Hi Somchai!

That is exactly my point! Right now its almost impossible to find refined silver in retail size bars or coins, so the good times roll. However, if in the future that shortfall is corrected, then I doubt FR will be able to command a high premium for their silver products, in which case they will lose money.

I do not know what is going on in the silver market. I think we are indeed facing a legitimate shortage and that silver is destined to trade more as a precious metal than an industrial metal. And if that is the case, then such distinctions as whether or not a bar is recognized and minted by an established name will matter less. It will come down to buying up silver in any form and paying whatever it takes to get it.

The bullion banks have been playing a game of brinkmanship for a long time. It may well require that the last ounce of silver in any known inventory will have to disappear before the price can rise to reflect a real shortage. It has been more than 20 years that we have been waiting for the above ground surplus to be consumed and still the price of the metal is way below what one would expect. We may discover in just the next few weeks if there really is a physical shortage. Any delivery failure in the COMEX will put an end to that discussion for once and for all.

cheers!

mike