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18 votes

Why Silver is set to explode

Submitted by Paulreal on Sat, 10/06/2012 - 23:40
in

In 1980 two brothers almost cornered the silver PAPER market on COMEX.

Check out these videos to see how they almost did it:

http://www.youtube.com/watch?v=swrrAQBsEE0
http://www.youtube.com/watch?annotation_id=annotation_248107...

They failed because they bought on margin and had to meet a margin call and the COMEX in order to thwart the Hunts brothers scheme only allowed SALES of silver once they saw how large the Hunt Brothers' position was.

The brothers did take physical delivery and that is what really spooked the comex

Today the amount of available investible silver on COMEX is about 40 Billion dollars.
http://www.caseyresearch.com/editorial/3812?ppref=DLC192ED1110A

Think about it -that is next to nothing in today's multi trillion dollar economy.

For context-Apple is worth $660 billion, Google and Microsoft $250 billion.

Heck, there are four MEN in the world worth more than $40 billion.
http://www.forbes.com/billionaires/

Comex allows no position limits so shorts can sell nearly a year's worth of silver production in five minutes.

While that acts to keep the price down, the large short positions are really not worth that many dollars even though those short trades may represent a large amount of the entire tradeable silver on Comex.

Think-governments own TRILLIONS of dollars of gold, but very little if at all,silver.

If two brothers could almost buy all the available investible silver back in 1980, think how easy it would be for a couple of billionaires or an investment trust to do the same today.

Buying all the world's gold could never be done in today's market.

Since silver is widely needed in the solar and electronics industry, and already is the cheaper monetary substitute to gold and the amounts of investible silver are relatively low compared to other intangible assets like stocks and bonds and low compared to even gold, where do you think silver is headed?


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Silver down tonight

Submitted by Paulreal on Sun, 10/07/2012 - 23:00.

Wonder why?

consider it a gift and keep

Submitted by John C on Sun, 10/07/2012 - 23:22.

consider it a gift and keep stacking.

ecorob's picture

why fractional banking works for me...

Submitted by ecorob on Sun, 10/07/2012 - 21:50.

Because it means my one ounce of silver is actually worth 10 times its current value to those of whom I would lend out pieces of "interest" paper with assumed value based on my little 'auld one ounce of silver.

The question is, can silver be "liquidated"? Eliminated from he conscious of the Earth? Worthless?
Can gold?
Can it be confiscated?

That's what happens when the people end up having more "value" than those political reps and world leaders that squandered away their people's treasure and continue to lead them into certain desperation.

That's what happened in 1933.

We, as a people have more real value in our "land" and our "resources" than the Federal gov't has. So, silver, where does it go?

40 billion ounces certainly seems manageable, at any price.

Zero dollars to 200 dollars an ounce only happens when the people finally realize just who owns the silver.

Ron Paul taught me that.

—

its 'cos I owe ya, my young friend...
Rockin' the FREE world in Tennessee since 1957!

Defeat CORKER! Bailed out the banks. In training to steal more.
Defeat ALEXANDER! Career traitor! Handsomely rich in a poor Nation.

Rules Made To Be Broken

Submitted by trisport on Sun, 10/07/2012 - 21:21.

The rules were changed on the Hunt brothers. They can change the rules again to prevent a similar scenario.

AGREE BUT

Submitted by Paulreal on Sun, 10/07/2012 - 21:33.

they can't control the rules of physical possesion

ecorob's picture

it is my goal to own

Submitted by ecorob on Sun, 10/07/2012 - 22:20.

this much .00000000125 of all of the silver in the world.

That's 500 ounces.

If I owned this much. 00000000125 of say, Goldman Sachs, how much money would I have?

I figured it out based on there only being 40 billion shares of Goldman Sachs priced at today's close of 120 dollars a share.

I would have $2,880,000 worth of Goldman Sachs.

Funny, sad, isn`t it?

—

its 'cos I owe ya, my young friend...
Rockin' the FREE world in Tennessee since 1957!

Defeat CORKER! Bailed out the banks. In training to steal more.
Defeat ALEXANDER! Career traitor! Handsomely rich in a poor Nation.

Cyril's picture

Interesting. So, that's 400 billions ounces

Submitted by Cyril on Sun, 10/07/2012 - 22:55.

Interesting.

So, that's 400 billions ounces of total silver reserves.

It seems you and I came up with different figures (as for mine, from rather silly formulas and much speculative, granted. See below.)

Just curious : where did you get yours from ?

—

My name's pronounced like "see real". Its root is "Lord".

