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February 20, 2009

The Silver Slam
by David Morgan

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.

Click Here to watch the video

From my earlier article Silver -- What's Left I stated...

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."

So again this week I sign off stating...

It is an honor to be,

David Morgan
Silver-Investor.com

Mr. Morgan has followed the silver market daily for over thirty years. Much of this Web site, www.silver-investor.com, is devoted to education about the precious metals.

Mr. Morgan has been published in The Herald Tribune, Futures magazine, The Gold Newsletter, Resource Consultants, Resource World, Investment Rarities, The Idaho Observer, Barron's, and The Wall Street Journal. Mr. Morgan does weekly Money, Metals and Mining Review for Kitco. He is hosted monthly on Financial Sense with Jim Puplava. Mr. Morgan was published in the Global Investor regarding Ten Rules of Silver Investing, which you can receive for free. His book Get the Skinny on Silver Investing is available on Amazon or the link provided. His private Internet-only newsletter, The Morgan Report, is $129.99 annually. To suscribe to the Morgan Report click here.

Information contained herein has been obtained from sources believed to be reliable, but there is no guarantee as to completeness or accuracy. Because individual investment objectives vary, this Summary should not be construed as advice to meet the particular needs of the reader. Any opinions expressed herein are statements of our judgment as of this date and are subject to change without notice. Any action taken as a result of reading this independent market research is solely the responsibility of the reader. Stone Investment Group is not and does not profess to be a professional investment advisor, and strongly encourages all readers to consult with their own personal financial advisors, attorneys, and accountants before making any investment decision. Stone Investment Group and/or independent consultants or members of their families may have a position in the securities mentioned. Investing and speculation are inherently risky and should not be taken without professional advice. By your act of reading this independent market research letter, you fully and explicitly agree that Stone Investment Group will not be held liable or responsible for any decisions you make regarding any information discussed herein.