The Silver Price will Inflate
David Zurbuchen
silver supply originates from primarily silver producers. The rest comes from the mining of
Gold (12%), Copper (26%), and Zinc/Lead (32%).
artificially low interest rates prescribed by good old Alan Greenspan, the Nasdaq bubble
of the 1990's has merely morphed into the housing bubble, albeit after a bit of a hiccup.
Building construction continued to be the largest end-use market for copper
products, accounting for more than two-fifths, 46.3% (3,384 million pounds), of total
U.S. consumption. This demand results mostly from the copper used in plumbing
and wiring systems.
originates largely with industrial construction. http://www.mii.org/Minerals/photozinc.html
5.) Though the majority of lead consumed annually is used to make batteries for trucks,
cars, and other vehicles, etc... http://www.mii.org/Minerals/photolead.html some is used
for construction purposes as well.
If housing prices collapse, what will happen to the demand for copper and zinc? The
demand for both will go down considerably, especially copper, since almost half of its use
is dependent upon construction. Since primary copper mining alone accounts for 26% of
all silver mined every year, there will be much less silver available for the market. And
since this market already has enough trouble finding adequate supply, you can surely bet
that the price of silver is headed up. In the future, it could very well revert back to the ways
of old, when copper was the by-product of silver mining, and not the other way around.
*Note: I do not necessarily predict that copper,zinc, and/or lead prices will fall, but rather, I
am simply presenting an if/then scenario which would likely cause imbalances within the
market favorable towards silver's performance.
For more information about the chilling facts surrounding the housing bubble (e.g.
rising constructions costs, labor shortages, average household debt of $10,000, etc.)
see: http://www.lewrockwell.com/englund/englund30.html
Disclaimer:
*This material is not copyrighted, and I encourage its reproduction as long as my name and website are
mentioned. Make sure you do your own due diligence before investing in any stock or commodity. I am not a
financial advisor.