Just be careful not to get caught with your shorts down (on the...

Just be careful not to get caught with your shorts down (on the betting table).....

Good luck, whichever way you go......

IT IS crazy how much silver has gone up in the last few years.... BUT, it was manipulated down for many years... also, the world is rapidly changing, resources may get scarce on the ground.

From what I've read about silver's invaluable use in industry and lots of it not being recycled.... in the medium and long term, I believe, silver should keep going up.....IF the rules of supply and demand are still REAL in our dodgy financial world....

I think the Chinese are seriously moving away from US Peso. The "Commodity Boom" is something that (in the short term) may be a significant Wall St fabrication and many Wallstreetians (the dirty rotten scoundrels)will profit from whatever they can... even if people have to starve. They love to create and burst bubbles......

HOWEVER, in the long run, the world's population is increasing, many Chinese and Indian people will want this and that.... and silver is essential unless some clever bunny comes up with a more clever way to reduce the reliance on silver...

My concerns are:

(1) IF the big banks (eg JP Morgan) and co-conspirators pull some cunning stunt with the ETFs.
(2) Someone has a huge stash of silver, somewhere, we don't know about or a HUGE underground source of Silver they are sitting on.




FROM:

http://www.kitco.com/ind/Davis/feb142011.html


"Eric Sprott is the founder of the Toronto-based investment firm, Sprott Asset Management LP. His renowned hedge fund, Sprott Hedge Fund LP, is heavily weighted in precious metals and has generated an estimated 23% annualized return over the past decade. Other similarly oriented funds under his stewardship have also been stellar performers in recent years.

He?s now so bullish on silver that he launched the $575 million Sprott Physical Silver Trust in November of last year as he believes that: ?Silver will be the investment of the decade.?

?I think that silver could easily get to $50 this year,? he tells BNWnews.ca.

This all bodes especially well for publicly traded companies that are already mining silver, he says. Likewise for ones that are developing primary silver deposits or gold deposits with plenty of silver as a byproduct.

?If the price of silver continues to go up, silver stocks are going to perform even better,? Sprott adds.

Sprott says the big catalyst for surging silver prices in the coming years will be exponentially increasing investment demand, which is already beginning to overwhelm existing silver supplies. The mining industry only produces around 800 tonnes of silver per annum. This is a relatively inelastic supply, regardless of silver prices, he adds.

As household investors are becoming increasingly jittery about the debasement of the U.S. dollar and other major currencies, they are loading up in record numbers on silver bars, coins and silver-denominated exchange traded funds, Sprott says.

However, there?s also a quantum shift in investment demand taking place among big players in the precious metals market, including India (which is aiming to increase its imports by about 77 million ounces per annum), and of course China.

?China?s net imports of silver were 112 million ounces last year. In 2005, they were net exporters of 100 million ounces,? he says.

?That?s a 200 million ounce shift in an 800 million ounce annual market that seldom ever grows because production hardly ever goes up. So where?s it all going to come from? We don?t know.?