The chorus calling for much higher silver prices is
producing a louder din nowadays, but their numbers are still quite modest given
the compelling fundamentals. Evidence points to the very real possibility of a
substantial run-up, once the metal breaks out above $15 on its way to $20 +?
Scott Wright, of Zeal Intelligence, in a goldseek.com post
writes:
"Regardless of a company's strategy to bring silver to
market, the market will welcome it with open arms for many years to come.
According to the U.S. Geological Survey, there was a 2006 silver production
deficit of over 22 million ounces. And with demand continuing to rise, especially investment demand, it will be many years
before the market returns to a consistent balance.
"And even though the primary silver companies are not
the major suppliers to the market, their supply footprint is continuing to
grow. The incumbents and newcomers that have laser-like focus on this valuable
commodity will play a very important role in serving the market's needs. And it
is these primary silver companies that will greatly benefit in a rising silver
market.
"Not only have some of the larger primary silver
companies been flexing their muscles in this sector but there has been a steady
flow of emerging silver producers that have hit the scene in recent years that
are giving investors some excellent options to ride the silver train. Find the
good ones and legendary gains could be awaiting you."
Ted Butler, one of the earliest and most persistent seers,
writing about the silver Exchange Traded Fund on goldseek.com notes:
"I'm still in disbelief that this was allowed to come
into existence, and doubt we will ever see a new ETF that purchases a physical
industrial material. Make no mistake, the silver ETF is the most significant
and bullish factor, as predicted, to come along in a very long while. As
bullish as is the impact of the 125 million ounces already purchased, the real
significance is the long-term future potential on the price of silver.
"That significance is rooted in what the ETF
represents. Quite simply, it is a mechanism that allows, for the very first
time in history, an institutional (or non-institutional) common stock investor
to buy physical silver. Before the ETF, institutional investors faced too many
formidable obstacles to investing in silver. The ETF removed those obstacles
overnight. That's why I still think the most appropriate description for the
ETF is the "Death Star", as it creates the potential for gobbling up
the remaining world's silver bullion inventory.
"With the mechanism now in place, it is just a matter
of time before enough of the world’s institutional investors awaken to the
silver story. The combination of the unawareness of the silver story, instant
global communications and the daily quest by institutional investors, bulging
with buying power and actively seeking new investment opportunities, reminds me
of one of Bunker Hunt’s best quotes – "silver is an accident waiting to
happen." He said that over the 30 years ago. The ETF promises to insure it
will be an accident the world will not soon forget."
Source: FreeMarketNews.com
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