Please note this very significant development in the Silver retail bullion market. If the Industrial users were hoping to corner Silver through orchestrated raids at the Crimex, then they have failed miserably and in fact the plan has backfired with retailers now in direct competion with industrials for Crimex inventories, to satisfy growing investment demand. I expected this to happen as described in a post I wrote a few weeks ago and was a bit surprised to learn this has come about even earlier than I thought possible. At any rate it won't be long before the Industrials will start to compete with each other for inadequate Silver supplies. As a result of this competitive infighting I expect the Cartel will disband and disintegrate in the process, leaving Silver to find a much higher logical price range.
Here are some key snippets from
http://silveraxis.com/todayinsilver/
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"I’d be careful buying at these premiums especially if this will be the first or single purchase in the past few months (or for many months into the future), but those who have substantial new money to commit to bullion can buy in moderate quantities and be just fine. If you do have $20,000 or more to invest, I would definitely go with wholesale bars of 1,000 oz. silver or kilo gold which Tulving and others are selling at very small premiums (near historical norms). No longer do you have to take delivery of COMEX contracts to get wholesale metal; the dealers are now bringing it to you (see more discussion below). Some of you may want to let Jason Hommel, Ted Butler, David Morgan and others know about this development, which could turn out to be pretty huge in the scheme of the gold and silver markets."
"One more thing. I have noticed a very large increase in the quantity of wholesale bullion offered by retail dealers, and in the case of at least Mr. Tulving, wholesale bullion being sold. For example, note that www.tulving.com has “over 200″ 1,000 oz. COMEX acceptable silver bars in stock. And for delivery by the week of October 13, Mr. Tulving has “over 100″ of kilo (32.15 oz.) Johnson Matthey COMEX acceptable gold bars. He has apparently been selling these like hotcakes. Where are these bars coming from? Mostly from the refiner. This is nothing less than the beginning of retail investment demand sucking wholesale metal out of the industrial market. I’ll have more on this later to the extent Jason Hommel, Ted Butler and others do not start to adequately cover the topic now that I have let the cat out of the bag."
