SILVER IS STILL SOUND
When silver would drop the way it just did in late July, Ted Butler would be angry. When we talked, he would curse JPMorgan and the big banks and trading houses that he thought were crashing the price and covering their short positions. Eventually he would get around to talking about the silver shortage he was certain would cause the price of silver to soar. He was sure that the manipulators could not pull the rug out again. But, as we have come to see, they have pulled the rug out again and again. I would suggest to him that they would knock it down soon and he would assure me that it was getting harder and harder for them to do that.
After listening to Ted for twenty-some years, I believe that he had knowledge and understanding of the silver market to make accurate predictions about the future of silver prices. He was right in 2002 when he said silver was going to go up ten times. Although his more recent price projections have not occurred, it’s entirely possible that they still will.
We know that silver is still cheap at $30 an ounce because the miners and exploration companies still struggle to produce it at a profit. The shortage that Ted warned about hasn’t been eliminated and the industrial demand keeps growing. The bullish silver argument is still intact and we believe that putting 10% of your net worth into silver will prove to be a shrewd move.