The Fuses
There are four fuses that will ignite silver’s prices:
- Fuse 1: Price Manipulation
- Fuse 2: Leased Silver
- Fuse 3: Silver Certificates
- Fuse 4: Exchange-Traded Funds (ETFS)
Likely events that will ignite the fuses:
- The Detonators
- Stockpiling
- Large Buyers
- Mutual Funds
- Future Media
- The Public Perception
The Silver Safety Net
One last thing about Silver as an investment is it has a built-in safety net, at least at today’s low prices. Since I have been buying silver, I have watched the price climb from $4.25 to $21. I have also invested in many of the mining companies, and the whole time I have watched silver climb and the stock prices soar, most of the mining companies still don’t show a profit.
This is important to understand because in a world that is running out of silver, one of the most sought-after industrial metals, it is impossible to sustain pricing that is below the cost of production for the majority of the producers. The price cannot go down and stay down. It must eventually rise significantly above the cost of production to encourage enough prospecting and new mining to meet demand.
From the book: “Guide to Investing in Gold and Silver” by Michael Maloney
