Jason Hommel
Silver Stock Report
August 30, 2010
Many analysts and investors try to guess when silver prices will explode. They make these guesses based on the charts, or even by the fundamentals like I do. I pointed out the fundamental supply and demand numbers in my last article, “1% of 1%”.
The Tiny Silver Market attracts 1% of 1%, or $1 out of every $10,000 in the US Banking system, each year.
By the time 1% of paper money tries to buy silver in one year, there will be 100 times as much investor buying of silver as today, which will be about $180 billion trying to buy only 750 million ounces of annual world production, which implies a silver price of about $240/oz., or perhaps higher.
The silver fundamentals are so great, and the silver market is so small, that at any time, the silver price can double, up from about $18-19/oz. now, to about $40/oz.
How can silver prices double at any time?
Because there are over 1000 individual billionaires in the world, and each one of them could cause silver prices to double overnight by attempting to exchange over valued assets for undervalued silver. How can any analyst predict when any one of 1000 people may decide to act? And it is impossible, IMPOSSIBLE, to tell in advance, when a single buyer will try to buy silver in such quantities and urgency that it would move up the price by up to 100% over a few days. Unless you know such a billionaire personally, and unless he or she tells you, in advance, of his trading moves, which wealthy people don’t usually do.