Silver Takedown and Potential Shortages
Posted by sierra2one
By: Tom Chatham
Overnight the price of gold and silver decreased substantially with silver sinking as low as $22.92 and gold dropping below $1,400. This is the takedown we were expecting last June but it never materialized. That day has finally come and now may be the last great opportunity to stack silver at bargain basement prices. Some PM investors believe silver could reach triple digit numbers in the next two years if the current financial situation is not corrected.
Rio Tinto’s Kennecott mine in Utah has suffered a massive landslide that will likely shut down production for months if not years. Approximately one billion tons of material collapsed into the basin. The Kennecott mine is the second largest silver mine in the US and the worlds’ largest copper mine.
The mine produces 3 to 5 million ounces of silver annually and 300,000 to 500,000 ounces of gold. This represents about 16% of US silver production and 5% of US gold production annually. This is going to have repercussions on PM’s once it filters down into the markets. It will also have direct affects on Sunshine mints ability to produce blanks for the US mint.
This takedown in silver and gold will not last long so anyone wishing to buy should not procrastinate for long. Physical bullion is getting tighter and the loss of production at a major producer will almost certainly force prices up on its’ very own. With a new QE program in the making it is only a matter of time before prices climb substantially.
The DHS insider has stated that a PM takedown may precede the next major move by the government so everyone should remain alert to this possibility. The time to protect your future will not last much longer so take advantage of this lull while you can. The PM prices may slowly rise from here or they may fall lower but either way, the prices are a good buy as of right now.