WHY THE SHORTAGE IN SILVER

There are many small investors like you and me who are in love with silver. As a result, they cleaned most of the shelves in retail stores, of Silver Eagles and bullion investment products, excluding the 1000 oz bars. This shortage in the retail sales of silver is the first sign that our reason to buy is correct and the big increase in Silver price is not far off. It also tells us that the paper pushers in COMEX are selling silver short in an attempt to keep the price as low as possible.It’s very interesting that nothing on CNBC or other TV stations, or big newspaper mentioned the retail shortage of silver. I can tell you if it was a retail shortage in gold, you would hear about it 24/7. And probably the prices would double in a week, not like in silver where the prices went down in the face of a shortage.Contrary to my argument that I would like to see the naked shorts be punished, I say it was good luck for us that the naked shorts controlled the market and unintentionally produced the opportunity for us to buy more silver at garage sale prices. In my eyes the naked shorts, are dead fish, and in time they will be forced to cover and buy back their position. For the time being we will have controlled markets. But we must look ahead, and if there is not enough silver for the retail investor, what will happen when the end-users will need silver? In my opinion, it’s only a question of time when we will run out of 1000-ounce bars. The biggest wealth is coming to USA. Small retail investors are grabbing all the silver they can and today, in my opinion, we have 70-80% of all the free silver in the world, in private hands in the USA. I am getting excited that there will be so many future millionaires in our country. I still see Silver Eagles as the best buy but don’t ignore bullion in any size. The conclusion from the retail shortage is: Don’t believe the enemies of silver who say there’s a glut of silver in many places. What places?  The empty shelves of silver and the full shelves of gold tells you that silver has more value then gold right now, if not in today’s price, then in the future. I hope that the accumulation of silver here in USA will continue, and that it will create much real wealth for our fellow citizens for the betterment of our country. And don’t forget that this retail shortage, even if it is only temporary, is still very significant and pinpoints how tiny available stocks of silver really are and how fragile are the supply lines. Just wait until the people in China and India wake up to the silver shortage in America - they will take silver for any price. 

This entry was posted on April 9, 2008 at 1:53 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.

| Print