Silver to be worth more than Gold in Next Decade

Here is a stat from the video to chew on. World Population up 176% since 1980 Global GDP up 600% Above ground Gold up 600% Above Ground Silver down 91% Silver price down 46%. Time to buy Silver. Not only will you be aiding the death of the FED you will be preserving your wealth from the government filth that is trying to steal it.

Paul Bea @ Monex for low-price Silver the largest retailer in the US. 100oz min on Silver. 800-949-4653 x2172 use Kevin from Goldmoneybill.org as referral to help support this site and spread the message of the return of Soundmoney. Congratulations to Ron Paul for heading the House finance sub-committee, may be bite be more than his bark.

Massive Silver Paper Fraud 100-1

Here are some facts to chew on. The annual worldwide industrial consumption of Silver is 800 million oz. The annual mining production is about 600 million oz a year. The difference has been covered up to now by recycled Silver. The SLV and ETF markets are 100 larger than the current above ground Silver stores. The biggest financial fraud in the world.

Paul Bea- Monex 800-949-4653 x2172 100oz min on Silver. Get the U.S. eagles. Use Kevin from Goldmoneybill.org as referral. It helps support the goldmoney site.

5 Alarm Fire on Silver @ Comex for Monday Nov 15th

Comex traded 1.66 billion oz of Silver on Tuesday Nov 9th, an all-time record. That is 3 times the whole worldwide Silver production in a year. The flight to physical has commenced. To scramble to convert to Silver Bullion, Paul Bea @ monex 800-949-4653 x2172 Use Kevin from Goldmoneybill.org as a referral. The end game is on now. Massive shortages in Silver are happening now. U.S. Silver Eagles sales have tripled in the last week and the month of November is on pace for 4.5 million oz, a new record by over a million oz.

Can Silver Hit $1000oz? Ted Butler

Ted Butler
The other day Jim Cook, the president of Investment Rarities, asked me a question that set me back. "How high do you think the price of silver could get?" I started to answer that, as an analyst, I don't like to throw out price targets, but prefer to dissect the underlying facts and conditions in the silver market. Those facts and conditions will tell us when silver is overvalued. Certainly I felt the current price was undervalued and I started to explain.
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But he cut me off, by asking, "Do you think it could hit $200 an ounce?" I answered, sure it could. And not only that, I continued, it could hit $500, or $1000. Then he asked me, "Why don't you write about that?" At first, I said I wasn't interested in weaving tales about sensationalized prices, as I preferred to stick to bedrock analysis and let the price unfold as it may. And previously I had written about $50 or $100 silver. I told him, even if silver "only" doubled, or tripled, or quadrupled, it would be a phenomenal return, especially considering the low risk at the low price of the past few years. Even a modest price rise would prove that our efforts to spread the silver story were sound and true.

But then I realized that Mr. Cook was right. If I had good reasons to back up possible extraordinary future price projections for silver, why not write about those reasons? So I have decided to do so. However, I'd like you to put what I write into proper perspective. I'm going to write about possible future scenarios in silver for one main purpose - to get you to think and prepare for what may be extraordinary price upheavals in silver in the future. The idea is to consider the possibilities, and the reasoning behind them.

I don't normally dwell on possibilities. In silver, it's easy to focus on probabilities and certainties like deficits, disappearing inventories and the law of supply and demand. I see things like verified short positions and the existence of leasing and a price out of line with all other commodities. With ultra-low risk and what I believe to be a free market guarantee of eventual higher prices, why resort to what many would label outlandish price predictions? I'll tell you why - for the simple reason that those outlandish prices just may be coming, and it would be negligent of me not to discuss them beforehand. Before you scoff at $200, or $500, or even $1000 an ounce silver, please hear me out.

Let me first tell you what I am not including as reasons for triple or high triple digit silver. I am not talking about the end of the world, or the destruction of the dollar or other currencies. I am not talking about silver as money. I am not talking about virulent inflation where you see $200 silver, along with $50 for a loaf of bread or $10,000 for an ounce of gold. While I can't guarantee that those things won't take place, they are not among my reasons for triple digit silver.

I suppose that if the world's monetary affairs go to hell in a hand basket, those holding real silver would be protected. But that’s not the basis for my silver recommendation. Bad things may happen in the future, but I refuse to dwell on them or promote them as reasons for owning silver. To me, silver is a "good news" metal. Its many and varied uses are all about making man's condition better and improving standards of living. I'm a commodities guy and an optimist. I won't advocate silver based on bad things happening that cause price appreciation. Life is too short. The great news is that nothing bad has to happen for silver to hit $200, $500, or $1000.

At the epicenter of reasons for launching silver to the heavens is the coming end of the silver manipulation. This has been my central theme for many years. Despite denials and protestations to the contrary by many, it remains obvious that silver is not priced properly. There is no legitimate free market explanation for such extremely depressed prices in the face of such spectacularly bullish fundamentals, namely, a structural deficit and depleted world inventories. Only manipulation could explain such a perversely low price compared with the real fundamentals. The good news is that since this manipulation is dependent upon the continued uneconomic dumping of government inventories (from the People's Bank of China), it is just a matter of time before those finite supplies are exhausted, and the price of silver is set free.

