Tweet I just read from someone I follow:

I called pawn shop here in Vegas and unfortunately they don't have the same desire to acquire silver, rats.

If you consider industrial demand, all etfs, options, futures, related derivatives, allocated and unallocated silver... there is likely not enough silver right now to meet demand. The silver market being highly leveraged aside, why would silver enter into extreme backwardation without a problem with supply meeting demand.

46 billion ounces mined throughout history, 1 or 1.5 billion ounces above ground in bullion form today. If there is no investment demand, sure it is likely we will have plenty to meet the growing demand.

So you have identified the level where industrial and investment demand eases based on price? (apparently you identified that level as $40, you are mistaken). Throw darts instead.

2010-
Silver mine production: up 3%
Silver scrap supply: up 10%

Silver industrial demand: up over 20%
Silver net implied investment demand: up 47%

Indeed.

Those numbers are an increase from 09 numbers? Give people the real picture please.

Industrial demand by year
08-493
09 403
10- 487

So all we have is a return to normal figures after the recession.

Sure, certainly you should ignore jewelry, silverware, photography, coin (which added together equals the total fabrication demand) and investment demand. But that wouldn't give you a good idea of the year over year changes.



The above is an underestimate but will serve the purpose of visualization for now for a "real picture." The figures I gave echo those of the GFMS, which tend to echo the Silver Institute (who produced the above chart), which is notorious for underestimating the investment demand and massaging the figures to produce data favorable to the industry. I assure you the figures I presented were very conservative.

Short of a deflationary collapse, silver demand will increase again in 2011. Either the financial system has another massive hiccup or silver demand remains stronger than supply and yes it is being led by investment demand.

Silver headed to over 55 very soon.

Pawn Shop owners are not going to pay someone off the street more than spot , if that. They can buy tons @ 1 % over spot from several brokers.As long as supply is available. Pawn Shops are in business to make money. A Pawn Shop paying 10 bucks over spot is like a Pay Day Loan making a 2.25 % loan to a Tweaker.

+1.

Along with being a truth teller, he is correct in his analysis.

Real money is exploding!!!!!!

Silver Bid: 45.35 Ask: 45.40 Change: 1.42 Updated: 4/20/2011 11:02:24 AM

totally regret not pulling the trigger on gold and silver a year ago.

There's still time imo

so happy i bought at $17 an ounce.
the rate it's going now is seriously outta control, up over a dollar in one day, almost unheard of.

If the debt ceiling is raised and there is QE3 or QE4 this summer I doubt u will regret buying now.

Mr.musicrecorder are you still a seller of 25% of your hoard at $50 since we have seen such a quick run up? I think $50 is a level where a lot of people take some some profits being that is the all time high of $49.45 (not adjusted)

Still sticking with these sell targets?

There was an interesting interview with Jim Rodgers recently (though I find almost all interviews with Jim Rodgers interesting) where he discusses the possibility of silver being in a bubble & the certainty that it eventually will turn into a bubble market.

I'm starting to get a little nervous & wondering if I should take some money off the table (I've got far more of my liquid net worth in PMs than almost any "expert" would recommend), but problem is, what would I do with the money then??

I'm a little concerned that silver market is getting too frothy, but I know for sure that I don't want my money sitting around in U.S. currency! That's a sure-fire way to lose purchasing power . . .

Silver is massively overpriced now (shorterm) imho. I'd wait for a dip which is coming.

Mr. music is sticking with those predictions, why would he whipsaw here. Has any fundamental that has silver going up changed??

So silver has some temp froth and it goes down to 42...it will be a buying opp for others to get in the game.

I will be sticking to my strategy. Of course this is open to change, but I assure you I am not simply planning on selling without a plan for the original investment and proceeds, 15-20% of the pretax total from each sale (at this point) will be deployed into silver miners which will likely outperform the spot price at least 2:1.

I am indeed sticking with my targets, as noted above.

Jim is the self proclaimed "worst market timer," but I feel his thoughts are likely very valid (not knowing the details of his comments, but the person's general philosophy). Silver is will certainly correct from the current long term trend, but when. Jimmy saying eventually doesn't do us much good and is clearly inevitable as institutions, sovereign nations and the common man enter into a frenzied flight into silver toward the mania phase.

You need a plan for what to do with the capital after your sales, and what reasonable levels you should take profits off the table, and follow your rules. Just sit down with a pen and pad and get started.

I don't know as much about silver as some of you people, but when I bought at 35$, I was pondering about if I should wait for a dip or not. I went ahead and bought. The dip hasn't come yet and I'm happy I bought. Why do you think it's overpriced? My personal view for now is that if there will be a dip, it won't be a significant one. Maybe at 50$, when a lot of people might take some of their profit. Then again, I was thinking the same at 40$.

Silver trading at 46.15

I bought some (albeit GLD and SLV) at the beginning of the year. Boy I'm glad I did on Silver, now I just wish it'd been more. I split the money I had available between GLD and SLV.

Unfortunately I hit GLD just before it took the 7% downturn at the beginning of the year in January.

But Silver has gone crazy this year, really considering taking the profit as a pullback seems like it may occur - but then of course I'll feel like an idiot when it goes to $60 before it happens....

Maybe you could consider taking your position off in blocks over time. Like take half your position off or 25% off at a time in tranches to protect your profit and manage downside risk.

ask them to ship you the physical silver imo..

While possible, I can almost guarantee you nuc doesn't have enough shares to qualify for delivery.

FYP

It's still undervalued.

Problem with waiting for a dip is that if the price goes up another $4 and you get a dip of $2 then you still lose out. Trying to time dips of a bull market, unless you have reason to believe you can do so, is just gambling against the odds of the longer term trajectory.