Wednesday, April 6, 2011

Excellent Chart-Inflation adjusted silver

Here’s a lovely chart indeed from Ed Steer at Casey Research……

Keep in mind that when this price movement happened this was confined to the US markets alone. And there was no public internet. If you wanted to make a trade you had to have a broker and an account with them. You had to call them and execute the trade. Think about this. Who knew what was even happening? Most people checked the paper the NEXT day for price movements.

Also, there was much more silver above ground back then available for investment. Most of the trading done today is through ETF’s and stocks and many other variations of paper that are not the real deal. Now you have many people internationally who want physical silver. Yeah there are still a lot of boobs out there trading paper but there will come a day when their shorts are on fire and as John Embry says, “ they will find religion.”

I know you all see predictions of price movements to $50 and $80 and whatever. That report I sent out yesterday was decent enough but a long term price of $17.00?!?!

Get it out of your heads. All these people have paid subscribers that they must offer up realistic price expectations to. They look at charts for the last year and project 8% gains. Most of them have no idea what the real supply and demand fundamentals are. Whenever you read an analysis done of silver that is very extensive the price projection is always in the hundreds of dollars. Why is that? Informed, educated guesses or reading tea leaves? Is the guy reading a chart reading tea leaves or is the guy holding silver in his hand who can tell you how much silver is produced every year reading tea leaves?

Think for yourselves and enjoy the ride.

Ed's comment.

"Here's a Casey Research chart that was sent to me by Washington state reader S.A. It's my personal opinion that the 1980 high in 2011 dollars is supposed to be in the $165 price range...but $110 is a nice jumping-off point."

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