GATA's Bill Murphy on the JP Morgan Silver Shortage and the next Bullion Bank Run

Gold futures slipped ahead of the ECB policy-setting meeting this week, or so the story goes. Do these macro trends drive gold prices as much as the headlines indicate? Our guest Bill Murphy, Chairman of GATA, doesn't think so and he has flown to our studio in Washington DC to make the case. Last month after a report surfaced that US regulators planned to drop the silver market manipulation probe, CFTC Commissioner Bart Chilton described the report as premature and inaccurate. We haven't heard much since, but our guest Bill Murphy has an update on the bank at the center of silver manipulation claims, JP Morgan. JP Morgan has a major problem with their massive short position according to GATA. Bill believes that it won't be long before their role in the market manipulation scheme is exposed. Meanwhile, the silver market maybe the tightest it has ever been to secure physical supply in size, and delivery can take months. Bill Murphy, author of LeMetropoleCafe.com, forecasts the bank will have a problem with its short silver position in the near future. Could it explode this month? He says yes and explains why. Also, today's gold and silver markets are not the same your father's precious metals markets. The creation of Gold and Silver ETFs, as well as the growth of the precious metals derivatives market, has had a dramatic effect on prices. We talk to Bill Murphy about how growth in precious metals derivatives and ETFs has led to shifts in the metals market. He tells us why we should be concerned that HSBC and JP Morgan serve as custodians for the major gold ETF, the GLD, and the major silver ETF, the SLV, when they also have large short positions in gold and silver.
MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Bullion Suppliers SOLD OUT of Silver - Shortage? Bottom Near? Price Update

UNPRECEDENTED levels of demand being seen as ALL US WHOLESALE SUPPLIERS are sold out. Is a bottom near: ALL US WHOLESALE SUPPLIERS ARE NOW SOLD OUT OF EVERY OUNCE OF PHYSICAL SILVER & HAVE SUSPENDED ALL SALES! SDBullion.com has closed due to lack of ANY AVAILABLE SILVER! Two of the largest wholesale suppliers in the US, including Amark and CNT, who is the supplier of gold blanks to the US Mint for Gold Eagles, and is a registered COMEX depository, HAVE JUST SOLD OUT OF ALL PHYSICAL SILVER!!! AND......IT'S GONE!!!!! In the face of an EPIC TSUNAMI of gold and silver sales today as the cartel hammered the price of silver down over 12%, and off $6 from Friday's open, we have just been informed at SDBullion upon trying to place a large inventory order that BOTH AMARK & CNT ARE SOLD OUT OF EVERY LAST OUNCE OF PHYSICAL SILVER!!! Apparently the fact that one of the largest wholesale suppliers in the US is SOLD OUT, while simultaneously the 2nd largest silver mine in the US is offline perhaps permanently is of absolutely no consequence to the paper dumping cartel bullion banks. Bullion bank silver shorts are most likely covering in mass RIGHT NOW, and we'll soon have the data to make the case. Many have speculated that the bullion banks are going to switch to a net long position. There couldn't be a better time to do just that given that at $22/oz, pretty much all existing shorts taken out before this week will be in the money. Credit: SilverDoctors.com




MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Will Silver Protect You In HYPERINFLATION? | Craig Hemke

IN THIS INTERVIEW:
- What are the best precious metals to invest in? ►0:32
- Are government minted silver coins better than silver rounds? ►2:40
- When is a silver shortage going to hit? ►4:56
- How do we predict the timing of an economic collapse? ►7:14

ABOUT OUR GUEST:
Known primarily by his nickname "Turd Ferguson," Craig Hemke is the founder and editor of the popular TF Metals Report blog and podcast (http://TFMetalsReport.com), covering precious metals, the financial markets, and greater economic trends. A graduate of the University of Nebraska with a BS in Economics, Hemke was a licensed securities professional (Series 7) for nearly twenty years and has been an active commodity option trader since 1987. Hemke has been featured on The New York Times, The Wall Street Journal, Forbes, Market Watch, CNBC, among many other news stations.

MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Gold prices stagnant, investors look to end of QE3 – BULLION MORNING

Gold prices remained stagnant in early morning trading on Monday in London, with the focus now shifting to the FOMC meeting this week, which is widely tipped to signal the end of the US’ third quantitative easing programme (QE3).

The spot gold price last traded at $1,230.50/1,231.20 per ounce, unchanged on Friday’s close and locked within a tight $4 range.

