While the complexity of physical and participially non physical...

While the complexity of physical and participially non physical trading of silver is beyond my understanding I find that expectations of surging price of silver in near time are difficult to understand.

It appears the price of silver is affected largely by the strength of American dollar.

In a deflationary world the American dollar appears to strengthen as funds consider it a safe haven in turmoil.
The financial turmoil in Europe is often quoted as reason for anticipating surge in silver price.

Should devaluation of currency occur in Europe or elsewhere other than America the deflationary affect enables such countries to provide cheaper services and products - in a similar manner to the inexpensive Chinese products that have assisted Western economies to maintain low inflation - and export production facilities to places where labour is cheap and restrictions minimised.
All good for the American Dollar.

As the turmoil in Europe evolves the global effects of monitory loss will create a wave of "poverty" which reduces demand for resources, etc. This will also reduce the flight to Silver because of lower demand for the metal and stronger American dollar.

The eventual stimulus for surging silver price must come from devaluation of the American dollar relative to other currencies. This may happen? But no time soon.

The best hope for a surge in silver price is an irrational exuberance created by paper traders of silver when such institutions decide silver has reached a low in its cycle, buy and pump so that they can eventually unload to the uninformed at much higher prices. Then sell short to profit on the way down.


THE BOTTOM LINE IS THAT PRICE OF SILVER IS NOT CLOSE TO A REMARKABLE "INCREDIBLE NOW" SURGE IN VALUE.

CCU is holding up extremely well this morning and am happy to hold as silver is an industrial metal which will ensure a floor in times of financial turmoil and the fact that profits over the next two or three quarters will be relatively outstanding.