I was at an antique show last week when a dealer I know complained that she had lost $40,000 in the stock market. “What should I buy,” she asked. When I told her silver she turned up her nose. “Get some coins and bars,” I advised. She shook her head and made a sour face.
Most people who invest are like that. They are wedded to the stock market. Even though silver and gold have vastly outperformed the stock market in the twenty-first century they will be the last contingent to show any interest in silver. Actually, there’s an element of superiority among stock investors. The brokers and money managers who serve them are downright snobbish. They look down their nose at silver and gold. They will never countenance it despite the fact silver is up 400% over ten years while stocks are unchanged.
That means only a tiny fraction of investable funds have moved into silver. It’s very much a contrary opinion asset. The fact that silver is ignored by the mainstream should give comfort to those who own it. It means that the price has yet to reflect a major switch in sentiment. It means that the bullish aspects of silver are unknown and ignored by the vast majority of investors.
The world’s foremost silver analyst, Ted Butler, assures us that this apathy is one of the many reasons that silver is undervalued. It’s the furthest thing from a bubble. He believes when it eventually becomes a bubble those who own silver today will be selling their silver to mainstream investors who come in late. Eventually silver’s outperformance will entice them to commit.
Another example of contrary opinion applies to Ted Butler’s bullish views. A handful of so-called silver authorities disagree with his interpretation. Yet they never present any facts that counter his argument. They only say he’s wrong. Nobody comes up with any evidence or statistics that disprove Mr. Butler’s lucid argument. It’s the “not invented here,” syndrome.
I just got a lengthy report on silver mining from a major brokerage firm. They talked primarily about growing industrial demand for silver. No mention was made about investment buying or the outsized short position. That tells me that silver is still the best-kept secret of all. It’s so darn bullish to think that most of the silver ever mined has been used up and is gone while the price doesn’t reflect this fact. The twenty-five year price suppression disclosed by Ted Butler is barely known or acknowledged. It’s equally bullish to think how few have acted on this profound information. Someday this is bound to change. Mr. Butler believes the world will wake up to silver with a vengeance. You have his facts at your disposal. It’s not hype. It’s not wishful thinking. It’s reasonable analysis. I think it’s the best information you will ever get.