The Silver Slam

Last week I mentioned that CIBC slammed the silver market and gave my opinion of where their analysis missed the mark. Tonight as I pen this missive in haste due to packing and flying requirements early tomorrow, it seemed the best to give a short introduction on the Silver Slam.

The Silver Slam is when the door on buying silver slams shut. Now, before those thousands of emails come flying my direction let me state that knowing free market economics there in theory will always be silver for sale at some price and we cannot run out of silver.

However, my point is what I concluded with last week namely and I quote… “The amount of silver that is available for investment is so small, probably 50 million to 100 million ounces at best. That is a pitifully small market, relative to all the paper that’s flying around. And there will be a day like no other day, when someone is not going to be able to deliver silver to someone who can make some noise, and when that event takes place it will probably be pushed aside, looked at askew, and not recognized as the fact that it is. But eventually the truth will leak out, and once that happens I think more and more people will start to get much more interested in the silver market.”

With that in mind please click on the following video and pay particular attention to the pie chart that I describe. Basically, about one to two billion dollars is all it would take to buy up the silver bullion described by me in this video as “remainder.” If that were to take place then for all practical purposes the door just slammed on the silver market.

I have been “Called Out”

I do want to take a minute to explain about something that some have called or written me about—the signoff in my weekly column: “It is an honor to be, David Morgan.”

It might sound egotistical and I gave it a great deal of thought before deciding to use it. Most, including myself, are not scholars in the use of the English language. That statement was taken from one of the original patriots, and it means it is an honor to be (alive), to exist, to be of service to others, or to be given the privilege of “being” alive. Since it is followed by a comma, it could apply to anyone—I’m sure you get the idea. It is my understanding that Thomas Paine used that complimentary close.

The United States of America has come a long distance from the original intent, yet freedom of speech prevails, in newsletters like this and across the Internet. In my view, there is nothing as important as the Free Market of Ideas.

“Where freedom is,” said Benjamin Franklin, “there is my country.”

“Where freedom is not,” replied his friend Paine, “there is mine.”

David Morgan is the Author of "Get the Skinny on Silver Investing" and publishes a private newsletter for serious precious metals investors on his website, www.Silver-Investor.com. Mr. Morgan started in engineering later receiving advance degrees in Economics and Finance.