Silver Investor: This Week's Economic Update

Published: Sun, 07/14/13

 

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What's Inside:

  • Question of the Week

  • Audio of the Week

  • Are you taking steps to preserve your wealth?

  • Stay Connected

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Question of the Week
 
Question: I would like to ask you a question about the “paper” and physical price of silver. Having been an excited silver bull since 2009 I have seen silver’s great rise to $50 and its (hard to take!) decline since then. Now every time silver is smashed down, I see the same headlines from the news and various Web sites about “the physical shortage” of both gold and silver and that you can't get hold of the metals.

I have seen firsthand that my dealer (bullion by post in the UK) I use has the same problem in that it sells out because of high demand. They have even issued this week a maximum buy order of only £500 to deal with the stronger than ever demand as people are buying physical. But my main concern is that you sell and buy on the “paper” price, and so far this is a fact. If I go on eBay and want to sell, most of the prices are roughly the “paper” price and if I want to sell back to my dealer it's the same. So my main concern is what’s the point? If there is hardly any physical to buy but the banks etc. can do what they like with the “paper price” then surely you can never win as the true price will always be covered up by gold/silver that doesn't actually exist?
Adam, UK

Answer: : A couple of points:

1. You are correct: there is a “shortage” but that is in the retail silver product category! The commercial category that feeds the retail market still has sufficient silver as far as can be determined by me and our many contacts around the globe.

2. We will win because paper silver does not equal real silver and when the time comes that the commercial demand be met (either industrial and/or investment), the real market will drive the price, not the other way around.
Indeed that is the whole point.

David Morgan
Founder The Morgan Report-- Money, Metals, and Mining.

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 Audio of the Week

Best Gold Opportunity?

Express gratitude before anything good happens

http://talkdigitalnetwork.com/2013/07/best-gold-opportunity/

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Information contained herein has been obtained from sources believed to be reliable, but there is no guarantee as to completeness or accuracy. Because individual investment objectives vary, this Summary should not be construed as advice to meet the particular needs of the reader. Any opinions expressed herein are statements of our judgment as of this date and are subject to change without notice. Any action taken as a result of reading this independent market research is solely the responsibility of the reader.

Stone Investment Group is not and does not profess to be a professional investment advisor, and strongly encourages all readers to consult with their own personal financial advisors, attorneys, and accountants before making any investment decision. Stone Investment Group and/or independent consultants or members of their families may have a position in the securities mentioned. Mr. Morgan does consult on a paid basis both with private investors and various companies. Investing and speculation are inherently risky and should not be undertaken without professional advice. By your act of reading this independent market research letter, you fully and explicitly agree that Stone Investment Group will not be held liable or responsible for any decisions you make regarding any information discussed herein.


 



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