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Sun Jan 22, 2012, 08:01 PM

Eastman Kodak Silver Scandal?

http://etfdailynews.com/2012/01/22/eastman-kodak-silver-scandal-slv-pslv-gld-agq-zsl-sil-jpm-sivr-gs/

As we move into the next silver (NYSEArca:SLV) delivery month of February and the controversy surrounding the MF global bankruptcy still swirling in the minds of investors, the world’s largest consumer of silver, Eastman Kodak, files bankruptcy.

The timing of Eastman Kodak’s bankruptcy, the massive amount of silver it consumes each year, as well as the consulting firm hired to sort out the mess will most likely make for another interesting conspiracy theory, indeed. Get my next ALERT 100% FREE

Eastman Kodak filed for Chapter 11 bankruptcy on Jan. 19. The 131-year-old company manufactures photography equipment and paper, printers and other products. According to Bloomberg News, Eastman Kodak consumes approximately 8.5 million ounces, or $300 million worth of silver, each year for its manufactured goods and supplies.

Though 8.5 million ounces of silver doesn’t appear to be a lot of consumption each year, at this time of questionable supplies, it could be quite significant, especially when demand from investors and China for the white metal is rising at an alarming rate, while alleged inventories at the COMEX hover at 35 million ounces of unencumbered silver.

Economist and author of Red Alert: How China’s Growing Prosperity Threatens the American Way of Life, Stephen Leeb, believes Sprott Asset Management’s recent communique to investors (mere days before the EK bankruptcy) that stated the Sprott’s Canada-based silver fund (NYSEArcaSLV) intends to purchase 10 million ounces of silver, an amount slightly more than Eastman Kodak’s annual 8.5 million ounces, is quite a big deal.

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