Hi Shiester!

New mines coming online eh? Maybe she was talking about development at Galore Creek, with 140 million ounces of silver? No, that one was cancelled. Maybe she was talking about

GFMS is a joke, and the organization has been consistently wrong. In 2005 they predicted "Growth is expected to moderate in 2006. Next year ('06) could even see some decline"

Nice call! I would add that silver was trading at around $7 an oz when they made that brilliant call.

Then in 2006, with silver prices around$11 an oz, they came out with this forcast: "Industrial demand strong year-to-date, but expected to slow towards year end, and possibly decline in 2007." At least they got this right: "Expect significant price volatility but over next few months at least bias to the upside with spike to $15/oz very possible."

Then they contradicted themselves in November 2007, stating "Industrial demand still rising in 2007 and should account for well over 50% of all fabrication. Growth rate similar to 2006." HUH? I thought they were expecting a decline in 2007?

So now we are expected to believe that silver is going to suffer from declining demand in 2008, and rising production. Given the horrible track record so far with GFMS, I am shocked that any writer would establish any degree of certainty based on their outlook.

cheers!

mike

PS: Not sure how to fix the tiny font that showed up when I cut-and-paste off a PDF file