Focus now turns to what many believe to be the end of QE3, which has buoyed the US economy for the last 27 months, although it is unlikely to have a marked effect on prices, any changes to forward rate guidance would affect precious metals down the line.

“Our economists expect the Fed to end QE3. Although it is widely anticipated, we believe the floor for gold has firmed in the short term, as physical buying has gained momentum and net speculative positioning has risen due to fresh longs and short covering,” Barclays Capital said in a note.

With the near-term outlook on gold improving, net long fund positions in the metal have climbed for the fourth consecutive week, with jumping 22,569 contracts to 107,984 contracts.http://www.bulliondesk.com/gold-news/bullion-morning-gold-prices-stagnant-investors-look-to-end-qe3-84021/

MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Silver under $17 for the first time in 4 years

Silver closed last week under $17 for the first time in 4 years. Maybe we have in store another "event" like 2008, 2011 or 2013 where the "price" gets forced down which explodes demand to a point where shortages again show up? I have written several times before how a shortage should never ever show up in any real market if prices crash because of "selling". If real silver were in fact being sold then the market would be awash in silver and no shortage could exist. ...The last 3 episodes there were severe shortages which is your proof that it was not in fact real metal being sold, only paper contracts representing metal, this logic is not arguable.
I have written several times regarding the high and growing open interest in the COMEX silver contracts. It is my belief the Chinese via proxy are the longs and will at some point call for delivery. I was "reprimanded" by a very famous commodities trader telling me that the open interest was high only because of "spread trades". Spread trades only amount to 23,000 contracts which if subtracted would still leave us with 150,000 contracts or more of silver, still historically high. Something is just not right, the open interest in gold is near multi year lows while silver touched 6 year highs last week, "spreads" do not explain it.
http://www.silverseek.com/article/silver-arbitrage-13670



MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

US Mint limits production due to shortage; silver price about to move

Bullion Suppliers SOLD OUT







MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Silver -- Supply and Demand

Supply and demand: Speaking with SIN earlier this year, Andrew Chanin, co-founder of the PureFunds ISE Junior Silver ETF (ARCA:SILJ), laid out the reasons he believes a silver supply shortage is on the horizon. They include the metal’s increasing industrial applications and growing investment demand, and more experts have come forward with numerous other reasons that miners likely will not be able to keep up with demand. Most recently, Money Metals Exchange issued a reminder in that vein. http://silverinvestingnews.com/26694/silver-price-rise-outlook-levon-tsxlvn-silvercrest-great-panther.html




MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Gold and Silver Stocks Apocalypse Now, Bear Market Review

By: Rambus_Chartology



In part I, Phase III-Dead Ahead, we established the macro case for the final phase of the gold stock bear market. As the bear market progresses the economies key constraint remains the level of debt, specifically the size and composition of the national balance sheet which has baked in the cake a deflationary outcome. It is this wave of deflation that will drive the final phase of this bear market to unimagined lows. The good news, however is when it's finally over the precious metals will transition into the next bull market. We will examine this process and the sign posts along the way as we complete phase III of the bear market and transition into the beginning of the next bull market in the precious metals.
 Bear Market review

This precious metals bear market is following the classic bear market sequence. After breaking down out of its phase I top it entered into a long protracted decline. This decline, over time, established doubt that we were simply in a pull back in an ongoing bull market. This phase II price erosion lasting 17 months, diminished investors conviction sufficiently so to make them ripe for a psychological change. This change event was triggered with the April 2013 Goldman bear raid of the gold market. This raid collectively triggered the point of recognition (POR) among investors that the precious metals sector was in a bear market. It took 20 months from the Sept 2011 top to reach this point. Prior to this point the prevailing belief was we were still in a bull market. The PM market then underwent dual crashes in April and June 2013 which was the process of pricing in the recent shift in investor psychology. Since this period the market has taken 16 months to consolidate these crashes by undergoing a complex diamond consolidation pattern all within the context of phase II. It now appears this process is complete and is now entering into the final phase III of the bear market. This is the classic pattern of a bear market as I outlined in a previous essay:http://www.marketoracle.co.uk/Article47664.html

MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

BANKERS MANIPULATION OF GOLD & SILVER: Proof In The Demand Data

By Steve St. Angelo, SRSrocco Report

The Banker Cartel has a method to their madness in manipulating the precious metals and commodity markets.  Let’s just say, the value of some commodities are controlled to move one direction while others, in another.  This can clearly be seen when we compare gold & silver versus oil markets.

