More evidence has surfaced that physical silver is running out. Various readers of ArabianMoney, the first website dedicated to publish financial comment from Arabia, has made it clear in letters/comments that they are simply amazed that the silver price is so low, given the high demand and depleted silver stocks in the areas/regions in which they live.

Silver Bullion has for some time now recommended that investors buy and hold physical silver, especially at silver price levels of around $32 an ounce. It is after all no secret that illegal silver market manipulation and the “paper gimmick” are mainly responsible for a suppressed or ‘fixed’ silver price. This state of affairs is accelerating the depletion of silver stocks, because although less than an estimated 1% of the world population gets or understands silver, silver stocks are depleted at a rather scary rate by those that gets and understands silver. Again, this is why investors should not delay to buy or acquire physical silver, especially if physical silver is still available in the regions/areas in which they live.

One ArabianMoney reader commented: “I used to buy silver from a shop in Kobar in Saudi. From the last four weeks they said they ran out of silver. I cannot find anyone who sells silver in Saudi now. I asked them from where do they get their silver. They said the UAE. The problem is they only have 1kg bars…and I still cannot find any supplier” (Physical silver running out because its spot price does not reflect true investment demand, ArabianMoney, Peter Cooper, 6 October 2011). Yes, silver stocks available for sale are depleted in Saudi Arabia and word is out that the situation is no different in the United Arab Emirates (UAE).

Now one might be forgiven for erroneously assuming that silver stocks in the West, physical silver stock levels – not silver shares/stocks traded on stock exchanges, are not really affected by an artificially low silver price, which is not reflective of the supply and demand situation at all. The truth be told, established private silver bullion dealers (of size) in regions/areas such as Texas and Australia, are pretty much experiencing the same situation as silver bullion dealers in Saudi Arabia and the United Arab Emirates (UAE). Silver stock levels are either depleted or running at very low levels at various silver bullion dealers across the globe.

Silver Bullion is of the opinion that the situation is only going to worsen, because the true silver investor has no intention to part with his/her physical silver in exchange for fiat money (non-redeemable paper notes, electronic money, fiat currencies, paper money), especially at silver price levels that only add insult to injury if one is in the market to sell. In fact, considering “…that silver is a rare metal, more rare than gold” and that “silver reserves have been estimated at one-hundredth of gold reserves,” then it really and truly boggles the mind that silver can trade at a price level of $32 an ounce. It is after all no secret that silver is “…consumed by industrial processes and reserves have dwindled over the years because the price has been kept so low for so long by market manipulation” (Physical silver running out because its spot price does not reflect true investment demand, ArabianMoney, Peter Cooper, 6 October 2011).

In addition to the above, it is no secret that silver mining has not been able to meet the annual demand for physical silver for 16 consecutive/straight years now. Yes, the annual demand for physical silver was indeed met, but not without the depletion of most above ground silver stock piles. This has forced the criminal paper manipulators to allow for an ample increase in the silver price, because the ever increasing demand for silver, especially now that an increasing number of investors understand the importance of owning physical silver, necessitates that they raise silver prices in order to get at least some silver investors to part with their physical silver. Needless to say, less and less silver investors are willing to part with their physical silver. In fact, Silver Bullion is of the opinion that at some stage physical silver won’t be available in exchange for fiat money (non-redeemable paper notes, electronic money, fiat currencies, paper money) at all.

Peter Cooper of Arabian Money reckons that silver should be trading at $350 an ounce (Physical silver running out because its spot price does not reflect true investment demand, ArabianMoney, Peter Cooper, 6 October 2011). He bases his point of view on the fact that the global fiat money supply has increased seven-fold over the last 31 years, while the silver price has not kept up due to silver market manipulation. It is after all no secret that the silver price had reached $50 an ounce in 1980, before falling back to lower price levels as a result of silver market manipulation.

Like many hard-core silver investors, Peter is of the opinion that “…the snap back for silver prices now has the capacity to be sensational, and far beyond the mini-spike in the first few months of this year from $30 to almost $50 again. So those who go seeking out physical silver to buy at current prices are going to be very well rewarded and soon, not in 31 years!” (Physical silver running out because its spot price does not reflect true investment demand, ArabianMoney, Peter Cooper, 6 October 2011).

Given what was shared with you in this article, can you really afford not to own physical silver? Please accept our apologies if you’re already owning a substantial quantity of physical silver. If not, then what is your excuse for not buying silver? Get going!

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