Why the Silver Price Is Set To Soar

[webmaster]

Subject:Why the Silver Price Is Set To Soar
By: Mark O'Byrne

Overview: Precious metals remain the most undervalued of all the asset classes. Precious metals, and particularly silver, remain the most undervalued of all the commodities. Silver is even more undervalued than gold and is undervalued when compared to other strategic commodities such as oil and uranium.

Link: http://news.silverseek.com/SilverSeek/1178815776.php

[venician]

An interesting article. Thanks Mark. I'm interested that you recommend unallocated holdings at the Perth Mint as one way of investing in silver metal. Whilst this confers a "legal title" (of sorts?) on the investor, it also allows the Mint to use the commodity "as if it were the owner" (quote from their conditions of application).
Doesn't this compromise the availability (supply) of the metal, effectively allowing 2 parties to invest in the same parcel? Surely this dilutes the purpose of investing. :?:

[gemstocks]

I believe Mark is right about all those factors effecting price but everybody seems to over look one thing, government intervention. The US Government might turn a bliind eye to the massive silver short position, but once small investors start making a killing in a short squeze, they will step in and "buy' our silver, using fiat to pay for it.

Personally, I think the shorts are Chinese, and since they already own over $1 trillion in dollars and US bonds, the US ignores a few billion $ in munipulated silver.

But when it's needed in commerce our own government will seize our property. Then they will sell it to Kodak or the other big industrial users.

A lot of people think an underground economy will develope where silver is traded for essentials, but that will take time. During that transitions the government will raid our safe deposit boxes and take what they want. They will seize the 1000 oz bars and the ETF stock. We will wind up with paper.

If we look at history -- the end of the gold standard, rationing during WW II, and many other examples, national defence always takes presedence over private property.

That's my 2 cents worth.

Gemstocks