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Many analysts and investors try to guess when silver prices will
explode. They make these guesses based on the charts, or even by the
fundamentals like I do. I pointed out the fundamental supply and
demand numbers in my last article, "1% of 1%".
The Tiny Silver Market attracts 1% of 1%, or $1 out of every $10,000 in
the US Banking system, each year.
By the time 1% of paper money
tries to buy silver in one year, there will be 100 times as much investor
buying of silver as today, which will be about $180 billion trying to
buy only 750 million ounces of annual world production, which implies a
silver price of about $240/oz., or perhaps higher.
1% of
1%August 23rd,
2010(The
Silver Market is tiny,tiny,tiny!)
That article led Al Korelin and
Steve Carr to call me up for a 13-minute radio interview on the
Korelin Economics Report. See here:
http://kereport.com/weekendshow/weekendbt-aug2810-seg1.html
Please
listen to that radio segment; it's very powerful
information.
The silver fundamentals are so great, and the silver market is so
small, that at any time, the silver price can double, up from
about $18-19/oz. now, to about $40/oz.
How can silver prices double at any time?
Because there are over 1000 individual billionaires in the world, and
each one of them could cause silver prices to double overnight by
attempting to exchange over valued assets for undervalued silver.
How can any analyst predict when any one of 1000 people may decide to
act? And it is impossible, IMPOSSIBLE, to tell in advance,
when a single buyer will try to buy silver in such quantities
and urgency that it would move up the price by up to 100% over a few
days. Unless you know such a billionaire personally, and unless he
or she tells you, in advance, of his trading moves, which wealthy people
don't usually do.
For example: The current silver market is
dominated by industrial demand, with very little investor demand, for a
total of about $10 billion of new silver per year. Most of
industrial demand is price inflexible, since the amount of silver used is
a very little cost compared to the final item. We might
assume that some, but not all, of current demand might wait or delay
purchases due to higher prices, but also, higher silver prices might
attract additional investor demand, as investors these days are
more attracted to rising price trends than they are
to excellent fundamental reasons to buy. Also, higher
prices may cause panic stockpiling by other industrial users who might
wish to lock in lower prices, or secure enough supply in a tight
market. Therefore, an additional $1 billion of new buying, over the
course of a year, could cause the silver price to move up by much
more than 10%. But if a billion dollars tried to buy silver within a
month's time, then that impact, if looked at as if it were to be
annualized, that would look like another $12 billion was trying to enter
the market, and thus, the silver price might move up by more than 100% in
a month!
Here's another way to look at what $1 billion of silver
buying within a month would do to silver. Currently, we have
about $1.9 billion per year of investment demand buying 100 million
oz. of silver, which works out to $158 million in a month.
$1 billion buying silver within a month would be 6.3 times more
than the current silver investment demand.
Therefore, it is
impossible to know exactly when silver prices will explode. And
there's really no need, is there? All we really need to know, is
that silver prices are highly explosive, which is great if you own
silver!
Well, I suppose there is another way to tell if, or when, silver prices
will explode. If you gave me the personal email addresses of all
1000 billionaires in the world, and if I sent them all my article from
August 23rd, you could easily bet that the silver price would be likely to
double within a week. But it's not likely that I'll get that email
list.
Oddly, the silver price has gained about $1/oz. since my
last article on the 23rd, which is when this latest rally
began.
1% of
1%August 23rd,
2010
http://tinyurl.com/252xx5o
Bloomberg
wrote: " Silver has outperformed the yellow metal since Aug. 23,
gaining 6 percent compared with gold's 1.4 percent gain, as investors
bought the white metal because of its relative cheapness to gold."
Really wealthy people are kind of funny. For them, it's often
about status, or power, not wealth anymore. Well then, they should
know that if they are in the top 1000 of wealthy families, they have an
opportunity to enter the top 100, if only they buy silver. And if
they are in the top 100, then they can likely enter the top 10, if only
they buy silver. And if they are in the top ten, well, they might
just be able to buy a few nations, if only they buy silver, before other
billionaires do.
They should know that buying silver first
is not like a race, it IS a race!
But there
are many thousands of funds, retirement funds, each managing billions, and
any one of them could decide to buy silver in an attempt to gain increased
performance for their portfolios, too!.
The point is that reaching people, and teaching people the fundamentals
of silver is potentially a very productive thing for silver
prices.
In case this email is actually forwarded to any of the
world's billionaires, I suggest that they read my prior article
specifically for them:
How
to Get Into Silver, for BillionairesFebruary 27, 2008
=====
So, how else can you reach people? The Silver Circle Movie!