"The demand of a great people is always at the scale of its most serious misfortunes." --De Gaulle

http://Laissez-Faire.Me/Liberty

ecorob's picture

my calculations were silly, too...

Submitted by ecorob on Mon, 10/08/2012 - 00:20.

But my calculations were mistaken.

I like your calculations.

—

its 'cos I owe ya, my young friend...
Rockin' the FREE world in Tennessee since 1957!

Defeat CORKER! Bailed out the banks. In training to steal more.
Defeat ALEXANDER! Career traitor! Handsomely rich in a poor Nation.

yup...heading MUCH

Submitted by John C on Sun, 10/07/2012 - 20:42.

yup...heading MUCH higher...

http://www.dailypaul.com/254031/learn-the-truth-about-silver...

The BOND KING Bill Gross of Pimco says...

Submitted by Paulreal on Sun, 10/07/2012 - 19:59.

precious metals should be part of every portfolio as a hedge against inflation

http://blogs.marketwatch.com/thetell/2012/10/02/bill-gross-s...

Sprott's call to Silver Miners:

Submitted by Paulreal on Sun, 10/07/2012 - 19:53.

If the largest pure play silver producers simply adopted the practice of holding 25% of their 2011 cash reserves in physical silver, they would account for almost 10% of that US$9 billion. If this practice we're applied to the expected 2012 free cash flow of the same companies, the proportion of investable silver taken out of circulation could potentially be enormous.

http://www.sprott.com/markets-at-a-glance/silver-producers-a...

it won't take much

Submitted by Paulreal on Sun, 10/07/2012 - 19:54.

there is a small silver market, if the miners take Sprott's advice and a few large investors pile in and the public follows....t

The buy silver, crash JP morgan movement

Submitted by Paulreal on Sun, 10/07/2012 - 19:49.

was based on the limited amount of physical silver available to purchase that if the masses bought silver, JP morgan's paper short would be exposed and cause them massive losses

http://maxkeiser.com/2010/11/12/crash-jp-morgan-buy-silver/
http://www.guardian.co.uk/commentisfree/2010/dec/02/jp-morga...

What impact would 50-100 million people buying just 10 ounces each silver have?

Peter Schiff sells gold too

Submitted by Paulreal on Sun, 10/07/2012 - 12:04.

through europac metals
as does mike maloney through goldsilver.com
and then there James Turk's goldmoney.com

I like

Submitted by robamichael on Sun, 10/07/2012 - 11:53.

I like www.providentmetals.com

Prices are pretty much the cheapest around without the site being super shady.

Orders have always gone smoothly.

Buy with cash, you are discounted compared to credit.

Don't forget Lyndon Johnson's warning on silver coins

Submitted by Paulreal on Sun, 10/07/2012 - 11:40.

"Our present silver coins won't disappear and they won't even become rarities.....There will be no profit in holding them out of circulation for the value of their silver content."

http://www.dailypaul.com/248955/president-johnson-warns-dont...

Another Silver fact

Submitted by beeman on Sun, 10/07/2012 - 11:05.

There is only 300 to 700 million OZ of silver available for sale at any one time. But there is over 7 Billion OZ of gold available sitting in bankers vaults. So why isn't silver worth 10 times that of Gold? Since it is 10 times more rare.

The US government was sitting on 6 billion OZ of silver 50 years ago, today zero! They used it all to prop up the fiat dollar and the corrupt banksters!

The US government is helpless to drive down silver prices, like they did in 1980.

It is only a matter of time when Silver goes ballistic! Then you won't find it available at any price!

—

Gold standard: because man can not be trusted to control his greed

Advice on Buying Silver

Submitted by skippy d on Sun, 10/07/2012 - 01:27.

Can anyone tell me the best way to go about buying silver at spot price? Used to be able to here in Richardson but not now.

—

skippy

The best way

Submitted by freespeech468 on Sun, 10/07/2012 - 10:30.

IMO is to go Junk silver, if you are just looking for weight and a lower price. Now keep in mind 999% silver is actually the better deal here since you are getting it at its maximum purity with this incredible premium. However, no one is going to price an ounce of that at Spot. SO junk silver close to melt value can be you best option. SILVER IS SILVER IS SILVER. in the end the ONLY thing that is going to matter is purity and weight.

also your ignorant average American isnt going to know the difference between a Fine Liberty Eagle from a Morgan or Peace dollar.

—

Ron Paul IS The Golden Standard

What is Capitalism?
http://youtu.be/yNF09pUPypw

The problem with that math is

Submitted by Metal_Mulisha on Sun, 10/07/2012 - 13:31.

