Saturday, February 19, 2011
Silver's Palladium Moment
The hype, confusion, and debate regarding reports of silver shortages are unfortunate, as they distract from discussion of the fundamentals behind the rising silver price. Fundamentals such as: peak silver, the near depletion of government stockpiles, the future increases in industrial silver demand, manipulation in the paper silver markets likely worse than any other asset class, and the misunderstanding of silver's monetary history among gold-only investors. Admittedly, fundamentals do not always drive prices. The irrational human herd can be completely unconcerned with fundamentals at times. Still, fundamentals can be used to inspire and make others think about the relative value of overlooked financial assets. And silver, at probably less than .5% of global assets, would certainly count as overlooked.