Please Support the Silver Circle Movie! They need to raise,
within the next week, $4000 to cast actors.
Here's their online pitch, it's very funny:
Silver Circle - Animated Dystopian Film Needs Funding for Talent
http://kck.st/cgDktF
=====
I have a few ironic insights about people and wisdom.
To be wise, you have to have a very long attention span.
To market wisdom, you have to express it as if people have
very short attention spans. Headlines, urls, titles, names and
signs must catch a person's attention in less than 1 second. And you
have to have a 5 second pitch, a 10 second pitch, and a 20 sec., 1 min
pitch, 5 min pitch, 10 min. speech, 30 min speech, 1 hour speech,
etc. Even wise people will ignore many things, so you have to work
hard to catch people's attention quickly!
To want to teach wisdom, you have to be unselfish; but you have to put
it forth in such a way that wisdom is attractive to people who are totally
selfish. Even wise people recognize that people who act in their
self interest create a rational free market economy.
To become wise, you have to constantly think, discern, and learn.
But most people rarely think deeply, they mostly
just remember slogans. Even college kids earn A's merely by
regurgitating the definitions of the theories of the day; no real thinking
is required. Ok, then, here it is:
SILVER PRICES WILL EXPLODE!
SILVER PRICES WILL GO UP!
SILVER INVESTORS WILL MAKE FORTUNES!
SILVER IS LIKELY TO
INCREASE BY A FACTOR OF 100 TIMES GREATER!
SILVER PRICES CAN GO UP
BY 10,000%!
The Federal Reserve seems to understand these rules, and makes expert
use of them.
The Fed is a master marketer. They own the media, or their
partners do, and they give a constant bombardment of headlines favorable
to the dollar and the Fed.
The Fed appeals to people's greed, they even actively bribe judges to
win court cases.
Payoffs for Judges, Prosecutors Is Legal by Statute
http://americanfreepress.net/html/payoffs_for...judges_232.html
When judges are bribed, it becomes impossible for them to present
rational arguments for their decisions. That happened to me, I saw
it in action in 2003-2004. target="_blank" http://bibleprophesy.org/squaw.htm
The Federal Reserve markets through propaganda and slogans; no
real analysis is ever presented for a strong dollar. For over ten
years, the Fed and their media whores have warned of the risks of
deflation--and yet, all the while, M3 has increased from $5 trillion to
$15 trillion, and silver has increased from $5 to over $15/oz., which is
200% inflation over a decade, but all we hear of is the constant danger of
deflation.
The Fed LIES!
Meanwhile, the banks who were bailed out last year are still keeping a
huge reserve of cash on deposit with the Fed, so it's not counted in M3
stats, that are no longer being published by the Fed, so there is a double
secret plan to hide the inflation, and furthermore, the Federal Budget
gap, or deficit, is $1.5 trillion, which must be printed, which is 10%
annual inflation right there!
The Fed relies on the fact that people don't actively think nor
remember the Fed's deceptive cry about deflation, nor do people remember
the facts of the actual horrendous inflation over the last decade, or even
in the last year.
So just remember one thing.
Silver prices can double overnight, at anytime, and it's
totally impossible to predict when it will happen. And yet, at some
unexpected day out of the blue, silver prices will likely
double, and nobody will understand why, except me, and
you.
Because we know that the
silver market is just way too small, and prices just way too
low.
=====
I strongly advise you to take
possession of real gold and silver, at anywhere near today's price,
while you still can. The fundamentals indicate rising prices
for decades to come.
JH MINT Price Board:
http://hommel.name/cgi/priceboard?store=jhmint.com
Our
Coin Shops are open 10AM to 5PM Pacific Time, Monday to Friday, closed
weekends.
JH MINT & Coin Shop, Grass Valley, CA -- our largest
store, minimum $1500 to ship, USA shipping only, free shipping.
(530)
273-8175
Kerri: 530 273 -882 target="_blank"2silver_support3@hotmail.com
www.jhmint.com
Rocklin Coin Shop,
CA -- 15 min north of Sacramento on HWY 80
www.rocklincoinshop.com
Mom's
Silver Shop, Sacramento, CA
www.momssilvershop.com
3510
Auburn Blvd., #12
Sacramento, CA 95821
(916) 481 5656
(Mom will
ship with no minimum order size, and overseas, and take credit cards and
pay pal.)
Oakland Silver and Gold
www.oaklandsilverandgold.com
3929
Piedmont Ave.,
Oakland, CA 94611
osg2010@gmail.com
Sincerely,
Jason
Hommel
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For the Biblical
case for the benefits of using honest money, se target="_blank"ewww.bibleprophesy.org | |
