Staggering Silver Supply Stats


"SLV has been raided heavily over the past seven weeks."

The June 2010 Silver Insider's Report contains an interesting fact about SLV—it is "the main alternate source of storage" of silver and "which accounts for around 50% of world silver inventory." Wow!

Interestingly, he doesn't get into whether there is actually any silver in SLV, but he writes that SLV has "been raided heavily over the past seven weeks." Indeed since February 26, "17.9 Moz. have been withdrawn from the ETF by authorized participants."

Naturally, being the typical clueless guy who can't remember facts or figures, I don't really know how to evaluate this information, but it becomes a little clearer when he explains, "to put it another way, 3% of the world's silver inventory disappeared in just seven weeks!"

I can wave this in the sneering faces of people who scoff at my advice to buy silver! I'll say, with a nasty sneer and voice dripping with contempt, "What were you saying about me being an ugly little troll with an apparent silver fetish? What about now, ya moron?"

Other interesting facts are that by 2008 worldwide silver demand was ~900 Moz./yr., having grown by an average of 19.5 Moz./yr. for the previous five years, while mining and scrap supply was only 858.5 Moz. and growing at only 2.2%/yr., meaning supply was being outstripped by over 40 Moz./yr. the whole time!

If that supply/demand imbalance isn't enough to make you jump up and buy silver, longer term it gets more interesting, because "in 1900 there were 12 billion oz. (Boz.) of silver in the world. By 1990, that figure was reduced to ~2.2 Boz.," and "today, there are less than 1 Boz. of aboveground refined silver."

All the silver mined and refined since 1900 was used to create the gigantic economies of, mainly, America and Europe. Now, China needs twice that much silver!

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