Syndicate
Changing the Silver Market
There are silver mining companies that have been able to increase their reserves significantly and who have been able to add real value for the shareholders. However there are cases in which the stock has been brought down and reduced down to around half of that due to a large short position. In some of these places there are very strong people holding the companies up. The float is slender and the short positions would take no less than three to four days to envelop the current quantity. Not anything is necessarily different that would justify such a short position.
In actuality there are not very many silver mines in the world when you compare it to gold mines in the world. And the truth is that silver stockpiles are coming to their end. In the actual rate of shortage, there are more or less one to two years remaining in above ground stockpiles, however this does not include silver coins. Pure silver mines are not common given that the majority of silver is mined as a by-product of other metals. Around eighty percent of the supply of silver enters into the market as a by-product of additional base metals. You could actually count pure silver companies with both hands. Silver, as a commodity, is becoming more rare at the same time as demand for use for silver goes up. There are many well known of names that have bought silver in the past such as Gates, Buffet, Tish and Soros as well as others, and the reason for this is that there is an impression that the price of silver in going to increase. Silver is turning into an uncommon commodity that is more difficult to come across as the supply reduces. The price of silver is maintained low by very big short positions.