1/ The Silver Exchange for Physical premium has been staying unusually elevated, even as we have seen lighter physical retail volume from June. Signaling tightness in the 1000 oz bar market.The retail premiums have been coming down simply because retail inventory has been rising
2/ As the precious metals market continues to deleverage, these EFP premiums could be a sign of continued rising costs within the industry as investors in physical metal becomes more assertive?
3/ Basically, the cost to carry physical continues to impact larger financial players who traditionally made money off of spreads and financing. This lends credence to my argument, that physical investors (strong hands) can play a more dominant role in impacting
4/ the larger physical supply market, thus impacting spot pricing, financing, and spreads between paper and physical. This also presents larger concerns which is the reason I have been very vocal on assessing risks on various structured forms of gold and silver programs
5/ (unallocated, allocated, pooled, digital, etc). It is imperative that investors understand the longer term landscape and how the above changes can challenge the most well intentioned program.
6/ Stay away from to the marketing hype and apply market constraints/variables to your selected investment strategy. Understand what you are legally agreeing to and the recourse you may or may not have.
7/ I may not have tens of thousands of followers or widely interviewed on the podcast circuit, but I do apply a high degree of knowledge that adds direct value to each client and their portfolio. Popularity is not as important as protecting the individual's best interest.
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