Dynamics of the Silver Price Revolution

[webmaster]

Subject:Dynamics of the Silver Price Revolution
By: Vincent Bressler

Overview: Recently, when silver was topping out at around $21 per ounce, there was an acute shortage of silver available for investing. This investment demand problem threatened to kick silver into an industrial deficit driven price revolution. The problem was resolved via unofficial rationing. New silver eagles and new 100 ounce bars have become increasingly unavailable since that time.

Link: http://news.silverseek.com/SilverSeek/1213458334.php

[balou2]

This is an interesting article, in that it somewhat defines what we've all known. The hard part for me is believing which "side" is correct.

If you read this article:
http://www.kitco.com/reports/fortis-...2008-06-13.pdf

the speculation is that silver will be back down to $10/oz by 2010/11. On the other side, you have folks like Morgan saying that silver could hit $150/oz. Which side do we believe, and which price is right?

I do truly believe at some point silver PM will be high, but is now really the right time to buy, or do we believe it will go down again before it goes up? Just seeking opinions.

[Richard]

Originally Posted by balou2

I do truly believe at some point silver PM will be high, but is now really the right time to buy, or do we believe it will go down again before it goes up? Just seeking opinions.

I haven't looked over that link yet, but to answer your questions...

First, it is my opinion, based on what I know to be true in principle, that silver's value will have to be revealed at some point in (more than likely) the near future. And because of the manipulation, a lower price would not guarentee a supply to be bought. Therefore, imv, silver at any price is a good buy.

But which side is right? Well, naturally I would say the side I'm on!

And I base that assessment as much on silver as on the dollar. What will the dollar do and why? Is there any credible evidence that the dollar and all it's derivatives will make a come-back? Is there any evidence that suggests that such a monetary system is as good as, or better than, precious metals? Is there any chance that the naked shorts will deliver?

Once you answer those questions, the value of silver will become clear.