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Well, Well, Well there is a Silver Shortage after all!
There is a Silver Shortage despite all the words out of Wall Street that a silver shortage was impossible. Now the genie is out of the bottle. There are no silver supplies readily available to make silver blanks used to mint 1 oz. US silver Eagles.
For six months I have told everyone I came in contact with, that I saw signs of a silver shortage emerging. I noted this on my website as well.
Now most of you have heard that the US Mint has once again stopped selling Silver Eagles because they have "sold out". A few years back it was 100% against the law for them to stop production as they were legally obligated to buy silver at any price. Now Silver Eagle program can only be stopped with the authorization of the US Treasury Secretary; which was no doubt done this time. They have also said that they will be rationing in the future. They are also raising the premiums on all silver coins. Those of you who already have Eagles hang on to them for dear life!
FROM: Israel Friedman and Theodore Butler
The biggest question I have is, will the shorts be successful to cover their short position on time? Right now the CFTC seems to want to force all the manipulators to get in line by making them obey new rules of position limits, but I feel that the banks who are the big shorts will be exempt. Mr. Butler thinks that the CFTC will do the right thing, but I am skeptical. We argue about this a lot, as we both have strong opinions.
If the banks will not be forced to cover their short positions, only a true shortage in silver will bring the right price. Be prepared for that to happen. How much will silver be worth in a shortage situation? It's tricky to calculate, because a real shortage has never happened in silver history. But it is how you must think. My own thoughts go back to what some things cost during and after World War II in Europe. When there is not enough of something is when you see real crazy prices.
So I will give you my calculation. It will be a gradual explosion of prices and slowly the users and the new investors will eat up the world visible silver, which today is around 500 million ounces. In my calculation the first 100 million ounces of visible silver will disappear at a price of $60 to$100 an ounce. The second 100 million ounces will disappear by $250, and the third 100 million ounces will disappear between $250 and the price of gold ounce for ounce.
I recommend silver in any form at this time. Questions will be answered by me on the phone or by e-mail. Reserve inventory now, if possible. Visit http://www.SheldonsfinestCoins.com for updates and additional information.
All the best, with a little glitter and shine in your lives during 2013 and beyond!
Ed Sheldon (CPA retired)
Page Updated Last on: Jan 19, 2013