Wednesday, November 24, 2010
I’ve bought a reasonable pile of silver over the last 5 years and I’ve held it through some crazy gut wrenching turbulence, some that came damn close to shaking my confidence in bullion. Today that fear is entirely gone.
I watch the market daily and I’ve seen the recent attempts to drive down prices and I can say with great confidence that the tide has turned decisively in our favour. Sure they can knock the price down occasionally but no longer can they nuke the market back 30% in a matter of days, their control is slipping.
There are a number of very encouraging signs in today’s silver markets that ensure this quite profitable run will continue for some time.
1. The number of new converts in both blogdom and the financial media who are not scared to state the obvious facts about silver’s supply and demand issues.
2. Advanced technologies are using more silver each year. Solar, high temperature super conducting cables, antibacterial coatings/fibres, and silver/zinc batteries are all expected to see significant demand growth
3. Despite higher prices, demand is making the market for physical silver very tight. Many reports claim there is little to no small silver around for delivery.
4. Few pure silver mines are opening ensuring that a quick fix to supply issues is not going to happen.
5. The amount of silver on deposit with the Comex is shrinking at a nice steady rate. While physical inventory has shrunk to about 107 million ounces, outstanding contracts for “potential delivery, represent more than 700 million ounces. At some point industrial users will panic if inventory shrinks too much; that’s when the real fun starts for us.
I can’t promise prices will not slump a bit from today’s level but I have no fear that this market can be brutalized the way it has been in the past. If you have the means and can find anybody with silver for delivery make that purchase while you can.
I don’t have time to check ALL the vendors and inform you who has stock but I do know that First Majestic Silver restocked this week and have sizes in stock today.
My last couple of purchases have been from First Majestic and I’ve been very happy with the product and the service. Those 1kg bars are beautiful, well packaged and stack so very nicely.
Tell them I sent you, maybe they’ll buy some advertising or send me a mug ;)