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Ted Butler on the Silver EFT

What about silver? Well, if an ETF bought the same percentage of annual mine production in silver as it did in gold, then the number would be 75 million ounces out of a current silver mine production of 600 million ounces. While I don’t think that there are 75 million real ounces available south of $20 per ounce, that’s only one method of calculation. Another method would be by comparing the dollar amounts in the gold ETFs and extrapolating what silver ETF investment dollar demand might be. Here, one quickly comes to hundreds of millions of ounces of new silver demand. There is as much likelihood that many hundreds of millions of ounces of silver could be bought by the silver ETF south of $100 an ounce, as me starting a Silver Users Association fan club.

I ask you to consider something else. More than 13 million ounces, or more than 400 tons, or almost $7 billion worth of gold have been bought by the gold ETFs in a little over a years’ period of time, resulting in a 25% increase in the price of gold. This ETF buying, of course, is in addition to all the regular demand, from jewelry to regular coin and investment buying, by individuals, funds and central banks. How could gold not have gone up in price with the sudden introduction of the massive buying by the ETFs?


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