In Jim Cook's Archive


A client called me and complained that silver had not gone up. I appreciated his frustration, and I apologized for this maddening performance. I own quite a bit of silver and have high hopes that the price will skyrocket. More important is the outcome for the thousands of people who bought silver based on our recommendation. I believe that a coming price rise will prove that we have done them a valuable service. Consequently, we are not slackening off on our advice to own silver. As you know, we rely a lot on the advice and predictions of silver analyst Theodore Butler. Frankly, he is on fire over the gains he sees coming in silver. In our 23-year relationship, he has been careful and cautious with the facts. He has always been bullish on silver, but never anything like this.

His strength as a silver analyst comes from years of experience as a licensed commodities broker. He claims the price of silver is set on the COMEX and nowhere else. He has proven that the big banks and brokerages manipulate and suppress the price. What has him so excited about the future is that the big banks and hedge funds who controlled prices for years have stopped the manipulative short selling. That’s a huge development and it begs the question as to why? It could be some regulatory heat from the CFTC or it could be a market decision by the big 4 and others. They can see the possibility of a severe silver shortage ahead. When you artificially suppress the price of any commodity like silver, two things happen. The amount produced through mining falls off from what it would be if the price was higher. At the same time, demand from industrial users increases because of the cheaper price. Inevitably, that must lead to a shortage. Nothing is more bullish for a commodity than a shortage. Furthermore, new and growing demand for silver is coming from the green energy initiative. What happens to the price when industrial users and investors clash over a shrinking supply of silver? Some of the recent price projections from silver enthusiasts are over the moon. These are the reasons why Mr. Butler is so worked up over a move higher in silver.

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