Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

Hi lawreal and other PM bulls,

An excellent article on silver that, imo, is well worth reading. Call it a learning experience...... <gg>

CONFUSED GOLDBUGS

Copyright March 2003
Charles Savoie

In recent times there has been excitement among goldbugs because upside price action finally started. Then came NYMEX sponsored margin increases! At the same time, silver has mostly lagged, failing to reach $5.00, then falling again into the $4.50 range. The silver-gold ratio has touched approximately the 80 to 1 range. For those who favor silver, it has in some degree been embarrassing to see silver under $5, whereas the posted prices for gold and platinum range to almost $700! It tempts someone to ask, why is silver rated as a "precious" metal, when its price is so meager compared to gold and platinum. But then, only silver has had a users association, right? People often speak of the silver price as if it was being driven by fundamentals rather than by derivatives! The rigged COMEX silver price is so clearly artificial. Silver Eagles are selling for premiums of 36% and more over spot, and dealer category shortages in silver are commonplace. Silver has a lot of catching up to do and we can be very happy we were able to buy so low. Silver is about to prove its sustainable upward volatility! With this kind of talk going around, I imagine someone from the users association is muttering something like, "there are CHILDREN here!"

OUR METAL CAN BEAT YOUR METAL!

Let's be clear at the start that the precious metals devotees are divided into factions. There is the strictly gold faction who believes only gold is worthwhile. There's what I choose to call the balanced faction, recognizing merit in silver also. Then there's the diversified faction, adding platinum group metals in. Lastly there's the silver only faction that, while affirming the merits of gold, believes silver is due to excel gold in percentage performance. I, a member of this last group, nevertheless have significant gold exposure through the silver shares I own. I know of no silver enthusiasts who are actually negative about gold, to correspond to the confused goldbugs who have voiced negativity concerning silver. We acknowledge their favorite; they run ours down. Often the disdain for silver is expressed passively, by just ignoring it.

Continued at:

http://www.silver-investor.com/confused.htm

regards,
Dan