“Generally at every level [of the market] there’s probably a lot more demand than there is supply. Another signal we’re seeing right [evidence of tight supply] is the intense effort in the gold and silver derivatives markets to hold down the prices. One of the motives for doing that is to discourage investors from investing in gold and silver.”

The LBMA just acknowledged that in late January/early February, they were weeks away from running out of silver. The LBMA and the Comex were almost squeezed last March and April. There’s no way know or what will trigger a sustainable squeeze of gold and silver – and force the derivatives price inexorably higher. But it has been closer to happening in the last 12 months than at any time in the last 20 years.

Please note: If you do stand for delivery on the Comex, you must remove your silver bars from the Comex custodial vaults and into private, non-Comex related safekeeping.  This  is of crucial importance.

Chris Marcus (Arcadia Economics) and I discuss this situation in brief podcast:


The mining stocks are once again historically cheap.  In the latest issue I update several of my core portfolio recommendations plus profile Reyna Silver and the Fortuna/Roxgold merger.   If you would like some ideas for investing in mining stocks, take a look at my  Mining Stock Journal.