this is from an essay by the mogambo guru, in one of his more lucid moments (for him, anyway.) but the estimate from jeff christian of investment demand for silver at 180 million ounces this year may turn out to be low. silver investment vehicles have already absorbed 75 million ounces in the first quarter alone.

Dominic Frisby of MoneyMorning.com writes, “According to Jeff Christian of commodities research firm CPM Group, investors bought 70m ounces of silver in 2007; 100m in 2008; and based on current trends, they’re on track to buy 180m ounces in 2009.”

Mr. Frisby goes on that demand for silver is so great that the Barclays iShares Silver Trust has “completely filled up all the storage space foreseen in its custodian agreement with JP Morgan Chase, London. In fact, as of this past week, SLV reported its silver holdings exceeded the amount of silver JP Morgan is obligated to store for SLV.” Wow!

Demand is so high that they ran out of room to store the stuff! Yow!

Mr. Frisby apparently sees me taking this fact and going directly into a Screaming Mogambo Rant (SMR) about how people should be buying silver because it is such a raging, screaming bargain, but they are not, proving that they are idiots. Idiots, I tells ya!

Cleverly heading me off, he says, “Goodness knows where SLV are going to put all that extra silver, but the point is, investor demand is soaring and the price is not” which is usually enough to again get me predictably bellowing that the price of silver is insanely, insanely, insanely low before getting right in your face to demand to know why you are not buying some silver right now.

And then, if I don’t like your answer (“I don’t have any money!”) or your attitude (“Go to hell!”), I will subject you to a scathing examination of your intelligence, or lack thereof, hopefully in front of your kids so that they will learn a valuable lesson about silver, trusting governments, and the supposed intelligence of adults.

But we are thankfully spared such an emotionally-draining and inflammatory outburst today, as Mr. Frisby says pretty much the same thing in a calm, analytical way when he writes, “Adjusted for inflation, if silver were now trading near its all-time highs, it would be somewhere near $250 an ounce, almost 20 times higher than it is today.”

http://news.goldseek.com/RichardDaug...