Archive for the ‘Silver’ Category


The REAL Silver High

Posted: February 3, 2012 in Gold, Precious Metals, Silver

This is an older clip from that I posted months ago.  I wanted to post it again for new readers.  This clip is very powerful and relevant for any silver investor.  Even if you have seen this before, check it out again.

In this clip David Morgan discusses how silver is a monetary metal.  David expects silver to move much higher however you will need to expect volatility. 

The story of silver has not changed.  This year should be a very good year on a percentage basis.  We will likely see resistance around $35.  If we break through $35 we have little resistance to $40.  I personally would not mind if we saw another short-term sell off down to around $31.50, so I can convert my dollars into more silver.  I would not recommend waiting, if it’s your time to buy this month then buy.

Why did silver spike on Friday?  Silver spiked because of Eric Sprott.  For those that do not know Eric Sprott is a billionaire who believes silver will be the investment of the next decade, I agree.  Sprott has a physical gold and silver trust based in Canada.

On Friday Sprott issued a $300 Million follow on offering, Sprott will use the cash to buy physical.  If you are a share holder of the trust you lost abut 10% but silver was up 5%. 

This shows the physical silver market is gaining traction.  A article said the following, “So to summarize: speculation that $300 million in physical silver may be taken out of circulation raises the price of the underlying by 5%. Does that mean that a $3 billion follow on would result in a 50% rise in spot; $30 billion in 500%, and so on?”

Physical silver is a tiny market.  A couple of billionaires could take out much of the global supply.  A public who has lost confidence in the currency could wipe out the physical supply.  Industry who realizes a silver shortage is likely and buys physical for their operation could wipe out silver supply.  The military hoarding resources including silver for war could wipe out silver supply.  Every missile that explodes has silver.

This is the year the physical takes control.  Who wants to hold paper silver?  Good luck demanding delivery on your silver.  You will get a cash settlement, in other words dollars. Then those dollars are used for physical, because those investors wanted the silver not dollars.

Article here