18 votes

Why Silver is set to explode

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 chases gold-the normal historic ratio is 16-1

it currently is about 50-1

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A 1964 silver quarter is worth over $6 BUT

a 1907 $5 liberty gold eagle is worth $450!
(both melt values)

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Carlos Slim, Bill Gates and Warren Buffet are all worth MORE

than $40 Billion
http://www.forbes.com/billionaires/

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Facebook is worth $44 billion and yahoo

is worth about $20 billion
These companies most likely wont be around in 20 years. But silver will still probably have value in 20 years!

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$3.5 Billions, I think.

Total eligible stocks: 103,000,000 oz
@$35/oz = $3.5 billion

http://www.cmegroup.com/trading/energy/nymex-delivery-notice...

I believe it claims,

“investable”[sic] ounces of silver in aboveground[sic] supplies."

David Galland claims he knows there is 1,234,590,000 ounces above ground. He pulled it from is arse. How could he possibly know this? He is full of hot air.

While its hard for anyone to say how much silver there

is available to buy, one thing is for sure, silver unlike gold disappears as a good portion of it is used in electronics and is never recovered.

Also silver because it is relatively cheap does not have the same mining budgets as gold does.

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Solar panel are HUGE now.

Casey Research says:
http://www.caseyresearch.com/cdd/look-out-silver-here-comes-...

Really though, my figure is the COMEX eligible supply number with link. Your post says COMEX stock but you are using an estimated 'above ground' number. Big difference.

They are replacing the industrial place of

photography which used to use a lot of the available industrial silver much of which has dried up from digital photography

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Sprottt has been making the point

that the DOLLAR amount of silver sales at the US mint and other coin dealers EQUALS the dollar amount of gold sales
That mean since silver is trading at 50-1 less than the price of gold that 50X more silver is being sold!!!

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Sprott the guy who runs two large physical gold and silver funds

also owns shares in silver mining companies and has encouraged them to hold back some of their silver production instead of selling it and holding cash

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Silver STILL trades lower than its 1980 high of

$50 an ounce!
Gold hit a high of $800 an ounce in 1980 -it is not $1700+ an ounce while silver is still just $34 an ounce!!

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Comex Silver is such a small market

People owning and storing silver around the world removes the actual amount of tradeable silver on Comex.

All it will take is a few comex investors to buy silver NOT ON MARGIN and then ask to take delivery to expose the whole scheme

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