|
As you know from my past
writings, I am not a big fan of gold. But, to be honest, I like the high
price of gold and hope it continues to go higher. Why? That’s a good
question. For me, gold is the barometer for where silver will go in the
future.
I am very confident that
at some point, some years from now, that silver and gold
prices will be equal, or we may be surprised that we will actually
reverse the ratio and one ounce of silver will buy more than one ounce of
gold.
If my perception will be
correct, that means the silver price will do 50 times or better than the
price of gold. Ask me, why?
I say that if the world
can support a total value of gold of 5 trillion dollars for 5 billion ounces
of gold, then why can it not support a value of 5 trillion dollars for
silver, when there is much less than half the ounces of silver compared to
gold ounces? Do you think the current price relationship can be maintained as
people learn the real facts?
If you believe in the
future of silver and you are not a speculator, but a long term investor for
limited amounts of silver that you can hold, buy Silver Eagles. I believe
when the silver shortage comes, and the people in the Far
East recognize the situation, they will bid up the price of
Silver Eagles to many times whatever the price of silver will be at that
time. By that time, the US Mint will have long stopped producing the Silver
Eagles, creating a scarcity in this form of what is already a rare commodity.
In recent days we are
reading of some shortages in retail silver businesses in the US and Canada. I hope this is not the
real shortage, and we still have the time for regular people to have the
opportunity to accumulate silver at these prices.. When
the real shortage of silver starts, you will see 40 to 50 dollar advances in
one week. And the short boys who Mr. Butler writes
about for years, will jump out of the COMEX windows.
Because so little of the
real facts on silver are written about in the newspapers or talked about on
TV, hardly anyone in the public knows the real story. Maybe a few people in
North America and Europe who read the Internet have some idea of the real
facts and coming shortage in silver, but billions of people in China and India and elsewhere do not have
the slightest hunch. How they will react to news reports from the West of a
documented silver shortage can astound us. I have seen what can happen when
there is a rush to an investment asset in that region. Can you ever imagine
the price of silver when the Chinese or the Indians will make necklaces and jewelry with Silver Eagles?
Today’s prices for
silver remind me of a beat up painting that someone buys at a garage sale or
flea market for a nothing price, only to discover later that he holds a
valuable masterpiece. Someday, people will look at Silver Eagles as
masterpieces that were bought at garage sale prices. If you have young
children or grandchildren, put some masterpieces away for them, but
don’t tell them about this until much later. They will remember you and thank you forever.
Israel Friedman
www.investmentrarities.com
(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.)
| 
