Jason Hommel

Given that the world is almost out of above ground refined silver, a permanant major price rise could happen at any time. The two silver surveys estimate there is about 200 million ounces to 600 million ounces of silver in known verifiable locations. At the COMEX, as of close of business: 06/18/2004, there are 45.8 mil oz. registered for delivery, and 71.9 million oz. Eligible. However, the silver in either category may be held by long term investors, who may be reading this very commentary, and who may not sell until much higher prices. Silver is coming to market, uneconomically, through three main sources: 1. As a byproduct of other mining, and 2. as people inherit silver and then sell it for the quick cash, and 3. as governments and bullion banks dump it. These supplies are meeting current demand. Literally, however, at $6/oz., a billion dollars cannot buy silver anymore. By the time a billionaire tried to buy silver bullion with a billion dollars, the price may be pushed up to about $40/oz. At $6/oz, a billion dollars is 167 million ounces. There is just not that much silver for sale at $6/oz. in the world today. If a billionaire was willing to pay any price to obtain "a billion dollars of silver", and if he found out that he could only obtain 25 million ounces, he might bid the price up to $40/oz.! Therefore, a major price rise can happen at any time one very wealthy person decides to buy".

I attended the Vancouver conference that he has referred to and listened to him speak. He is the most bullish silver analyst that I have ever seen. The over $1,000 dollar per ounce figure that he mentioned at the conference is high in my opinion but when the world runs out of silver which is desperately needed in industry, who knows?

Great post popeye,
As with a lot of the worlds natural resources, our supplies are depleting every day. PEOPLE you need to realize that it is the day of commodities is apon us. When you buy stocks now you already need to consider how the changing price of resources will affect things. If you want to get rich, cut out the middle man.

(6-13-05) Gold closed up $2.00 at $428.90 and silver closed down .01 at $7.24.

SRFDF news out this morning with some decent assay results on platinum and palladium.

15 minutes after the NY market opened gold is up .90 silver is up .11.  This may be due to the weakness in the US dopllar.

After the 1st 25 minutes gold is up $3.50 at $432.20 and silver is up .09 at $7.39.

35 minutes after the opening gold is now up $5.10 and silver up .11  This is partly due to weakness in the dollar.  The silver paper players have been increasing there short positions which means that they are making an attempt to force silver back down.

Gold closed up $7.00 at $435.70 and silver closed up .03 at $7.33.  The silver lease rates were down today opening the door for the one month, two month and three month rollovers.  The six month and one year rates are still too high for shorting.

30 minutes after the NY PM market opened gold is up $2.00 at $437.70 and silver up .08 at $7.41.

Platinum broke through the $900.00 mark to reach $913.00 before backing off to the current $900.00.

For the week: Gold closed up $10.80 at $437.70 and silver closed up .06 at $7.31

After an hour and 20 minutes gold is up $1.90 at $439.60 and silver up .12 at $7.43.  Platinum is currently $901.00, up $5.00

Gold and silver in a mid session reversal with gold now down .10 after being up as much as $3.40 earlier and silver down .04 after being up .16.

For the week gold closed up $2.30 at $440.00 and silver closed down .06 at $7.25.

From the purchasing.com web site:

Spot gold predicted to double in coming months

Purchasing June 27, 2005


Speakers at the recent New York Institutional Gold Conference predict that the price of spot gold could get as high as $850 a troy ounce in coming months from its current level slightly in excess of $425. Some economists contend this means investors are leaning toward the precious metal, and not the dollar, as their speculative hedge against future inflation. The last time gold got anywhere near the projected high was in the late 1970s when out-of-control inflation, unrest in the Middle East and an oil crisis pushed the precious metal from $150 to $810.