Well done Sammy you absolutely nailed it ! Not bad ! Considering the call was made 2 months ago. As for Court Jester, you are right in saying that silver has gone sideways, and the last 2 years proves that. And I await to see if silver holds ground above $27 for more than 2 weeks. As I'm dubious also. Well done to both of you for standing by your convictions. Unfortunately, Court Jester you do receive the egg in the face award ( as explained in a previous post ). Don't feel so bad, as many others have received a egging also in the last week. Here it comes...................... :lol: Ps- Keep predicting guys.....
He can't help himself. You provide his life with meaning. You are the light towards which he flutters. Sometimes he comes too close and is burned, but without someone to constantly whine about, he would be an empty shell of a man, devoid of purpose. He seeks you out as would a mystic seeking Shambhala on the path to a new golden age.
Thank you for your thoughts. However, I'm not sure if those sizable purchases you talk about are in fact reasonable calls for the industry to make. It is true that investor interest has been growing but: 1 - On the demand side: It is specially strong when prices are lower. I'm not sure what will happen to investor demand if prices continue to grow. 2 - On the supply side: Investors may become a significant source of supply too. As prices rise, more and more people (who are into silver for quite some time) may find the metal to be finally in their profitable range. And those investors may want to sell their positions.
2-On the other hand a Metal bug who bought physical four or five years ago and is still sitting after that amount of time is not about to sell now when they know prices are on the rise, especially in the current uncertain climate. I personally know quite a few who will not sell below $50-60. 1- On the demand side, Supply has been decimated over the last five years, mines have closed , been placed on maintenance or gone under. The paper amount on the supply side is not a true representation of reality, it is a figment, a pseudo supply, A LIE. Paper investors are physically unable to become a source of supply as their ounces of silver do not actually exist in reality. If supply was constant, plentiful, available, the price would be constant and stable in line with availability and industry would not be needing to secure future supply at an elevated price. The Investors would not be buying unless they expect a price rise, and the weak hands of the metal bug's have long since sold out. The paper Silver (and Gold) has always been many multiples of the actual physical supply, it would only ever take a single month of total delivery demanded to stand for the whole house of cards to come tumbling down, as the total amount on promise at any one time comes nowhere near the reality of what can be produced physically. The traders know this, the paper holders know this, the institutions know this, Industry knows this, The stupid dumb fuck sheeple are still unaware to this day though. The traders get a higher price for their paper, the institutions are willing to pay it so they do not have to deliver or default (although there is very little difference), and the stackers keep on stacking because they know that one day, reality will catch up with the previous two equations.
I think you need wrcmad to point out some serious flaws in your argument.......but if you are impatient, I suggest you use the 'search' function on this website, type in his name and have a read. He has already gone to extreme lengths to explain exactly why. There will never be a day where the physical silver holders will hold the decapitated head of the paper silver demons and declare that the war has been won. It is a dream, a mirage created to....well...to sell silver to those that don't understand exactly how the markets actually work.
I said investors may become a source of supply as prices rise. I didn't say everyone who has silver will be ready to sell it at these prices. Source, please. What I can find on the internet tells the opposite: supply has grown for the past 5 years: http://www.silverinstitute.org/site/supply-demand/silver-supply/ As far as I know, the paper contracts reserve the right to not physically deliver if they pay in cash the equivalent of the metal's value. And I don't think paper investors would complain about it. No cards would tumble. Actually, we have seen that, in the past, the paper vs physical ratio easily goes from 100:1 to 200:1 to 50:1. No fuss.
Don't forget that this is a stacking forum and not an investing forum. There is a different dynamic to the two disciplines. Some play both ends of the equation, using profits from investing to increase the personal stack.
^ I consider investing in gold/silver mining stocks as a form of stacking too. They go hand in hand even if they are a paper investment in a company. When shtf happens PMs go up and so do mining stocks.
