A Note To Those Who Claim There Is No Silver Shortage

Want silver? Here, have a London spot contract promissory note.

Some metals analysts and commentators are claiming that there is no silver shortage globally - they claim the current silver price is adequate to generate sufficient silver flows from miners, recyclers, and from vaulted stocks of refined bars to meet market demand for metal.

This ignores the fact that there are an estimated 5B to 8B oz. of spot/cash silver claims in the London market - the world’s largest silver market - of which there is only a small fraction of these London immediate ownership promissory notes that have metal backing to allow delivery.

The owners who are parked in these London promissory note spot/cash contracts for immediate ownership of refined silver have been shunted into notes that substitute these paper claims in lieu of segregated and allocated bars of vaulted refined silver.

The holders of the billions of oz. of these spot/cash silver contracts think they own silver but they hold digital London promises instead.

And since 1987, when the Bank of England was appointed the ultimate regulator of the London silver market and permitted issuance of these fractionally backed ownership cash/spot claims for silver in London, global physical silver demand has been temporarily reduced by substituting these virtual contracts, that can be created without limit, for actual vaulted silver bars.

The fraud of this cash market shell game will be exposed as the demand for physical silver bars begins to exceed the capacity for delivery - as is starting to happen now. Market delivery default will then begin to occur and at that point the silver market will become truly physical.

There is no substitute for direct, secured ownership of physical, in-hand silver and gold.

Best regards,

David Jensen