Sep 08, 2015

Dealing With Silver Delivery Delays

By   ghaccess   |   Tags:1 Oz silver bar, Bullion, Gold, Gold Coins, Gold Maple Leaf, Guildhall Wealth Management, Hard Assets, Precious Metals, Royal Mint Coin, Silver, Silver Coins   |   Category: Blog

Silver Delays are here. The current lack of supply comes as no surprise. We have discussed strong demand for silver on the Real Money Show, written about it on our blog, and posted consistent articles in our newsletter regarding the subject. Still many believed that if the price was low, sentiment must be low as well. This simply is not and has not been the case. China, India, Russia etc. have had a strong appetite for silver in the short term.

Over the last couple years physical purchases of silver have been consistent and increasing steadily both here at Guildhall as well as in the open markets. We constantly read articles about demand out of China and India and the depressed mining industry yet nothing about the disconnect between paper and physical. At some point the reality of the paper price of silver is going to run right into reality of the lack of physical product. Those that are able to see silver as undervalued have been and will continue to be able to buy more than they ever could have. I believe anyone who can build a position in silver at today’s lows stand to do very well in the future as silver pricing inevitably ends up being revalued.

We are told by suppliers that this shortage of physical could persist until the New Year. Silver investors demand physical product now more than ever and with the current low price and lack of supply what can you do?

The first thing you should do is expect to pay more. If there is product available for direct delivery expect there will be a larger premium than usual. This is not too surprising as premiums were below average over the last few years and are only now reflecting availability. Should this bother you? I do not think so. Think about it; if there is a lack of silver now, how much will the price rise before people are willing to part with what they currently own?

The second thing you can do is book your price. Our suppliers guarantee delivery of product that is booked at the current pricing, but expect delivery delays. It could be better to purchase your silver at today’s price and expect delivery than to forgo the investment at current pricing only to get involved later and at a much higher price.

Jeremy Wiseman

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