-- Posted 1 December, 2005 | | Source: SilverSeek.com
On CNBC today, at 12:00 noon, the silver ETF was mentioned, as being responsible for creating increased investor demand for silver! Nothing was mentioned that the silver ETF was still awaiting SEC approval, and nothing was mentioned about the Silver User's Association fearing that the silver ETF will create a silver shortage.
Barron's, last week, in the Nov. 21 issue, on page 6, in the Alan Abelson editorial, blessed investing in gold and silver. Later in the same issue, on page 30, John Hathaway, who runs the Toqueville Gold Fund, mentioned Barclays attempt to get a Silver ETF going!
So I've scooped them by a month--and they still don't recognize the silver shortage! See my news report on the Silver ETF: Silver Users Fear Silver Shortage
THERE WILL BE A SILVER SHORTAGE IF 130 MILLION OZ. OF SILVER ARE PURCHASED FOR INVESTMENT BY THE SILVER ETF OR ANY OTHER INVESTORS, AND THIS IS NOW BEGINNING TO BE RECOGNIZED, AND IS NOW BEGINNING TO BE REFLECTED IN THE SILVER PRICE.
130 million oz. of silver, at $8.60, is just over $1.1 billion dollars, which is nothing in the financial world of currency trading.
Why is there a silver shortage? How did we get here? My research leads me to believe that silver was first demonetized by nations who left silver to go to a gold standard, over 100 years ago. This created a bulk of unwanted silver that found its way to the United States, who tried to keep fixed prices of 16:1 between silver and gold. Price fixing never works, and so the U.S. eventually accumulated up to 6 billion ounces of silver. Then, because silver is the greatest conductor of electricity in the world, much of this silver was consumed in electronic war machines in World War II. After WWII, the amount of silver consumed per person, per year, in the U.S. went up by about a factor of ten, to about six tenths of an ounce of silver per person, per year, and has remained at about that level ever since--due to the dawn of the age of electronic devices in homes: washing machines, refrigerators, TV's, etc. Thus, the U.S. population has consumed about 12 billion ounces of silver since WWII. I estimate that the rest of the industrialized world has consumed about twice that amount, up to about 36 billion ounces, all total. Others have estimated that the total silver ever mined in the history of the world is about 40 billion ounces. This leaves only about 4 billion oz. of silver left in the world. Most of that is in Jewelry in India, and very little is in refined, deliverable form. And a lot was already melted down back in 1980 in the "great silver melt" when silver prices hit $50/oz. If you adjust for inflation, they say that's about 3 times as high, or $150/oz. I estimate that the monetary base has increased 6 fold since 1980, and thus, the real inflation adjusted price is $300/oz. But in 1980, the world was still awash in silver, unlike today. If you add in the shortage, and the momentum traders, and a possible corner in silver, I strongly suspect we will see $1000/oz. for silver within the next ten years.
Part of what has created the silver shortage today, was the unfair treatment of the Hunts in 1980, specifically, the rule changes that have favored short sellers in the futures markets ever since. This has discouraged investing in silver bullion (prudent stockpiling) for an entire generation! I believe that if men are free, it is impossible for there to be any such thing as a long side manipulation. After all, if it's your money, then you should be free to buy whatever you want with your money, as that is the definition of freedom. You ought to be especially free to own money, real silver money, with your money. It seems rather basic to me--but I wonder why a generation has forgotten these things.
So, what else, besides the silver shortage, will move the silver price up a lot? MONETARY DEMAND!!!
As you may know, 96% of the population of Mexico is backing a silver coin proposal put forth by Hugo Salinas Price. This proposal is now being accepted by politicians across Latin America.
LATIN AMERICAN CONGRESSMEN CONSIDER THE SILVER COIN
While GATA continues to scoop the press, I'm creating some publicity for silver!
As you may know, I've been working on my own silver coin proposal, and I've sent this to the governors of the 50 states.
So far, interest was better than I expected, as I had several positive inquiries from staff who took the proposal seriously, but nothing has resulted so far, besides the introduction of the idea.--which is a powerful thing, because truth is not easily dismissed. As the Lord says, his word does not return void.
So, I've minted up 1000 of the following coins, as samples. Over a month ago, I sent just over 100 to Arnold Schwarzenneger's office in Sacramento.
Ten people have asked me where they can get this coin. I'm sorry, but I'm just too busy to take telephone orders, and keep track of checks. But there is a local coin dealer who owns just under 80 of these coins, and he will be happy to take your orders. I don't know what his prices are, but I sold the coins to him at spot, so he'll get a profit (he's already in the money on the silver!). Call Roger, at the Rocklin Coin Shop in California at (916) 315-0888. If Roger sells out, I'll sell him more coins.
But here's what I will do. I will SEND YOU A FREE COIN if you mail the link to my Silver Coin Proposal to Arnold!
Please also send my news link on the silver shortage:
Silver Coin Proposal:
Silver Users Fear Silver Shortage:
Contact California State Governor Arnold Schwarzenneger:
After you email Arnold, and tell him to please consider my coin proposal, then wait for the confirmation letter you will get from Arnold.
Then, send me the governor's confirmation letter, AND your name and address, then I'll SEND YOU A FREE COIN. (I'll have to take your word that you won't tell Arnold that my coin proposal is stupid... heh heh!) OK, I have to put limits on this free offer so that I don't go bankrupt, so, the limit is to the first 300 people that do this, and this offer expires in one week, by December 7th, 2005 (From my experience, that should be more than enough for everyone who tends to act on these kinds of things.)
While I have you taking steps to be politically active, there's even more you can do!
The SEC is still considering whether to approve the Barclays Silver ETF.
Sign the Silver Association petition for the silver ETF here.
Currently, 894 people have signed the petition
To contact me: email@example.com
-- Posted 1 December, 2005 | |
Last Three Articles by Jason Hommel, Silver Stock Report