Global Supply Dwindles While Demand Skyrockets
By Greg McCoach
Friday, February 25th, 2011
Friday, February 25th, 2011
Gold will continue dominate the precious metal headlines in 2011. But it's silver that will ultimately be the year's top performing precious metal.
Don’t get me wrong; gold will do very well for investors this year.
But on a dollar-for-dollar basis, silver is going to blow the doors off gold’s performance in 2011.
Silver could easily eclipse the metal's 1980 nominal high of $50 an ounce this year.
And when you learn just how little silver is available on the market right now, I think you'll agree...
The ten largest precious metal traders on COMEX currently hold net short silver positions that represent more than 330 million ounces — nearly half of total global silver production.
Compare that to gold, in which the net short position in of the same ten traders represents 25 million ounces (or a mere 1%) of the 2 billion ounces of world gold inventory.
That means the net short position in silver is 27 times greater than that of gold.
This is setting up what I believe could be an explosive situation for wise investors.
Read more @ ORIGINAL SOURCE
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