Another Good Article About Silver Bullion.

Interesting article. The following line was especially interesting:



While this is true, it is only half of the silver price equation. If mine production increases at a slower rate than industrial and collector demand then silver prices will rise in spite of the higher production rate.

One thing that we know for sure is that 2011 is a record year for ASE production and probably for other 1-oz. silver coins as well. Demand has been huge and will likely continue to be strong into 2012 because of all of the sovereign debt and other financial problems in Europe and the US. Because of these problems, a lot of people are now recognizing the desirability of diversifying out of fiat paper currencies and into something that is much more likely to retain its buying power in the future.

Good job, Mitch. People need to learn about this stuff and then vote appropriately if there is to be any hope for a better future.

A lot of this makes the economic and financial future look pretty grim. The thing that disturbs me the most is the $600 trillion (and growing) derivatives market. This represents 10x total annual world production of goods and services. A lot of them are leveraged by 50 to 1 or better. If only a small percentage of them blow up, the effects could be widespread and devastating. We just had a tiny taste of that with the MF Global fiasco. Imagine the same thing happening with B of A, JP Morgan, or other large banks and insurance companies. Something like that could set the dominoes falling such that no government could possibly keep them upright.