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

To: Mark Bartlett who wrote (1169)	5/20/1998 7:13:00 PM
From: Ray Hughes	Read Replies (2) \| Respond to of 8010

Hi Mark, Your buddy Mr. Soros knows that too. Go with the smart money. But do understand, commodities prices only rise for real when inventory to consumption ratio gets below, and stays below, the minimum working stock level. In Silver that's about 4 weeks or something like 65 million ounces. The ratio stands above this level now so the present action is the churning that typifies a pre-rally phase observed in the lead-in to most bull markets. This phase can take a couple of years to run out and the sustainable rally to get under way. Yes, users can't go on forever using more silver than is produced. Scrap supplies will rise but only when silver's price rise pulls the supply out of the closet. I love the illogic of MA's statement that scrap supply will rise when silver's price rises as he uses this as an argument not to partake in the silver price rise. Am I missing something MA???? Do I really care that my 15 cent $6.00 call options rose 10-fold in price in a few weeks despite inventory still being heavy???? If I know that inventory is getting thin enough to trigger successful market rigging should I refuse to turn a neat trade because its "not genuine?" The sound you will hear when the rubber band breaks is not the supersonic shriek of flailing rubber but the anguished cries of the first silver purchasing agent who gets told...sorry, no silver today. In the mean time let the WBs and GSs of the world make us a few nice trades. I like appetizers before the main course. RH