With the silverprice exploding today Hecla for sure will do the same. Especially, because of the very strong resistance it had around $ 3,-- zone. Would not surprise me if we will see 3,35 today.
P.S. Question for the experts. See most of the Silver mining companies report increases in production. Is there any website where you can see an overview of global production of silver based on the forecast they give combined with real and expected demand and real demand to date?
club_ I thought and still believe this is sound thinking but timing is important. In 1999 and a couple of years following I borrowed heavily and invested in silver/silver stocks. Unfortunately, silver has defied my original expectations and I have most of the original debt paid off...do I have enough courage to start all over again? No, because my earning capacity has been reduced by time and a mistake here could be bad news. And, slow or not the original investment has done well. Good luck with your plan, I think it will pay off. I do want to say that it is more likely the divergence relationship between the price of silver and the purchasing power of the US Dollar will not be linear. I expect the purchasing power of silver to increase significantly more than the PP of the dollar will decrease. So, buy a little extra silver!
Club_ TB has raised this issue before many times. I always wondered if he was accurate in his thought that silver users didn't have a substantial amount set aside for just this eventuality. I got my own confirmation last year when the commodities were rocking and rolling. The CEO of American Super Conductor was asked if the cost of manufacturing low temp sc wire was rising due to the cost of metals needed in the product. His answer was that silver was the only component worth noting and as a percentage of the wire cost it was not a major factor. Besides, he said silver was abundant and the company had hedged the price so there would be no problem affording it if the price went up. AMSC is not a small silver user. I recall seeing a figure of 4 million ounces annually. It was clear they assume there will always be a good supply of silver to satisfy their needs. I wonder how many other big users are confident their hedges will save them from high silver prices.
Exactly, which is what I plan to do with my mortgage...pay it ALL off inonly ~5 yrs with the extra 20% ($50k, now in HL silver) that I just borrowed against the house in the refi!
I'm so happy to see that you get it!
My relatives thought I was a bit batty or reckless when I told them I did that. My wife questioned it, but thought it sounded like a reasonable plan, IF we buy the thesis that PMs will get more and more valuable against a falling dollar.
So we did it...it's done...now we just wait for what seems like the inevitable.
In an inflationary environment, having LOTS of prior debt is good...which is the plan for making our massive common U.S. debt easier to handle from a tax perspective later.
I own LOTS of physical silver. It won't do too much good, however, if silver goes even to $1000/oz. if it takes a wheelbarrow full of dollars to buy a loaf of bread. You'll still need your silver to buy about what it buys today. It will all be a matter of timing. You will want to have LOTS of debt, so you can pay off $500,000 homes and Rolls Royces with a roll of silver eagles.
While the timing for the coming user panic in unknowable, it is easy to imagine what could set it off. All it will take are delays in normal delivery times in our just-in-time world. Just-in time means today, not tomorrow. At the first hint of delays for getting silver, some users will move to secure additional inventory. That will necessarily cause further delays for other users, resulting in more and more inventory buying. This will set off the mile-long string of firecrackers that I wrote of many years ago. At that point, the panic must burn itself out, at the highest prices imaginable.
The impact on price when the silver industrial users panic and attempt to build inventories is almost beyond comprehension. At least, it’s beyond my comprehension. I honestly don’t know how a price could be calculated in a shortage situation. I do know that it is not a linear or logical analysis. It involves a large amount of emotion.
In a hurricane panic, with lines of cars and trucks snaked around all the gas stations in the area, I have told myself I would pay any price I could afford, if I were given the chance to fill up. What price would a hundred billion dollar corporation pay for a supply of silver to insure it can continue operations and not lay off employees? What price would it pay to protect its survival as a going concern?
Some may suggest that because we have never have experienced a wholesale shortage in silver, that we never will. That’s like claiming an area in a hurricane zone can’t be hit because it hasn’t been hit yet, or in a long time. Besides, as time has evolved, the evidence of the coming silver shortage has increased, including the tightness witnessed on the retail side for more than a year. The long-term price manipulation has aggravated the coming shortage beyond description.
The email I received from the concerned employee was no fluke. The silver wholesale shortage is dead ahead. The industrial users are completely unaware and have been lulled into a sense of complacency about something they have never experienced. That complacency is about to be shattered. In the coming clash for silver supplies between users fighting for inventory and investors fighting for positions in which to profit, the only question is how high the price will climb. Think of the highest price you can imagine and it will still be too low. But before you think of those high prices, please make sure you are holding all the silver possible.
Most of what I've been reading (various silver articles) for months have portrayed silver as under produced for the amount being sold/used, so that may be why production is up so much and is why I'm hanging in there. I'm okay in HL, but was a couple bucks a share down in PAAS for awhile. I'm glad I held on (and continued to buy as it dropped) because I think we're going to break out now.
Try this excellent Butler article from 8/5/2009:
Think BIG beach ball...It's why I'm holding so much of the silver stuff in multiple forms.
A Date With Destiny
By Theodore Butler
I’m going to step back from the manipulation discussion and focus on a different issue instead. That’s not to suggest that the resolution of the ongoing manipulation is not the most immediate critical factor influencing the price of silver. Of course, it is. When the manipulation is terminated, we will witness a completely different pricing structure in silver. But even when the price is jolted and set free upon the manipulation’s demise, that will not be the end of the silver price saga. It could well be just the beginning.
Last month, I received an unusual email from a long-time reader. What made it unusual was the nature of the contents. This reader had followed my presentation of the facts for several years and had done his homework and had invested in silver accordingly. All with profits, no regrets and future long-term great expectations. Nothing unusual in that. What made his note unusual was that he was asking for advice; not for himself, but for the company he works for.
He works for a very large company, a name you would recognize at once. Obviously, I would not violate his confidence by naming him or his company. But it is among the 15 largest public companies in the US. with a market capitalization of more than $100 billion and he holds an important position. He was concerned for his company in the event of a genuine wholesale silver shortage and sought my advice on how to approach presenting his concerns to the appropriate parties within the company.