“How the strange disappearance of element ‘107’ could make you a fortune”

Sniffing out Matt Badiali's new Silver teaser for S&A Resource Report

By Travis Johnson, Stock Gumshoe, November 30, 2011

There’s something about using the atomic number for an element that makes you feel extra smart and exclusive, isn’t there?

Or at least, that’s what I’m forced to conclude from the fact that most of the newsletter jockeys appear to delight in intriguing and mysterious references to the “fortune making” fourth element or the “battle for the third element” — perhaps it was the enthusiasm with which investors lapped up those teasers that inspired the Stansberry copywriters to pick this one as the “disappearance of element 107.”

Pitch it they did, though, so it’s our turn to catch — Element 107, as they eventually admit, is actually element 47 the way most folks use the periodic table, that’s it’s atomic number (like lithium’s number is three, and beryllium is four from the past teaser examples above). But 107 is the atomic weight of silver, which they do “reveal” in the teaser.

So yes, this is a pitch for silver — not an uncommon pitch these days, we’ve also seen a number of teasers from John Doody that focus on silver as a hotter investment speculation than gold (the Doody ads say that this is the first time he’s strayed into silver miners, though I’m pretty sure his Gold Stock Analyst and his Top Ten have included silver stocks before).

Silver is a bit of an odd duck in that it’s widely considered a precious metal and as “money” by some folks, but it’s also a critical industrial metal — so unlike gold, which tends to hang around and get melted down for new jewelry and passed down through the generations, silver effectively gets used up. In many years, production of silver has come in below demand for silver, a shortfall that has been made up for by using stockpiles or recycling (ie, selling the family silver so Kodak can keep printing photos — though the end of traditional photography was certainly one of the factors driving silver prices down several years ago).

And that consumption and shortfall dynamic creates the opportunity that Badiali is teasing us with here:

“Over the past 6 months I’ve been investigating one of the most bizarre investment ideas I’ve encountered as both a geologist and as a research analyst.

“In short, one of Earth’s most valuable elements – which I’m calling element “107” because of its atomic mass – has been vanishing from global stockpiles at an alarming rate.

“One report, based on data from the U.S. Geological Survey estimates this element will become extinct in less than 9 years.”

Badiali throws in a few examples of metals that have nearly gone extinct, driving huge price increases — the examples he gives are hafnium and indium, both of which are very rare and obscure to begin with, and are generally used in much tinier quantities than silver.

But still, he thinks this impending shortages and possible “using up” of silver will generate some big money for you:

“Quite frankly, from what I now know, I believe we are looking at one of the most valuable moneymaking opportunities in the world over the next few years.

“I wouldn’t be surprised to see every dollar you invest in this element turn into $10 or more.

“In fact, analyst Theodore Butler says, ‘nothing in the world has the potential to multiply your net worth like [this element.]’

“In a recent Forbes interview, Dr. Stephen Leeb called this situation ‘scary’ and ‘frightening,’ but said investing in this element ‘could be an absolute huge, huge winner.’

“Before it’s too late, let me show you how a small investment in this element today could generate an extraordinary sum of money for your retirement… “

At this point in the ad Badiali still hadn’t let the cat out of the bag that it was silver he was teasing — but probably the reference to Ted Butler would have clued many investors in, anyway, as would the fact that we can probably check all those quotes.

He later goes on to add that the first question (why don’t we just mine more to meet demand?) is apparently not as easily answered as you’d think:

“Can’t we just mine more silver?

“Not really.

“You see, about 80% of mined silver is a by-product of other metals – zinc, copper, and gold.

“In other words, most of the silver supply comes from operations where other metals are the primary revenue generators.

Are you getting our free Daily Update
"reveal" emails? If not,
just click here...