Silver Stock Report: "The scope of fraud in the silver market alone is staggering"

Silver Stock Report: "The scope of fraud in the silver market alone is staggering"

by Jason Hommel

Global Research, April 18, 2009
news.silverseek.com/

Let's review the fundamentals of gold and silver.

The world gold mines produces 2500 tonnes per year, which is about 80 million ounces. With gold at $867, that's $69 billion worth of gold mined each year. That's a tiny market in the scale of world finance, where the USA has $14,000 billion in the US banking system at risk, and has added $11,000 billion of commitments in bail outs, and continues to issue $800 billion bail outs with increasing regularity, with a total budget exceeding $3000 billion, and a budget deficit approaching $1500 billion.

http://en.wikipedia.org/wiki/United_States_federal_budget

The silver market is a lot smaller. Way smaller than the $69 billion in gold produced. World silver mines produce about 600 million ounces, at $11.88/oz. is $7.1 billion. Unlike with gold, where 95% of demand is for investment purposes, most silver has industrial applications, and there is little relative investment demand. Investment demand in silver is about 10-25% of the market, perhaps headed towards about 150 million ounces per year now, rapidly increasing in 2008, and in 2009 now. 150 million oz of silver, at $11.88 = $1.7 billion market.

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