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You guys have left out an important factor in this discussion, and it's production. If you keep supply & demand at existing levels, warehouse stocks hit 0 around the end of next year, long before the digital stuff will have any real impact. What will fill that gap? Ironically, it is gold's decline that makes silver more attractive, because with projects being shut down or delayed, and since silver is largely a byproduct of gold mining, and rarely economic to mine by itself, there is little incentive to mine more even if the price rises. If you look at a chart, we have been in a supply/demand imbalance greater than the 70's was. Anyway, you can list the silver pure plays on 1 hand, and that's why I'm here. $6 is a gimme in my opinion, and $7 a real possibility. How many times have we seen the lease rates for silver spike up over the last 2 years? Pretty soon, it will be for real, never mind the 2 billion people in Asia who love the stuff. The other whites are far from done too, and I agree with the decoupling from gold. ID |
