Silver Shortage?

FutureMoneyTrends.com has recently received several reports, published and non published reports about possible silver shortages. Is their a very limited supply of silver, yes, is there a worldwide shortage happening right now, well not exactly. Under the agreement that we wouldn't reveal their name, a major bullion dealer who we are friends with, told us that their traders are not having any issues buying physical silver, and that their warehouse had a significant amount of physical silver. Now, will there one day be a shortage of silver, in our opinion at these prices, yes, the price for silver will have to move up considerably in order to come in line with the above ground available supply and ever increasing demand. Sorry to disappoint you, we would of loved to have been told by our very reliable sources that their was a full blown silver shortage, but that is honestly not the case YET.

Silver Eagle Premiums Getting Ridiculous

  When it comes to Silver Eagles, there is a lot of price gauging on the internet, so be careful. We did a quick search on the internet and found most online dealers selling physical silver at reasonable prices, however, the online auction market like Ebay has many sellers trying to rip people off. We saw several sellers asking $50 or more for Silver American Eagles that you can buy from Apmex.com right now for less than $43. In order to get a reasonable price on Apmex.com for a Silver American Eagle, you have to buy more than $10,000, then you can purchase one for $39.39. Even though that is more than the $1.50 over spot that we were paying a few years ago, you have to remember when silver was 12 bucks, you paid $13.50 for an Eagle, that's 12.5% over spot.

As we write this, the silver spot price is around $37.50, so the $10,000 purchase price is 5% over spot and the regular rate is 14.6% over spot. Considering the market is as tight as it is, in our opinion that's not too bad of a deal. However, the people paying north of $50 plus shipping and handling are being ripped off in our opinion. As you know, we are HUGE silver bugs. In fact, we even made a video titled 'Silver Shortage, Silver Will One Day Be Worth More Than Gold,' and when we profiled silver we called it the "best investment opportunity in human history." Since we made that claim just 7 months ago, silver has risen 102%!  If you haven't been keeping an eye on the prices for the metals, gold is literally a hair away from an all time high and silver is at a 31 year high.

Trend Hunters

   

The Economy

Yesterday, new home sales data inspired the market to rally not because it was great, but because it was so bad that they feel QE3 is now all but guaranteed. New home sales fell almost 17% in January, putting sold homes at the lowest mark since the Commerce Department began keeping track of the data in 1963. Analyst in the main stream were expecting an increase, obviously they actually believe that inflation causes recoveries. When, in our opinion price inflation in every day non-core inflation goods makes things much worse by squeezing the wallets of Americans every time they buy food and energy. 

Speaking of energy, oil is over $106 a barrel and U.S. gasoline inventories posted the biggest seasonal decline on record yesterday. Normally we would think that a pull back would be imminent for commodities after these huge moves up, but honestly with geo-political risks, Japan, and Bernanke, we have to think that any pull back in commodities will be very short term (in our opinion). Don't forget congress still has to deal with our debt that is now reaching exponential growth. From 2000 to 2008, our debt rose by just over 4 trillion, from 2008 to today it has risen just over 4 trillion. So, we have managed to increase our debt by 4 trillion in less than half the time it took us to rack up the previous 4 trillion. We should also note that the first 4 trillion in national debt took 216 years!

We believe the markets are in for a wild ride in 2011. The real economy should have the markets priced at much lower levels, but with the FED buying up 80% of U.S. treasuries and keeping interest rates artificially low, the markets on super low volume have been able to keep the rally going. Unlike 2008, FutureMoneyTrends.com sees several major historical trends being broken. In the last year, we have witnessed gold (money) and commodities decouple from the overall market when they have mini-panics. Specifically gold during the Greek crisis and most recently the Japanese crisis. Yes, gold did go down, but it wasn't until the major meltdown had passed on the first Monday after the tsunami. We also have to remember that even in 2008 gold snapped back pretty fast. In fact, the Dow Jones basically is at a break even post Lehman Brothers and gold is up over 50% priced in dollars. With the recent rejection of austerity measures by the Portuguese Government, the sovereign debt crisis could potentially kick into high gear over the next few days. Let's not forget the states either. FutureMoneyTrends.com is working on a very important video regarding the growing economic crisis in the states as well as a fictional video that will leave everyone on the edge of their seats. Both these videos will be released shortly!