Friday 3rd March 2006 AD

"ALL BEFORE LUNCH" 

As I arrived at my office this morning, things seemed fairly orderly and routine. I was greeted with a smooth Panamanian coffee, and awaiting me on my desk, a print out of our Anglo Far-East morning Treasury Price Fix (1). 

Settling back, my eyes scanned the page; crude up a dollar, natural gas down, copper even, gold up a few cents overnight, and silver up yet again. Of particular interest to me, is the daily gold/silver ratio, which is steadily dropping, showing that, at the moment at least, silver is 
advancing faster than gold. 

Last night, before leaving the office, I had emailed a client; "I think we will see silver far above $20 in the not too distant future, BUT for now I don't think we will see it over $10, maybe for a couple more months. The reason being", I continued, "$10 is a significant level for the metal, so I think we will see resistance there. It may require a couple of cracks at $10, probably failing at $9.98 for a short while, but eventually it is inevitable." 

And now this morning, it was business as usual! I finished my coffee, started following up e-mail and made a few calls. Out of the corner of my eye I casually kept a watch on the live gold and silver price. After a few minutes I began to notice that the silver feed was showing continual 
green. Our AFE 10AM price fix showed silver at $9.85, but now it was $9.94 and heading up fast. My phone buzzed, "are you watching silver?" asked my caller. 

"So much for my resistance at $10 theory!" I thought, as silver marched straight through without even pausing, and all this before lunch. "It's a good feeling having all that silver safely locked in the vault," commented a client by phone a little latter. By the time my associates in Asia were out of bed for the day, silver in New York was sitting happily at $10.24 per oz, its highest level since January/February 1987. 

The silver picture remains so good, that it is difficult to think about it with out getting excited. The fundamentals we have talked about so often; the fact that we use much more than we produce each year, that silver is the magical ingredient in so many applications from medicine to modern high-tech electronics, and that we have consumed 5000 years of stock pile in less than 100 years. But more exciting than all of this, is this ageless metal's history, a history that many believe will significantly effect the world of tomorrow (2). 

While in the e-mail of last night, I might have been wrong about the timing of $10 silver, its conclusion remains clear, "but once silver breaks above $10, we think we will see it move up decisively and quickly from there. In our opinion, if you are considering buying silver, buy it now, because next month or next year, it is likely to be much more expensive than today" (3)

Sincerely - Philip Judge pjudge@anglofareast.com 

(1) AFE's Treasury Price Fix is daily and includes precious metals, base metals, energy and some socks indexes. If you would like to receive this daily by email, please reply to this email with "Price Fix" in the subject line. 

(2) An article from our archives that examines silver's long monetary history. 
http://www.anglofareast.com/0135.html 

(3) Over the years, AFE have spoken with literally thousands of people that have intended to buy some precious metals. However in today's world, most never seem to get around to setting aside the time or the money. Anglo's Silver Savings Plan was implemented as a simple, 
affordable, set and forget way to begin accumulating precious metals, refer to the link below.