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Gold/Mining/Energy : Gold Price Monitor

GDXJ 92.99

+2.9%

Nov 7 4:00 PM EST

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To: d:oug who wrote (58110)	10/7/2000 6:27:41 AM
From: d:oug	Read Replies (2) of 116753

Bad Bad Barrick ABX w/ silver may become more valuable than gold egroups.com From : J.Cook-investment rarities.com Sensational Silver August 2000 "Within our lifetime, silver may very well become more valuable than gold, as it was in ancient Egypt." ... claimed that prices would explode upwards after the controls were lifted and as usual, he was right. A similar situation exists today with silver... ... short sales that artificially suppress the price. ... a tremendous volume of silver has been borrowed and then sold... ... the mining companies and others who borrowed the silver and then sold it have kept the price depressed. This silver wouldn't have been sold at those prices by the owners... it's not normal to free markets. Commodity laws prohibit short sales from mining companies for more than one year's production. That's because nobody can look into the future for years ahead. Yet mining companies such as Barrick and others have borrowed silver and sold it in amounts up to five years of future production. It must be paid back eventually so it represents a huge short overhanging the market for years to come with the likely outcome of a painful short squeeze. ... Theodore Butler, argues that silver would be $15 to $20 an ounce without these free-market irregularities. After all, who would sell silver at giveaway prices (under the cost of production) when it's in known short supply, and demand is far greater than supply? Nobody sells something for which there is a shortage until they are enticed to do so by higher prices. Yet that's what's been happening. This represents more fuel on a potential bonfire. Ted Butler insists there will be an explosion that forces up the price of silver until these market distortions are cleared. Then the price of silver will have to come to rest at levels that reflect true supply and demand factors. According to him, it's not out of the question for silver to rise to $50 or $100 an ounce. Figure it out yourself. You have booming industrial demand for silver (soon to be a billion ounces a year). The available supply from scrap recovery and mining is 25% less than required. Above ground supplies are tapped out and used up. There is an ongoing short of stupendous levels that's so precarious it's considered by some to be an act of financial hari-kari. Silver has an incredible number of industrial uses and most can't be substituted. Mining production can't be easily expanded because most silver comes as a byproduct of other types of mining. Silver production fell last year. Taken in total it's an amazingly bullish story that only..... Josh Wright, egroups's GoldWorldNet Moderator egroups.com

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