SILVER! The most bullish scenario (Commitment of traders report) in 25 years. SUPER bullish set up in place. Statman comments.

Good Sunday afternoon my friends.

Any reader of this blog knows I have been very bullish on the precious metals since my first post in January. I have personally invested in both Gold and silver since 2001. I bought the Physical (and have some metals equities) and take possession! I hold every gold ounce and silver (including "junk silver") purchased from 400.00 gold and 8.00 silver since '01!

There is (see chart above) a renewal of demand in silver purchase and supplies are low. Due to rising fuel prices excavation is just not even close to meeting demand. The Big Commercials are now at their most "long" position in twenty five years. The small speculators (losers!) are at almost record short. This is "super bullish".

I want to make clear that while I write and place an emphasis on gold (I usually say 'silver as well') I do believe the best pure play here is silver. The gold to silver ratio is historically high at 83.7. Silver has the potential to trade and "50" easily, that is, gold 50 times the price of silver. Silver has great monetary value and heavy industrial usage. Again there is the big supply demand issue.

The chart above (compliments of silverseek.com) shows that gold has been (1990) 99 times silver, to 2011 and 32 times silver. Silver will outperform gold on the way up! We will see probably gold 50 times silver again.

Dr. Stephen Leeb (Google him, please) just came out with a report forecasting 100 silver (or more) and 5000 and up gold withing the next several years. I have followed Leeb for years. He is one of the most credible. China and our debt fiasco as well as OIL and the middle east are all "ignitors".

Leverage and debt can go on and on. It has an expiration date. It is closer than you can believe. The surging industrial supply for silver is easily outstripping supply. The majority of supply is now held by CHINA! Enough need be said.

Remember Russia unloaded our debt for Gold. China doesn't want our debt and recently downgraded it to their version of BBB+. Be vigilant.

Thank you for your support! UPVOTE and RESTEEM

(The opinions are mine. Please do your own do diligence.)