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<p>[QUOTE=&quot;mikem2000, post: 1480907, member: 30574&quot;]Actually, there is a word I missed that made your statement tecnnically true but totally irrelevant. &quot;It is an absolute fact that &quot;MINING&quot; supply does not meet demand&quot; Well its a good thing there are other sources of silver than just mining, huh?. These are of course are what Chris was talking about, the above ground recycled sources. It really makes little difference on how the demand is met, just wheather it is or isn&#039;t. To make a big deal about the &quot;MINING&quot; supply seems to be something the Kool-Aid drinking, tin foil hat crowd would blog about or those who want ot sell you silver at a premium over spot. The simple fact is supply has easily kept up with demand and that is evident in the price of silver falling to more reasonable levels. That is how a market works.</p><p><br /></p><p>Now for some fact that actually matter. For 2011 the mining output for silver was at an all time high at 740 million oz. That is not really indicitive of a underground shortage of silver. Also if you still have concerns about mining, there are at least a half dozen silver mining projucts in the works that will be at full capacity by 2015 that will be producing an additional 90 million oz of silver. That is a good fact to know if you are long on silver. It also doesn&#039;t seem to indicate a shortage either.</p><p><br /></p><p>Demand for Silver has been rather consistant over the past decade at around 875 million oz. per year. It has trended up slightly but actually dropped a bit in 2011. There were some increases in demand for industrial uses, but silver took a big hit because of lack of demand for film. There was also a slight decline for silver used in jewelry. So it does not appear like increasing demand is anything we can count on to drive silver up.</p><p><br /></p><p><br /></p><p>Now about this 17 to 1 ratio. You just need to get over that and understand how things work. That ratio is totally meaningless. The amount of Silver and Gold mined are separate things, and each is driven by its own demand. It is not like people just walk around and pick up all the gold and silver nuggets they find at random. This really just seems like another thing the tin foil hat crowd is blogging about. Think it through, man.</p><p><br /></p><p>Now for the biggie. You believe you are a Silver &quot;Investor&quot; and you openly admit you do not know how much it costs to get silver out of the ground? Well, Shame on you. that is one of the most important facts to know. Let me know in a few years how this investing thing is working out for ya.</p><p><br /></p><p>And finally we get to SLV. I have no idea what you have been reading, but SLV is 100% backed up by Physical Silver Bullion. Don&#039;t start talking about contracts and the like, because you clearly do not know what you are talking about. SLV&#039;s only holding is Silver Bullion. JP MORGAN is it&#039;s custodian and it is stored in their vaults in London. The have no meaningful cash position and they do not lend their silver. The silver is also audited by a major independent auditing firm that is responsible for auditing most of the major PM funds in addition to SLV. When money flows into the fund they buy bullion on the open market, when it flows out of the fund they sell. It is the market at work and reflects true demand. Anybody who wishes to invest in silver needs to look real close at SLV. The spread between buy and sell is small, they store and insure the silver for you. What a deal, and they do this for the small price of just .5%.</p><p>If you are looking to maximize returns, it is the way to go.</p><p><br /></p><p>I just noticed one thing I missed. You have indicated price action has been the result of manipulated markets. I take it from you posts that this market manipulation is keeping silver low. I have found nothing to indiate that in my research. This again, just appears to be be some rubbish you have been reading from the kool-aid drinkers. But just for giggles, Who is manipulating the market and why? Facts only please.[/QUOTE]</p><p><br /></p>

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