CIBC is Bearish on silver
(While Canadian Banks have no silver!)
Silver Stock Report
by Jason Hommel, February 9th, 2009
9500 ounces of silver tonight, Monday Night, 7pm Pacific
We have listed at www.seekbullion.com:
500 Obama Rounds - these came from a bag of 500 that was
moved around too much, and contain a few nicks.
1500 oz. of 100 oz.
3000 oz. of a new style of Buffalo with a 1929 Indian on
1000 oz. of a new style of a Pirate Skull with Palm trees
on the reverse.
Many are wondering what kinds of designs we will have next. We
have at least 7 more designs in the works. If you have any coin
ideas you would like to share or see made into rounds, please send your
ideas to our extraordinary artist who sends
near-finished designs to various sculptors: firstname.lastname@example.org.
Many of our auctions are being bid right at the reserve price, and on
some days, we only sell half of what we have listed. That means that
now is the perfect time to buy, since your bid will likely win!
Our shipping procedures are beginning to run more smoothly now, and
thus, it's a perfect time to register at www.seekbullion.com for our auctions.
Commentary on commentary on commentary:
commentary on the dumbest commentary of the day:
disastrous late 2008, we feel that silver's downside beta to gold will
remain higher than its upside beta," the analysts asserted. "At the first
sign of a decline in the price of gold, investors will likely sell their
silver holdings, but retain more of their gold holdings, since gold has a
superior reputation as an insurance policy compared to silver. Therefore,
for 2009, we believe that silver will likely offer lower returns than
gold, with higher volatility," according to CIBC.
I'll tell you exactly why
that opinion is misguided, and therefore wrong. That analysis
suggests that the main drivers in the silver market, both up and
down, are investment demand. But investment demand is about
10-20% of the silver market these days, ranging from 50 million to 70
million ounces per year, and possibly as high as 100 million ounces for
2008 by my own ballpark estimate. Mine supply, by contrast, ranges
from 550 million ounces to 650 million ounces per year, and other supply
consists of scrap and government selling, which adds about another 250
million ounces so that the total supply ranges from 800 to 900 million
Furthermore, according to my own research and view,
silver investors are far smarter and wiser than gold investors, so that if
anyone is going to sell precious metals in a foolish panic, it is far,
far more likely to be gold investors, not silver investors.
In point of fact, it's not "investment" demand that is driving the
silver price all over the place. It's paper futures contract
selling, as I've pointed out over and over again. When a large bank
can sell up to 130 million ounces of paper silver in futures in a
month, with no action by the CFTC, which causes other funds who hold long
paper positions to close out their positions due to margin calls, which
also adds no silver to the market, price swings to the downside can
be volatile, as we have seen. But such manipulations, including
issuing foolishly bearish commentary, will not work with wise silver
investors who buy physical silver.
The foolish commentators
at CIBC go on to say that rising base metals prices will soon flood the
market with silver by-product production. Exactly the opposite has
taken place! Copper was as high as $4 and is now at $1.60.
Zinc was as high as $2, now at $0.53/lb! Lead was as high as $1.10
now at $.54. If the high base metals prices of the past two
years did not flood the market with silver, what in the world are
they predicting? Copper to run to $10/pound? If the world will
see such hyper - inflation, silver is likely to run to
But they are bankers, what can you
expect? They are not idiots, they are purposeful, willful, malicious
liars! In their view, of course paper money is sound, even though
they have so much now from the baiouts, they don't know what to do with it
all! Hey, try buying a little silver! Good luck finding it in
quantity! I just had to wait 2-3 weeks to get a mere 35,000 oz. from
my largest supplier! Maybe that's why prices were going up for a
couple weeks last week as I could not get bar numbers for my
silver that I ordered!
Meanwhile, coin shops around the nation
continue to be nearly sold out of silver, and have more gold. What
does that tell you about where prices are going?
dropped a bit today, time to buy on the dip!
Smaller quantities of rounds, such as
between 1-20, can be found at my mom's ebay shop:
mom is also taking pains to ship