Silver Accident...

USMC_6115

Anyone read this? Interesting, but I am not sure if it is new, old, or hogwash.. what do you think?

Silver Accident

jmski52

Looks like an older article. On the other hand, those are some of the very considerations I use to rationalize my own position in silver. The other side of the coin is worth considering as well - which is the idea that silver production is hefty and that demand can be met by the newer mines in South America and that other mines can be brought onstream if the price so dictates.

I was in college in the early '70's when I first became aware that the strategic stockpile was being sold off and that the stockpile would deplete in a "few short years". That took a long time - much longer than expected, as I recall. Along the way, I've noticed that nobody seems to have a solid grip on what the physical silver inventories really are, and how much manipulation is really going on. Industry data is available, but how good is it? Anyone who calls out a shortage is labelled as a crazy nutjob. What's THAT about?

Silver has always seemed an enigma to me. Evidences of a physical shortage seem to become apparent more often now than before, so I am on the side of "prepare for the worst, and hope for the best". In my opinion, a physical crunch could very well happen, but the more compelling argument for silver is the sovereign debt crisis. Either one, or both - could result in some of my biggest plans becoming a reality, and that's the whole reason I continue to buy.

ricko

Definitely seems to be an old article, especially by the reference to silver certificates. In any case, this seems more of a sales pitch than counseling. I do believe in stacking silver - and gold. That much of the message has solidity. Cheers, RickO

roadrunner

I don't know about their being silver mines to bring on significant new production. If silver increasing in price by nearly 10X hasn't brought on any new production over the
past 10 yrs, then what possibly will? Most silver is produced as a result of mining other metals such as gold, copper, and other base metals. One major source of "new" silver
is the constant recycling of old silver (ie silverware, 90% silver coinage, obsolete and unwanted bars, etc.). Butler never mentioned the $190 BILL otc derivative's short position in
silver in summer of 2008. At the time that was effectively a short bet on 10-15 yrs worth of world production. Obviously no one had the metal in hand to cover such a bet. The big
boys have relied on the fact that if your bets are 10X bigger than anyone else, you nearly win by default if the opposition cannot remain unified.

jmski52

I don't know about their being silver mines to bring on significant new production.

Don't quote me, but I had the impression that the mines in Mexico and South America were relatively new. Maybe not. And wasn't there a thread fairly recently about the abundance of silver available to be mined? Or was that just me dreaming a silver price crash scenario?