In Jim Cook's Archive


Some people have run out of patience with silver and are selling their holdings. We still sell a lot more than we buy back, but we are seeing more people liquidating their silver positions than in the past. Whenever we get a sell order it bothers me. We convinced them to buy silver based on the fact that the price would rise. Now I feel strongly that they are getting out too soon. It reminds me of the gold prospector who gave up his claim after working on it for years. The next owner of the claim struck gold with the first swing of his pick ax.

One of the world’s largest banks isn’t selling its silver. They are buying huge quantities hand over fist. In fact, they have accumulated the largest private hoard in history. They are only buying silver for one reason. They are certain that it will rise dramatically and they will make a genuine fortune. They have patience because they feel that vast gains are inevitable. Their silver strategy is to buy aggressively without tipping their hand. They don’t worry about how much time it takes, they just keep patiently adding silver.

If it weren’t for JPMorgan acquiring silver, the silver story would not be nearly as good. Silver analyst Theodore Butler has built a powerful case that the big bank has suppressed the silver price by shorting many millions of ounces in the paper futures market. They have done that so they could buy physical silver at a low price. However, let’s suppose there was no JPMorgan involvement in silver. The price of the metal would likely be much higher. That’s because the fundamentals of silver are exceedingly bullish. Silver is the only tangible asset with a combination of huge industrial demand and popularity as a monetary metal suitable for investment and hedging purposes. Furthermore, there isn’t that much of it available above ground. It should be priced higher and all the facts suggest it will be and dramatically so.

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