Biblically, silver was implied as a cheap sellout for Judas, but looking at the current supply and demand situation of silver, it’s only a question of time when a silver shortage will arrive and prices will go through the roof. Nobody can predict exactly when this is going to happen, but there are more and more signs that those who control the price of silver, the Bullion Banks, are sweating to balance the supply. They have held silvers price artificially low for decades by holding illegal short positions without limits. I will keep our readers here on Amelia Island up-to-date on the developments.
Right now the Commodity Futures Trade Commission, CFTC, seems to want to force all the manipulators to get in line by making them obey new rules of position limits, but I feel that the banks who are the big shorts will be exempt. Only a true shortage in silver will bring the right price.¬† Silver specialists and experts are prepared for that to happen.¬† How much will silver be worth in a shortage situation? It’s tricky¬†to calculate, because a real shortage has never happened in silver history. But it is how you must think. Many thoughts go back to what some things cost during and after World War II in Europe. When there is not enough of something is when you see real crazy prices.
So I will give you the expert’s calculation. It will be a gradual explosion of prices and slowly the users and¬†the new investors will eat up the world visible silver, which today is around 500 million ounces.¬† In their calculation the first 100 million ounces of visible silver will disappear at a price of $60 to $100 an ounce. The second¬†100 million ounces will disappear by $250, and the third 100 million ounces will disappear between $250 and the price of gold ounce for ounce.
We will be left with 200 million ounces of silver which the owners¬†will be not taking profits on at any price. The bullion in private hands will be the first to take profits, but Silver Eagle holders will hold for the long run. Most likely Silver Eagles will do the best investment-wise¬†and don‚Äôt surprised that at one point the Eagle price will trade much higher than the price of silver in a bubble mania.
Ted Butler, the world‚Äôs foremost silver expert and industry adviser, spoke the truth in a recent speech; ‚ÄúThe supply/demand set up in silver, which has evolved over an incredibly long period of time, has been one continuous process promising to culminate in an explosion in price at some point.¬† Quite simply, we are rapidly approaching that defining moment when there just won‚Äôt be enough physical material to go around at anything but rapidly escalating prices.¬† Those escalating prices will encourage and drive others, including industrial consumers, to enter what should become a buying frenzy.¬† Superimpose upon that the sudden destruction of a decades-old downward price manipulation and you have all the necessary ingredients for a price event that will be referred to forever.‚Äù
So folks there you have it. I feel it is time for all to consider buying a little silver to stick under the mattress for the rainy days ahead‚Ä¶. that our government has now assured will come.