An interesting development in the Candian homeland. For years Kitco has paid sellers around 86% of the intrinsic value of Silver for junk Canadian coins. But the payout rate took quite a dip after Silver ran from $18 into the low $30s, falling to a multi-year record low of 76% lasting several months. One could say sellers were taken advantage of on the basis Silver over $30 couldn't possibly hold and prices would soon return to the low $20s.

Well the good news this week is Kitco has once again restored their buying prices for junk Canadian Silver back to 86% of intrinsic value. Yet again we have further anecdotal evidence Silver supplies must be awful tight in order for Kitco to concede the $30s is here to stay and be willing to restore traditional payout percentages at these lofty levels.

Under these bullish Silver conditions Canadian retailers could make a decent living dealing Canadian junk silver bags, completely bypassing the risk involved in the time it takes to melt coins to resellable bars. Calling all entrepreneurs.......