GOLD vs. SILVER
Haven't been following the thread, so forgive if this is a re-post (worth re-posting though!).
Perspectives: The Perfect Financial Storm?
Financial Storms Heading Towards the U.S. Economy
"A similar situation exists in today’s silver market. But, in the case of silver, it is much worse. As a commodity, silver has been running a supply deficit for over 11 years. However, in the case of silver, there are no large central banks to fill the gap. Unlike gold, silver is consumed. In addition to its financial properties, it has many industrial uses that range from photography, electronics, batteries, electroplating, medical/dental to water purification. Industrial demand for silver has grown steadily at an annual rate of 4.5% a year since 1982. Yet silver production has only grown at an annual rate of 2.4%. Silver, like gold, has been running an annual deficit for over a decade. Deficits have remained constant and yet the price of silver has declined."
10 Compelling Reasons to Own Silver
1. Prices remain at low levels.
2. Low price are discouraging new investment, thereby reducing supply.
3. Global downturn reduces supply as a byproduct of mining.
4. Mines shutting down because of low prices and energy costs.
5. Silver stocks continue to decline in price.
6. Demand is increasing with alternative uses.
7. Dealers and intermediaries leaving market, thereby reducing liquidity.
8. Trading and volatility levels are dropping off.
9. Short positions are huge.
10. Returns from alternative investments are declining.
May 26, 2001
© Copyright 2001 James J. Puplava
financialsense.com
Loaded up on PAAS in $5-6 range.
Just my bits |
