Too Big To Succeed

Thursday, December 29, 2011
BrotherJohnF
We hear the term bandied about “too big to fail”, in other words, such and such entity is so large, that if it fails the repercussions which ripple through the system will end up bringing the whole system down with it.  Never mind the point that any entity large enough to do that is obviously too large in the first place.
But that is not what I want to talk about today.  Believe it or not, too big to succeed may actually be more jeopardizing to the current system than too big to fail.  Let me Explain.  Silver is probably the best investment of the last ten years bar none.  10 years ago silver was around 4 bucks.  Today at around 28 bucks silver is still up 7 fold over those ten years.  Can you name another asset class that is?  How about stocks?  Can you imagine the DOW 30 at 70,000?
Now here’s where strange things happen.  But before we look at that, let’s go grab some numbers.  We will just go with the big 3:

• Hedge fund assets (2 trillon)
• Pension fund assets (20 trillion)
• Mutual funds (25 trillion)

Total assets combined of those 3 are 47 trillion dollars of investor money looking for a home.  Don’t you think some of those investors would like to see a seven fold gain over the course of ten years like silver has done?  Of course they would.  The problem is it is IMPOSSIBLE!  THEY ARE TOO BIG TO SUCCEED!
Just 1% of that money is 470 billion dollars.  At the price of 28 dollars an ounce, 470 billion dollars buys 16 BILLION ounces of silver or 21 YEARS OF ALL SILVER MINED IN THE WORLD!  If we just talk about investment silver and leave the industrial silver alone, then we get ONE PERCENT OF THE WORLD’S INVESTMENT DOLLARS SUNK INTO SILVER WOULD SUCK UP 60 YEARS OF SUPPLY!  That’s like a camel passing through the eye of a needle.  They are simply to big to play this game.  It’s only for the little guy, you and me!  Watch Silver Fundamentals Explained 3 – Office Series 9 below for more: