Within 24 hours expect a visit by fc to dispute all your claims.
I read a fairly interesting argument by one analyst estimating the survival and consumption rates of silver ever since records have been kept. From that, the analyst figured 5% of all the silver ever mined is still around, around 24 billion ounces, a far larger amount than the 0.5 to 5 BILL ounces that Ted Butler and other silver bulls have published. The 24B oz. works out to be around 5X the total amount of gold mined throughout history. So possibly even the 16 to 1 historic ratio might be understating silver's value.
There are $190 BILL short derivative contracts out there on silver held by a couple of big banks. That works out to be 13.5B ounces or over half the world's supply if you could find it all at once. This is roughly on the order of 50 yrs of silver production. A nice trick.
The above author uses slightly diff numbers but comes out pretty close to the above and a 4-1 silver/gold ratio.
roadrunner >>
That's OK Roadrunner they can shoot the messenger but that still doesn't change the fact that Silver is an exceptional buy at current prices. I don't have a problem with people trading in and out of Silver, Gold or anything else for that matter as I recently sold 3 oz. of Platinum and 2 oz. of Gold to help pay for a new pickup. I figure I made 25% profit in 3 months and with all the rebates going on I was able to trade my truck off on new one and pay cash since I don't believe in leasing or having loans on vehicles. Actually I agree with some of the metal flippers that I would've been better flipping more of my holdings the past few years but only if I was really good at timing the highs and lows. Eventually my opinions will be proven correct but at what point in time that is I have no idea, however with all the fiat currency sitting on the sidelines all it will take is a surge in the velocity of money into the system to help light a fire under not only PM's but tangible assets in general.
Norseman, be careful with palladium. While it is useful in fuel cell applications, it is only a platinum substitute in catalytic converters. It is used because it works like platinum(but not as well) but at a much lower cost. The reason for the huge price run up of 2001 was some genius masters of the universe at Ford bidding up the price well beyond its worth. They got the price of palladium, an inferior platinum substitute, way above the price of the real thing, platinum. As soon as their contracts expired the price of palladium crashed and never recovered.
Palladium may go up in price but I doubt it will ever be more expensive than platinum. I very much agree on your thoughts on silver, however. I think it will go way up in value from its present level of $14/oz.
Comments
<< <i>Now you went and done it Norseman88.
Within 24 hours expect a visit by fc to dispute all your claims.
I read a fairly interesting argument by one analyst estimating the survival and consumption rates of silver ever since records have been kept. From that, the analyst figured 5% of all the silver ever mined is still around, around 24 billion ounces, a far larger amount than the 0.5 to 5 BILL ounces that Ted Butler and other silver bulls have published. The 24B oz. works out to be around 5X the total amount of gold mined throughout history. So possibly even the 16 to 1 historic ratio might be understating silver's value.
There are $190 BILL short derivative contracts out there on silver held by a couple of big banks. That works out to be 13.5B ounces or over half the world's supply if you could find it all at once. This is roughly on the order of 50 yrs of silver production. A nice trick.
eagle.com/editorials_99/mbutler110799.html">remaining silver estimate
The above author uses slightly diff numbers but comes out pretty close to the above and a 4-1 silver/gold ratio.
roadrunner >>
That's OK Roadrunner they can shoot the messenger but that still doesn't change the fact that Silver is an exceptional buy at current prices.
I don't have a problem with people trading in and out of Silver, Gold or anything else for that matter as I recently sold 3 oz. of Platinum and 2 oz. of Gold to help pay for a new pickup. I figure I made 25% profit in 3 months and with all the rebates going on I was able to trade my truck off on new one and pay cash since I don't believe in leasing or having loans on vehicles.
Actually I agree with some of the metal flippers that I would've been better flipping more of my holdings the past few years but only if I was really good at timing the highs and lows. Eventually my opinions will be proven correct but at what point in time that is I have no idea, however with all the fiat currency sitting on the sidelines all it will take is a surge in the velocity of money into the system to help light a fire under not only PM's but tangible assets in general.
Palladium may go up in price but I doubt it will ever be more expensive than platinum. I very much agree on your thoughts on silver, however. I think it will go way up in value from its present level of $14/oz.