David Morgan: Retail Silver Market Has Seized Up – Debt at the Center of the Black Hole of Our Problems

by Greg Hunter, USA Watchdog Silver expert David Morgan says prices of the white metal may be low, but demand is huge. Morgan explains, “I did a survey of many of the top wholesalers and retailers in the country and came to the conclusion that the retail side of the market has basically seized up. One of the biggest mints in the U.S. is backlogged about 4 million ounces. You have two other main government mints that are basically on halt and not producing, or trying to catch up. You have huge premiums in the silver bar market and extremely high premiums in the silver bag market, or what is referred to in the industry as junk silver. Dealers are paying $5 above spot to source silver bags. What that equates to for the cost of silver is about $19.25 an ounce, and we are in the mid-$14 range for an ounce of silver. So, obviously, there is a huge demand that cannot be met with the current supply in the retail market.” Morgan also says silver is an inflation adjusted deal. Morgan contends, “The average mining cost used to be about $22 an ounce, but with the oil price dropping, it’s now about $15. In most cases, you are buying it for less than the best producers on the planet can produce it for. . . . We are basically at the same price, using the true money supply, when it was $5 silver in the early 2000’s. So, if you look at all the fiat currency floating around now, and you use that metric, you are buying silver at the same price (inflation adjusted) as you were in the early 2000’s.” Continue Reading>>>

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