FYI! Only $15 billion worth of world silver inventories
Alibaba recently raised $8 billion in a financing, this is more than half the value of total world silver inventories. Accordring to silver analyst Ted Butler only a small amount of these $15 billion worth of inventories are avalible for buyers. Do you see how tight this market is compared to the total money supply, here one large company can buy half of the total world inventory in one financing.
This market is so small compared to the total value of paper assets it’s almost beyond comprehension, the situation is explosive to say the least. It’s like a floodgate, on one side of it the total money supply pushes with increasing amounts everyday, on the other side is silver and the small amount of money allocated there. I believe the situation have never been this stretched in history, at some point, perhaps soon the floodgate will not be able to hold the pressure and large amounts of funny money will flow into the tiny tiny physical silver market.
The charts indicate that this explosion will be quite rapid, if history is any guide the price can rise several hundred percent in a few months. Few will be able to act when the floodgates suddenly open. This is the sad part about this massive inverse bubble, but on the positive side we have a lot of value investors taking action now instead of after.
“The supply/demand set up in silver, which has evolved over an incredibly long period of time, has been one continuous process promising to culminate in an explosion in price at some point. Quite simply, we are rapidly approaching that defining moment when there just won’t be enough physical material to go around at anything but rapidly escalating prices. Those escalating prices will encourage and drive others, including industrial consumers, to enter what should become a buying frenzy. Superimpose upon that the sudden destruction of a decades-old downward price manipulation and you have all the necessary ingredients for a price event that will be referred to forever.” – Ted Butler
