Four Myths That Silver Bulls Keep Telling Themselves

Silver futures are down -2.3 per cent today, and look poised to settle at 9 month lows of around $27 an ounce.

Just two years ago, prices were trading in the high $40s.

What happened?

StockTwit’s Peter Brandt recently posted a note from research outfit Factor that offers a good explanation.

Factor highlights four myths Silver bulls keep deluding themselves into thinking:

  1. Silver is just like gold in its inherent, store value.
  2. There is an exact relationship between the price of gold and the price of silver.
  3. Paper silver contracts don’t represent the REAL silver..
  4. There is an imminent silver shortage. 

They goes on to thoroughly debunk each. We’ve reposted the paper in which they do so below.

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April Fools Day, Silver Bulls, April 1, 2013 by Peter L. Brandt We’ve republished it below (don’t worry — the title refers to a figurative “April Fools” sprung on Silver bulls, not the note itself).

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