Message:

<p>[QUOTE=&quot;cladking, post: 25715476, member: 68&quot;]<i>&quot;Newman highlighted that while identifiable silver inventories and off-exchange metal holdings remain considerable, some of these reserves may be tightly held. Consequently, the impact of ongoing deficits on the market remains to be seen.&quot;</i></p><p><i><br /></i></p><p>Yes.&nbsp; Exactly.&nbsp;&nbsp; There has always been a balance between what is sold and what is bought but this balance would break down in a buying panic.&nbsp; Not only do those without silver want to get on the boat but those already on the boat want to go as far as the boat will take them.&nbsp; So now what happens when hundreds of industrial concerns and militaries suddenly want to secure a supply of silver for the future?&nbsp; </p><p><br /></p><p>I would remind you that the aggregate amount of silver held by individuals and companies is quite small.&nbsp; We have been living hand to mouth with silver as a few in US banks have made vast fortunes keeping the price low and watching silver flow into landfills.&nbsp;&nbsp; Low prices have generated vast profits to the few.&nbsp; Just like defective refrigerators and planned obsolescence generates vast profits and fill the garbage dumps so too does every activity that suppresses prices and creates garbage.&nbsp; </p><p><br /></p><p>I would estimate total world supply at around eight billion ounces of which several hundred million will always be unavailable regardless of the price.&nbsp; Much of the rest is already in the supply chain.&nbsp; A lot of silver is no doubt sitting in bank vaults and has several owners because &quot;reserve banking&quot; is highly profitable to the few.&nbsp;&nbsp; A lot is backing for ETF&#039;s and is not readily available to produce cars or refrigerators that don&#039;t work. </p><p><br /></p><p>Of course a lot sits in jewelry stores and coin shops around the world and a lot of this will be sold but it&#039;s not enough to feed a sustained demand. </p><p><br /></p><p>So where is Russia and Frigidaire going to buy their silver?&nbsp; Are they going to line up at coin shops like people did to sell silver in 1980?&nbsp;&nbsp; How many tea sets will it take to satisfy Russian demand alone?&nbsp; How many tea sets are left after so many were destroyed in 1979?</p><p>&nbsp;</p><p><br /></p><p>It&#039;s going to be a dangerous time to buy silver going forward and it may already be.&nbsp; The simple fact is silver can move violently in any direction at any time.&nbsp; At over $32 an ounce wise investors would already avoid it.&nbsp; But, people get whipped into a frenzy and always want to jump on whatever is popular because they&#039;d rather go broke doing what everyone else is than chart a course that leads to profit. </p><p><br /></p><p>I expect fireworks Monday and I&#039;ve still got metal to sell.&nbsp;&nbsp; I&#039;m not selling because I think we&#039;re near the top but because&nbsp; of my age and mostly because I&#039;ve always been a fan of making a profit.&nbsp; I&#039;m expecting interest rates to go back up and cash can be a good thing sometimes. </p><p><br /></p><p>I&#039;ve long believed that one day silver will simply become revalued in everyone&#039;s minds.&nbsp; This could happen pretty suddenly and may well be underway.&nbsp;&nbsp; Even if holders like me are selling the total brand new demand backed by untold billions of dollars can simply overwhelm it.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in