Silver surplus – what silver surplus?

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)

————

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…