Hello, Stuart, yes, I'll share my opinions with you on silver.
First of all, please understand, I do NOT view precious metals the same way most others look at precious metals.
That comes from two factors primarily, one is my some 20 years experience with the PHYSICAL gold market as what is known as a vest-pocket coin dealer. Simply stated, that is when a person operates out of his/her "vest pockets" as buyer and seller of precious metals trinkets, coins, bars, token, etc. As such a "dealer," I've participated in one way or another in the 3 "silver squeezes." The "trick to making money" during squeezes is to be nimble, settle for small profits, and TURN over inventory because the squeezes do NOT last. The primary reason they occur is greed on someone's part in the economics of supply/demand equation funtions.
The second factor I view precious metals differently than most is because I learned that the absolute price of gold is NOT the "London fix" price, nor the comex t price nor even the "spot price." The price of gold, silver, platinum, palladium, rhodium, and all the other "valuable metals" is negotiable, not fixed. It is always negotiable, and will always be negotiable. For example, I truthfully claim that over the past 12 years that I have consistently acquired pure 24K gold and recovered it, all costs included, for less than $20 per troy oz in its 24K refined and assayed form.
My point? Silver is not absolutely priced at $4.80ish per ounce. Truth is, it is available, abundantly at mucho lesser prices and in considerable quantity. The price of silver that is $4.80 is for a certain TYPE of silver at a certain delivery point, at a certain calendar date.
Low silver prices for several years, have just shelved/stacked/warehoused oodles of silver, that's my opinion and it comes from my 2 perspectives articulated up above.. What price it will take to get it into the form that folks want to pay for to be acceptable for delivery on certain calendar dates is the only question. But I do NOT believe silver is in short supply, not for a nano-second.
So, reported or unreported hoards, makes no difference. Price will bring out supply, it always does, and believe me, silver supplies whether mined or unmined, are out there. Price doesn't just ration demand, price also rations supply. And my coin dealer experiences of 20 years + and my gold recycling experiences of 12 years tells me that silver supplies are is ample, current squeeze not withstanding. And we will see supply just as soon as the dust settles on the over-the-counter precious metals contracts are settled in London, January 30th, and the roll-forward of supply has occured. I've already said that I'm expecting Argentina to be the source of massive silver supplies.
That's my opinion and I'm stickin' to it<grin> |
