Rick Rule - Physical Supply Shortages in Silver

With gold and silver correcting, King World News interviewed one of the great minds in the resource world, Rick Rule. Rick is one of the most level-headed individuals in the business, so what he said about silver was shocking, “We are seeing huge inflows into physical silver, and that may create a shortfall of available physical silver.” He also mentioned, “Silver strip and silver coin demand continues very, very strong as well.”

Rick Rule continues:

“I just think it was overbought, the trade was getting very crowded. There were a lot of momentum players and they are not investors. So they jumped ship at the first sign of weakness.

They were attracted to the strength in gold, and as soon as the tape turned weak they were gone. I would expect further weakness in both gold and silver. I’m still very constructive longer-term on both, but the silver market may not decline like the gold market.

You hear from dealers about delays in shipping product. I would assume given the extraordinary amount of coins being minted and the demand, that we may be close to running into physical supply shortages as a consequence of extraordinary demand for minted products.” (more)