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Thursday, September 9, 2010

Dear Billionaires of the World: Silver

Yes, The silver market in physical bullion possesion is about to explode. JP Morgan is closing it's trading desk where the majority of the Silver manipulation has been taking place. Look for prices to skyrocket over $50 signaling the beginning of the bull market correction.
Apmex- The most reliable Silver retailer.

(The Silver Market is a tiny $1.9 billion)

Silver Stock Report

by Jason Hommel, September 2nd, 2010

It is too late for any of you, personally, to buy much silver below $20 per ounce.

While silver prices languished at about $5/oz. for almost two decades until about 2001, it's now too late for you to buy much, if any, silver below $20/oz. Did your personal wealth increase that much in the last decade like silver prices did? I don't think any billionaire in the world matched or exceeded that performance.

The silver market is very tiny, and thus prices are still potentially very explosive--especially if one of the 1000 billionaires in the world tried to buy any. The potential for future gains far exceed what has happened in the last ten years.

Only a tiny $1.9 billion dollars worth of silver per year is bought for investment; most of that is purchased in the USA, that's about 100 million troy ounces of silver, at $19/oz. Of that, nearly 40 million ounces of silver per year are being produced by the US Mint in the form of 1 oz. Silver Eagles.

I've been writing about silver for ten years, sharing and learning silver market information, with 80,000 readers. You can review any of my articles online at www.silverstockreport.com. Here's what you should know about silver:

World silver mines produce about 650 million oz. of silver, worth, at $20/oz., about $13 billion. More than that is consumed by industry, jewelry, photography, with the difference being met by recycling.

But investors are buying more than selling now. The people who produce the statistics call that a "surplus", but that's a white lie. As there's really not nearly enough silver to satisfy all the people who may wish to protect the value of their paper money, or other assets.

With "money in the banks" being only a small fraction of potential assets that could be converted into silver assets, and with money in the banks headed towards about $18 trillion, only about 1% of 1% of US paper money is buying silver in a year.

That means that by the time 1% of US Paper money tries to buy silver, then investment demand would be 100 times higher than it is today, and that $180 billion would try to buy into a $13 billion market, which could push silver prices well over $200/oz.

This is an understatement, as all the paper money in the world could conceivably buy all the silver and gold in the world.

I urge you, or your staff, to do further research into the facts about silver that I've shared with you.

It is my opinion that the purchase of silver is a race, given where prices are going. The race has started, and the billionaires of the world are not yet on board.

The BIS, the Bank of International Settlements, has produced a report showing that the world banks have $200 billion in notional value of silver derivatives. This increased from $100 billion, in a span of 6 months. Question! Where did they get $100 billion of silver to sell, when the world only produced about $10 billion of silver per year? Hint: They didn't. The notional value of their silver derivatives is a short position! The big banks OWE $200 billion worth of silver, on paper, to investors who have not yet asked for delivery. Besides paper money, this is the world's biggest ongoing fraud.

Thus, you should avoid buying the Silver ETF's, avoid buying any futures contracts, avoid buying silver, even "allocated" silver from any LBMA member bank, and stick only with buying real bars of silver from refineries or wholesalers.

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