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Gold/Mining/Energy : Silver prices -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (3019)	10/19/2000 8:39:25 AM
From: russwinter	Read Replies (1) \| Respond to of 8010

Wow, great presentation. Situation has the appearance of some 19th century style market corner a la Jay Gould and company. The question is when does somebody (George Soros) jam the shorts and set off a monster squeeze? And what is taking them?

To: long-gone who wrote (3019)	10/20/2000 3:25:35 PM
From: Ron Struthers	Read Replies (2) \| Respond to of 8010

Excellent piece, I agree, a physical shortage will be needed to take silver higher and it will happen before long. I also agree, nobody knows inventory levels for sure, too often metal comes out of London and into Comex. If you read my analysis on silver before the Buffet rally, my analysis assumed that silver inventories were very low when Hunt ran the market. I assumed the market supply demand data was pretty accurate by GoldFileds and CPM so I added excess supply of the 1980s to inventory and subtracted excess demand from the 1990s to try and figure the point of low inventory. We should have reached that around last year. Normally once a market shows signs of demand outstripping supply, speculators, industrial users will start accumulating, this causes the inventory to deplete faster and price rise sooner. It appeared that this started with the Buffet rally. However, for some reason, silver was heavily shorted to hold the price down, it makes little sense, other than perhaps it was done in sympathy with gold short position. We can make some logic and reason why gold prices need to be lower, carry trade is very lucrative, U.S. policy for a strong dollar as world reserve currency, but silver makes no sense to short, other than perhaps you know the market is small and easy to control. Perhaps those that shorted, never expected to get in so deep. Any case, the physical shortage will cause silver to scream ahead, much like PGEs and energy. I expect we will easily see $10 to $30 silver within the next 2 years and it could be sooner. The same thing is going to happen to other commodities. You cannot countinue to have low prices, put little money into developing resources, put all investment into technology and virtual reality of cyberspace. Economies and demand keep growing for real assets (metals, foods etc.) I agree with holding silver bullion. I like the Canadian silver maple leafs, small bars, Kennedy Half dollars. This can also be mixed with some mining stocks, favorites are Corner Bay, PAA, Apex and Avino. Ron