Sales of 1-Ounce American Silver Coins Soar, U.S. Mint Says

January 19, 2011, 2:36 PM EST

Jan. 19 (Bloomberg) -- Sales of 1-ounce American Eagle silver coins are headed for a record this month, according to data from the U.S. Mint.

About 4,588,000 coins have been sold in January, according to data on the Mint website. That would be the highest monthly total since sales began in 1986.

Silver futures for March delivery dropped 11.1 cents, or 0.4 percent, to $28.801 an ounce on the Comex in New York today. The price touched a 30-year high of $31.275 on Jan. 3 and gained 84 percent last year as investor demand surged.

--Editors: Millie Munshi, Steve Stroth

http://www.businessweek.com/news/2011-01-19/sales-of-1-ounce-american-silver-coins-soar-u-s-mint-says.html

European Silver Shortage Spreads To UK - 01/17/2011

On Friday we disclosed that major PM distributor, retailer and trading house BullionVault.com had run out of physical silver inventories in Germany (and possibly elsewhere) and was advising clients to seek the precious metal elsewhere. Today, we find that the UK joins Germany in what is now becoming the second round of the global silver shortage (the first one occuring in May 2010 when it was unclear just how the ECB would deal with insolvent PIIGS). Below is the warning by British BullionByPost notifying clients that the company currently has no silver bars in stock. Inventories are expected to be restocked later in February. In the meantime, as before, we urge customs agents to do a quick check of the cargo hold of all private jets (and time shares) registered to any banker making over $25 million. After all, surely the Tunisian president didn't come up with the idea to flee with 25% of Tunisia's gold entirely on his own.

http://www.zerohedge.com/article/european-silver-shortage-spreads-uk

US Mint Reports Unprecedented Buying Spree Of Physical Silver

Three days ago we noted that in just the first week of January, the US Mint had sold 2,221,000 ounces of silver "a number which if run-rated would be an absolutely all time monthly record," A quick glance at the tally today, shows that something very scary is going on. In the subsequent three days, the number has surged by 50% and has hit 3,407,000 ounces of silver! In just the first 12 days of the month we have already surpassed the total monthly sales of 9 separate months of 2010.

ZeroHedge

Silver sees largest yearly gain in at least 30 yrs

(Reuters) - Silver scored an 80 percent gain in 2010, its largest in at least 30 years, according to Friday's fixing, due to rising demand from investors seeking a cheaper safe-haven than gold and to tap into its exposure to the industrial growth cycle.
The silver price fixed at 3,063.00 U.S. cents an ounce versus 3,070.00 cents at the last fixing on Thursday, showing an 80 percent rise based on the fixings.
The spot price was last at $30.58, up 0.5 percent on the day, bringing the gains for the year for the freely traded price to nearly 82 percent

Silver to pilot bullish commodity rally in 2011

NEW YORK (Commodity Online): As 2010 ends to a close, it is brightness in the commodities trading space globally. Throughout the year, all commodities—ranging from base metals, precious metals and agricultural produces—are all up in value, cheering commodity stocks and heralding bullish run for commodities in 2011.

Gold, silver and copper have led the metals commodities price boom in 2010. Though gold has been the trendsetter in this bullish run, silver has emerged as the darling among commodities among traders. And if traders and commodities analysts are to be believed, silver is all set to pilot the bullish commodity rally in 2011.

According to an year-end survey by global financial news service Bloomberg, silver is all set to lead gains in commodities in 2011. The agency carried out a survey among more than 100 commodities traders and investors and singled out silver as the hottest commodity that can lead the commodity super cycle in the new year.

This week, as the year comes to a close, silver surged to a fresh 30-year high in New York trading.

Throughout 2010, silver has been climbing higher, with support from both the precious and industrial metals industry. The main advantage silver enjoys is that it is simply less expensive alternative to gold.

March Comex silver futures are trading at new 30-year highs, recently changing hands at $30.755 per ounce, up .066. Overall bullish sentiment remains strong for silver.

Silver analysts Kevin Danny says that silver will lead the commodities boom in 2011. “Silver is going to shine in the new year as investors are bullish on putting their money into the commodity. If you look at commodities in 2010, silver has been a sterling performer. So, in 2011, silver will pilot the commodity super cycle,” Danny said.

While technical trend remains bullish for silver, a look at the monthly chart reveals four months of massive gains. Trading analysts like Danny points out that silver is eyeing the 1980 nominal high at $50 an ounce as a longer term price objective.

