The eyes of silver bulls are sparkling as prices climb amid rumours of silver bullion shortages.
Mind you, the Financial Times site says that the talk is mainly down to one particular website. Zerohedge.”
Over at Zerohedge, Tyler Durden says that On Friday we disclosed that major precious metals distributor, retailer and trading house BullionVault.com had run out of physical silver inventories in Germany (and possibly elsewhere) and was advising clients to seek the precious metal elsewhere. Today, we find that the UK joins Germany in what is now becoming the second round of the global silver shortage (the first one occuring in May 2010 when it was unclear just how the ECB would deal with insolvent PIIGS). Below is the warning by British BullionByPost notifying clients that the company currently has no silver bars in stock.
David Franklin, market strategist at Sprott Asset Management, told BNN on Tuesday about the companys concerns over physical silver supplies.
Its shocking how thin the silver market is, Franklin said. [Watch the interview]
Weve seen a sharp move upward in the usual suspects. Endeavour Silver (EDR-T 6.15 -0.15 -2.38%), First Majestic Silver (FR-T 12.63 -0.06 -0.47%), Pan American Silver (PAA-T 35.51 -0.76 -2.1%), Silver Wheaton (SLW-T 32.19 -0.38 -1.17%) and Silvercorp Metals (SVM-T 10.56 -0.36 -3.3%) jumped more than 4% Tuesday, topping the 1.5% gain in the S&P/TSX Global Gold index.
Silverstrategies.com editor Sean Rakhimov is also watching a few more under-the-radar picks in silver. In an interview at the webstie Mineweb on the weekend, he highlighted Mirasol Resources Ltd. (MRZ-X 5.52 0.27 5.14%), US Gold Corp. (UXG-T 6.87 -0.36 -4.98%), Silvermex Resources Ltd. (SLX-T 0.85 0.03 3.66%), Apogee Minerals Ltd. (APE-X 0.42 0.04 9.21%) and Esperanza Resources (EPZ-X 1.92 -0.08 -4.00%).
Rakhimov says Mirasol has been making some fantastic discoveries in Argentina while one that has been overlooked as a silver company is US Gold, believe it or not. A Rob McEwen company, US Gold is mostly known for gold, but its main area of interest, at least in the last couple of years, has been a silver discovery in Mexico.
He says Silvermex, which has been backed by Eric Sprott and runs the La Guitarra mine in south-central Mexico, in my opinion, has the best board of any silver junior.
Bolivia, where Apogee is active, comes with political risk but Rakhimov says the company certainly has some good silver assets, and Bolivia is an inexpensive place to do business. As long as Bolivia remains a legitimate investment destination, I think Apogee should do well.
Finally, he says, Esperanza is more of a gold company now [Its] Cerro Jumil [project] has more than 1 million ounces of gold now and is looking very attractive as a takeover target.
If you have a comment on this or any other blog, please write to us at [email protected]. We may print your comment and reserve the right to edit.
