UP, UP AND AWAY
The Uber driver recently taking me to my hotel in Chicago overheard my conversation with Ted Butler about silver. He enthusiastically explained that he owned some silver. I told him about the record amount of silver being imported into India. (I thought he might be from India.) He asked me some questions and eventually wanted to know how high I thought the price would go. I told him $200 to $300 an ounce. He was happy with that answer and thanked me for my advice.
However, I don’t think it’s Indian silver imports, solar panels or other industrial uses that will send silver up ten times. It’s the fact that the big banks holding the short positions have suppressed the price to secure gains and eliminate losses. Silver analyst Ted Butler has produced incontrovertible evidence that an illegal price manipulation has held down silver. As a consequence, the supply of silver has been reduced and the demand that has now emerged has led to a shortage. What would the price of silver be if none of this COMEX monkey business had taken place? It could easily be $200 to $300 from investment demand superimposed on industrial demand.
I think it’s safe to conclude that a shortage will ultimately break the back of the short-selling manipulation and send prices dramatically higher. If industrial users can’t get the silver they need, they will double down and stockpile silver. I know Ted Butler thinks a silver buying panic is inevitable. For this reason, you should look at silver as a long-term holding. We have had people selling back to us recently, and we are handling these transactions satisfactorily. However, I would encourage our clients to buy silver now rather than sell it. Powerful forces are at work to rectify the mispricing of this miraculous metal. I agree with Mr. Butler’s opinion that fortunes are yet to be made.
