The Precious Metal Bubble

From the years 2000-2009 the world produced 6.3 billion ounces of silver from mines, 1.8 billion ounces reprocessed from scrap silver, and over 500 million ounces sold from treasuries

This amounts to a total silver supply of 8.6 billion ounces from 2000-2009

Silver used in industry from 2000-2009 amounted to 3.85 billion ounces

This leaves us with 4.75 billion ounces of silver that was used to make coins, jewelry, medals, silverware, and in photography.

The advent of digital technology has lessened the demand for silver in the photography industry

In 1998, photography used 31% of annual silver production. As of, 2007 silver demand in photography has dropped over 50% using up only 14% of annual silver production

This is a very interesting fact as we have freed up almost 150 million ounces of silver annually for other uses.


With the prices of silver increasing almost 1000 percent since 2000 and almost 4.75 billion ounces of silver in the market from just this passed decade leads one to questions whether a squeeze is coming or has that squeeze already occured?

Almost 5 billion ounces is in the marketplace apparently and we are at a loss for silver? Ask yourself just what private banks or people were buying silver pre-2005 under 7 dollars an ounce.

There is just way to much of the metal out there and the charade being put on to buy silver and pay 30 an ounce for silver is ludicrous. Also, the rumour that JP Morgan is short on silver HA

Yes, maybe the government is getting low on silver reserves but that does not mean our private bankers are low. They are the ones who accumulated over 2 billion ounces under 5 dollars to sell back to you at 30 when you think it's value will remain there forever.

Anywho, the artifically made squeeze on silver is already at it's peak (well the run could last longer) but the one truth is that the price will come back down again

2010 silver production rose dramatically and production will only increase

Good. Don't buy any. Stick with a failing fiat currency that's lost 96% of it's buying power since 1913--and continues to plummet--and I'll continue buying silver. Any price under 50 bucks an oz. is a steal.

reply to post by ADUB77


Ive never really been interested in silver, I invest spare cash in Platinum ingots Though, Platinum seems to have a much higher and sustainable if not increasing value

reply to post by ADUB77


What is your source?

This is the latest I have seen, we use more than we mine and scrap and reserves make up the difference most years. Numerous new applications in the medical and solar fields will increase the use of silver in fabrication in years to come while scrap numbers dropping quickly the last couple of years.

www.silverinstitute.org... (One page, scroll 3/4 down to World Silver Supply and Demand)

2000 - Mined 591, Scrap 180 vs. Total Used in fabrication 891.7
2001 - Mined 606, Scrap 182 vs Total Used in fabrication 859
2005 - Mined 636, Scrap 186 vs Total Used in fabrication 848
2007 - Mined 664, Scrap 181 vs Total Used in fabrication 888
2008 - Mined 684, Scrap 176 vs Total Used in fabrication 888
2009 - Mined 709, Scrap 165 vs Total Used in fabrication 889

Other interesting related articles:
www.silverinstitute.org...

EROI = Energy Returned On Energy Invested - Peak Silver and Mining by a Falling EROI
www.marketoracle.co.uk...

reply to post by erumisato


See this is the sad point a lot of misinformed people make

You keep "buying" your silver while I stick with the currency?

You are "buying" now because why? Why didn't you buy at 5 dollars an ounce?

See the smart people are "selling" there silver starting now

They then will make the 1000% investment off of the people buying silver when they are "told" to

You say you hate fiat currency yet you will make no loss or profit without it, as an ounce of silver is an ounce of silver for all time without being able to make "exchange" and hence profit

reply to post by TedHodgson


I ain't got that kind of cash. Silver is all I can afford.

reply to post by erumisato


I'm with you, I'm glad it sank to $28 something on friday so i could buy all i could get for $31 saturday saving me a couple of bucks

Yeah - I am really wanting to know your sources. Please post a link to your stats...
Second

reply to post by ADUB77


I'm not looking to make a profit. I'm trying to retain what little wealth I have as the dollar enters it's last days. It will be history as the world currency, and quite possibly altogether, within a short period of time methinks. Silver will at least retain the buying power it holds right now. The dollar will not. That's my take on things, and I'm far from alone in thinking so.

I guess, in the end, it is all about perspective...

You will have the "know it all" personalities on here saying oh yah I am buying silver ingots cuz thats what has been implanted into my mind via media

But a person like me, who purchased silver from 97-03, how would you feel in my point of view?

Personally, I will sell you my silver, because I am a smart investor

I bought low and will sell high

The theory is the fiat currency (we're talking US dollar ) will fail. Not if but when. It is mathematically impossible for it to continue very much longer. However, I can still trade silver for german marks or yen or whatever becomes the dominant currency. I have faith in fiat money, just not ours. You have to have a method to trade for goods, but hanging on to the Dollar instead of investing in something tangible of value is really not the best move. Every penny I have that i don't use to live and randomly have fun with goes to silver,bullets, and guns. The real currency

reply to post by ADUB77


You should hang onto it. Things are going to get pretty bumpy this year.

Please look up what Silver Thursday was and exactly how it has happened again

Originally posted by dropdjones
The theory is the fiat currency (we're talking US dollar ) will fail. Not if but when. It is mathematically impossible for it to continue very much longer. However, I can still trade silver for german marks or yen or whatever becomes the dominant currency. I have faith in fiat money, just not ours. You have to have a method to trade for goods, but hanging on to the Dollar instead of investing in something tangible of value is really not the best move. Every penny I have that i don't use to live and randomly have fun with goes to silver,bullets, and guns. The real currency

Exactly. One day when I wake up and there is significantly less in my bank account, and it's some other form of currency, (or not there at all) at least I would have something besides food and goods that I can use to trade with.

reply to post by ADUB77


I wish I was smart enough to buy it back then, but i wasn't. I'm not sure what you talking about on thursday, the fact that it dropped a couple of bucks?

reply to post by ADUB77


The fluctuations in the silver market are all paper moves. Physical is being purchased in record amounts, and is starting to get scarcer. It's a very good time to get it right now, before the rest of the paper out there gets turned in, and all of a sudden there's no more physical for delivery. That's when the price will REALLY skyrocket. But if you want to sell now, your local coin dealer will buy every ounce you have with gusto, I'm sure.

ahh...... "silver thursday" sorry, I'll read more

The point is physical silver isn't as scarce as you think

Just 3 decades ago 1 man owned a third of the worlds silver

OK, now that I'm brushed up on my "silver thursday" event, The dollar was still strong then. Our original argument still applies (The fall of the US Dollar)

Another way to look at it is

Anyone who invested in silver from 90's-2005 received 6 ounces of silver for every ounce purchased now

So has your purchasing power dropped 6 fold from 2005?

So in essence, anyone who bought then would be motivated to sell now...