Why Buffett, Gates and Soros are in silver?Thoughts from Ted Butler............
by: pnzrvi 01/08/05 10:02 am
Msg: 489952 of 489969
In the case of gold, with 80 million new ounces coming out of the ground each year and going primarily into jewelry, investment bars and coins, it’s only a question of how much the above ground stocks of gold will grow. In ten years, we’ll have 4.8 billion ounces of gold, in 20 years, 5.6 billion ounces. Meanwhile, we will have zero silver inventories. At what point do you think the world will recognize that silver is more rare than gold? At what point do think there will be a massive revaluation in the price of silver? You should be asking yourself, if what I am saying is close to true, how can the price of silver not reflect these facts? The answer is simple – a long-term manipulation of the price, caused by excessive short selling and the defective practice of metals leasing. There is ample evidence of this in my archives. Many people already know this, and they have bought silver.
Since silver is rarer than gold, why has that fact gone unnoticed by the world? Gold gets enormous exposure and backing. Silver gets nothing. The World Gold Council, comprised of gold producers, spends tens of millions of dollars per year promoting and advertising gold. Good for them. They just introduced gold Exchange Traded Funds (ETF) on three continents. There is even a grassroots gold group, GATA that actively promotes gold. Together, the proponents of gold reach many millions of people; investors and jewelry buyers combined. They have an impact on the price of gold. In addition, there are hundreds of analysts and spokespeople around the world who focus on gold.
Contrast that to silver. There is no producer group trying to bull the price up. The closest thing is the Silver Institute, but since that group is comprised of producers and users alike, they never try to push the price higher. If anything, the only cohesive group in silver trying to influence the price is the Silver Users Association, whose clear reason for existence is to lower the price. Nor are there hundreds of analysts or promoters pushing silver. There are a few besides me, but if it weren’t for Jim Cook and Investment Rarities publicizing my analysis, there would be no silver message. Compare that to the power of the World Gold Council and the rest of the gold world.
Mind you, I’m not complaining; I’m only explaining. I’m explaining why the price of silver doesn’t reflect its rarity, compared to gold. Not enough people know the real story yet. That’s what creates the lifetime opportunity. If enough people already knew how rare and valuable silver was, it would be reflected in the price. So, it comes down to waiting for people to learn just how bullish silver is. In this day and age of instant communications, that can happen in a flash.