New mine supply is not very responsive to rising silver prices. If and when silver follows gold higher, don't expect new mine supply to come to the rescue. Only one thing can.
In 1980 the silver/gold extraction ratio and the monetary value ratio were very close @17-1. Gold was at $800, silver at $50. The math is close enough.
Today the extraction ratio is 7-1. If the monetary value ratio had moved in tandem over the past $50 years, silver would be $350 per ounce.
Price suppression of silver is more important than price suppression of gold, due to the massive demand by the MIC. They want to keep their raw material costs as low as possible and the collusion between govt, (and not just the US govt) bullion banks, Comex, big hedge funds, and maybe even some of the global miners does that very well. It’s a work of art really.
To your point MoodyP….jp Morgan Chase Bank in NYC hold millions. Of ounces in their basement vaults & uses this PHYSICAL to “bang the cash register via COMEX (in collusion
with 4/6 other Banks in different countries to “Rinse, Wash & REPEAT” going Long Going Short & has been doing this since at least 2010 if not earlier.
Funny how they won’t let bank safety deposit customers STORE
PMs in their rented “Safe Deposit Boxes” it’s actually subject to inspection & confiscation.
I think Bill was supposed to be at Rick Rule’s conference in Boca Raton this week. I doubt he will have much time for writing until that shindig is over.
I have noticed it too. Tom and Dan, respectively, covered for Bill and wrote interesting articles yesterday and today without mentioning what's happened to the chief author of our weekday commentaries.
Last time I read Bill's writing (it was a couple days ago, Monday, 7/8), he was describing in details about a wedding he attended at Bordeaux, France along with its historical background in wine business at Bordeaux. It was a fascinating read!
Having been around (and deeply so, but with no risk!) the 1980 silver bubble and the famous Thursday crash, what was witnessed that at a certain price silver comes out of the “woodwork “! Silverware gets melted, old negative film and medical X-ray negatives, etc were taken and used for silver content! The supply side became inundated, and the price plunged drastically and faster than anyone could imagine!
In 1980 the Hunt Brothers had the Silver market cornered!!!! The Hunts bought on margin and had thousands of contract's. The Banks and the Market were selling short and were loosing their shirts they were going broke. So the rules were changed in Mid Game. The margins were increased dramatically. So all of a sudden the Hunts became Margin Calls. In order to come up with the money the Hunts had to Sell. A contract was 5000 ounces .Times 50 $ (price of Silver ). At $2500000 a contract there were no buyers and the Hunts while originell very rich could not
come up with the margin calls. I forget if margin went to 100% but it went very high.
Silver went never up because of short supply it went up because of the HUNTS using their margin gains to buy more and more until they put a needle to the balloon.
Nobody tells you that , All the keep on saying silver made a double top and now the ratio to gold is out of whack and eventually it will go back to the old ratio meaning it has to go much
higher (I keep hearing $ 100 or higher.) I don't know what will happen. Because of charts I'm bullish on silver and I hold SIL and SILJ But, I trade them.
Hi Peter, do you trade them also with your Bollinger, RSI, Stochastic methodology ? I have SIL since longtime buy and hold. But I could start trading a little with it.
You may have noted that the Republican Party just published their platform. There are many items obviously but one stuck out to me: KEEP THE U.S. DOLLAR AS THE WORLD’S RESERVE CURRENCY.
This would require a number of things including immediate fiscal discipline and higher for longer interest rates. Even then it seems incredibly unlikely this could be pulled off with a fiat anchored to nothing, the Saudi's having abandoned the petrol-dollar and half the world (BRIC's) eager to quit the US fiat. Paint me skeptical.
It seems like this boat has sailed but I'd be curious as to your thoughts; could there be any practical means of accomplishing this objective over the long term and would you even want to do so at this juncture?
Silberaktien passen nicht so ganz zum Modus der maximalen Sicherheit. Aber es wäre schön wenn ihr Silberaktien erwähnen würdet, die aussichtsreich wären, aber aufgrund des Modus der maximalen Sicherheit nicht gekauft werden. Jeder kann dann für sich entscheiden ob er sich diese Aktien kauft als "Spekulation".
Dan, one company you and Tom might want to look at is Skeens Resources Ltd. (SKE). Full disclosure, I’m already an investor. Good management, good IRR, going into production soon. High grade Au & residual Ag.
Dan, Wyoming became a state in 1890.
Maybe Dan can replace Joe.
In 1980 the silver/gold extraction ratio and the monetary value ratio were very close @17-1. Gold was at $800, silver at $50. The math is close enough.