The end of the manipulation may kick off a whole host of related reactions. You can't keep the price of anything artificially depressed or elevated for decades and not expect violent counter moves when the artificial restraint or prop is suddenly removed. History bears this out. So it is logical to assume that when the silver suppression ends, we will get a severe jolt to the upside. As I have long maintained, it is the manipulation itself that creates the exceptionally low risk and high profit potential. When the manipulation ends, we must move to a price point where supply and demand balance without government inventory dumping. Considering how long silver has been kept depressed, it will take an extremely high price to balance supply and demand.

But this is old news for regular readers, and not the point of this article. Under normal conditions, I do not think it would take $200+ silver to balance the deficit. It would take a much lower price. However, it’s unlikely that normalcy will prevail in the future. There are certain factors that could come into play that could vault silver, in the years ahead, to truly shocking price levels. Just as we have remained grossly undervalued in silver for decades, it is very possible that, in the inevitable move to a market equilibrium price, we could overshoot dramatically to the upside, even if only briefly. There are several factors in place, all unique to silver, that could account for unthinkably high prices.

At the heart of the unique set of silver factors is one common denominator - human emotion and group behavior. People are motivated by price. Ironically, it is only high and rising prices that causes great numbers of people to buy in unison. Low prices discourage mass buying. (That's why silver is not on the mainstream radar screen yet.) If you study the history of investment extremes, or bubbles, it is the rising price itself that is at the heart of the cause for the move. The big problem is that the masses, excited by the price rise, come in late and stay too long.

I think silver is a prime candidate for a future price explosion that is historic and world wide in scope. Given its universal usefulness, appeal and stature, and its current low price, any significant price movement is likely to excite the world investment community. Its long term depressed price means that less than 1% of the people currently hold silver. No one knows if a silver price bubble will develop, but here are the reasons why it could.

1. A Short Squeeze On The Futures Market

For 20 years, there has been an outsized silver short position on New York's Commodity Exchange, Inc. (COMEX). This paper short position has been unique, in that no other commodity but COMEX silver has had a futures and options short position larger than world production and world known inventories. This has been one of the keys as to why silver has been depressed in price. But shorting is a two way street. While the shorts have had their way with the price of silver for a long time, when those shorts are bought back or covered, the price effect of shorting is reversed and it becomes bullish.

A shortage of real silver would cause the shorts to buy back their positions. We are seeing signs of delay in physical deliveries, a precursor to shortages. Also, before a short-covering panic develops, we should also see signs of a reluctance to take an additional shorting by the commercial dealers. Those signs are emerging. In fact, there could be sharp upward movements in the price of silver on just the lack of new shorting.
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Actual, panic-driven short covering hasn’t been seen in the silver market for more than 20 years, due to the ironclad control on the market that the dealers have maintained. A short covering panic appears unavoidable at some point, because the size of the short position, measured in the hundreds of millions of ounces, dwarfs comparable known real deliverable inventories. If this uniquely large silver short position on the COMEX enters into a panic covering phase, it could create triple digit silver all by itself.

2. Leasing Repayment Demands

The second component of what has been a 20 year silver manipulation is the fraudulent practice of metals leasing/forward selling. Under the guise of hedging, actually silver metal was removed from various central banks and sold on the open market. This was how we could have a deficit for decades with no increase in the price and no actual shortage of metal. I would estimate many hundreds of millions of ounces of silver, perhaps over a billion ounces cumulatively, were dumped over the past two decades due to leasing. This silver dumping was structured as a lease (even though it was a pure sale), with the silver due to be returned eventually to the central banks from which it originally came. The problem is that this silver was industrially consumed, and therefore, no longer exists in bullion form that can be returned.

While it appears to be a physical impossibility for the central banks' leased silver to be returned, that doesn't mean some individual central banks might not press for the return of their silver. If this occurs, it would set off a buying spree similar to the paper short covering on the COMEX. The main difference is that demands to return leased silver would involve physical buying, rather than the paper buying on the COMEX. Make no mistake, this leased silver represents a separate and unique short position, that exists in addition to the COMEX short position. Because it would represent physical buying, rather than paper silver purchases, any attempted buyback of leased physical silver would have a much more potent impact on price.

In fact, it is my opinion that there will be no return of any central bank leased silver because they can’t get the silver to return. They won't even try to get their silver returned. There will be negotiated resolutions involving some type of cash payment. (It will be quite bullish for the market just to see an end to leasing.) In the event I am wrong, and some individual central bank presses for the physical return of its loaned silver in sufficient quantity, this factor alone could account for $500 silver.

Even if the central banks quietly accept negotiated cash settlements in lieu of their actual metal being returned as required, that does not mean all the parties to this fraudulent leasing experiment will escape. The parties who borrowed and agreed to return the silver (miners, users, and bullion banks), all have unknown liabilities in a leasing crunch. Any number of them could panic and try to buy themselves out of these toxic derivatives. And the central banks, who leased out the silver that can’t be returned will certainly try to get as strong a financial settlement as possible as compensation for the loss of their metal. That compensation will be based upon the price of silver. That also will determine the liability to the borrowers of the leased silver. Astute borrowers will look to limit their liability by buying silver, which means more buying pressure.

