Friday 23rd September 2005 AD
SILVER & THE MONEY OF AGES

Today a caller asked me the question "how will I ever be able to understand money?" In our confusing world, this is a good question ~ my answer, "to begin to understand money you need first need to look at the history of silver!"

WHY? Silver has been the money of the masses for most of the history of the world! An article on "The Money of Ages" http://www.anglofareast.com/0135.html

While we believe Silver will play an important monetary role in the world of tomorrow, many are more interested in the Silver price action in the shorter term. So lets put aside the monetary issue for a moment, and look instead at silver purely as a commodity.

Silver has an amazing short-medium term outlook; NO OTHER commodity exists in such short supply as silver. Global demand for Silver has exceeded production for more than 15 years now. "After suffering from a huge supply deficit for more than a decade, silver may be primed for a big rally, short supplies could be set to lift prices as high as $50" said a Market Watch article recently.

This supply deficit will eventually spell much greater gains for silver (already climbing over 40% in the past three years). "The chronic silver shortage is becoming more acute - as you analyze silver's potential, the fundamentals become powerfully bullish," said Paul Mladjenovic, of PM Financial Services.

DEMAND is the all-important factor with silver. For many years, silver bears claimed that digital photography would kill the silver market, yet the opposite is the case. Overall demand continues to grow year on year (while supply shrinks). Today as silver is used in cell phones, solar power generators, military technology and a range of new applications in the healthcare sector and other alternative energy technologies.

WHAT IS THE BOTTOM LINE ?
~ 1) Silver is essential to our everyday lives
~ 2) Everyday we consume far more silver than we produce (mine)
~ 3) We are running out of silver at an incredibly fast rate
~ 4) Silver prices will increase dramatically in the days ahead as a result 
of this supply deficit.

Best Regards - Philip Judge pjudge@anglofareast.com