Today the extraction ratio is 7-1. If the monetary value ratio had moved in tandem over the past $50 years, silver would be $350 per ounce.
Price suppression of silver is more important than price suppression of gold, due to the massive demand by the MIC. They want to keep their raw material costs as low as possible and the collusion between govt, (and not just the US govt) bullion banks, Comex, big hedge funds, and maybe even some of the global miners does that very well. It’s a work of art really.
Market is extremely distorted ! 15:1 (circa)1970. Yet look at a barrel of crude today? 2.5 ounces of Silver will fill a 20G tank !
To your point MoodyP….jp Morgan Chase Bank in NYC hold millions. Of ounces in their basement vaults & uses this PHYSICAL to “bang the cash register via COMEX (in collusion
with 4/6 other Banks in different countries to “Rinse, Wash & REPEAT” going Long Going Short & has been doing this since at least 2010 if not earlier.
Funny how they won’t let bank safety deposit customers STORE
PMs in their rented “Safe Deposit Boxes” it’s actually subject to inspection & confiscation.
Hence keep your stuff “under your control!”
Interesting......seems ol' Bill has taken a break. No missives for the last few days. Hope the ol' guy is Ok!
I think Bill was supposed to be at Rick Rule’s conference in Boca Raton this week. I doubt he will have much time for writing until that shindig is over.
I have noticed it too. Tom and Dan, respectively, covered for Bill and wrote interesting articles yesterday and today without mentioning what's happened to the chief author of our weekday commentaries.
Last time I read Bill's writing (it was a couple days ago, Monday, 7/8), he was describing in details about a wedding he attended at Bordeaux, France along with its historical background in wine business at Bordeaux. It was a fascinating read!
My thoughts too.
Having been around (and deeply so, but with no risk!) the 1980 silver bubble and the famous Thursday crash, what was witnessed that at a certain price silver comes out of the “woodwork “! Silverware gets melted, old negative film and medical X-ray negatives, etc were taken and used for silver content! The supply side became inundated, and the price plunged drastically and faster than anyone could imagine!
In 1980 the Hunt Brothers had the Silver market cornered!!!! The Hunts bought on margin and had thousands of contract's. The Banks and the Market were selling short and were loosing their shirts they were going broke. So the rules were changed in Mid Game. The margins were increased dramatically. So all of a sudden the Hunts became Margin Calls. In order to come up with the money the Hunts had to Sell. A contract was 5000 ounces .Times 50 $ (price of Silver ). At $2500000 a contract there were no buyers and the Hunts while originell very rich could not
come up with the margin calls. I forget if margin went to 100% but it went very high.
Silver went never up because of short supply it went up because of the HUNTS using their margin gains to buy more and more until they put a needle to the balloon.
Nobody tells you that , All the keep on saying silver made a double top and now the ratio to gold is out of whack and eventually it will go back to the old ratio meaning it has to go much
higher (I keep hearing $ 100 or higher.) I don't know what will happen. Because of charts I'm bullish on silver and I hold SIL and SILJ But, I trade them.
Hi Peter, do you trade them also with your Bollinger, RSI, Stochastic methodology ? I have SIL since longtime buy and hold. But I could start trading a little with it.
Appreciate these insights Dan.
You may have noted that the Republican Party just published their platform. There are many items obviously but one stuck out to me: KEEP THE U.S. DOLLAR AS THE WORLD’S RESERVE CURRENCY.
This would require a number of things including immediate fiscal discipline and higher for longer interest rates. Even then it seems incredibly unlikely this could be pulled off with a fiat anchored to nothing, the Saudi's having abandoned the petrol-dollar and half the world (BRIC's) eager to quit the US fiat. Paint me skeptical.
It seems like this boat has sailed but I'd be curious as to your thoughts; could there be any practical means of accomplishing this objective over the long term and would you even want to do so at this juncture?
Silberaktien passen nicht so ganz zum Modus der maximalen Sicherheit. Aber es wäre schön wenn ihr Silberaktien erwähnen würdet, die aussichtsreich wären, aber aufgrund des Modus der maximalen Sicherheit nicht gekauft werden. Jeder kann dann für sich entscheiden ob er sich diese Aktien kauft als "Spekulation".
That was quite sobering to see the inflation adjusted numbers.
“The inflation adjusted 2011 price is now $67.80. And the inflation adjusted 1980 price is $193.77”
Dan, one company you and Tom might want to look at is Skeens Resources Ltd. (SKE). Full disclosure, I’m already an investor. Good management, good IRR, going into production soon. High grade Au & residual Ag.