Most Americans do not realize there is a shortage in silver. The USA will run out of silver this year from an original stockpile of 6 billion ounces that is gone and consumed.
New uses for silver keeps expanding and consumed. Silver is the best conductor of electricity. It is needed for every high tech gadget manufactured today. All computers, servers, monitors, cell phones must have silver. The high tech industry consumes great amounts of silver for everything from lasers to high tech weaponry to robotics.Silver is used in nearly all household electronics.
The US government supply is gone. The Hunt brothers were ahead of their time in the 80's. The mistake they made was the unprecedent massive selling by the public as the price of silver went up to $50/ounce. This recycling of old coins/old silver was absorbed. It is all consumed now. There are only a few large holdings left. It has attracted the large investors such as Warren Buffet, Bill Gates and Soros. When Warren Buffet alone started buying in 97/98 the price nearly doubled.
Counterfeiting of paper money is on the increase with the new digital technology. And the image of Brink's trucks lined up at the World Trade Center after the 9-11 attack to pick-up the gold and silver bullion that was stored there reinforces the belief that the only safe haven for stored value is silver and gold when everthing else was destroyed.
And "Enronitis" can become only the tip of the iceberg. Craetive accounting was rampant in the 90's. The whole dot com craze was fantasy accounting. Paper assets were fiat currency for merger and aquisitions. In a recent interview one American senator accused the USA government of using the same creative accounting as Enron. Off-budget items are everywhere and the deficit is much larger than we are told. The bubble has burst but I am afraid there are other bubbles still out there, and not least the trade deficit can not compound every year forever. World central banks have committed themselves to "paper" assets. A reality check is at hand with the convergence of all these bullish sentiments.
$65.00 US ea ppd.
Through the 90's central banks have been selling their gold reserve keeping a hold on gold prices. Central banks have very little left to sell. They simply exchanged the hard asset for a basket of currencies that has only gone down in value.
It is forgotten that inflation is the search of too much money after too few goods. In the 90's the stock market bubble absorbed all the overprinting of currency
Where will all the fiat money go next? It is now time for hard assets such as real estate and precious metals to attract all the excess paper money. And in reality are the mining stocks not overpriced inflated paper that are a false replacement for hard currency?
