By SD Contributor SRSrocco:

Well, it looks like the WORD is getting about concerning the TRUE SITUATION in the silver market.  It was nice to see Lawrence Williams, Editor-in-Chief at Mineweb include the title of my article THE FORCES THAT WILL PUSH SILVER OVER $100 and a graph in his piece today.

Mineweb is one of my daily sources I read.

This goes to show that physical silver holders beware:

MUCH HIGHER SILVER PRICES ARE COMING…

Author: Lawrence Williams
Posted: Monday , 10 Dec 2012
LONDON (Mineweb) -

One of the biggest difficulties facing serious silver analysts, rather than those who just interpret data without looking at, or understanding, its true background is that many of those conducting ‘independent’ (i.e. those who are not themselves ‘silver bugs’) analyses mostly predict a weak silver price ahead because of what they see as a large silver production surplus.

….Indeed the graph below (where it formed part of an article entitled The forces that will push silver over $100, perhaps demonstrates silver’s reclassification quite dramatically in that when silver supply was genuinely in deficit the metal price languished, but when it moved into ‘surplus’, totally contrary to normal expectations, the price rose dramatically thus apparently defeating what should perhaps be called the first law of economics.

For the price to rise so dramatically, true demand had to be exceeding supply, no matter what the analysts were saying.

The graphic thus indicates that although silver is technically in surplus, in reality it is nothing of the kind with huge pent up investment demand more than taking up the available supply.

This does mean very definitely that those banking entities holding enormous short positions in silver are playing a very dangerous game indeed.

They are prepared to gamble big with large futures sales of paper silver to keep the price under control, but the writer is seriously beginning to believe that the views of some of the ardent silver bulls are not the crazy ramblings of fanatics, but express the reality of the situation.

(MineWeb article)

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Well, it looks like the WORD is getting about concerning the TRUE SITUATION in the silver market.  It was nice to see Lawrence Williams, Editor-in-Chief at Mineweb include my title of my article and a graph in his piece today.

Mineweb is one of my daily sources I read.

This goes to show that physical silver holders beware:

MUCH HIGHER SILVER PRICES ARE COMING…

  1. What if we were talking about water supply, shortages and prices.  If we are thirsty we don’t reach for a glass of silver.  Water has the ‘appearance’ of abundance—in this country.  But if a hurricane shuts down the power to pump water and the infrastructure is damaged?  The price for a 1 gallon of bottled water goes to a price that is one dollar short of obscene.  Gas goes to $25 a gallon.  See Hurricane Sandy for that
    Silver still has the appearance of suplus because we can go to the silver store, like a precious metal convenience store, and buy silver.  Yet behind this supply displayed in the windows, the shortage is real.  
    Water appears to be abundant if we turn on our taps.  Ask the farmer who’s crops were damaged by the lack of H20 this year.  What is the effect on grain and meat prices?  Up, up and away.  Silver purchases on a large scale, like agricultural water that is bought in acre feet amounts, are unsustainable and unobtainable. Ask Sprott? 
    And as for LBMA?  They are routing silver to India and China who will end up acquiring over 40% of the world supply just as they will acquired potentially 50% of the entire world production of gold, weighing in at 4,000 tons in 2012.

    • “What is the effect on grain and meat prices?  Up, up and away.”

      Indeed so, AG.  There is an interesting phenomenon involved, however.  First, a severe drought causes grain and feed crops to be significantly reduced.  This causes cattle, pork, and chicken farmers costs to feed their animals to shoot up very quickly, so we have almost immediate increases in the price of wheat, barley, soybeans, and corn.  Second, because of the high cost to feed these animals, farmers and ranchers cull their herds and flocks so that they will not have so many hungry mouths to feed during the coming winter when grass is insufficient to feed cattle.  Many more animals are slaughtered, causing a beef, pork, and chicken glut and lower meat prices.  Third, during the next spring and summer, however, the smaller herds and flocks cannot meet meat demand and meat prices shoot up rapidly until the higher prices establish a new equality between price and meat availability.

      Can such a thing happen in the silver market?  I don’t know… but maybe.

    • Such a thing should be happening in the silver market but with the paper dumps prices are being suppressed. That won’t end until someone big breaks ranks and demands physical. Or until the euro or dollar tank.

    • Exactly, you are correct! We can’t store too much water because it is way too bulky and it can lose its quality over time so it will be a waste. It will be the best if we can all learn how to filter and purity water to make it safe to use and drink it.

  2. Well done SRSrocco. The more people see the truth about the actual supply/demand fundamentals, hopefully the closer we are to real price discovery. It just amazes me that the primary silver miners say and do nothing considering that their own survival is at stake. The silver miners in countries like Mexico, Peru, Bolivia, Chile, Poland and Russia, which between them mine about half of silver produced annually should if they had any intelligence form a Silver Producers association to counter the Silver Users Association.

  3. Favoring us stackers may be that the powers that will prioritise silver supply to go to retail outlets, to keep the public unaware, and maintain a close match between COMEX/LBMA and black market prices for as long as possible.
    All through the 2012 summer bottoms, we are able to purchse silver below the cost price of mines. I don’t claim to understand how the hekc that’s possible, but evidence points that way. I bought all I could, and had no supply issues.
    But when sprott buys, he’s left waiting. Maybe retail orders received priority.
    We are the most powerful price discoverers. As long as the few million ounces we are able to afford go at spot, spot will be maintainable. Don’t let us see empty shelves, we’ll get wild. Take over mines by force. Extract our last dollars from dimes to get silver grams. And tell our loved ones to do so as well.

    • Exactly! It is an opportunity that we were able to buy some silver for about 27$ per ounce this summer when it was a little bit lower then the cost to mine silver per ounce. I wish I could buy as much silver as I could during that time when the dealer has offered me 28$ per ounce which was 1$ over spot! But, I was only able to buy one! :(

  4. There are a lot of factors that will drive silver’s price much higher in the future. The inflation rate is rising, the supply of oil is diminishing, silver’s ore is diminishing and more demands for silver is rising everyday. With these factors silver will of course go to 100$ per ounce or even higher than that.

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