One can listen to this opinion or that, but the evidence presented by Eric Sprott is iron clad. This is a legitimate fund looking to buy real physical bullion. If indeed there is such an abundance of silver, why then did it take more than 10 weeks for Sprott to source about 10 million ounces? How is it that I read every month how there is this many million ounces of silver for delivery at the COMEX, and yet a fraction of that could not be found in a reasonable time for one buyer? Why is it that rumors persist that buyers looking to exercise contracts for delivery of physical bullion are offered a cash premium instead? If silver is so abundant, are the nice guys at the bullion banks just giving away free cash as a sign of their generosity? I think not...

Just last month we saw hard evidence from the two largest producing silver jurisdictions in the world that silver production has declined as reported by Peru and Mexico. Even a double in the price of silver in one year was not enough to generate higher production. Meanwhile we get reports weekly of new silver demand sources that are drawing more bullion inventory, and new silver buyers are aggessively stepping up even at these high price levels, as the US Mint reports tell us.

There will always be some talking head that is quick to dismiss the concept that silver is in shortage. Hell, I cannot go 5 minutes at a mine tour without confronting some analyst or other that believes silver is in surplus. Like there is some big secret warehouse somewhere with half a billion ounces of the stuff that mysteriously goes unreported or accounted for. These are adults that are so called professionals who track the metals and mining stocks for their entire lives and they cannot even come to a conclusion that real bullion is and has been in deficit for decades. What chance does Joe 6-pack have if the pros are completely clueless and there is always another schmuck that is happy to do an interview to tell us that everything is just fine?

I have been a buyer of more silver and gold every year since 2003 and continue to add. I do not ever lose any sleep worrying about whether there is a pending glut of the metal. I lose a hell of a lot of sleep wondering what is happening to our dollar, and how people on a fixed income are going to like the taste of cat food as this crisis really starts rolling downhill.

The manipulation goes on in broad daylight and there is no longer any excuse to remain ignorant on what is going on, and what the consequences are going to be for those that are not prepared. Its that simple.

cheers!

mike