3. Industrial Users Panic

Silver is used in thousands of industrial applications. In fact, aside from petroleum, silver is used in more applications than any other commodity. Unlike petroleum, the amount of silver used per application, while vital to the finished item, is a tiny percentage of the item's total cost. For this reason, silver is considered to be price-inelastic for much of its industrial demand. This means that industrial users will not readily substitute other materials for silver in a price rise. If the price of silver jumps significantly, they will be more inclined to build inventories than eliminate silver.

But it won't be price alone that causes industrial users to rush to build silver inventories. It will be availability that could set off a panic. The 25-year experiment with Japanese-developed "just-in-time" inventory management has caused the inventories of all commodities and materials to be sharply reduced. Thanks to computerization, modern manufacturing and transportation efficiencies, holding extra inventories has become expensive and old fashioned. If a manufacturing or transportation disruption occurs, industrial production is more threatened by having lean inventories.

It is not just normal silver production or transportation disruptions I am referring to, but something else. Since we are in a pronounced and documented deficit, silver shortages must come at some point. It is a miracle that it hasn't happened yet. When the inevitable silver shortage hits the industrial users, it will be only a matter of time before some will try to protect themselves from those delays (and price increases). They'll do this the only way they can - by buying extra silver as a buffer. They will build, or attempt to build, inventories of silver that they never held before. This is a logical reaction to silver delays and price increases. After all, you don't risk the shutdown of an assembly line for want of a single, low-cost component.

The problem is that what may be reasonable for one industrial user, puts pressure on the silver supply. As individual users try to immunize themselves from assembly line shutdowns by buying more real silver for inventories, other industrial users are automatically denied silver. If extraordinary demand for inventory building by some users occurs, it will make the supply tighter for other users.

This is how panics occur. The price of palladium rose to over $1100 an ounce because industrial users (mainly Ford Motor Company) panicked and built inventories, because they feared they would have to shut their assembly lines due to a lack of palladium. Silver is used in many more applications than palladium. That increases the chance that silver users will panic at some point and try to build inventories. If a user inventory panic does develop, there is only one known cure - it must burn itself out at extremely high prices. I have a hard time envisioning how a user inventory panic doesn't occur at some point. Whether we're talking about individual investors or corporate buying agents, all are subject to similar emotions and fears.

4. Unbacked Silver Bank Certificates

You get a tremendous amount of physical silver for your money. While that helps prove just how undervalued silver is, for many people it’s too much weight. There are practical transfer and storage issues. Most people, with substantial sums of money to commit to silver find it impossible to hold that much physical silver in their personal possession. At $6 an ounce, $30,000 in silver weighs 350 pounds. $100,000 worth of silver weighs over 1000 pound. One million dollars' worth of silver bullion weighs almost 6 tons. Where does an individual or institutional investor store tons of metal? Certainly, not in their home or office.

Because of the logistical difficulties of converting money into silver metal, investors have been forced to employ various silver storage mechanisms. In principle, there is nothing wrong with this. There are several legitimate, safe and low-cost storage methods available to investors. There are several others, in my opinion, that are not as legitimate. Generally, if you're paying for real silver, you should insist on getting real silver. That means knowing where the silver is held and getting the serial numbers (if held in bars). If you are holding silver that you have paid for and you don't have the serial numbers of the bars (1000 oz bars), you should investigate. If you are not paying customary storage and insurance charges, don't assume you are getting a bargain - assume there are no storage charges because there is no real silver being stored.

There are many forms of paper silver where the real silver does not exist to back up the paper. These forms would include pool accounts, leveraged accounts and bank silver certificates. Like futures contracts, they are a convenient and low cost way of playing silver. However, there are important and critical differences between these forms of silver and owning silver that you know exists. In essence, in pool accounts and bank silver certificates, you are making two bets - one, that silver goes up and two, that the party backing the pool account or certificate is good for the silver. In other words, in buying pool accounts or bank certificates, you are taking on additional exposure as to the future creditworthiness of the issuer.

The purpose of this section is not whether holders of pool accounts or silver bank certificates will suffer in a silver price explosion, although that threat is real, in my opinion. For the moment, I will assume there will be no default, and concentrate on the impact on price that these forms of silver could exert in the future. These accounts offer cheaper commissions and storage fees (since there is no real silver backing.) Likewise, since many investors have purchased their silver, over the years, in these forms, there is a tremendous amount of these pool accounts and certificates in existence, particularly by Swiss banks.
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I would estimate that there is well over a billion ounces of silver held in this form, perhaps by Swiss banks alone. After all, a billion ounces of silver, at the average price for the past 15 or more years is still only $5 billion. This is a very tiny fraction (way, way less than 1%) of total bank assets and other types of investment portfolios. This billion ounces of silver in bank certificate form is separate and distinct from, and in addition to futures and leasing short positions. It is another unique and important reason as to why we could have a historical blow off in the price of silver.

Since there is no real silver backing to pool, unallocated and silver bank certificate issuance's, the issuers have use of "free" money, which is highly profitable to them as long as silver doesn't move up in price. But when silver moves up decisively, the issuers are, in essence, holding a short position. If there are more than a billion ounces of these certificates and other unbacked paper silver forms in existence, that means that the issuers collectively lose more than a billion dollars for every dollar an ounce that silver climbs. At some point, with a high price of silver, the issuers could panic and look to limit losses. Not necessarily at $8 or $10, but certainly at $20. What’s the only way for them to limit their losses? Buy silver. This is another reason for an epic bubble price and it is also unique to silver.

