Thu, Dec 25, 2014, 3:22 AM EST - U.S. Markets closed for Christmas

Recent

% | $
Quotes you view appear here for quick access.

Silver Wheaton Corp. Message Board

  • trinfin1 trinfin1 Jan 9, 2014 11:47 AM Flag

    SILVER INVENTORIES AT 17 YEAR HIGHS ON THE COMEX

    Thats not good news here...have to reconsider......

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • From Bloomberg/Mineweb :Ted Butler 1 of 2
      "A while back, I wrote that growing inventories for a precious metal does not mean that prices can’t rise substantially and that things needed to be put into perspective. The best example is gold. Total world inventories of gold have grown every single day for the past 5,000 years, and that inventory growth alone hadn’t prevented the price from moving higher over time. Therefore, those concerned about inventory growth would never invest in gold, as world inventories have done nothing but grow over the centuries. Yet few investors even think about growing world inventories in gold. That’s because the amount of people (prospective gold investors) and buying power have grown as much or more than actual gold supply and inventories have grown.

      The same metric must be applied to silver. Yes, the world depleted silver inventories non-stop for more than half a century and world inventories have now begun to grow after 65 years of depletion to near-exhaustion. But any precious metal that has investment demand must be considered differently than a commodity with no investment demand.

      "As a result of 65 continuous years of silver inventory depletion, there are now less silver ounces in the world than there are gold ounces; where formerly there were five times more silver ounces than gold ounces. While world silver inventories are down 90% since 1940 to just above one billion ounces, world gold inventories are up from 2 billion oz to 5.5 billion oz. Yet, despite the stunning about face in relative inventories and with silver, in effect, becoming rarer than gold, the relative price of silver compared to gold is the same as it was 60 years ago. In other words, in 1950 the silver/gold ratio was near the same 63 to 1 ratio that it is today.

      • 1 Reply to semore.nunes
      • Cont. Bloomberg/mineweb; Ted Butler 2 of 2
        "How can that be? How can one comparable commodity lose 90% of its inventory and another comparable commodity have its inventory almost triple and there be no change in relative price? There is no free market explanation for what I just described. The only possible explanation is price manipulation, which is why I devote so much time to the subject. Price manipulation is not the focus of this article, but it’s never far away when discussing silver and gold. In fact, the relative inventory change in gold and silver over the past 60 years with no change in relative price is proof of manipulation on its face. It also means that silver is much more manipulated in price than in gold, and an incredible investment opportunity.

    • Found this link for Silver Inventories... http://www.bloomberg.com/news/2014-01-08/silver-inventory-reaches-16-year-high-after-worst-rout-since-81.html

      Sentiment: Buy

      • 1 Reply to swarmshepherd
      • silver analyst Ted Butler featured that very topic in his mid-week column on Wednesday---and I'll steal a few paragraphs from it, so you can see what his thoughts are.

        "A while back (I can’t remember exactly when), I wrote that growing inventories for a precious metal does not mean that prices can’t rise substantially and that things needed to be put into perspective. The best example is gold. Total world inventories of gold have grown every single day for the past 5,000 years, and that inventory growth alone hadn’t prevented the price from moving higher over time. Therefore, those concerned about inventory growth would never invest in gold, as world inventories have done nothing but grow over the centuries. Yet few investors even think about growing world inventories in gold. That’s because the amount of people (prospective gold investors) and buying power have grown as much or more than actual gold supply and inventories have grown.

        The same metric must be applied to silver. Yes, the world depleted silver inventories non-stop for more than half a century and world inventories have now begun to grow after 65 years of depletion to near-exhaustion. But any precious metal that has investment demand must be considered differently than a commodity with no investment demand.

        "As a result of 65 continuous years of silver inventory depletion, there are now less silver ounces in the world than there are gold ounces; where formerly there were five times more silver ounces than gold ounces. While world silver inventories are down 90% since 1940 to just above one billion ounces, world gold inventories are up from 2 billion oz to 5.5 billion oz. Yet, despite the stunning about face in relative inventories and with silver, in effect, becoming rarer than gold, the relative price of silver compared to gold is the same as it was 60 years ago. In other words, in 1950 the silver/gold ratio was near the same 63 to 1 ratio that it is today.

        "How can that be? How can one comparable commodity lose 90% of its inventory and another comparable commodity have its inventory almost triple and there be no change in relative price? There is no free market explanation for what I just described. The only possible explanation is price manipulation, which is why I devote so much time to the subject. Price manipulation is not the focus of this article, but it’s never far away when discussing silver and gold. In fact, the relative inventory change in gold and silver over the past 60 years with no change in relative price is proof of manipulation on its face. It also means that silver is much more manipulated in price than in gold, and an incredible investment opportunity.

        I wish I could post the whole thing, but if I did, I know that he would not be amused, so you'll have to settle for this tiny excerpt unless he posts it in the public domain at a later date.

        Today is a busy news day. We get the jobs report at 8:30 a.m. EST---and I'm expecting the usual price shenanigans to occur in both gold and silver. We also get the latest Commitment of Traders Report---and the monthly Bank Participation Report as well, so I'll have lots to talk about in tomorrow's missive.

        In Far East trading on their Friday, there were a couple of rally attempts in gold, but both got turned back---especially the one that occurred shortly before 2 p.m. Hong Kong time. The same can be said for the silver price, as it's attempt to blast above the $20 price mark got stopped cold at $19.84 in the March contract. London has just opened as I write this paragraph---and volumes are on the lighter side, but heavier than they were this time on Thursday. The dollar index is comatose.

 
SLW
19.95+0.44(+2.26%)Dec 24 1:02 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.