Take a look at the "paper price" of gold and silver and then go and try to buy the precious metal from your bullion dealer for that price. What will you see? You will quickly realize that the paper price and the physical price are drastically different.
The massive premiums that exist currently between the "spot price" and the actual price that you pay for physical has been one of the main conversations in the precious metals community for quite some time now, as the gap continues to grow.
Dealers continue to point out the fact that supply is tight, which means that there is incredibly demand for physical metals at these prices, both from individual investors and from precious metals friendly countries such as Russia and China, which we have reported on extensively as of lately.
The market that is experiencing the most extreme discrepancies is silver. It is being reported that silver is in a shortage and the demand for physical shows no signs of slowing down. Dealers state that "mom and pop" investors within North America have taken an incredible interest at these rock bottom prices and are buying hand over fist.
Of course, these shortages are being caused by only a small portion of the population. Can you imagine if the masses in the West returned to their roots and began to fully appreciate the true value of both gold and silver as both a store of savings and as insurance against the coming collapse?
The results would be stunning. The fact is, prices would catapult higher and there is nothing that the manipulators could do to keep the prices contained, the canary in the coal mine would toast.
Three mints that are confirming this incredible demand are the United States Mint, the Canadian Royal Mint and the Australian Perth Mint, all of which are limiting their sales and setting quotas, due to their intense demand.
Isn't this insanity? Organizations that make a profit from selling a product are having to handicap themselves and sell less than what the market is demanding!
The fact that this shortage is not moving the prices of both gold and silver significantly higher, illustrates just how manipulated the paper price has become and how truly disconnected it is from reality. More importantly, it shows that the only real way to invest in precious metals is through physical. In the end, you either get physical, or you will get nothing.
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