That the FRN (dollars) you would get in trade for that silver dime are each worth 5 cents today = 12.5 cents total value. I don't know the value of the 2.5 cents in todays money that you would realize as a profit.

Hmmm 2 down votes?

Submitted by Metal_Mulisha on Sun, 10/07/2012 - 22:08.

I thought I was just speaking truth here,and realizing how much The Bernank has fuckered us over. Am I mistaken? I hold thousands of 90% Dimes and several bags of silver Quarters and then some...I started buying Silver @ $4.00 and change. Gold @ $350.00 an ounce. Never sold a single ounce since I first started stacking...What am I not seeing?

Yes the silver dime doesnt really represent a profit

Submitted by Paulreal on Sun, 10/07/2012 - 21:47.

but a store of value since 1964

Salable recognizable non numismatic silver

Submitted by Paulreal on Sun, 10/07/2012 - 10:59.

Will be closest to spot
The larger the coin or bar and ones not minted by a government tend to be closer to spot

Ron Paul, Murray Rothbard, Mises and other

Submitted by Paulreal on Sun, 10/07/2012 - 11:21.

commemorative coins sell well over spot and are not investments but collectibles

Cyril's picture

I haven't managed to do that as of yet

Submitted by Cyril on Sun, 10/07/2012 - 01:58.

I haven't managed to do that as of yet (to buy at spot price).

Not sure, but maybe you can find someone's tip about this sort of things in that thread, if ever addressed :

http://www.dailypaul.com/144648/saudi-markets-fall-over-6-go...

This also seems a classic resource :

http://www.silver-coin-investor.com/

'HTH,

—

My name's pronounced like "see real". Its root is "Lord".

"The demand of a great people is always at the scale of its most serious misfortunes." --De Gaulle

http://Laissez-Faire.Me/Liberty

Cyril's picture

Silver in Jesus times, Mining History Spot, & silly approx. math

Submitted by Cyril on Sun, 10/07/2012 - 23:28.

Silver in Jesus times

"The word used in Matthew 26:15 (arguria) simply means 'silver coins', and scholars who accept the historical reliability of the narrative disagree on the identity of the coins involved. Donald Wiseman suggests two possibilities for the identity of the coins used to pay Judas. They may have been tetradrachms of Tyre, usually referred to as Tyrian shekels (about 0.5 troy ounces), or they may have been staters from Antioch, which bore the head of Augustus. Alternatively, they may have been Ptolemaic tetradrachms. A drachma was aproximately a day's pay for a skilled laborer. So the 30 pieces of silver - at four drachmas each - would roughly be comparable to four months' wages for skilled labor at the time."

Yes : only 15 troy ounces of silver for 4 months worth of wages (source).

Silver Mining History Spot (2010)

In 2010, total global mine production of silver was approximately 735 million troy ounces (source).

Silly, grossly approx. maths

1. Silver production : let's make it 1,000 million oz/year for convenience, throughout 2,000 years non stop (vastly, vastly overestimated, within the integral !)

This gives us 2,000 * 1,000 million oz = 2,000 billion oz = 2 trillion oz (2*10^12 oz).

2. Let us assume that, beyond gold reserves otherwise, and industrial silver usages for manufacture, "only" 25% (likely overestimated again ?) of it remains relevant as one of the coined currencies in circulation on today's markets :

25% of 2 trillion oz = 500 billion oz.

Note : a much, much questionable figure, done purposedly; read on.

3. Then, divide by 500 million of actually active silver holders, along with their families (yet again, vastly, vastly overestimated, this time to compensate for (1) and (2) simultaneously) :

500 billion oz / 500 million = 1,000 oz per holder and ... per their life time, for this generation.

Question :

Does it still make ANY sense to have dozens (hundreds ? thousands ?) trillions of worthless dollar and euro bills (and others) to represent one's portable and divisible, saved wealth ?

Er...

I don't think so.

—

My name's pronounced like "see real". Its root is "Lord".

"The demand of a great people is always at the scale of its most serious misfortunes." --De Gaulle

http://Laissez-Faire.Me/Liberty

ecorob's picture

i am with you on that...

Submitted by ecorob on Mon, 10/08/2012 - 00:16.

Why, indeed?

—

its 'cos I owe ya, my young friend...
Rockin' the FREE world in Tennessee since 1957!

Defeat CORKER! Bailed out the banks. In training to steal more.
Defeat ALEXANDER! Career traitor! Handsomely rich in a poor Nation.