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There must be 50.000 to
100,000 small investors or more who are in love with silver. As a result,
they cleaned most of the shelves in retail stores, of Silver Eagles and
bullion investment products, excluding the 1000 oz bars.
This shortage in the
retail sales of silver is the first sign that their reason to buy is correct
and every thing that Mr. Butler and I said about silver is starting to come
to reality.
It's very interesting that
nothing on CNBC or other TV stations, or big newspaper mentioned the retail
shortage of silver. I can tell you if it was a retail shortage in gold, you
would hear about it 24/7. And probably the prices would double in a week, not
like in silver where the prices went down in the face of a shortage.
Contrary to Mr.
Butler’s argument that he would like to see the naked shorts be
punished, and is fighting for the integrity of the silver market in COMEX, I
say it was good luck for us that the naked shorts controlled the market and
unintentionally produced the opportunity for us to buy at garage sale prices.
In my eyes the naked
shorts, are dead fish, and in time they will forced to cover and buy back
their position. For the time being we will have controlled markets. But we
must look ahead, and if there is not enough silver for the retail investor,
what will happen when the users will need silver? In my opinion, it's only a
question of time when we will run out of 1000-ounce bars.
The biggest wealth is
coming to USA.
Small retail investors are grabbing all the silver they can and today, in my
opinion, we have 70-80% of all the free silver in the world, in private hands
in USA.
I am getting excited that there will be so many future millionaires in our
country. I still see Silver Eagles as the best buy but don't ignore bullion
in any size.
You saw lately the sell
off in COMEX. It is too speculative for most people to play this game, only
buy a contract if you intend to take delivery. Even then, remember the
delivery doors can close down with no advance notice - just like in the
retail market.
The conclusion from the
retail shortage is: Don't believe the enemies of silver who say there’s
a glut of silver in many places. What places? Sadly, I think there are many
people and commentators who wish silver will not rise in price, as that will
threaten their dream that gold will save the world somehow. The empty shelves
of silver and the full shelves of gold tells you
that silver has more value then gold, if not in today’s price, then in
the future.
I hope that the
accumulation of silver here in USA will continue, and that it
will create much real wealth for our fellow citizens for the betterment of
our country. And don't forget that this retail shortage, even if it is only
temporary, is still very significant and pinpoints how tiny available stocks
of silver really are and how fragile are the supply lines. Just wait until
the people in China and India wake up to the silver shortage in America
- they will take silver for any price.
Israel Friedman
www.investmentrarities.com
Israel Friedman is a friend
and mentor to Theodore Butler. He has followed silver for many decades.
(No one can safely predict the future and
it’s possible that Israel
Friedman’s Butler’s
analysis will prove incorrect. Silver can go up, but silver can go down. It
is up to you to read, analyze, and arrive at your own conclusions. Prudence
requires we emphasize that precious metals may or may not prove to be
suitable for your consideration.)
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