It looks as though Silver is beginning to slowly enter the public arena with this short BBC piece on Silver. A lot of people get a bit confused with Silver. Whilst a lot of people agree that it will rise extraordinarily if we suffer a calamitous economic collapse, for Silver to rise, we do not actually need a market failure. Even though a crash of some sort would speed up the Silver rocket, one has to bear in mind that currently only 1% of the world is investing in it. If just another 1% (140 million people) buys just 1 ounce of Silver (£30) in the same year, that would create a huge squeeze in supply and demand which would send Silver to at least $150 an ounce (500% increase). The US is already experiencing a semi squeeze as its US Silver Eagles are selling at all time highs (which is creating considerable delivery delays for us dealers) and the world is now buying 3 times more Silver than Gold. And with the Gold to Silver ratio now 55:1, this ratio simply cannot last. But if we take this just one step further, I personally don't think we need another 1% of the world to start investing. If just a handful of the worlds richest families cottoned on to Silver....that may just do it. Having said that, the pension schemes in Japan are now about to allocate just 1% of the nations pensions into physical Gold and Silver. That's a huge amount of metal that will be delivered to Japan. 2013 is going to be a very interesting year...
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