5. Depletion of World Government Silver Inventories

Over the years we’ve seen systematic and persistent sell offs of world government stockpiles of silver, especially by the US, the largest former historical holder of silver. That means there is very little, or no real silver left that is available to dump on the market in case of a price emergency to the upside. Unlike gold, which world governments can still sell, they can't sell silver to contain a price rise, even if they wanted to. This is true for the first time in history. Never before have the government silver coffers been so bare. If the government fire trucks are called to put out a fire in the silver price, there won’t be any water to pump. This may not be a reason for silver to explode, in and of itself, but it certainly is a reason to expect that a silver rise will have to burn itself out, and will not be easily put out. In fact, given my observations for how governments react, it would not be terribly surprising to see some governments buying silver at exceptionally high prices, now that they have none left. They would finally realize just how vital and strategic this material is.

With government stockpiles exhausted, the only legitimate sellers of inventory will be those individuals who had the foresight to buy real silver in the first place. And these sellers, according to all free market principles, will be striving to get the highest price possible for their property, not seeking to cap the price rise. I am not saying to hold all your silver until it reaches $200, or $500, or $1000 an ounce, although those prices may be achieved. I am trying to explain what I see as valid conditions that may result in those price levels being hit. Any one of the reasons I mention could result in the price of silver hitting levels that will be talked about forever. Amazingly, all could kick in simultaneously. These conditions are peculiar and unique to silver. They don’t exist in any other commodity, nor have they ever.

6. Too Much Money, Too Many People, Too Little Metal

Because of the long-term structural deficit in silver, stretching back to World War II, we have consumed inventories for more than 60 years. Inventory data suggests that we have consumed over 95% of the world silver inventories in that time, some 10 billion ounces in total. This means that world silver inventories are at the lowest levels in hundreds of years. To make the point more graphically, if you use cumulative world production data, and subtract a generous one billion ounce total (known and unknown) remaining silver inventory (no one has been able to document more than 150 million ounces in known silver bullion inventory), we have the smallest amount of aboveground silver than at any time since 1300 AD I'm not making this up - there is less above ground silver bullion equivalent today than at any time in the past 700 years.

How can this be? Simple, up until the past 50 to 100 years, we never used silver for anything but for jewelry, utensils, coinage and investment. It was just like gold. Then came modern technologies that made use of silver in a wide variety of applications. We still use silver for jewelry, but its use in utensil and coinage has fallen off. Meanwhile, it has grown for photography, light and heat transfers, electrical, electronics, catalysts and medicine. The cumulative silver production of thousands of years was consumed in less than a hundred years in vital uses which benefited mankind. The accumulated world silver inventory is gone at precisely the time of greatest demand in history.

Against the disappearance of the world's silver inventories, we have the largest amount of people, money and credit in history while the supply of available silver shrinks. There is more money and buying power. This is reshaping Asia and other countries and it means more demand for silver.

If someone like Bunker Hunt or Warren Buffett goes to buy a chunk of silver, there's going to be a big problem. There isn't enough silver. This is a problem unique to silver that must grow worse. Compared to silver, there is plenty of gold, bonds and stocks and real estate. One buyer doesn't cause problems in those markets, only in silver. It's a problem that, at some point, can launch the silver price to the heavens.

Against the backdrop of potential powerful buying waves emerging for silver, please consider where the selling will come from. It’s unlikely we will see a new group of short sellers. So we are left to the law of supply and demand. That means more production and private inventory liquidation as a result of higher prices. It also means less consumption. But those things take time and extremely high prices. The one thing you don't have in a buying panic is the luxury of time. We’re not discussing what the long-term equilibrium and free market balancing price for silver will be, but rather what insane temporary price peak can we hit before an inevitable collapse. Almost 25 years ago, we hit the then-insane price of $50. Although that price lasted for only hours, literally a nanosecond in the price history of silver, it is the price that bulls and bears talk about decades later.
Article cont' Source

Silver Eventually More Rare than Gold

Silver is eventually going to be more rare than Gold. The non-recoverable industrial use is making Silver rarer from year to year as usage in cellphones, military weapons and Flat screen TV's consume more than is mined compared to Gold which is not used in industrial applications. Eventually supplies of Silver will reach a 1-1 ratio with Gold. At that point Silver will reach par value with Gold. So the price of Silver @ $22oz is a ridiculous bargain. You should be running right now to buy as much Silver bullion as possible. Paul Bea Monex 800-949-4653 x2172 Referral Kevin from Goldmoneybill.org

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Melt The Wicked Witch: Sell Your Gold Now!

Now Bix Weir is my favorite writer on Gold and Silver and I follow his advice religiously. Yes, I drink his Koolaid. My only regret is I can't mortgage my house to buy more Silver, probably due to the fact that I do not own a home.

Bix Weir- Road to Roota
Attention GOLD Investors:

What would you do to take down the Gold market riggers? What would you sacrifice? How hard would you work if you KNEW that the culmination of your effort would end the long term manipulation of gold? As for me, I am very tired of fighting the Gold Cabal, but I am also tired of watching all that I love about my country get washed out to sea by the Manmade Monsoon of Market Manipulation that is currently sloshing over the United States of America.

Let's Finish This Thing!
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I'm going to say it flat out...SELL ALL YOUR GOLD INVESTMENTS NOW AND BUY PHYSICAL SILVER! This is not a joke and don't get me wrong, I am the biggest "gold bug" you've ever meet, but it is time we ended their evil game. The Cabal has shown their Achilles Heel over the past few years and it is not gold but the depletion of physical Silver available for delivery that will ultimately lead to their demise. Many of us figured out long ago that physical Silver will likely run out before physical gold simply due to the tiny size of the Silver market compared to Gold, but most of us have not ACTED on this knowledge to accelerate the demise of the Gold Cabal due to our affinity for Gold and all that Gold represents... sound/honest money, freedom, liberty and justice for all!

Recently, I have been thinking a lot about Gold as money and why I personally believe that Gold is the best form of hard money. Why not Silver or platinum or copper or zinc? I must admit that most of my knowledge on this subject comes from the writings of other people. I have read hundreds of books and articles by brilliant economists, sound money advocates and other monetary philosophers who have dedicated their lives to the study of monetary theory. I am truly amazed at the vast amount of intellectual capital that has gone into the analysis of Gold as money with each monetary thinker building upon the knowledge passed down by others through the ages.

But What do I Think?

If I had no idea about monetary theory and history, what would my conclusions be? How have these writings influenced my affinity towards gold as opposed to other hard metals? Is it possible to NOT be influenced by information passed down over the years and clear my mind enough to use my own cognitive reasoning on this subject?

This is what I have been pondering over the past few years and my conclusions have shaken me to my Gold Bug foundations! Although the facts and fundamentals of gold as the best form of hard money may have been true 50 years ago, the world of Gold and Silver has changed dramatically since then such that now SILVER is hands down the best hard money investment compared to all other metals....even GOLD!

The Facts
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The following is a list of facts and reasons to switch all your Gold investments into Physical Silver:

1) Due to the tiny size of the Silver market and the lack of physical Silver available to the manipulators, the Silver battle is much easier to win than Gold. Ted Butler's discovery of massive Silver market manipulation should highlight the size, scope and importance of Silver to the current financial crisis.



2) Central banks have NO physical Silver to assist in the manipulation of the Silver market but they still have a lot of physical Gold (although much less than they claim).

3) The majority of Silver mined every year is consumed as an industrial metal in very small amounts and will never return to the market whereas the amount of above ground Gold grows year after year.

4) Silver has developed, due to its low price and superior physical properties, into a vital and necessary industrial commodity that makes it mandatory for modern life. If we woke up tomorrow and gold vanished from the face of the earth, life would continue pretty much as it was the day before. Without silver, modern life would change.

5) Due to the relative very low price of silver and very high price of gold, the man in the street, around the world, is in a position to buy silver in much greater quantities than gold.

6) In various forms there is an estimated 5B oz of above ground Gold and 5B oz of above ground Silver but Gold trades at $1300/oz and Silver trades for only $21/oz. Both metal prices are obviously manipulated but Silver appears to be manipulated more. As for Silver bullion that is "in play" for the manipulators, I estimate that less than 500M oz remain with a current market value less than $11B.

7) Silver has been in a supply deficit for over 50 years! Governments held approximately 10B oz of silver in 1950 and have been supplying that physical stock steadily into the market. Today there is no more of that surplus silver left to sell.

8) At current Silver consumption rates there are only 16 years of known Silver reserves remaining in the world. AFTER THAT SILVER WILL BE GONE FOREVER! Think about it.



9) Demand for Silver is "inelastic" in its industrial applications because it is used in such small quantities per application. An increase in price does not translate into a decrease in consumption.

10) The COMEX Silver short position is the largest concentrated short position of any commodity, on any exchange in the history of financial markets.

11) Throughout human monetary history the Silver to Gold ratio hovered in the 10-1 range until the invention of futures and options trading in metals. After the massive manipulation maneuvers by the Banking Cabal the silver-gold ratio now stands at over 62-1.

12) The US Dollar as defined in the Coinage Act of 1792 is Silver, not Gold, and contains "three hundred and seventy-one grains and four sixteenth parts of a grain of pure, or four hundred and sixteen grains of standard silver."



13) Silver is massively under reported in the media vs. Gold. Even Jim Rogers, the commodity guru, purposefully ignores Silver entirely in his best selling book "Hot Commodities" even though Silver exceeds all other commodities using his metrics on what makes a strong commodity.

14) Very few investors have physical Silver in their possession. Reasoning: because they claim it is "too hard to store". Does that mean when Silver trades at over $1,000 oz people will be more willing to buy and store physical Silver? It is difficult to make up a more bullish argument to take delivery and store physical Silver TODAY...when the Cabal price rigging scam finally fails you can always buy your own Fort Knox to store all that pesky Silver you bought!

15) Gold's strong fundamentals are only exceeded by Silver's so when the gold manipulation stops and the Gold price takes off investors will be looking for the next under-priced investment with similar characteristics.