While gold has grabbed headlines this year with its rally to record highs around $1,400 an ounce, silver has quietly outpaced those gains, and is likely to repeat its success in 2011, reaching $40 an ounce on new applications and industry demand.

An extremely bright future for silver jewellery is one of several reasons to be extremely bullish about silver. To put the jewellery market into context, total jewellery demand was a little over 2,600 tonnes in 2008 (using numbers supplied by the World Gold Council and The Silver Institute).

Of this total consumption, gold jewellery comprised over 80%. Put another way, silver jewellery represented less than a fifth of total demand. The demand for gold jewellery has fallen in the last couple of years — as a response to gold rising to a new, (nominal) record-price of over $1000 an ounce (oz).

Rather as a jwellery, silver also possesses many extremely useful chemical/ metallurgical properties which have resulted in the massive consumption of silver in a variety of industrial applications. Investment will therefore have a major part to play in keeping prices at elevated levels.

Also the world’s supply of silver is being rapidly “consumed”. The evaporation of stockpiles has occurred because the vast majority of silver used “industrially” is in products where silver is used in tiny quantities. Because of this, it is impractical to recover/ recycle this silver, meaning it is effectively gone forever.

http://www.commodityonline.com/news/Silver-to-pilot-bullish-commodity-rally-in-2011-35173-3-1.html

Something’s Wrong in the Silver Pit: But It’s Much Bigger than J.P. Morgan

When researching the precious metals, often times things are seldom as they appear on the surface.  GATA Secretary and Treasurer – Chris Powell – has said that the true picture of a nations’ gold holdings are, “more closely guarded than their nuclear secrets”.

This has been more-or-less proven true based on the Federal Reserve’s reaction to GATA’s 2009 FOIA request for information concerning GOLD SWAPS. The Fed is ON RECORD admitting they’ve done gold swaps – which, by definition, necessarily utilize sovereign American gold stocks.

To date, the Federal Reserve has stonewalled GATA’s FOIA request citing their ‘privileged status’ and reluctance to divulge ‘trade secrets’.

GATA has maintained that the Federal Reserve / U.S. Treasury in conjunction with other Central Banks have for years been suppressing the price of gold [and silver too] – in efforts to mitigate and to cover up their own debasement of fiat currencies. 

Historically, when Central Banks or governments print more and more fiat money, precious metals prices RISE.  The money printing is not only inflationary but when done to excess it can undermine confidence in faith based fiat currency regimes.  Precious metal has no counterparty risk and cannot be printed – which is why it “is” and always will be money.  Remember folks, gold is money, as evidenced by EVERY Central Bank in the world listing gold bullion on their balance sheet as an official reserve asset.

GATA has identified and documented that Central Banks utilize precious metals derivatives, and in particular swaps, as a primary method by with Central Banks rig metal prices. 

[continued]

http://news.silverseek.com/SilverSeek/1292004828.php

James Turk - $400 Silver by 2013 to 2015

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/11/16_James_Turk_-_$400_Silver_by_2013_to_2015.html

With Comex increasing margin requirements for a second time so quickly, King World News interviewed James Turk today out of Spain.  Turk commented, “This may explain why Comex is raising margins a second time so quickly, they aim to put more pressure on the buyers.  Obviously the Comex is trying to put more pressure on market participants by forcing them to liquidate their longs.”  
 

Turk continues:

“Eric, here we are at $25.50 which is the price that was identified by your London source last week.  So they painted the tape, but the Comex open interest shows that they haven’t driven out any buyers which is very surprising.  Normally you would expect to see some longs liquidating on any pullback like the one that we have seen over the past few days, but that hasn’t happened this time around.

The buying pressure in the physical market remains, we are starting to see the industrial buyers coming back in to secure supply.  My guess Eric is that the industrial users will be there on any price dip like we have had at present.  Up to this point we haven’t seen the boomerang effect that I have been anticipating but I am still expecting a sharp snap back in prices.

As we pointed out in the piece which had Mark Lundeen’s illustration in it, gold is dramatically undervalued and this can only result in much, much higher prices over time.  I would just add that I expect the gold/silver ratio to decline over time to under 20 to 1, so silver will be exploding along with the price of gold.

As you know Eric I have been projecting gold to hit $8,000 by 2013 to 2015, so that would equate to silver hitting $400, and that is well within the realm of possibility as silver reverts back to its historical mean.”

This is what happens in bull markets, prices climb to levels that previously seemed unimaginable.