Minyan Mailbag: Silver, Be Long or Be Wrong
Silver is the most incredible metal and is basically being given away at these levels.
A "flea market" might be an understatement for how big this thing is -- the San Jose flea market is on 120 acres of land and has 80,000 visitors a week, according to the website.
It's a stamped Englehard bar, and the seller is in a semi-permanent building called American Precious Metals or something like that, so I'm pretty sure I didn't get hosed. A friend of mine who's been buying up physical gold and silver for years now told me about the place.
When I got back I did a bit of reading on silver that only owning it can motivate, and I didn't realize that we're currently consuming more than we're digging up, how low the total silver supply is, the current silver/gold ratio compared to where it's been throughout history, and that supposedly there's 4x more gold floating around than silver at the moment. Maybe some of these sites I got the info from don't have their facts completely straight, but if that's true I might just have to go back and buy a couple more bars...
I guess what we call a "flea market" down here is considerably different! Ours has old hippies selling folk art, a few second hand clothes merchants, fruit and vege sellers and other vendors of produce as well as plenty of people selling crap no one wants! Englehard is one of the "best"stamps you can get. I'm sure your bar is exactly what you expected.
Your "investigation" has led you to some interesting factoids about silver and if one were to dig back through the many articles published at Minyanville each of those points will have been raised and discussed over the years. Many overlook the fact that basically every ounce of gold that has been given up by Mother Earth is still in existence. The same cannot be said of silver due to the industrial applications for which it is so important. Remember that the U.S. Government stockpile of over 1.5 BILLION ounces has been chewed up in the last 30 odd years. It's gone and won't come back no matter how high the price goes.
Lots of everyday appliances have silver in them. For example a Refrigerator has about 25 cents worth of silver in it. A computer keyboard has about 7 cents worth. This stuff cannot be economically recovered and is gone forever. New uses like super conductivity and nano technology need silver. The old chestnut that is always trotted out about "photographic demand declines" due to digital is plain rubbish. Photographic silver was readily recoverable and is still. Digital cameras need silver to function and the paper we print our digital pics on, use silver. There has been bugger all decline in demand for silver via photography (why would Kodak be on the SUA otherwise??). Silver was used way back in the "wild west" to keep water pure. A silver coin in a water barrel kept the water potable as the wagon trains crossed the country. Silver is a great medicinal agent and we are just learning about its wonderful properties for burns treatment and Samsung have their "silver nano" washing machines that kill bacteria etc. Silver in strategic missiles and weapons systems is never discussed.
Silver had a nice pop last night as did the yellow metal. Shares are not responding at all. Something's gotta give. Silver should be double digits, IMO.
Silver is the most incredible metal I know of and is so bloody cheap that it's basically being given away at these levels, IMO. My timeframe is in years, not days and I will buy all dips with my ears pinned back!
Silver - Be long or be wrong. Simple.
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