By: Franklin Sanders
What are the last four words you are most likely to hear shortly before you lose vast amounts of money? “It’s different this time.” Those are the words I am hearing from people who object to swapping silver for gold and believe that by the end of this week silver will reach $600 an ounce.
“Folks keep on questioning me about the present glut of silver on the market. They cite JP Morgan’s silver short, etc., etc. Whether the JP Morgan story is true or not, I only know that when refineries are backed up from now until February, and when large wholesalers completely pull their bids (prices) on 90% silver coins, that does NOT signal a silver shortage. Rather, the opposite. And remember that the pipeline (for physical silver) is very narrow, easily clogged, and very shallowly financed.”
Apparently this was not clear to numerous readers, so I will clarify: US refineries are clogged with a glut of silver. Gluts of silver do not appear at market lows, or at continuation levels; gluts appear at peaks. I do not mean the ULTIMATE peak of the bull market, but certainly an intermediate peak.
But who knows? Maybe “It’s different this time.”
Anyway, if you are buying silver now, this condition has made US 90% silver coin the very cheapest form of silver. Don’t buy anything else.
All Things Considered – John’s Commentary:
Franklin knows this business as well as anyone. Silver may well be in an intermediate high. Favor gold for present, only if you have the intention to swap back when the Gold:Silver ratio swings back in favor of silver.
What to buy: 90% silver coin if you are buying silver. Period! Otherwise, low premium gold coins – I have plenty.
Quote of the day: “Never have the world’s moneys been so long cut off from their metallic roots.” – Murray M. Rothbard
