Sinbob on the ECU Silver Mining board provided an excellent roundup of recent goldbug opinions, dated Nov. 13.

If this precious metals disconnect between paper and physical prices is anything more than a temporary lack of supply of ten ounce bars and one ounce coins, it should show up soon as an explosion in paper prices.

In this part, Sinbob was giving credit to John Embry.

Extract:
"The prevailing market sentiment today is fear while the markets/assets deleverage. The $US is benefiting from short covering as the leverage is unwound. Thus the price of gold in $US is down. Oddly gold is not reacting to the present financial crisis as a safe haven, although it has done well in most other currencies. Central Banks are being ignored. Paper based assets are no longer considered safe and when "the markets realize this, the outcome should be highly bullish for gold." Of particular relevance, gold is one asset that is no one Else's liability. It has no default or counter party risk....like derivatives. Even cash is the liability of the central bank. During financial crisis there is no trust. Gold is the only true safe haven asset. The fundamentals for the $US have never looked worse as bail outs and deficits and future commitments escalate exponentially. (I note that John Embry likes that word very much). The present flight to the $US is a knee jerk reaction that is temporary. What will it buy in the future versus gold? In Iceland the Krona has devalued 80% and people were wishing that they had owned gold...as soon will Americans. Violent currency movements are now growing globally. People the world over are flocking to gold and silver coins. If only a tiny portion of the world's $150 Trillion in paper assets shifts to gold...well, you get it.

"Well, folks, we at this site are all aware of much else. PM production is declining, mines are being mothballed due to rising costs, byproduct silver production is waning rapidly, ratios of gold to silver, oil, the DOW etc. are totally absurd. All PMs are oversold and many stocks are down 80% over the last few years. Demand is rising more than reported while the physical is being sold at premiums of 60%to 225% to the paper price. There is virtually no inventory of silver left. We won't even mention the corrupt elephant in the room or the depressing US economy/jobs/manufacturing/energy, etc. True inflation is 14% give or take. All of this is old news now. We await the "shock", "surprise", "big event" that many are predicting.

"COMEX Options expiry for Dec. delivery is next Thursday, a huge month for both gold and silver. Can "they" keep the lid on until then...or perhaps until Nov. 30th latest, first day notice?"