Quote:
Originally Posted by sprocket
Hi silverman. Maybe you can clarify the situation regarding silver - as your OP figures suggest, silver is apparently much scarcer than gold, which is itself very scarce! I have also read that the reason for this is that, though found in abundance, it is not worth mining because of its low intrinsic value - which sounds like complete bulls*it to me! What are your views on this? Thanks.
|
Thanks for the excellent questions, here some facts and bullet-points:
annual output gold: approx. 2500 tons
annual gold consumption: approx. 4200 tons
gap covered by recycling gold and gold from central bank sales
-main use of gold is jewelery, investment vehicle
-reserves approx. 20'000 tons / value USD 700 billion
-any other reserves somewhere else: none bought by some intelligent investores over the last couple of months
now Silver:
annual output silver: approx. 21000 tons
annual silver consumption: approx. 30000 tons
reserves? none just underground, central banks don't keep silver since a while
But know comes the compelling thing with Silver:
- WE NEED IT and Silver findes usage in more components and products than crude oil
- Silver is still used big time in the photography industry
- Mobile phones
- Laptops & computers
- Flatscreens
- For water purification (big time)
- Solar power
- Watches
- pharmaceutical industry like for band-aid and more
- jewelery
- Mirrors
BUT NOW SOMETHING EVEN MORE INTERESTING!
A couple of months ago, when crude oil was hovering around 130/140 every child learned what peak-oil means...we will run out of crude oil in roughly 40 years!
Hey, we have a big issue here on planet earth since we ARE ALREADY BIG TIME IN PEAK-SILVER AND PEAK-GOLD because
In 15 years (yes ONE / FIVE) we don't get Silver anymore out of the ground!
But perverse enough it is sold away at USD 10 at COMEX!
Check once on
www.kitco.com the price of Rhodium. Also a very rare and precious metal out of the platinum group.
Rhodium was trading @ USD 400 in 2003/04 and reached a high in March 2008 at USD 10000.
So you can see what happens to precious metals prices when everybody wants and needs them.
THE ACTUAL SILVER-PRICE IS A F.....G JOKE!
And yes you are right! Producers getting Silver out of the ground do this at USD 13....so its not profitable...but as I said needed in so many devices we use and need every day!
Some investors already pay now USD 20 to 30 for 1 Ounce of Silver in physical form.
BUT some nasty rumours say that there is a 1 to 3 billion ounce short-position out there, which might be the reason, why Silver dropped from USD 22 reach this March to below USD 10 last week....by the way same day when Dow Jones dropped below 8000 since years
Isn't that funny?
Again US government together with the FED and the two government banks Goldman Sachs and JP Morgan (ooops they seem never to have problems even during this crazy financial crisis) have big pockets some hidden accounts on the bahamas and virgin islands where they park all the criminal short positions, all the treasuries they buy back and the F&F bonds.ö...and so on
They do big time manipulate financial markets!
Now one of the bush would say: Believe me, read my lips!
Greetings, silverman