16) 470M oz of Silver owned by the US Treasury and used in the Manhattan Project for the construction of the atom bomb have all been melted down and sold into the physical market to support the "Strong Dollar Policy"

The Great Silver Mystery...REVEALED!



17) Silver mineral deposits, as opposed to Gold, are usually very shallow in the earth's crust due to the nature of the geology so most of the large deposits of Silver have probably already been found and/or already mined limiting future discoveries.

18) There is a significant problem with counterfeit Gold coins and bars because of its high price. Silver coins and small bars have not, to date, had as much of a counterfeiting issue because its price did not justify the effort. (although there is a problem with counterfeit Silver jewelry which may significantly suppress Silver scrap recovery in the future...oddly bullish by-product of counterfeiting Silver!)

19) The total dollar value of the Silver market is a fraction of the total dollar value of the Gold market.

20) Most flat screen televisions use Silver in their internal electronics/screens and the US transfer from analog to digital signals has increased the demand for flat screen TV's.

21) Retail physical shortages of Silver are already beginning to appear around the world. The list of announced delays/curtailment by Government owned Mints now includes EVERY MAJOR SILVER COIN PRODUCING COUNTRY IN THE WORLD!

22) Hedge funds are bleeding from the credit crunch and they are looking for ways to save themselves. A single hedge fund can scoop up the remaining physical Silver and blow the price sky high.

23) In the US, Gold confiscation laws are still on the books but there are currently no silver confiscation laws.

24) As of late 2010 the Gold price gold is hovering around $1,300 or 150% of its historical high. Silver, on the other hand, is hovering around $21 or 42% of it's historical high suggesting that Silver has a long way still to go.

25) Un-backed paper Silver programs such as silver certificates and unallocated pooled accounts are the "industry standard" these days and will be scrambling for metal when redemptions are called in by the investors. The most egregious example of fractional reserve silver is the iShares Silver ETF (SLV).

26) In the past few years the massive global money creation by central banks around the world has created huge reservoirs of cash sloshing around the asset markets looking for a safe haven. Although most mainstream press have discussed Gold as being a likely bucket to fill with this monetary firehouse, SILVER has all the same monetary metal properties as Gold except the Silver market is SO small it would be like FILLING A DIXIE CUP WITH THE FIREHOUSE!

27) The CFTC still has an open investigation into the manipulation of the SILVER market that is being conducted not by their investigative division but by the CFTC "Enforcement Division". Although the final conclusions have been purposefully delayed by the CFTC, the final outcome may finally be the END OF THE 50 YEAR MANIPULATION OF THE SILVER MARKET!

28) During the CFTC hearing on metal position limits, GATA announced that a whistleblower has come forward with specific proof that JP Morgan was rigging the silver market. The next day he and his wife were rammed in their car in an attempted murder. The suspect was caught but the police are not giving out any information about the suspect or others that were involved.



29) The growth of emerging economies in Asia will require more and more industrial silver to build out their electric infrastructure and provide a higher standard of living for their middle class. In a global market that has been in a silver supply deficit for years a silver bidding war will result in order to obtain the significant amounts of silver needed.

30) The truth about gold and silver price manipulation is spreading like wildfire throughout the world with the help of the internet such that the Banksters "shabby secret" is no longer a secret.

31) The US Dollar has run it's course as the world's reserve currency. The entire global financial markets know this and are positioning themselves accordingly. The "Dollar End Game" for the United States has never been to transfer economic power to Eastern countries as the dollar dies but rather crash the global markets and start fresh with a new domestically centered economic model. That transition is upon us:



Well, now do you think SILVER is both more important and a better investment than your gold?
Hopefully, that's enough pro-Silver data to convince you to make the switch.

What About Gold?

There are some pro-Gold items which, in fairness, should be weighed against all the pro-Silver arguments:

1) Gold does not tarnish. (That's nice but hardly a reason not to make the switch)

2) Gold is promoted and perceived by the world as the "Greatest Monetary Metal"....at least for now!

Not to be "anti-gold" but from my calculations there is 10x the amount of physical gold in the world regardless of what the "mainstream gold media" claims...meaning there is OVER 1 MILLION TONS OF PHYSICAL GOLD!

Golden Secrets



Also, my calculations on silver estimate that there is 10x LESS silver in the world because of all the potentially phony physical silver ETF bars out there...

Silver "Moly-Bars"



Don't worry about Gold....really. Gold, like Silver, will find its rightful place in a freely traded market. It should take less than a few $Billion of physical Silver purchases to buy up all of the available Silver bullion, and that would only mean switching out of about 200 tons of Gold on a physical basis. 200 tons would not significantly damage the price of gold. Now $10B removed from GLD/SLV, Gold/Silver Pooled Accounts, Gold/Silver mining stocks, etc. would be much better for the price of Gold and should not cause any permanent damage to the gold investment community. As a matter of fact, can you think of anything more positive for the price of gold and gold investments than the destruction of the Banking Cabal?!

So what should be the true price of Silver today?

I don't know but I do know that the price quoted on the COMEX and LME are not even close to silver's "Fair Market Value". It makes more sense to me to estimate the true price of Silver in relation to another "Monetary Commodity" such as Gold since gold is currently "perceived" as the best monetary metal.

