January 26, 2006
I would like to send my support for the proposed Silver ETF. I believe contrary to arguments of the otherwise, Silver has been minipulated in price several times for several different interest groups.
Whether price was adjusted for the benifit of miners in the west in the late 1800's or the current egnima where the price of silver dropped from 1987-2001 as more silver was consumed than was mined each of those years.
During the late 1990's many Silver mines started to close down due to low prices. Since most silver comes from byproduct mining from zinc or copper production, a rapid increase in silver price will not mean a rapid supply of new silver production will come to the market.
USGS figures show the Proud U.S. Government which had Billions of ounces of silver is out and is buying for coinage programs.
Some small siver mines are coming back on line, on a limited basis. It will take some time to define resources due to low investment in defining resources in mines due to the last century of low prices.
New mines could take 3 to 7 years to come on line after significant investment, up to 300,000,000.00 on average. Companies such as Silver Standard are still deceiding whether to mine at all. They do not want to put out a large investment and then prices fall back down to 4.00 and ounce.
Shortages of mining equipment, Large tires for mining trucks could take years to catch up.
Silver is used in very small quantities in products. For example if 1 ounce of silver is used to make 100 rolls of film. I do not see if silver somehow went to 100 an ounce, a 1 increase in the price of a roll of will put people out of work.
On the other hand I believe an increase in the silver price will put people in this country to work in the mining industry, and mining supply industry along with local down trickle of the above high wage jobs.
I hope you will approve the silver ETF. I believe it will supply a place for citizens to go which will be an easy way to invest in physical silver.
I also hope by this passing, it will give the mining industry a reason to push forward projects in the near term instead of 5-7 years or not at all.
A stable industry is in the benifit of all. Feast or Fammon leads to situations as Oil jumping 600 over 3 years.
In closing, I know that just because I ran for Congress 2 times amounts to a hill of beans. One thing I do know is that increased mining here in the United States will not cause our account deficit to increase. Surly it would have an impact of reducing our deficit by reducted imports and the double effect of exporting Silver.