Investors need to realize energy, especially oil overtook the role of gold and silver as the most vital source of wealth in the early 1900’s.  While it’s true that oil is burned and consumed… the ownership or control of oil reserves allowed the WEST to dominate the world in trade and finance.

A growing global oil supply allows the fiat monetary system to continue.  As I have mentioned in many of my articles, the peak and decline of cheap oil will be DEATH on the fiat monetary system–especially the U.S. Dollar.

Most of the analysis on the precious metals is very focused and specialized.  Sometimes, the most interesting results are found looking in a much broader way.  If we look at the following charts, we can see how the Bankers manipulated gold and silver, while allowing the price of oil to remain high.

Here is a five-year chart of Brent crude.  There are a few important aspects of this chart worth explaining.http://news.goldseek.com/GoldSeek/1412860087.php



MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Silver Arbitrage?

Bill Holter Tuesday, October 7th

Silver closed last week under $17 for the first time in 4 years. Maybe we have in store another "event" like 2008, 2011 or 2013 where the "price" gets forced down which explodes demand to a point where shortages again show up? I have written several times before how a shortage should never ever show up in any real market if prices crash because of "selling". If real silver were in fact being sold then the market would be awash in silver and no shortage could exist. ...The last 3 episodes there were severe shortages which is your proof that it was not in fact real metal being sold, only paper contracts representing metal, this logic is not arguable.

I have written several times regarding the high and growing open interest in the COMEX silver contracts. It is my belief the Chinese via proxy are the longs and will at some point call for delivery. I was "reprimanded" by a very famous commodities trader telling me that the open interest was high only because of "spread trades". Spread trades only amount to 23,000 contracts which if subtracted would still leave us with 150,000 contracts or more of silver, still historically high. Something is just not right, the open interest in gold is near multi year lows while silver touched 6 year highs last week, "spreads" do not explain it.

I have also argued that both silver and gold have seen concentrated sales where 50% or more of global production is dumped within 24-36 hours which in a real market where real metal trades, could not ever happen. Who could have this size of metal and who would sell in a fashion to destroy their own price even if they did? The answers of course are no one, and no one. I get it, hedge funds are momentum traders and pile on in whatever direction any commodity is moving but gold and silver have now had access trades open lower or unchanged in 106 out of the last 110 trading days. This is a statistical impossibility. So it is what it is, but what does it mean, and what has silver trading way below the cost of production now unleashed?
http://www.silverseek.com/article/silver-arbitrage-13670




MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Is there really a Silver Shortage? Is Gold running out?

Don't believe the official numbers.... Think of the people who release these numbers and how they profit from it.

MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

GATA Chairman: JPM Has RUN OUT of Physical Silver- Most Explosive Gains of Entire Bull Market Ahead!

GATA Chairman Bill Murphy joins The Doc & Eric Dubin on this week's show to discuss:

1. Why Murphy believes JPMorgan accumulated vast stores of PHYSICAL SILVER into the 2011 top while shorting the paper market, and has used the physical stockpiles to smash silver lower over the past 3 years- resulting in a paper fortune for JPM, but that the market action over the past 2 months indicates JPM has RUN OUT OF PHYSICAL SILVER to manipulate prices down!

2. Gold & silver's trading in the wake of the MH17 tragedy- Murphy explains why the cartel never allow the PMs to hold their gains from an international crisis

3. Big money responds to early week take-down of gold & silver with massive physical buying- signs we may be in the early stages of a massive sustained run for the metals

4. The GATA Chairman provides his current outlook for gold & silver, and states that the next rally will see the most volatile and explosive moves to the upside for gold & silver of the entire bull market!









MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Gold Has More Value Than Silver - Don Harrold

 Manipulation increased for silver and gold in 2011. Rules were changed, charts were painted more than usual starting then. Effort was made to move the stock market, real estate market, etc much higher. Sentiment is still extremely negative from Western investors towards gold and silver. Charts are better but not great. Most Western investors tend to only buy good charts. Majority are trend traders.




 John Manfreda of Wall Street for Main Street Interviews Don Harrold of the Day Trade Show. They discuss Silver, Silver Shortage, Precious Metals Retail sentiment, Gold, the Stock Market, Bitcoin and more.
MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

The Coming Silver Shortage

silver as an investment is a long-term strategy. The stock market rally is FAKE!!! The housing rally is FAKE!! Just as fake as they were pre-2008. Remember what happened then? Multitudes were wiped out! Unless you have a crystal ball and know exactly when to get out, it'll be deja vu all over again. Good luck with that.



