As the global highly-leveraged debt-based financial system comes under serious stress, investors are going to finally realize that the silver market is very tiny and extremely undervalued. This is when we will likely see the exponential silver price movement. And, it’s not a matter of “IF,” but rather a case of “WHEN.”
While most precious metals analysts focus on the systemic risks in the financial system to own Silver, I believe the real problem has to do with the HUGE ISSUES we are now facing with ENERGY. In my newest video, The Coming Exponential Silver Price Movement, I discuss the two reasons why I believe we are going to BIG MOVE in the silver price.
In the video, I show why the huge U.S. Total Debt to GDP of 346% is unsustainable due to the coming collapse of the U.S. Shale Oil Industry. Without oil production growth, there is no GDP growth. And, when there is no GDP growth, then the entire highly-leveraged debt-based financial system starts to disintegrate.
When Americans are faced with the task of “Protecting Wealth,” they will find out that “PAPER” or “DIGITS” will not make the CUT. Why? Paper money and Digits are based on future energy production. Thus, they are ENERGY IOU’s. However, Silver is money or wealth because it is a store of Energy Equivalent Value.
Also, in the video, I discuss some updated charts on U.S. Physical Silver Investment from 2010-2018 (Source: Metals Focus Silver Investment Report for the Silver Institute– OCT 2019):
Lastly, those Americans who have purchased approximately 880 million oz of physical silver bars and coins (2010-2018), have no idea that they are holding onto an asset that is likely the most undervalued in history.
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Meanwhile, a bunch of low level exec’s a jpm are about to be thrown under the bus for silver market manipulation. The fact that they are bringing something to light means that they are under pressure that they can no longer ignore or escape.
lastman,
After 8+ years since the silver price reached $50, investors have no idea just how undervalued silver is currently. Every day that goes by the Highly leveraged debt-based Financial Ponzi Scheme gets weaker while the fundamentals for owning silver get stronger… even though the market doesn’t realize it yet.
steve
Scott Minerd sounds just like a Peter Schiff or a Michael Pento in that interview, so it’s kind of an odd to hear that on Bloomberg. Then, whoa, brings up silver. It wasn’t clear from the interview if he was talking about physical or paper, or whether that might matter to him at all.
You can bet it’s paper or contract or ETF silver for him. Oh sure for the novelty of it buy a few boxes of Eagles as conversation pieces.
Physical silver is inconveniently bulky for ultra-wealthy types, who [wisely] may not trust the concept of some “allocated” storage service in another state or country protecting several tons of silver for them through crises.
Steve,
Your analysis has been very good indeed. Not just for the Silver market but for the ‘energy sector’. Some time ago you looked at Exxon Mobile published data which was a good study.
Agree with you regards silver and precious metals…….and shale.
Do you have any views regarding precious metal miners?
Many thanks
Nigel
PS. You recommend the web site ‘Our Finite World’ as worth reading. Could not agree with you more. A superb lady with very good and logical analysis.
Cannuck210,
Glad you find some of the analysis interesting.
I believe we are going to see SERIOUS FIREWORKS in the U.S. Shale Industry 2020-2021. Furthermore, the more the Major Oil Companies continue to ramp up shale oil production, the quicker their shareholders are going to come at management with pitchforks.
steve
A person’s perspective: https://oilprice.com/Energy/Oil-Prices/Peak-Shale-Will-Send-Oil-Prices-Sky-High.html
DisappearingCulture,
Yup… that’s the SUPPLY vs DEMAND KNEESLAP reply. However, how does the market BID UP THE PRICE OF OIL??? With Dollars, correct? What if the value of the oil isn’t worth it or if the MONEY SUPPLY that comes from NET ENERGY is declining, How is it BID HIGHER??
Virtually no one asks these questions.
Instead, we continue to get the same WORN-OUT SUPPLY & DEMAND MANTRA.
steve
Part of demand is affordability. With stagnant or decreasing wages, how is the greatest sector of demand (working class) going to pay for more expensive energy products? They won’t, therefore, the price won’t rise.
Thanks for the article. Many have been waiting for investors such as Minerd to take a position for years from what I understand. How many, and what kind of position they take is yet to be seen. When they make a move towards physical, we will know it.
I’m really curious to how the DOJ case progresses against JPM.
I’ll bet no one goes to jail. If they pissed off the wrong people above them, then maybe
What do we mean by exponential? What *might* one expect for price potential and timing?
Hard to say if it will be an actual exponential function (f(x) = a^x). I’ve also heard intriguing predictions about the price increasing according to a Fibronacci sequence. Just imagine though, that gold takes at least some monetary function when the bank of mother nature stops providing easy collateral against the tsunami of fiat debt. Then gold would have to revalue thousands more than it currently is, even in today’s money, in order to do some bookkeeping for what’s already been printed. Silver could be more in line with historical valuations relative to gold or probably even better because so much of it has been wasted. Regarding timing, my advice would be to think about the fundamentals and not worry too much about day to day pricing.
Been at this for 12 years and have held on due to the fundamentals 😉 I think I should have chosen others wording in my question- I was just using Steve’s title. I am really saying how far is likely (not merely possible) and when.
The big move has been a looooong time coming and way back after everything cooled back down after 2011, it was going to move in 2015, and then, and then…I am beginning to wonder if this is worth it or ever going to happen. I look back and the 70s and see 2 major moves which keeps me wondering if 2011 was part one, but who knows.
this video might be of interest to you. this guy makes the point that the silver market is so tiny that if any big money whatsoever tries to get into that space, then to de moon!
https://www.youtube.com/watch?v=26AIReJniwc
Nkatieb,
The simplest way to see an exponential chart is to watch the video and look at the NASDAQ price chart. However, it will likely take place in silver in a matter of months or a few years.
steve
Apologies, Steve. I explained on the previous post that I should have used different wording.
I am really just asking how far is likely and when because this has been going on for years and doesn’t seem to do a thing. Heck, I have been enjoying your take on silver for well over a decade and here we still are 🙁 I don’t want to look back feeling like are fool for holding on.
Here’s some silver shield for you if you haven’t seen this guy:
https://www.youtube.com/watch?v=1YQ-BAOaL9c
Hi Steve, Awesome video. I think that sales tax on eagles, maples, Perth coins, etc is having a material impact on sales for those products. I don’t get why there is sales tax on ira eligible/legal tender products but 7-8% tax on the buy side is certainly prohibitive, and at least in my area, wasn’t charged just a couple years ago. To be fair, why isn’t there sales tax on purchases of tsla shares? Is it considered a charitable contribution due to non-profit status?:)
No sales tax on silver in my state.
No tax on any PM’s in my State either.
Thanks Steve, another great video!
The copper price has gone down 13 days in a row. Longest downtrend since 1971. At somepoint marginal copper mines could be closed, which might materially affect byproduct mining of gold and silver. Something to keep an eye on.