* Based on my estimates of total above and below ground Silver (17Boz) and Gold (8Boz) the Silver/Gold Ratio should be 2.1-1. With Gold trading at $1,300/oz Silver should be trading at $619/oz or is 29X UNDERVALUED!

* Based on my estimates of total above ground Silver (5Boz) and Gold (5Boz) the Silver/Gold Ratio should be 1-1. With Gold trading at $1,300/oz Silver should be trading at $1,300/oz or is 62X UNDERVALUED!

* Based on my estimates of total monetary bullion above ground Silver (1Boz) and Gold (3Boz) the Silver/Gold Ratio should be 1-3. With Gold trading at $1,300/oz Silver should be trading at $3,900/oz or is 186X UNDERVALUED!

Of course all this is predicated on the assumption that gold is fairly valued at $1,300oz today which almost everyone agrees is a joke. Since the USA holds a little over 8,100 tons of gold in reserve (supposedly) it is logical to assume that Gold will back the US dollar when the fiat money system fails (not hard to imagine the failure of the US dollar). With the US M3 money supply currently estimated to be in the $14 Trillion dollar range, the price of a redeemable gold backed US dollar would be about $54,000/oz IF the US stopped printing dollars today.

The $54,000/oz Monetary Gold price would put the value of monetary above ground Silver bullion, as analyzed in the last bullet point above, at....

.... $162,000 per oz!
Sovereign Flag of America!
Crazy, I know, but it really doesn't end there!

Based on the FACT that Silver is being consumed 120% faster than it is currently being mined/produced and the Gold above ground supplies are growing at 2% per annum the Silver/Gold Ratio Formula should be [(Above Ground Silver)(80%) to (Above Ground Gold)(102%)]. With Gold trading at a massively manipulated low price of $1,300oz, Silver should be approaching INFINITY AND IS INFINITY(X) UNDERVALUED!

Wow....chilling conclusions...have you traded your Gold for Silver yet?

There is No Silver Surplus

by Jason Hommel, January 29, 2008

SilverStockReport.com

There is no silver Surplus (except in Rocklin).

There is no such thing as a "world silver surplus". No such thing.

The words, "Surplus" and "Deficit" are accounting terms. They can apply to individual budgets, or national budgets. They could apply to the world, but only if the world we were talking about was a fantasy world, like in Star Trek, where the world might be trading with another planet. But since no silver ever really leaves the earth, or enters the earth, there is always a perfect balance between supply and demand among the people on earth.

In accounting terms, if you have a deficit, you are spending more than you are earning. To make up the difference, either you draw down savings, or you must borrow.

So, while silver never leaves the earth, it is dug out of the earth, or returned to the earth in landfills. One process might be taking place faster than the other, and it is only in this sense that there may be either a surplus or deficit from the people of the earth, with respect to the earth.

In silver accounting terms, if the world has a deficit, the people of the world are consuming more than mining. To make up the difference, the world must draw down inventories from investors who sell it, or the world must borrow from the world's inventories of stockpiled silver from investors who lease it.

The long talked about "deficit" in world annual silver refers to the fact that mine supply falls far short of total annual silver demand. Mine supply is about 650 million oz. and annual demand is about 1000 million oz. This deficit must be made up by other sources, such as draw downs of existing inventories, or scrap recycling, because supply must meet demand in the real world. And so it is. The basic situation has not changed in years, and that deficit remains at about 300 million ounces per year. Mostly, that difference is made up through recycling (200 million oz.) or selling by nations such as India recently, maybe (50 million oz.)

Recently, a few groups have begun talk of a "silver surplus". It started with the CPM group a few years ago. There was both a deficit, and surplus at the same time, and yet the market was in balance. Investors began to enter the silver market, buying up about 50 million ounces. This new action, a change of a mere 5% of world silver movement, was called a "surplus".

The world "surplus" is misleading in three ways. First, you cannot have either a deficit or surplus, everything must balance in real silver, so the term is only a technical term referring to a part of silver movement. Second, you cannot have both a surplus and a deficit simultaneously, of course. Third, the word "surplus" has somewhat frightening connotations to investors. The world "surplus" conjures up images of unwanted silver laying around on some pallets somewhere outside a werehouse, with no buyers anywhere in sight.

If there is such a thing as "surplus silver" then please, will someone tell me where it is. I'll be there, anywhere in the world, in less than 3 days to haul it away for free. Since I'm sure I'll never get that call, you can be sure there is no such thing as a surplus of silver.

Surplus silver, if this is an accounting term, means that it is describing the action of silver investors who are buying that silver. It does not lay around unwanted. In fact, it could rather be said to be that that sector of silver action is where the silver is most wanted of all. After all, investors tend to buy silver at higher prices (retail) than refiners who buy silver from more "distressed" sellers, such as overloaded coin shops or recyclers.

If investors are buying, that is a bullish action, one that is very positive for silver. I've only been predicting that investors would wise up to the benefits of silver for 8 years now, and they finally have begun buying silver in enough numbers so as to be actually measurable, such as the purchases of silver by the ETF's.

So, while the deficit in silver is about 300 million ounces, it is being filled by scrap recycling, government selling, and investor selling.

