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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Message: Typical pattern for an intervention developing
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We have the typical pattern for an intervention developing here, and the same for silver. Silver is already down to just above $13. Retail spreads for gold are over $50 above spot now, and silver runs $17 or more in dealers. These are huge spreads and widening. I am beginning to believe that the paper price has separated permanently and that paper gold and silver may be discounted severely. In other words, paper gold could decline to pennies per ounce and it would mean nothing. The paper price of silver is already irrelevant in that one cannot buy it or even find it at that price.
I continue to find this and that at antique shops and shows. In the past two weeks, I have bought about 21 ounces of silver in sterling form. It cost me an average of 12.50 per ounce contained. I still manage to find silver at yard sales. Last weekend it was 6 collector spoons for $2 (2 ounces). Outside the goldbug community, the spot price is still believed, yet merchants still view sterling as objects and attach a premium price that frequently puts it above melt. Mind you, the retail antique market is tanking so much, that blanket discounts of 20% or more tend to offset this. Your best melt buys remain in gold, yet it is silver which is more undervalued. This sounds like a contradiction, but what I mean is that it is OK to buy sterling objects at $20 per ounce contained because $20 is still dirt cheap. Silver should be about $60 if we were at the 1980 gold:silver ratio. Silver is scarcer than gold too, so I continue to buy it instead of gold. Yet the paper price continues to slide
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