Silver Stock Report
by Jason Hommel, November 20, 2006
The following is the text from my TV commercial:
Investors in the know depend on silverstockreport.com!
The growing silver shortage is driving investor demand and making silver the investment of the decade and silverstockreport.com has the details.
Learn how big investors rely on the stability of silver to hedge inflationary forces; why momentum investors are transferring paper wealth–to silver!
At silverstockreport.com learn that electronic and industrial demand for silver significantly exceed supply.
For the investor in the know, silverstockreport.com!
Starting about December 4th, my TV ad will be running on Bloomberg on Comcast Cable in 9.5 million homes. That’s access in about 10% of U.S. households; mostly in the West. It will run 10 times a day, for 3 months. Bloomberg is not that popular of a channel, but those who watch ought to be the right audience.
Last time I ran this ad was around February-March, 2006. At the time, Silver had barely moved above $10/oz., for the first time and there was virtually no media coverage of silver. I ran the ad on 4 stations on Comcast for 2 months, but it showed only 3 times a day, which is barely enough to get people’s attention. Nevertheless, silver ran to $15/oz. soon after, by May.
Maybe this time we will see silver run to $20/oz. soon.
So, let me explain (or payoff) the ad:
“Investors in the know” — The smart money is in gold and resources, the smartest money is in silver. Most of the newsletter writers who know the basics of the silver market are more bullish on silver, than on gold. My email list is tiny, given the size of the overall market. The list is now 33,600. (Back in February, the list was 18,000.)
“depend on silverstockreport.com” — I have one of the most comprehensive silver stock reports available, covering more silver stocks than anyone else, even though my list is over a year old, from July, 2005. See an intro to the silver market, along with company summaries of 80 silver stocks here:
I also offer a “look at my portfolio” with about 600 paying subscribers.
The stocks I own just keep getting better and better as I gain experience, and as I’m in the middle of a large flow of deals.
“The growing silver shortage is driving investor demand and making silver the investment of the decade and silverstockreport.com has the details.” — Back when silver was $6-7/oz., the Silver User’s Association feared that the Silver ETF would create a silver shortage. Given the rise to $15/oz., the shortage has barely begun. I wrote about that here on October 27, 2005:
“Learn how big investors rely on the stability of silver to hedge inflationary forces…” — Most people assume that inflation is around 3% or slightly higher. That’s the government inflation index that excludes housing, food, and energy. But true money-creation inflation is around 10% per year! This is why many commodities are soaring in price by hundreds of percent. In the last few years, Copper is up from $.75 to $3/lb. Zinc is up from $.35 to $2/lb. Oil is up from $10 to $70/barrel! This new money is flowing to China, who is not content to sit on bonds paying 5% per year; China is, instead, buying up the world’s raw materials.
“Why momentum investors are transferring paper wealth–to silver!” — Silver is now headed up by about 30% per year, or more, since $5/oz. in 2003. Those kinds of returns are substantially more than the rate of money-creation inflation of 10%. Momentum investors are drawn into sectors that have a good track record, like silver has now.
“At silverstockreport.com learn that electronic and industrial demand for silver significantly exceed supply.” — For 2005, the silverinstitute reports:
Mine supply was 641 million ounces. Government sales was 68 million ounces. Silver scrap was 187 million ounces. Producer hedging was 15 million ounces for a total supply of 911 million ounces.
Demand is as follows: Industrial applications, 409 million ounces. Photography, 165 million ounces. Jewelry & Silverware, 250 million ounces. Coins & medals, 41 million ounces. Additional investment, only 47 million ounces.
Mine supply is less than industrial demand. The difference is mostly met through government sales from India, and scrap recycling.
Scrap metal recovered was far greater than investment demand, and investment demand was a tiny 5% of the market in 2005. There was no investment demand for the ten years prior, as investors were mostly selling.
Investor demand is really only just beginning. Investors have tens of trillions worth of paper money, about 100,000 times more than the size of the silver market. Even a tiny interest in silver will cause the price to skyrocket.
Review some of my past reports on silver if that is not enough:
I’m Positive we’ll Prosper with Silver
My speech from the Silver Summit
Why Silver Prices Must Rise
(A thorough overview of the Fundamentals)
The Money Chart: The Fundamentals of Gold & Silver
Future Gold & Silver Prices
And so, now you know.