by: David Morgan February 15, 2009

I’m going to comment on Jon Nadler’s remarks in his February 9 article titled “The Silver Medalist.” Jon pointed out some interesting quotes about the silver market, and some of these I have issue with and some I don’t. Mostly what he did is quote CIBC Global Markets and their assessment of the silver market. And one thing that he quotes from CIBC is that in 2008 silver had risen to about $20 an ounce and lately it’s been languishing at around the $10 level; those are facts, no dispute there. And then they (CIBC) go on to state at the first sign of a decline in gold that investors are likely to sell their silver holding but retain more of their gold holdings since gold has a supe­rior reputation as an insurance policy, compared to silver. I really don’t have an issue with that, yet.

For one thing, in this part of the cycle, gold has certainly gotten most of the publicity and will continue to do so. Secondly, gold is almost mainstream and even Wall Street’s starting to talk about gold. Silver is not frequently discussed; it certainly is not thought of as a safe-haven asset by most investors in North America. However, that fails to recognize that there are 6.2 billion people on the planet and many of those will never hear of Jon Nadler or David Morgan or Ted Butler or any commen­tator for that matter, but they have eons of history where silver was a store of value. And those people, as things unwind globally, will move to the silver market, simply because gold is outside their price range.

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