While tightness in the Indian market won’t likely impact the global price, it underscores a key dynamic in the silver market. There simply isn’t enough metal to meet demand.
I have no idea how things will unfold from here...but it's obvious that the Managed Money traders, et al. are digging in their heels and refusing to bow down to the wishes of the Big 8 shorts by selling longs, or going short by much more than the already have.
I know a 2026 deficit of 1.3 billion ounces sounds completely crazy, and that such numbers will be seen by many as ludicrous, but what is the point of doing all the legwork, if one is then going to massage the numbers in order to fit in with the consensus and curry favour with the crowd?
Silver is keeping AI chips and data centers cooler. The heat generated by the silicon carbide chips often used in data centers can cause bonding failures.
So, to sum up, silver’s correction is coming to an end and it’s time to start scaling in to silver investments, aware that it could drop a bit more, in which case buying can be stepped up. If it should start to advance without delay we will adjust our strategy accordingly.
As to silver and the gold stocks indices, silver needs to break above $70 and then $75 to suggest higher prices. Only above $106 are new highs possible. Silver needs to hold above $56...
We are encouraged by silver making a lower low, even as gold made new lows. A divergence? The TGD also made a higher low, although the HUI joined gold in making small new lows.
All have fallen under the 200-day MA. All are in official bear markets. The intermediate (weekly) trend has turned down, a sign that one should be shifting out of the precious metals.
I speak with the CEO of BP Silver, Tim Shearcroft, to learn more about what is developing at the prospective Silver project. Phase 2 drilling underway with ~20-24 drill holes expected to follow-up on high-grade results during Phase 1 at the Pocañita Chica target, looking to confirm and expand on the recent discovery.
CEO Shearcroft: "With sixteen mapped and sampled breccia and vein structures identified within just three of our ten priority target areas, we believe we are only beginning..."
CEO Iwanaka: "The growing gold contribution, together with zinc, lead and manganese, has the potential to materially improve the economic profile of the project beyond silver alone."
CEO Weber: “Hole HLD25-31 is the best hole drilled to date on the property and confirms the scale and continuity of high-grade silver mineralization at the Main Zone."
Country Manager Bolivia Uribe: "I look forward to working closely with BP Silver's team to develop the potential of the Cosuño project, which may represent a significant silver discovery."
