Tuesday, May 17, 2011

On the Ground Report, 5/17/11

I went out today looking for some silver to buy, only to be told by the largest dealer in my city that not only was he out, but that all their other locations were too. It seems the price drop from $48-49 to $33-34 has brought out a great deal of physical demand. The market is repeatedly demonstrating that the COMEX paper silver games are just that, games. The real market is in the physical and one day the COMEX will be overwhelmed by reality.

Eric Sprott has some good insight:

"Here we are in a situation where the price is 40:1, but the dollars going in to it (gold/silver) are almost dead equal, so I can't see the price ratio staying in this range."

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