The "surplus" was about 50 million ounces, and was said to be represented as "investors buying". These are the rough numbers from two silver surveys, one from the CPM group, the other from the Silver Institute, that I reviewed last spring, here:

http://www.silverstockreport.com/2007/230.html

http://www.silverstockreport.com/2007/why_silver_will_soar.html

Now, interestingly, these reports are "rough" figures. That's why I report them loosly as "about" and why I round off the figures to round numbers such as the nearest 50 million oz. They are basically silver surveys. They send around surveys to various mining companies and industry people, who may, or may not, actually fill them out.

The reports missed Warren Buffet buying silver, and they missed him selling it. Buffet never reported the actual year that he sold 130 million ounces, he just announced that he finally did sell it, and we have to guess the year. It may have been when the ETF was started, or it might have been sold a year earlier, we just don't know.

So, I view the two main reports as about 80% reliable. They are funded by both miners and users, they are industry reports, don't receive enough publicity, and the bias is probably towards making the most reliable reports possible.

http://www.cpmgroup.com

http://www.silverinstitute.org

I have consistently reported that I think those two reports understate the case for silver, since they have never modeled what would happen to the silver price in the event of significant price inflation and monetary demand, and I think that is my primary job.

This January, a surprising new Silver report was put out by Virtual Metals, run by Jessica Cross, and excerpts were published by resourceinvestor, mineweb, and the full "silver Book" pdf report by thebulliondesk.

http://www.resourceinvestor.com/pebble.asp?relid=39774

http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=45177&sn=Detail

http://www.thebulliondesk.com/content/reports/tbd/vm/FSB080100.pdf

Roland Watson has treated us to the first commentary at kitco.
http://www.kitco.com/ind/watson/jan282008.html

Roland Watson seems to accept the new figures, but he reports his skepticism of the term "surplus", as I do.

The new "Second Silver Book" by Jessica Cross projects a silver surplus of 6141 tonnes for 2007, up from 500 tonnes in their "First Silver Book".

This is quite a change. 6141 tonnes is also 197 million ounces.

Jessica discusses RFID tags for 4 pages, which currently use 1/2 million oz. of silver per year, and may use up to 9 million oz. of silver per year 10 years from now. Then, she drops the bomb, a silver surplus of 197 million oz.

Jessica's report has no credibility whatsoever in my opinion.

Roland Watson nails it:

"If more silver comes to market in the absence of new buyers the price is bid down. If less comes in the absence of new sellers, it is bid up."

"According to this, silver has been in surplus by thousands of tonnes for 5 continuous years! But wait a minute, hasn't the price of silver more than trebled in that time? Yes it has which means that this surplus figure has nothing to do with the silver bull market. "

As I see it: Since silver is in a bull market, and being bid up, there is, by definition, no extra unwanted silver, but rather, a lack of silver. The market is bidding silver higher, because there is a shortage of silver to meet current demand. Yes, part of that demand is now investor demand, and I suppose you could define investor demand as a "surplus", but that is, of course, misleading.

In my opinion, neither Jessica Cross, nor her firm, Virtual Metals, has any credibility whatsoever.

Here are some reports that I found on the web about some of her past predictions.

2006: October 30 - Gold $604.40 up $6.40 - Silver $12.12 up 12 cents

If you really want to know how worthless Jessica Cross is here is an excerpt of an interview she gave to MoneyWeb almost one year ago. She predicted gold would test $500/oz and decline to an average of $430/oz!! Gold in fact rose to $740/oz and has averaged $603 in 2006!!

Jessica Cross has been consistently wrong throughout the bull market. She has talked down gold at every opportunity. Her husband happens to be a retired top official of the South African Reserve Bank. I suspect her company’s name of "Virtual Metals" is a sick joke as a euphemism for derivatives. They probably have virtually no metals. One thing for sure Jessica Cross is virtually always wrong on precious metals. She didn’t even guess which direction gold would move in from $475 last November! What sort of "expert" can not even guess the direction of the trend in an established bull market??? One that is Virtually Worthless, perhaps!

http://www.resourceinvestor.com/pebble.asp?relid=19553
Jessica Cross was ridiculed in public by everyone who had a comment.

Jessica Cross, in my opinion, as the wife of a top world banker, has a vested interest in talking down the gold and silver markets. Her predictions have been worse than worthless, and totally wrong, and extremely costly, for 6 years (2001). If she were in private business, and funded by business profits and real world reputation, I would imagine that she probably would have gone bankrupt long ago.

I've been right for 5 years (2002), I'm still wondering whether I should hire a secretary to collate some old data, or whether it would be more hassle than it's worth to try to train someone.

I freely admit that as a silver investor, my bias is to paint silver in the most positive light that I possibly can.

At my local coin shop in Rocklin, California, there are still many more investors selling silver, than investors buying. This is consistent with the much larger number for "silver recycling", which is about 200 million oz., which is far less than the approx. 50 million oz. of investor buying. If you would like to buy silver or gold, in large quantities at very low prices, in amounts from $20,000 to up to about $100,000 worth a day, contact Roger at:

rocklincoin@starstream.net
4870 Granite Drive
Rocklin, CA 95677
Rocklin Coin Shop
P.O. Box 2350
Rocklin, CA 95677
916 315 0888

Monex is the low-cost gold and Silver retailer. Paul Bea @ monex 800-949-4653 x2172
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