SilverStockReport.com: Silver Users Fear Silver Shortage
Thursday October 27, 3:49 pm ET
GRASS VALLEY, Calif., Oct. 27 /PRNewswire/ -- The Silver Users Association (SUA), a group devoted to the conflicting goals of keeping silver prices low and keeping silver available for users, stunned the silver investing community last month by repeating the claims made by silver investors and analysts, including SilverStockReport.com (http://www.silverstockreport.com), that the silver market is very tight and that any significant investor demand will create a shortage of silver.
The SUA made the bullish case for silver when asking the Securities and Exchange Commission (SEC) to deny Barclays' petition for a Silver Exchange Traded Fund (ETF). The Silver ETF will require Barclays Global Investors to buy up to 130 million ounces of silver prior to the approval of a silver ETF, in anticipation of investor demand for the silver ETF. But the COMEX division of NYMEX only has 117 million oz. of silver in all warehouse stock categories combined. Furthermore, COMEX market participants, through approximately 140,000 silver futures contracts at 5000 ounces each, already have claims of up to 700 million ounces of silver -- silver that may not exist.