PHLX Gold/Silver Sector (XAU): Complete Silver depletion by May 2007 -...

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NYBob

Re: None

Wednesday, 08/09/2006 2:44:01 PM

Wednesday, August 09, 2006 2:44:01 PM

Complete Silver depletion by May 2007 -
Taken from an article:

One of the exciting things about Silver is the drawdown in
inventory, which is accelerating.

On Wednesday another 838,801 ounces were withdrawn,
leaving 99 million ounces.

Dealers in the registered category gave up 631,727 from
the registered category as 207,074 left the eligible stocks.

Over the past two months 9 million ounces have disappeared.

At the present rate of withdrawal Comex will be out of inventory
by May 2007.

Then there is no more.

http://www.gold-eagle.com/editorials_05/rosen080506.html

http://news.goldseek.com/InternationalForecaster/1155000000.php

This consumption currently does not consider any other ETF's
coming online between now and May 2007.

Imagine if one ETF comes online between now and then
and its even 25% as successful as Barclay's.

Imagine if the Canadian one is launched by then?

This all of course speculates on the new ETF -
being one where physical bullion is stored versus -
derivative instruments -

when we can expect world silver to run out? -

Based on the math, maybe a mistake in one assumption:
The Silver Report from GFMS -

• Says this is the 17th straight year that supply
has been running at a deficit to demand -

• Supply =mine output + recycled scrap

• Total demand 864.4 million ounces

• Total mine supply 641.6 million ounces

• Total scrap supply 187.3 million ounces

• The deficit is 35.5 million ounces per year

• In world stock we have 222.8 million ounces

• If we assume the ETF eats another 70 million ounces, then
(222.8- 70)/ 35 deficit/yr = 4.35 years before stock piles of
silver COMPLETELY run out -

• The last bullet assumes, foolishly, that the demand for silver
will not grow greater over the next 4.35 years -

• You should see the smile on my face right now -
maybe a few years to UNCN Longs retirement…lol..

UNCN very oversold - undervalued' -

http://www.investorshub.com/boards/board.asp?board_id=5406

history repeat itself -

Do not let any volatility shake You out -
the more volatility the higher it will go -

the new trend waves will often be -
Fibonacci - 162% of the previous correction -

when the weak hands exhaust themselves -
we'll see the next waves up -

U.S. NATIONAL DEBT CLOCK

The Outstanding Public Debt -
as of Jun 2006:

Unless the United States gets all of its economic
house in order ? -

Gold will become the basic real money again -
(which Gold has been for 1000's of years)
and national currencies will only be money -
if backed by - Gold.

With the exception only of the periods of -

- The Great Gold Standard -

practically all governments of history -

have used their exclusive power to issue fiat money -

to defraud with totalitarian bureaucratic powers -
rob, plunder and to make slaves -
of most the people -

http://www.goldrush21.com/

Thanks for your participations -
Brgds
Bob