Strathclair Ventures (fka svl.t)

[gump90]

Interesting Article.
To: Central Banks, Secretariats, Governors, Concerned Others
Associates,

A short time ago we urged you to begin accumulating silver bullion as an alternative to replace any gold that you have loaned out or leased and may not be repaid. We advised you to use existing US dollar bank reserves for these silver purchases, NOT to sell or swap any of your gold stock! The gold that you may have been able to hold onto should remain so, in your central bank treasury. Silver accumulations can be used - should you wish to do so - to re-acquire your lost gold at some point in the future when the equilibrium is more favorable for silver.

Well, it seems that narrow window of silver purchase opportunity may be closing as silver showed dramatic price action this past Friday breaking through key resistance on the US commodity exchanges. Some of you have made considerable progress in your silver acquisition programs, but your plans must be accelerated NOW, before the general public rushes to buy it out from under you. You laggards have no alternatives for delaying as the US dollar is widely expected to lose value in this coming year. And, by all means, and we can't stress it enough - PHYSICAL DELIVERY OF THE SILVER TO YOU IS MANDATED.

As always please continue to advise us of your ongoing progress and accumulation plans in this regard.

Sincerely,

- - - CBOM



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(The following was written by silver analyst Theodore Butler. An insightful interview with former Dresdner Bank chief economist Dr. Kurt Richebacher precedes the Butler analysis at the website. )
http://www.investmentrarities.com/
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An interesting drama is playing out in the expiring December silver contract on the COMEX. There are signs that the shorts in the contract are having some difficulty in delivering against their commitments, as required. As of December 16, there were still about 1,000 contracts (5 million ounces) yet to be delivered with the last trading day being the 27th. Although this is not a huge amount of silver, it is more than is normally open at this late date. The chances are small that this current delivery will spiral out of control, igniting the silver price explosion. However, the odds are great that it will happen just like this at some point in the future. At the very least, it appears that the shorts are stressed in coming up with real silver to deliver.
It’s possible that gold could get ahead of silver for awhile. It’s important to remember that they are two different commodities. If you hear anyone crowing that gold is better than silver or will do better over the long term, make a mental note. I suspect the same people will be taking credit when silver rises.

I’m not saying there’s anything wrong with gold. I’m saying that silver is better. I expect silver to make a much greater percentage gain than gold. The demand for gold recently has been primarily from paper transactions. We know that industrial demand for silver has been strong and for most of the year investment buying of physical silver was significant. It’s not going to be long before silver outdistances gold.

Frankly, I think we could have a brief sell off in silver here (unless the COMEX can’t deliver the five million ounces). Once this brief correction is out of the way, we should get a strong rally. This could easily turn into the big move. Any price movement lower is going to be mere pennies compared to dollars on the upside.

The coming bull market in silver will attract a lot of mention from the public. Some people will jump in at higher levels. Those who get in now won’t have to pay those higher prices. Today’s buyers are acting on information that only a few people possess. Most of the investing public doesn’t have a clue about silver. There may be 50 million or more investors in America. About one in two thousand is privy to the known facts about silver. That’s because you can’t find the real story about silver in newspapers or magazines. It’s not on TV or on any financial shows. This means you have this information long before the crowd. That’s a huge advantage.

The epic distortion of the basic supply and demand of a major world commodity has created the opportunity of a lifetime. As you are aware, I’ve gone on record as predicting silver could hit much higher prices over the medium term. I mentioned $50 an ounce only because analysts are expected to mention a number to summarize their research. In reality, on a long-term basis, those price projections do not reflect just how bullish I am.

Frankly, I can’t see anything that can prevent a price rise. This market is structured to explode. The precipitating event is unimportant. I could probably list 20 possibilities, but it doesn’t matter what the event is. What matters is that the market has to eventually jump dramatically. There is a verified long-term physical deficit. We have the largest short position in history, and we have supply coming from an unsustainable source – silver leasing. We have the lowest prices in history and the strongest demand and that’s on top of the lowest world inventory.

Please understand and envision that 50 centuries’ worth of accumulated silver production is gone forever. The fact that such big hoards of silver have disappeared means we are fast approaching a time when no more silver is available to industry at today’s low prices. There won’t be enough supply to go around.

There will be great pressure by the silver industrial consumers to get silver. Individuals may not need silver to survive, but industrial users do. They will do everything in their power to assure a steady supply of silver.

Will you ever again see the cheapest historical price for a commodity at the time of its greatest historical demand? Will you ever again see anything in chronic short supply selling at a grossly undervalued price level? Will you ever see such low risk? Never! In my opinion you will never see a market so convoluted or undervalued ever again.