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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (16892)	4/11/2007 8:24:25 PM
From: energyplay	Read Replies (1) \| Respond to of 217700

Silver has historically spiked then dropped back. There is a problem with the " paper silver " that doesn't exist, however there are large amounts of silver in personally owned silver ware, silver jewelry in India and other places, silver coins, etc. At some price this real silver will be used to replace the paper. The silver price spike should go far beyond any comprable decline in the USD, I expect to see the price spike in Euros, oil, and maybe even gold. The overall supply demand picture has demand greater than supply, but there is still that huge mass of silver that is already dug up. The other thing that increases supply : the high prices of gold, copper, lead and zinc, as silver is often a by product of gold and copper mines, etc. Look at it this way: the world has maybe 4 months supply of oil above ground and intransit, and in inventories. There is less than 4 months supply of copper above ground and intransit. There is over 5 years supply of silver above ground, maybe 10 years supply. Silver is considered a store of value,and so, it gets stored under 'normal' economic conditions, and then sold under other economic conditions. When silver goes over $50 per ounce, lots of silver will hit the market. Many of the new buyers will be momentum players, who will not hold silver for years, but sell when the silver price drops. Silver can also spike even if the USD gets stronger.