Izzy Friedman shares some thoughts on Silver prices. Via Gold Silver Worlds.
This is an excerpt from Ted Butler’s latest commentary to his premium newsletter subscribers - www.butlerresearch.com
What Now For the Price of Silver? by Israel Freidman
Many years ago, when the price of silver was $4 to $5, Mr. Ted Butler and I wrote many articles in which we predicted that silver would be a great investment for the long term. Now that prices are 7 to 8 times higher, we can say that we were right. More importantly, the reason we were so bullish on silver had to do with supply and demand and nothing to do with inflation or the value of the dollar. I still feel that way. The only thing that has changed is the price and not the reality of supply and demand. Silver demand still is on a course to overwhelm silver supply and when that occurs in any commodity, look for higher prices.
We must first consider the state of the world today and into the future. The world population has just hit the 7 billion person mark, up from 6 billion twelve years ago. The world adds 75 million new souls each year. In addition to the greater numbers of new potential consumers, there is also a move to increased standards of living in places like India and China. Overall improvements in longevity mean that we have more people living and consuming longer than ever before. At the same time, the raw materials necessary for everyone to live better are getting harder and more expensive to produce. Will we have enough raw materials to sustain the march towards higher living standards? I say yes, but at what cost? Those necessary raw materials will not come to us cheaply. Therefore, it would seem wise to set aside and hold those raw materials which are destined to climb sharply in price.
The investor World is currently obsessed with Greece, Spain and other Euro problems. Not many talk of US and the problems there, but we hear even less from China. With LIBOR manipulation, one should be asking oneself, if maybe (only maybe) the Chinese figures could be fudged? How well is the property market actually doing, and can we trust the latest figures? Great insight on the Chinese property market situation, by Patrick Chovanec.
So what’s really going on with China’s property market? Is the rebound in sales real, and if so, can it last? Is the market bottoming out, surging back, or seeing one of those false rallies that precedes an ever steeper decline? Since the decline in China’s property market since the end of last summer has been something of a leading indicator of the nation’s broader economic slowdown, and since the assumption of ever-rising property prices underwrites a large part of China’s lending, it’s important to get to the bottom of this question. If China’s property market is on truly on the mend, it bodes well for a much-anticipated recovery in the 2nd half of this year. If it’s still broken, things may get worse before they get better.
Guest post for all the gold bugs, by World Complex. Gold is still the most important non fuel mineral in the world, irrespective if trading at 1, 2 or 3k…..
Perhaps you haven’t noticed, but at The World Complex, we like gold. A lot. Not too long ago we ran an article about historical gold production, with some estimates of future production for gold. Today we will take a closer look.
It turns out that my main professional activity is exploring for gold, and yet that isn’t why I spend so much time thinking about it.
I began this blog to investigate application of mathematical methodology to geologic problems. Over the last year in particular, I have put increasing effort into using the same tools to look at economic problems. Yet ask geologists why they spend so much time looking for gold, and you will get many answers, none of them true.
In terms of exploration effort, gold is the most important mineral on the planet. Approximately 50% of all money spent on non-fuel mineral exploration during the last fifteen years was spent on gold exploration.