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Staggering Stats About Silver Supply

By: Richard DoughtySLV, the silver Exchange-Traded Fund, could be viewed as the main alternate source of storage for silver, and it accounts for around 50% of world silver inventory. It seems that SLV has been raided heavily over the past seven weeks, Read more

Rob McEwen: Looking Ahead of the Curve

By: Karen RocheRob McEwen, a veteran of the resource industry, is CEO of US Gold Corporation and chairman of its board. He recently sat down with Roche for this exclusive, wide-ranging interview. While hoping to avoid the “darkest hour”, Read more

Gold May Decline 50% Before the World Cup is Over

(And the World Cup May be Won by a Herd of Wild Burundi Elephants)By: Eric JanszenA recent Morgan Stanley analysis predicts that gold will plunge 70%. Read more

Gold Reclaims its Currency Status as the Global System Unravels

By: Ambrose Evans-PritchardThe ECB has revealed that its systemic risk indicator surged to an all-time high on May 7, during the Eurozone money-market meltdown. “The probability of a simultaneous default of two or more euro-area large and complex banking groups rose sharply,” it said. Read more

Don Coxe Dissects Gold

By: Tyler DurdenWhat do you do if you can no longer believe in real estate, bank deposits, the dollar, the yen or the euro? What can you believe in? Gold. So old it’s new again, the yellow metal can’t be synthesized and acts as a store of value for future generations. Read more

So Little Gold

By: Arnold BockThere isn’t much gold around, and this is a key issue for those who invest in precious metals. Bock contends that, given the scarcity of gold and silver bullion supply, prices will go parabolic once governments, institutional and private investors realize supply is alarmingly insignificant. Read more

Will Economic Austerity Kill Gold’s Bull Market?

By: Dominic FrisbyOn 21 June gold broke out to new all-time highs above $1,260 per ounce, but then made a dramatic correction to around $1,190. That's quite a correction and it concerned a lot of people, so Frisby addresses whether this is anything more than a healthy pull-back. Read more

Irrational Gold Selling

The Mogambo GuruThe shrewd, funny and irreverent Mogambo was surprised by gold’s recent dramatic correction, since it indicated gold sales even in the face of the Fed’s dollar destruction through excessive money printing. “Apparently, Read more

Gold is Back as Money

By: Julian PhillipsIn its 2010 annual report, the Bank for International Settlements (BIS) said that “gold, which the bank held in connection with gold swap operations, under which the bank exchanges currencies for physical gold, stands at 8,160.1 million in special drawing rights, Read more

So You Think You Own Gold?

By: Erik TownsendThe principal contention of this article is that most investors who think they own gold or silver bullion really don’t. Most precious metals investments – including many touted as physical – are nothing more than paper promises. Read more

Staggering Stats About Silver Supply

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By: Richard Doughty
SLV, the silver Exchange-Traded Fund, could be viewed as the main alternate source of storage for silver, and it accounts for around 50% of world silver inventory. It seems that SLV has been raided heavily over the past seven weeks,
and since February 26, “17.9 million ounces…have been withdrawn from the ETF by authorized participants.”  In other words, 3% of the world’s silver inventory disappeared in just seven weeks. Other interesting facts are that by 2008 worldwide demand for silver was about 900 million ounces a year, having grown by an average of 19.5 million ounces a year for the previous five years, while supply from mining and scrap was only 858.5 million ounces and growing at only 2.2% a year, meaning that supply was being outstripped by over 40 million ounces per year the whole time.
“If that is not enough of a supply/demand imbalance to make you jump to your feet in eagerness to buy silver,” writes Doughty (aka The Mogambo Guru), “longer-term it gets more interesting, because ‘in 1900 there were 12 billion ounces of silver in the world. By 1990, that figure had been reduced to around 2.2 billion ounces,’ and ‘today, there are less than 1 billion ounces in above-ground refined silver.’” In short, all the silver that was mined and refined since 1900 was consumed in the creation of the electronic-based and electrical-powered economies of America and Europe; now, China needs twice as much silver as was used by America and Europe.
“My few remaining brain cells that are still in, at least, intermittent working order are suddenly operating in hyper speed,” he writes, “conjuring up wild plans to somehow get some money, more money, lots of money, hopefully money acquired without actually working, to buy silver, which is the most ludicrously undervalued asset in the Whole Freaking World and such a bargain at current prices that it makes the decision to buy it so easy that one must exclaim, seemingly involuntarily and with great relish, ‘Whee! This investing stuff is easy!’”