The Law of "Supply and demand" is about to kick in and the planets are lining up, for Precious metals. The economy is still in a downward spiral, MILLIONS are unemployed, social unrest is rearing it's ugly head, the War drums are beating and the printing presses are feverishly cranking out MONOPOLY MONEY, 24/7. An economic train wreck can't be too far behind!
MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Silver is more useful as an industrial metal

One of the reasons people mention to invest in silver is that this precious metal could - according to some - return to a monetary asset somewhere in the future. This is because people will fall back on silver coins as an alternative means of payment, once fiat money becomes worthless. This is because silver has retained value throughout the years. Despite this, it is very unlikely to expect central banks and governments to embrace silver coinage once again. To understand this, we only have to read the speech president Lyndon B. Johnson gave when he signed the Coinage Act in 1965...

Silver as money

For centuries silver has been used to create coinage, because the metal has some beneficial properties. The total above ground supply of the precious metal was relatively big compared to the annual mining production, which gave some stability to the price of the metal. Also, silver is very resistant to corrosion and it has anti-bacterial properties. These properties are great for a piece of metal that has to circulate from one person to another.
Two generations ago, silver was still widely used for the production of official coinage, but today all countries have abandoned the use of the precious metal for coinage. The silver coins still do exist, but they are hoarded because of their intrinsic value. Bags of silver coinage can be bought all over the world for the spot price of silver.
For day to day payments silver coinage has been replaced with coinage made from base metals like zinc and nickel. Also, coinage in general is gradually being replaced with digital bank transactions.
In 1967, the Netherlands stopped producing silver coinage. The guilder and the 2,5 guilder coins were no longer minted with 72% silver. In 1970 and 1973, the last 10 guilder coins with 72% silver content were minted. Since then, the guilder was made out of nickel and the silver coins started to disappear from circulation. Today, the silver coinage can still be bought for their intrinsic value.






MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Gold-silver price ratio may fall as gold cools faster

MUMBAI: The price of gold might fall more than that of silver this year, taking the price ratio between the two precious metals back towards its five-year average. Gold has been on a downtrend as pickup in global economies has reduced demand for this safe asset. This may offer music to the ears of Indian consumers, as they begin to purchase jewellery for the festival and marriage seasons. ET data show the gold-silver ratio averaged 55.71 in the five years through end-2013.

 Read more at:http://economictimes.indiatimes.com/articleshow/43152055.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst




MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

The Unavoidable Silver Shortage

Last year, total mine production of Silver was 819 million ounces, but demand for silver was 1.1 billion ounces.
Therefore, there was a 262 million ounce shortfall in silver. Thus far, the shortage has been mostly met by using recycled silver and from government stockpiles. Even so, the shortage is there.

Looking At The Numbers

Recently published data points argued that recycled silver cannot continue to meet the gap between supply and demand. The supply of recycled silver dropped 24% last year, which is the largest decrease on record. Supply is also falling. Seven of the ten leading silver mines produced less silver in 2013 than in 2012. Production in the Silver State, Nevada, is down 70.4% over the past 16 years. The US Geological Survey reports that ore grades have collapsed 90%, which means that far more ore has to be mined in order to produce the same amount of silver. Exploration has also come to almost a complete halt due to higher financing costs, so there is little chance of new finds of sources of silver.
On the demand side, physical demand has increased 13%. Last year the U.S. Mint actually sold out of silver products, reports said. China’s use of silver for solar panels was less than 1 million in ounces in 2005, but in 2013 China used 35 million ounces just for solar panels. In 1999, the amount of silver used in solar panels in the United States was not even reported. By 2015, 100 million ounces of silver are projected for solar energy use.
Some 62% of silver is used for industrial applications, 21% for jewelry, and 12% for coins. Given these used, the data argues that “95% of all silver consumed is gone, never to enter the supply side again.
 http://www.investing.com/analysis/alternative-assets:-the-unavoidable-silver-shortage-222934







MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Silver Coinage Act

Back to the US, where the silver coinage was abandoned earlier with the Coinage Act of 1965. On 23 July 1965, president Johnson held a speech before Congress in which he explained why the government was about the stop minting silver coinage. I would like to highlight the following part of the speech.
"Now, all of you know these changes are necessary for a very simple reason--silver is a scarce material. Our uses of silver are growing as our population and our economy grows. The hard fact is that silver consumption is now more than double new silver production each year. So, in the face of this worldwide shortage of silver, and our rapidly growing need for coins, the only really prudent course was to reduce our dependence upon silver for making our coins. If we had not done so, we would have risked chronic coin shortages in the very near future."




MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Silver is a Scarce Material

Coinage Act

Back to the US, where the silver coinage was abandoned earlier with the Coinage Act of 1965. On 23 July 1965, president Johnson held a speech before Congress in which he explained why the government was about the stop minting silver coinage. I would like to highlight the following part of the speech.
"Now, all of you know these changes are necessary for a very simple reason--silver is a scarce material. Our uses of silver are growing as our population and our economy grows. The hard fact is that silver consumption is now more than double new silver production each year. So, in the face of this worldwide shortage of silver, and our rapidly growing need for coins, the only really prudent course was to reduce our dependence upon silver for making our coins. If we had not done so, we would have risked chronic coin shortages in the very near future."

 http://seekingalpha.com/article/2473235-why-silver-will-not-return-as-money


MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

The Coming Silver Shortage .

MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Silver as Money

For centuries silver has been used to create coinage, because the metal has some beneficial properties. The total above ground supply of the precious metal was relatively big compared to the annual mining production, which gave some stability to the price of the metal. Also, silver is very resistant to corrosion and it has anti-bacterial properties. These properties are great for a piece of metal that has to circulate from one person to another. Two generations ago, silver was still widely used for the production of official coinage, but today all countries have abandoned the use of the precious metal for coinage. The silver coins still do exist, but they are hoarded because of their intrinsic value. Bags of silver coinage can be bought all over the world for the spot price of silver. For day to day payments silver coinage has been replaced with coinage made from base metals like zinc and nickel. Also, coinage in general is gradually being replaced with digital bank transactions. In 1967, the Netherlands stopped producing silver coinage. The guilder and the 2,5 guilder coins were no longer minted with 72% silver. In 1970 and 1973, the last 10 guilder coins with 72% silver content were minted. Since then, the guilder was made out of nickel and the silver coins started to disappear from circulation. Today, the silver coinage can still be bought for their intrinsic value. http://seekingalpha.com/article/2473235-why-silver-will-not-return-as-money MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

3 Reasons Why I Am Bullish on Silver

By Matt Smith

Global stock markets continued to be wracked by rising volatility because of a range of economic and geopolitical events that are fueling greater concern among investors. This is generating renewed interest in precious metals, including gold, silver, and platinum, as investors seek safe-haven investments to avoid this volatility.

1. Geopolitical and economic risk is rising

Economic and geopolitical crises are gripping the globe. Earlier this year, emerging markets plunged as the Argentine peso was sold off; now Argentina has defaulted yet again on its debt, and there is growing concern that Portugal’s banking system is nearing collapse.

Conflict is raging across the Middle East, with insurgents controlling swathes of Syria and Iraq, renewed open warfare between opposing parties in Libya, and Israel continuing to prosecute a war against Hamas in the Gaza Strip. War in the Ukraine is also intensifying, with it fast becoming a proxy conflict between the West and Russia, fueling further concern about how far it will escalate.

These developments have thrown the spotlight firmly on safe-haven investments and will continue to push silver prices higher as investors seek a cost-effective alternative to global stock markets.

2. The gold-to-silver ratio widens further

Historically, there has been a close correlation between the prices of silver and gold. This is expressed in the form of the gold-to-silver-ratio, indicating how many ounces of silver are needed to buy one ounce of gold. Over the years this ratio has fluctuated wildly, falling as low as 20 ounces of silver to buy one ounce of gold in 1970 to a high of 89 ounces in 1991.

For the year to date, the ratio has widened, now requiring 66 ounces of silver to buy an ounce of gold. This is well in excess of the historical average of 47 ounces over the last century and well above the figure 43 ounces required at the height of the gold bull market.

If silver correlates to gold at the same level as at the peak of the gold bull market, then silver offers potential upside of 53%. Even if the ratio narrows to the average over the last century, there is potential upside of 40%.

