The annual data for silver supply is in, and it shows that the structural decline in new supply for the silver market has strengthened. It is not temporary, and can’t be easily resolved or reversed.
The main issue is the deterioration in mine production, although scrap sources are falling as well. This is important because much of the bullion you and I buy comes from newly-mined silver. Secondary sales (bullion products that have been previously bought and sold) will always have a place in…
Over the past decade, these top five countries were the leading silver investors in the world. From 2010 to 2019, citizens in these countries invested over two billion ounces of silver bars and coins. Which country was the largest investor of silver? Actually, I was surprised by the data.
Silver is still near all-time lows in many ways. One of the most significant measures wherein silver is at an all-time low, is its price relative to the amount of US dollars (US monetary base) in existence.
Below, is a long-term chart of the silver price relative to the US monetary base..
The US government and policymakers around the world have no choice but to unleash massive stimulus programs to help their citizenries to deal with the worst recession since World War II.
The $2.2 trillion relief package Trump signed into law on March 27 is just the beginning, with the Treasury Department now seeking $250 billion more for small business loans. If House Democrats and the president can agree on a Phase 4 spending deal, targeting infrastructure, that would mean another $2…
However, once we get into July, the pressures noted above will evaporate and it is then that you can expect COMEX silver to begin moving higher with COMEX gold. With COMEX gold moving above $1800 and the gold:silver ratio moving below 100, we should expect a move toward $19 and then $20. But here are two other, lesser-known indicators that signal this move will soon be forthcoming.
Silver will likely turn out to be one heck of a better investment than gold due to the rarity of the metal and lack of available supply in the future. While gold has stolen the show recently, I’ll bet my bottom Silver Dollar that silver will outperform gold during the next financial-currency crisis.
Chris Marchese is the chief mining analyst at SilverSeek.com & GoldSeek.com. In this interview, he shares that he foresees a new all-time high silver price within two years. Chris also offers his take on where the gold price is headed and whether we will see doldrums or fireworks in the precious metals sector this summer. He also provides commentary on the junior mining sector and how he arranges his mining portfolio.
A lot of investors are looking at the stock market and wondering how it could possibly be so high right now. Unemployment is at levels last seen in the Great Depression. The U.S. is facing historic civic unrest and protests. There’s an uncertain national election in 6 months. And a feared second wave of the coronavirus is still on the horizon. All these events are making people rethink their position on precious metals, and our latest visualization can provide a needed long-term perspective on…
Unusual Behavior in the Silver Market
In our thoughtful disagreement with Ted Butler, we proved that there is no large-scale selling of futures to suppress the price. Our proof was that the basis falls as each futures contract heads into expiration. If the manipulators had a large futures position to suppress the price—a short position—then they would have to close their contracts before contract expiry.
There are some specific events in the gold and silver markets that have left many investors confused. Including how gold fell from $1,000 to $700, while silver fell from $21 to $9, in 2008. Which most analysts just attributed to “panic selling.”