Why is the Price of Silver Down?

Silver and gold were caught in the downdraft of panic selling this summer and fell along with virtually all other commodities.

Look at oil, down 73%, wheat, 64%, nickel, 73% they all got hit badly. In the rush to liquidate positions to honor redemptions or to raise capital, the baby was thrown out with the bath water. Then, deflation set in and depressed everything further.

Although silver is down 45%, one thing to keep in mind is that you should not just look at silver's price in US dollars. By comparing it to other assets, the Dow, oil, and certainly real estate, you see that silver has not lost much. As far as the future, here is what David Martin, one of the most astute and successful precious metal experts has to say about future silver pricing:

"I believe that the supply of silver is so small relative to the population base that it won't take much new buying to carry silver far, far higher. You have to remember that silver hit $50 an ounce in 1980 and there was roughly four times more silver available above ground than now. Also, the money supply was about one-seventh the size that it is now. So if you use those facts--that the silver supply, instead of being 2 billion ounces of fine bullion, is less than 500,000 ounces and that the money supply, M1, is about six or seven times greater--that shows you a high, high potential that silver could certainly go up."

Anyway, you know that to be a successful investor, you must buy when the price is low if you expect to be able to sell when it is high, the exact opposite of what the public does. Now is the time to start building your silver nest egg at very reasonable prices before they skyrocket. (After all the money supply has DOUBLED since last summer! Although locked securely in bank vaults right now, you know that money will come out like a Tsunami at some point and send inflation and silver prices through the roof!)

You can check out this site to get started accumulating silver. It is where I got started in a small way buying silver coins: http://SilverSnowball.com/964 The coins are in such short supply that there are few places you can buy small quantities of them. Let me know if you want to buy larger quantities. Bill Young 646-961-3818