If you are like me, then you are a self-centered, greedy little pig whose
avarice knows no bounds because you want to get enough money to go far, far
away and start over with a new name, a new identity, maybe new fingerprints and
some snazzy new shoes, and with pockets full of luscious spending cash, albeit
in used currency with random serial numbers.
As such, you find yourself driven to accumulate statistics that would indicate
a course of action that is going to be so profitable that you actually salivate
down the front of your shirt at the sheer tonnage of money you will make, and
you find that you start spending a lot of time daydreaming about the
debaucheries you will be able to afford, each more licentious and depraved than
the
last, until even you are repelled by your own disgusting excesses, like if this
silver thing works out like I think it will.
If so, then Jason Hommel of silverstockreport.com is just the guy you are
looking for, as he is a treasure trove of statistics concerning silver, such as
the fact that the world "uses up more silver each year (about 850 million
ounces) than the world mines (about 600 million ounces)," which seems such an
incredible 250 million ounce imbalance that people often stop me on the street
and say, "You poor man! If I give you some money, will you please quit
screaming about how my husband, my children, my family, my friends and I are
all a bunch of morons because we are not buying silver Right This Very Minute
(RTVM)?" and I say, "Yes! Yes, I will stop if you give me money!"
The point is that, as Mr Hommel explains, "existing demand can only be met by
selling existing inventory", which can be extremely finite in a hurry, which is
a phrase sometimes still likened around the office to that time where I got
caught on camera gluttonously going through the last few boxes of a small
inventory of Girl Scout Thin Mint cookies that I happened to find in a desk
drawer in the office of a co-worker that he stupidly left unlocked.
So, if inventories of silver, like the last inventories of a delicious seasonal
cookie, are not infinite, how much silver is actually out there, for crying out
loud? Mr Hommel, realizing that I am obviously not in the mood for a lengthy
conversation as I am suddenly fixated on mouth-watering milk chocolate
surrounding a crunchy mint cookie of sublime qualities, salivating like
Pavlov's dog with a lot of foamy drool coming down my own chin, and I am sure I
looked disgusting as hell.
So, to save time, he handily condenses the relevant statistics by saying,
"Estimates on 'above ground' silver, in refined, deliverable form have ranged
from 300 million ounces to 1 billion ounces, to about a high of 4 billion
ounces if you include jewelry and flatware, up to 20 billion ounces if you
include all forms of silver that have not ended up in landfills, out of the
total of 43 billion ounces of silver estimated to have been mined in all of
human history."
Ah! Now I can work backward from half the world's population achieving a
technological societal wonder by using up most of the 42 billion ounces of
silver ever mined, to the coming theoretical price of silver now that the other
half of the world wants the same thing, but having to do it all on a few measly
billion ounces of silver that have been left over! Hahahaha!
As James Cook of InvestmentRarities.com says, "In Asia alone, ten times the
population of the US are now getting the money to buy products that require
silver. Meanwhile, the supply of silver diminishes"!
So, naturally, with this kind of building demand, I'm a guy who is an investor
in silver, and who would be a BIGGER investor in silver if my stubborn wife was
more reasonable about how to apportion my pitiful income among the various
clamoring creditors and greedy children, and I think she should let me put more
money into the "Family Silver Investment Fund (FSIF)", which used to be called
"Daddy's Secret Getaway Fund (DSGF)" until one of the damned kids was snooping
around in my desk one day and found the account balance with the "odd name" and
showed it to my wife.
But this is not about how you can change the name but everything remains the
same, which I just noticed rhymes. Hmmm! "You can change the name, but
everything remains the same"! Perhaps I could find a way to musically work it
into my latest tune, "Get Gold, Silver And Oil, Or Eat Financial Death By
Inflation, You Ugly Moron!", which I pronounce "Mo-Ron", which sounds so
ghetto, which I pronounce "get-toe"!
No, the point is that you would be buying gold, silver and oil if you had any
smarts, or even a vague, passing familiarity with the entire historical record
of what happens when a government is so corrupt that it deficit-spends, and
especially when it compounds its folly by paying for it with the creation of a
fiat money!
And it is doubly especially about how you would be buying gold, silver and oil
when the state and local governments do the same borrow-and-spend-o-holic
thing, and triply especially when the people themselves have borrowed and spent
so much that they cannot pay their debts because they owe around 400% of their
income! Hahahaha!
Then, as I suggest, combine all that with an estimated billion ounces of silver
sold naked short (the actual silver doesn't exist) in "paper silver"
transactions, plus what Mr Cook calls a "runaway market when the short sellers
on the commodity exchanges are trying to cover, and the nonexistent silver in
pool accounts is being bought back," with huge additional demand coming from
"shell-shocked industrial users, attempting to stockpile silver to keep their
doors open, and inflation-ravaged investors pouring in as the price rises", and
suddenly the case for buying silver now is compelling!
And as a guy who actually takes a lot of calming medications because of
compulsion, I can tell you, as an expert on compulsion, that the case for
silver is compelling! Compelling, I tells ya! Compelling! Compelling!
Richard Daughty is general partner and COO for Smith Consultant Group,
serving the financial and medical communities, and the editor of The Mogambo
Guru economic newsletter - an avocational exercise to heap disrespect on those
who desperately deserve it.
(Republished with permission from
The Daily Reckoning. Copyright 2008, The Daily Reckoning.)
Head
Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East,
Central, Hong Kong Thailand Bureau:
11/13 Petchkasem Road, Hua Hin, Prachuab Kirikhan, Thailand 77110
