even few weeks ago, when price of silver looked ready to go below $17.
But with new buyers of PHYSICAL silver entering this – less than $12 billion market, it’s no wonder why price of silver jumped so high in such short time.
It all started on August 24th 2010 with big German conglomerate buying huge amounts of physical silver and now also BNP Paribas (with headquarters in Paris), joined this rush to get physical silver as soon as possible.

What’s the actual deal that BNP Paribas just made?

BNP Paribas has agreed to pay $20.58 an ounce for 680,000 ounces of the white metal to be delivered from December through to June 2012.
The deal is with Jabiru Metals which will bank $14 million upfront under the hedging deal, money it can well use to speed its mine development program. The 680,000oz is 60 per cent of its forecast silver production over the period of the BNP deal.

If this deal would be done by a small bank, this wouldn’t even be such a big news.
But, since BNP Paribas is one of the largest global banking groups in the world and in 2010 ranked by Forbes as the largest company in the world by assets with over $2.95 trillion – this gets a whole new dimensions.
When one of the biggest banking groups decide to go into a deal to get PHYSICAL SILVER in exchange for their paper money, this is huge signal that price of silver is going up.
It’s not important how much the price of silver will be in a short term – going up or even having a correction.
But it’s important that in the long term – there are more and more signals and confirmations that price of silver is going UP.
Stick with your physical silver (and gold) and if you don’t have to or don’t need to, then DO NOT SELL your PHYSICAL silver!!!
http://agaupm.com/bnp-paribas-buys-physical-silver-at-20-58/