Sunday, May 15, 2011

Eric Sprott : if only three percent in one day demanded physical delivery there will be no silver on the COMEX

Eric Sprott : ..Silver is the best recommendation anyone can make this decade...I have always looked at silver and gold as a situation where the demand will exceed the supply , and when I looked at gold in the last decade we had a great change in from the demand side where central banks used to be sellers and became buyers , we used to have no ETFs now we have ETFs we used to have mining companies with hedge now they don't hedge and the shifts in ownership had been dramatic in a market where we really see no rise in supply , in the case of silver what really turned me on about twelve months ago was as we witness people buying silver you realize there would not be enough silver to buy and as example the US mint today sells as many dollars of silver as dollars of gold , when you realize that silver trades at forty to one ratio means that they are buying at forty times of physical ounces of silver as they are buying gold , when we sold our gold ETF we raised 440 million , when we sold our silver ETF we raised 550 million , James Turk of Gold Money he sells more dollars of silver than gold we have a little company called Sprott money that sells gold and silver coins , we sell way more dollars of silver than Gold and so here we are in a situation where the price is forty to one but the dollars going in to it are almost dead equal , so I can't see the price ratio staying in this range ...
we have been a net buyer of silver everyday , I will be a buyer of silver today I will be a buyer of silver tomorrow so we have not lost any faith in what's happen to silver ...what happened last week in mind is just another of those raids that we experience from time to time ...there was no particular reason for it , then we end up with five margin request increases , somebody is manipulating the price of silver and that's totally my attitude I have no fear of silver here , yes it will be parabolic but it will be more parabolic than we have today I have always thought that silver would trade at 16 to one ratio in terms of price to gold to make it simple if we measure gold at $1600 that would suggest that silver may go to $100 , I think it might even over shoot on the downside may be trade as much as ten to one , and the reason I think that is that I believe that Gold today is the De Facto reserve currency it has out performed everything for eleven years , Silver has always been a currency people are now treating it as a currency much as you are recommending to people , i is a very very small market there is no way that with roughly fifty billion dollars of silver inventory around that we can make it a currency at these price levels so I see the price going much higher ....
I think last week decline was premeditated it happened in the early hours of Sunday/Monday morning when markets were not re-operating England was closed China was closed it was a great opportunity just to mark it down I think it was very much orchestrated , one thing that I think we should all look at is the trading of silver in the paper market which I mean the COMEX and the SLV last week it probably averaged 1.2 billion ounces per day , there is only 700 million ounces mined in a year there is only 33 million ounces of physical silver at the COMEX available for delivery by the commercial shorters . I mean if only something like 3 percent of the people that were trading silver 3 percent in one day demanded physical delivery there will no silver in the COMEX , so I look at those paper markets and I just believe it's paper it's guys pushing buttons who have really no invested interest in silver other than trying to move the price one way or guess which way the price is going

MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet

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