Few investment opportunities arise in our lifetime like silver. The stage is set for a percentage gain of extraordinary magnitude! Forget the popular refrain of “Got Gold?” and make some additions to your portfolio to take advantage of the coming silver supernova! Words: 513
The above introductory comments are edited excerpts from an article submitted to munKNEE.com for publishing by Donald J. Poitras.
Poitras goes on to say:
These Facts About Silver Say It Alla) Diminishing Supply: Increasing Demand
- 600 million ounces are mined yearly yet industrial demand is over 900 million ounces per year, and new uses keep expanding.
- Investment demand has exploded with the advent of a number of silver ETFs and the increase in actual ownership of the physical metal by interested parties worldwide (for example China is now encouraging its citizens to own silver; the US mint is rationing silver coins).
- Total known world inventories in the past 75 years show declines in above ground silver inventories of greater than 98%.
b) A Massive Short Position Exists
- Silver has a massive short position, probably greater than any commodity in history. If one factors in short positions on COMEX, the leasing of silver by bullion banks, banks and brokers selling silver certificates and other silver instruments with no silver to back them then it is quite possible that hundreds of millions – perhaps even billions – of ounces of silver are sold on paper that do not physically exist.
c) Inground Silver Is Limited and Will Become Much More Expensive to Mine
- The average occurrence of silver in igneous rock (igneous rock composes ~92.5% of the earth’s crust) is 0.07 PPM or 0.07grams of silver per metric ton of igneous rock, which means that on average 444.3 metric tons of igneous rock must be mined to obtain 1 troy oz (1 metric ton/.07gram Ag)*(31.1gram/1troy oz)!
- Very little silver remains underground because of the geological phenomenon of epithemal deposition.
- Only the recycling of silver-containing products, the mining of scarce surface silver veins and the silver byproduct of base metal mining can provide fairly cheap silver.
- Silver is not found in placer deposits like gold but, rather, in veins and these veins are formed as epithermal depositions or condensation near the earth’s surface (like whipped cream on the surface of coffee). Simply put, the richest deposits are nearest the surface of the earth, and the deeper mines go the less they tend to produce. Economically, the deeper the mine, the more expensive the silver.
The Result: The Price of Silver Can Only Increase – Dramatically!
As current silver is depleted from the above mentioned epithermal deposits and mined deeper at much lower grades (approaching 0.07 grams per metric ton), the costs of mining must skyrocket and consequently the price of silver must explode.
The stage is set for a silver price percentage gain of extraordinary magnitude! It is time to embrace the new refrain “Got Silver?”
Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
Another Poitras Article:
Because of various price manipulations (paper gold, computer price rigging, falsified physical gold data, etc.), nobody knows what the price of gold should be but this unique – and logical – article sets out the foundation for the true price of gold – and it is absolutely astronomical befitting its star supernova origin. Read More »