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.
When rate expectations shift, the dollar strengthens and investors rush for liquidity, silver can move violently, even if the underlying physical demand story has not disappeared.
The Big 8 commercial traders in total are net short 44,993 COMEX silver contracts...down 1,899-34=1,865 contracts on the week -- and about 1,600 contracts above their lowest short position I have records for.
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."
