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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: menanna who wrote (12990)	6/12/1998 12:22:00 PM
From: Bucky Katt	Respond to of 116815

AM-- Most silver is a byproduct of copper production. Unless there is a new industrial use, it will track gold.

To: menanna who wrote (12990)	6/12/1998 12:42:00 PM
From: Henry Volquardsen	Read Replies (2) \| Respond to of 116815

Anna, Interesting question. The physical demand and production numbers for both metals are similar. That is in both cases annual demand exceeds mine production. This would be bullish for both metals. The problem has been above ground stocks and whether the owners of those stocks intend to continue to sell. It is there where the two stories are different. With gold we are all aware of who holds the gold and how much. The large holders are the central banks and they hold roughly the equivalent of 16 years production. It is relatively easy to monitor what central bankers are saying about gold and develop an opinion of how much they are likely to sell. With silver it is tougher. The ownership is more dispersed and it is tough to get a handle on how much there is and how likely it is to be sold. Also silver production is not that closely aligned to gold production, I believe it is more often associated with copper production. So if we do get the mine closures and those mine closures also effect silver production all it will do is widen the current production shortfall. The more important question is how much supply remains in warehouses and how much longer the holders of those stocks wish to run them down. Henry