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Greetings! Buy Silver; Buy MGN
(Silver Metal and Mines Management)
Silver Stock Report
by Jason Hommel, March 14th, 2014
I own Mines Management Stock; and Mines Management has not paid me, neither in cash, nor stock, to write this article.
I would like to share a few articles that briefly show why silver will go up in value.
Silver Price Forecast Based On China's Viral Demand
Vronsky -- February 26, 2014
http://www.silver-phoenix500.com/article/silver-price-forecast-based-china%E2%80%99s-viral-demand
Vronsky makes the case that the people of China, not just the goverment of China, might start really buying silver, which could really drive up the price. The people of China save something crazy like $4.2 trillion per year, about double the total of U.S. savers, and have no good investment choices, except silver. The silver investment market, remember, is tiny, only about 100 million oz./year, which, at $20, is $0.002 trillion, which is to say $2 billion. Thus, it won't take much of an increase in silver buying to really move up the price of silver.
I have seen pictures of the swarms of people in China that try to buy silver and gold whenever it is offered. Scary.
Key points, in gold stores in China, gold sold at a price premium of 15%-25% over spot, and silver at 57% over spot!
So far, I'd rather promote silver and gold to my fellow Americans. But this newsletter does go out all over the world.
Vronsky's price prediction: "Ergo, our silver prediction that the silver price may top $500/oz by the year 2020 is certainly plausible and rational."
Silver Short Squeeze 2
Adam Hamilton -- January 3, 2014
http://www.silver-phoenix500.com/article/silver-short-squeeze-2
Hamilton makes the case that silver should shine in 2014 due to the dip we just saw, and due to short covering in the COMEX futures market. In my opinion, the bigger short covering could take place in the much larger OTC market, as mentioned by the BIS reports, that show that the BIS member banks are short "other precious metals" (IE, silver) by about $150 billion. And, if you think about it, all forms of paper money are much like a short position on precious metals (real money).
Hamilton's main point: The gains in silver this year ought to be enormous, well over 50% as I explained a couple weeks ago. But the silver-stock gains will dwarf those.
I'm far more bullish on silver than Hamilton. 50% gains will take us to $30/oz. for silver? That's modest. I expect silver to hit $50 in a year or two, and really, it should hit $100 quickly after it crosses the $50 mark.
$8,000 Silver in 15 Years
Jason Hommel -- August 1, 2007
http://www.silver-phoenix500.com/article/8000-silver-15-years
I'm impressed by my work from 6 and a half years ago. I would say that my key mistakes were in assuming that the masses would be able to perceive reality, and not be continually deceived by the paper money masters; I thought the internet would have a bigger effect helping to educate people. I also underestimated how much paper money would be printed/created since 2008. And I overestimated how much effect it would have; probably because so much of the new money being created has remained in the hands of the bailed out bankers, and has not yet trickled down into the hands of the people.
The Death Of Paper Money
Ian Gordon -- March 10, 2014
http://www.gold-eagle.com/article/death-paper-money
Ian lists many key monetary events from multiples of 20 years ago, and reminds us that things move in cycles. The Federal Reserve and WWI were 100 years ago. The Great Depression was 80 years ago. U.S. default on gold happend again 40 years ago. Ian lists how greatly manipulated the gold market remains, with the gold price hit by paper futures market selling in quantities like 400 tonnes in a day in 2013, which is 16% of annual global production!
If my memory serves me, the London Gold pool collapsed in the late 1960's or early 1970's right after they sold 400 tonnes of gold in a day! That failure started gold's price run from $35/oz. to $850 ten years later by 1980. We could be in for a greater price run up, starting about now.
Finally, the best way to play this gold bull market, and silver bull market, is probably though silver stocks. My favorite stock right now (Mines Management) could run from $1.50/share to $82/share in just a few years, even if silver prices remained the same. I hesitate to calculate the potential stock price if silver moved up to $100/oz. My readers would never believe it, and too many already falsely accuse me of my excessive positive bias as it is.
http://silverstockreport.com/2014/mines-management.html
Disclaimers: To avoid omissions of material facts and potential risks. I'm not a registered broker or investment advisor. I seek safe harbor for all forward looking statements.
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https://www.facebook.com/jason.hommel
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