Quote

Silver Stock Report "...There is, indeed, a "production bottleneck". But that's happening because demand has greatly increased, and years of old supply has run out! Most silver purchased by investors is NOT recently manufactured. Only a little is "made fresh". (8/17/08)

ReportGold
TitleSilver Production Bottleneck
Quote"...There is, indeed, a "production bottleneck". But that's happening because demand has greatly increased, and years of old supply has run out! Most silver purchased by investors is NOT recently manufactured. Only a little is "made fresh".

Therefore, most silver that used to be available for purchase, when you could buy it, was manufactured sometime within the last 30-40 years. (Perhaps 1/2 of all silver was mined in the last 50 years.) It is not uncommon to find 1 ounce rounds that say they were made in 1970 or earlier! Those are cool to hold in your hand, because you know from prior price history that that very coin burned some hands as the price collapsed from 1980. Silver, itself, is usually a form of history in your hands.

As another example, Englehard 100 oz. bars are no longer manufactured, but they are a "staple" or "standard form" of silver for the industry, right along with the currently manufactured Johnson Matthey bars.

Therefore, in order for retail investor forms of silver to develop a shortage, then all or most of the inventory that was manufactured in the last 30-40 years has been purchased and is no longer available at present prices.

Or, new product is mis-priced at below market prices, which thwarts the free-market clearing process.

That's called a shortage when years and years of stockpiled & produced product runs out! What else would or could you call it, or how else could it be described?" (8/17/08)