In Jim Cook's Archive


So many reasons exist for silver to head higher in price and yet new reasons keep coming. For starters, silver is a crucial metal for many industries. In the last few years, we added green energy to the demand equation. The above ground supply of silver is perilously low and most of what there is isn’t for sale. Silver mining shows little growth and although higher prices would cause more mining startups, the process to new production takes years. Over half of silver production comes as a byproduct to base metal mining so there’s no upturn of consequence coming from mining.

We also know that about half the known silver that’s above ground has been hoarded by the giant bank JPMorgan. They own silver with the expectation of making tremendous profits. We also know that investors are buying silver coins and bars hand-over-fist and a shortage exists for them. Exchange traded silver funds are also loading up on the metal. It also seems that every other financial writer is super bullish on silver and their price predictions are breathtaking.

Now this year we have a new outbreak of severe inflation which historically propels silver skyward. Silver is considered a premier inflation hedge, so you could safely conclude that fresh demand will impact its price. Finally, this year’s amazingly bullish brand new factor for silver is the Comptroller of the Currency’s disclosure that Bank of America (BofA) has pushed its way into the silver market and is short 800 million ounces of silver. No doubt Bank of America hopes to duplicate JPMorgan’s decades-long highly profitable strangulation of silver. The government punished JPMorgan for its trading tricks and manipulation of precious metals prices and it appears they have bowed out of that market. Apparently Bank of America intends to replace them. According to silver analyst Ted Butler, this is just one more bullish factor that will lift silver to the heavens.

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