This indicates that now is the time to buy silver as a hedge against both inflation and as a safe-haven investment in place of gold.http://www.fool.ca/2014/08/18/3-reasons-why-i-am-bullish-on-silver/



MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Recycled Silver cannot continue to meet the gap between supply and demand

Recently published data points argued that recycled silver cannot continue to meet the gap between supply and demand. The supply of recycled silver dropped 24% last year, which is the largest decrease on record. Supply is also falling. Seven of the ten leading silver mines produced less silver in 2013 than in 2012. Production in the Silver State, Nevada, is down 70.4% over the past 16 years. The US Geological Survey reports that ore grades have collapsed 90%, which means that far more ore has to be mined in order to produce the same amount of silver. Exploration has also come to almost a complete halt due to higher financing costs, so there is little chance of new finds of sources of silver.
On the demand side, physical demand has increased 13%. Last year the U.S. Mint actually sold out of silver products, reports said. China’s use of silver for solar panels was less than 1 million in ounces in 2005, but in 2013 China used 35 million ounces just for solar panels. In 1999, the amount of silver used in solar panels in the United States was not even reported. By 2015, 100 million ounces of silver are projected for solar energy use.






MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

The supply of recycled silver dropped 24% last year

Recently published data points argued that recycled silver cannot continue to meet the gap between supply and demand. The supply of recycled silver dropped 24% last year, which is the largest decrease on record. Supply is also falling. Seven of the ten leading silver mines produced less silver in 2013 than in 2012. Production in the Silver State, Nevada, is down 70.4% over the past 16 years. The US Geological Survey reports that ore grades have collapsed 90%, which means that far more ore has to be mined in order to produce the same amount of silver. Exploration has also come to almost a complete halt due to higher financing costs, so there is little chance of new finds of sources of silver.

MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Silver to Gold Ratio is way out of whack

It's important to note that silver is a precious metal due to its rarity, but it is also used as an industrial metal as listed above. What makes silver so, so very special is that at the rate it is being used now it will be gone by 2020. Does that sound crazy? If so, that is a statement taken from the USGS (United States Geological Society). Gold is a precious metal as well, but gold only acts as a store of wealth. It is used very little in industrial applications. So, what makes silver such a great investment besides what I have talked about? Well, silver is only about $19/ounce right now! That is an absolute steal considering that historically it has taken about 15 ounces of silver to buy one ounce of gold. Right now that ratio is at about 70 ounces of silver to buy one ounce of gold. So, the ratio is way out of whack and must go lower. Many experts state that the silver to gold ratio should be about 10:1. In other words, there should be about 10 ounces of silver in the ground for every one ounce of gold. The ratio is now 70:1, and it is only kept this way by market manipulators. Once the manipulation ends, silver will skyrocket. What's more, the amount of silver being used for industry has been increasing year after year due to the demand for electronics. China, India, and other nations who are industrializing are putting a huge demand on the already over stretched silver market. MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

Why Silver Will Not Return As Money

Summary

• Silver is more useful as an industrial metal.
• Using silver as coinage would drive up prices.
• Fiat money is just as effective as a medium of exchange.

One of the reasons people mention to invest in silver is that this precious metal could - according to some - return to a monetary asset somewhere in the future. This is because people will fall back on silver coins as an alternative means of payment, once fiat money becomes worthless. This is because silver has retained value throughout the years. Despite this, it is very unlikely to expect central banks and governments to embrace silver coinage once again. To understand this, we only have to read the speech president Lyndon B. Johnson gave when he signed the Coinage Act in 1965...

Silver as money

For centuries silver has been used to create coinage, because the metal has some beneficial properties. The total above ground supply of the precious metal was relatively big compared to the annual mining production, which gave some stability to the price of the metal. Also, silver is very resistant to corrosion and it has anti-bacterial properties. These properties are great for a piece of metal that has to circulate from one person to another.
Two generations ago, silver was still widely used for the production of official coinage, but today all countries have abandoned the use of the precious metal for coinage. The silver coins still do exist, but they are hoarded because of their intrinsic value. Bags of silver coinage can be bought all over the world for the spot price of silver.
For day to day payments silver coinage has been replaced with coinage made from base metals like zinc and nickel. Also, coinage in general is gradually being replaced with digital bank transactions.
In 1967, the Netherlands stopped producing silver coinage. The guilder and the 2,5 guilder coins were no longer minted with 72% silver. In 1970 and 1973, the last 10 guilder coins with 72% silver content were minted. Since then, the guilder was made out of nickel and the silver coins started to disappear from circulation. Today, the silver coinage can still be bought for their intrinsic value.

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MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet