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8:14p ET Wednesday, May 10, 2006
Dear Friend of GATA and Gold:
Investor's Business Daily, perhaps the most
technical U.S. market publication, today
interviewed silver market analyst Ted Butler,
which must have felt to him like an escape
from the wilderness.
Just a few days ago The New York Times
interviewed gold bug hero Jim Sinclair and
GATA's Bill Murphy and James Turk.
Are we getting respectable or just too
dangerous to ignore?
So when do they invite me onto "American
Idol"? With gold above $700 and silver above
$14, who among us isn't already singing? And
it ain't "Melancholy Baby"!
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
Silver ETF Is Suddenly World's Biggest Buyer
By Murray Coleman
Investor's Business Daily, Los Angeles
Wednesday, May 10, 2006
http://biz.yahoo.com/ibd/060510/etf.html?.v=1
It's often referred to as a poor man's gold.
If that's so, then few should be surprised by silver's wild run.
Just like two other exchange traded funds buying gold directly,
iShares Silver Trust (AMEX:SLV) has opened with a bang. In its
initial eight days of trading, the ETF gained 14%. That comes on the
heels of a 260% bull run in silver since 2001.
"Speculation is driving prices higher," said Chip Hanlon, president
at Delta Global Advisors. "Silver is looking like a very frothy
market right now."
Still, like many money managers, he welcomes a new exchange traded
fund that gives investors direct access to silver. The ETF buys it
and stores it. A share in the fund represents 10 ounces.
"This is the first ETF in silver," said Ted Butler, an independent
commodities analyst. "But we've seen two other ETFs come out that
buy gold directly. Most of the other commodity ETFs deal in futures
contracts."
Two other commodity ETFs also invest in bullion. Those are
StreetTracks Gold Shares (NYSE:GLD) and iShares Comex Gold Trust
(AMEX:IAU).
"It's a world of difference dealing with an ETF that physically buys
a commodity compared to one that works through paper" -- futures
contracts -- Butler said.
Since its launch, the iShares Silver ETF has bought 48.5 million
ounces of metal. That makes it the largest single purchaser of
silver in the world. "And that's only after a little more than a
week on the market," said Butler. "Think of how much we're going to
see demand driven up by this ETF over the course of a full year."
The iShares Gold ETF has steadily increased its purchases of bullion
in the past year and a half. "There's no reason to believe the same
thing won't happen with this silver ETF," Butler said. "And there's
even less silver available than gold. So barring some unforeseen
event, demand for this new ETF should continue to be a major factor
in driving silver prices higher."
But a lot of valleys are sure to form, he warns. Already average
daily trading volume in the silver ETF has fallen.
Commodities strategist Hanlon notes silver's price is 25% above its
50-day moving average and 60% above its 200-day moving average. "We
haven't seen silver prices this extended since 2004," said Hanlon.
Last time that happened in November 2004, silver corrected 22% in
less than a month. Hanlon says earlier that spring, the market fell
35% in some 30 days.
"Investors have to realize it's very late in this current economic
cycle to start diving into commodities," he said.
The iShares silver fund already looks overbought, agrees Joseph
Witthohn, an ETF analyst at Janney Montgomery Scott.
"Industrial use of silver is increasing, but not by the huge amount
as the price of silver," he said. "So it would seem that silver's
price has run up to unsustainable levels."
----------------------------------------------------
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RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS
Free sites:
http://www.cbs.marketwatch.com
http://www.usagold.com/amk/usagoldmarketupdate.html
http://www.capitalupdates.com/
http://www.silver-investor.com
http://www.thebulliondesk.com/
http://www.goldismoney.info/index.html
http://www.minersmanual.com/minernews.html
http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html
http://www.investmentrarities.com
http://www.kereport.com
(Korelin Business Report -- audio)
http://www.plata.com.mx/plata/home.htm
(In Spanish)
http://www.plata.com.mx/plata/plata/english.htm
(In English)
http://www.resourceinvestor.com
http://www.goldpennystocks.com/
Subscription sites:
http://www.lemetropolecafe.com/
http://www.interventionalanalysis.com
http://www.investmentindicators.com/
Eagle Ranch discussion site:
http://os2eagle.net/checksum.htm
Ted Butler silver commentary archive:
http://www.investmentrarities.com/
----------------------------------------------------
COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS
Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112
888-413-4653
http://www.blanchardonline.com
Centennial Precious Metals
Box 460009
Denver, Colorado 80246-0009
1-800-869-5115
http://www.USAGOLD.com
Michael Kosares, Proprietor
cpm@usagold.com
Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
http://www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net
El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
http://www.eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
harvey@eldoradogold.net
Gold & Silver Investments Ltd.
Mespil House
37 Adelaide Rd
Dublin 2
Ireland
+353 1 2315260/6
Fax: +353 1 2315202
http://www.goldinvestments.org
info@gold.ie
Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
http://www.gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com
Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
http://www.kitco.com
Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
http://www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com
Lone Star Silver Exchange
1702 S. Highway 121
Suite 607-111
Lewisville, Texas 75067
214-632-8869
http://www.discountsilverclub.com
MRCS Canada
12303-118 Ave. NW
Edmonton, Alberta T5L 2K2
Canada
http://www.mrcscanada.com
Michael Riedel, Proprietor
1-877-TRY-MRCS
1-877-879-6727
mrcscanada@shaw.ca
Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
http://www.milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel
Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
314-965-9797
1-800-280-9797
http://www.mocoin.com
Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com
http://www.buysilvernow.com
Richard Nachbar Rare Coins
5820 Main St., Suite 601
Williamsville, N.Y. 14221-8232
877-622-4227
http://www.CoinExpert.com
nachbar@coinexpert.com
Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
http://www.swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com
The Moneychanger
Box 178
Westpoint, Tennessee 38486
http://www.the-moneychanger.com
Franklin Sanders
1-888-218-9226, 931-766-6066
----------------------------------------------------
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Donors of $200 or more will receive copies
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