Silver’s Shiny But Tiny Market
Posted by Investment Rarities on April 7th 2011 in Federal Reserve, General Economy, Gold, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!
In asking, “So how crowded are silver investments right now?,” Casey Research’s Jeff Clark determines that the holdings of all silver ETFs – in the low $20 billions – are a fraction of the market cap of many individual blue-chip stocks. And, compared to the entire silver industry with its roughly $73 billion market cap, “The dying newspaper industry is over 26 times bigger. Drug manufacturers are 213 times larger. Heck, even the gold market is 19 times greater.” And concluding that “Silver hardly resembles the picture of an investment that is too crowded,” Clark predicts that “Someday in the not-too-distant future, average investors will be tripping over themselves to join in. That will make the market caps of our silver investments look more like some of the others in the charts above. And that will do wonderful things to our portfolio.”
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