In Jim Cook's Archive


The following quote was extracted from an article by Carl Lofberg.

“The COT data last week already indicated some capitulation was happening on the Commercials side. Ted Butler has once more done an excellent job commenting on these developments the past few weeks. (Read Mr. Butlers article A Long Time Coming, April 25, 2006.) Before going more into detail about this weeks COT data I would like to take once more the opportunity to thank Mr. Butler for the wonderful work he has done to spread the word about silver the past several years. I got interested in the silver market in 2002 after a friend referred Butler’s writings to me. After that I have never missed a single one of his excellent commentaries. Whenever someone new to silver asks me about the silver fundamentals I ask them to spend half a day reading Butlers archives. What we now see happening in silver Mr. Butler has told us a long time ago, over and over again. Personally I’m on board the silver train thanks to Mr. Butler and for that he has my warmest thanks!….

“I think Silver could still consolidate for a while in the $12-15 range before breaking up. The recent anticipation of the Silver ETF had been building into the price of silver but the new demand from the SLV is already squeezing the market. The COT data further confirms my suspicion that we will not see any significant correction in silver but rather a short consolidation period in the $12-15 range before heading towards significantly higher prices. Or then we might not have too much of a consolidation at all and just keep on heading stubbornly higher and leaving everybody out of the market who are desperately waiting for a significant correction in price before entering the market fully. I am prepared for volatility in the silver market in the coming years and in the immediate future, but I am, and will remain, heavily invested in silver for years to come. The real silver bull begins now. Be prepared for the ride of your life!”

The following quote comes from noted gold authority and money manager, John Embry:

“To expand a bit on my silver comments last month, I would like to reference the work of Ted Butler, a Florida resident and former commodity dealer, who I believe knows more about the silver market than anyone. He has been, and remains, exceptionally bullish on the prospects for silver, and in the face of the sharp run-up in silver prices, which may encourage people to sell, it might be worthwhile to consider his thoughts.

“He feels that silver cannot be considered over-owned because practically no one can explain why it is rising in price. Therefore, it is the antithesis of a bubble because there is not widespread awareness and broad interest. The speculation that exists is narrowly based, with the majority of observers questioning the price appreciation. He feels, as I do, that the real silver story is yet to be disseminated.

“When the following points are the subject of widespread commentary from the popular media, then it might be time to re-evaluate one’s silver exposure:

  • Silver has been in a continuous consumption/production deficit for 60 years;
  • The disappearance of the stocks of the U.S. government, formerly the largest holder of silver in history;
  • Silver’s role as a vital industrial commodity with more applications and uses than any other commodity, save petroleum;
  • No rise in the price for 20 years despite the structural deficit;
  • The U.S. Geological Survey’s assertion there are fewer years of production of silver left in the ground than any other metal or mineral.”

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