CRITICAL REASON TO OWN SILVER: Shown In This Chart

There’s many good reasons to own silver.  However, one of the most important is shown in the chart below.  Investors don’t realize the huge problems facing the U.S. and world going forward.  While some more enlightened investors understand the upcoming calamity due to our highly leveraged debt-based fiat monetary system, most have no idea just how bad things will get in the future.

This goes way beyond protecting ones wealth with precious metals in a collapsing fiat monetary system.  When the fiat monetary system disintegrates, so will the JUST IN TIME SUPPLY CHAIN SYSTEM in which we most certainly depend on for our goods and services.

However, I won’t get into an in-depth article about those factors today, rather I am going to present the chart that will offer a realization why SILVER will be one of the best stores of wealth in the future.

While gold is the king monetary metal, silver will be the better performing physical store of wealth due to its GLOBAL PEAK PRODUCTION occurring at a more rapid rate than gold.

If we look at the chart below, 71% of global silver production comes from by-product mining of zinc-lead, copper and gold.  According to the 2014 World Silver Survey, zinc-lead account for 38% of by-product silver production, copper at 20%, and gold at 13%.

Peak Silver In Base Metal Mining 2013

The world is about to come FACE TO FACE with the peak and decline of global oil production.  As global oil production continues to fall (never again to reach its peak), we will see a decline in World GDP.  As the world economic activity evaporates due to falling oil production, it will impact the base metals a great deal more than the primary precious metals.

So, PEAK SILVER will occur first in the base metal mining industry and then second via the primary silver mining industry.  However, the primary silver mining industry will prosper for quite some time due to the fact that a much higher silver price (value) after the collapse of the Fiat Dollar will allow primary silver miners to continue as they use a relatively small amount of energy compared to base metal, iron, aluminum or gold mining.

Silver will outperform even gold in a peak oil environment due to a peak of production, and its rarity in above ground available stocks.  I will discuss this more in detail in future articles.

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103 Comments on "CRITICAL REASON TO OWN SILVER: Shown In This Chart"

  1. Good stuff, SRS! I appreciate your analysis and hard work, keep it up!
    -WW

  2. LOL! Peak oil? They have been yelling about that since before I was born and I am now 40. We have so much darn oil they are running out of places to store it. And now I am seeing reports of empty wells filling up in Texas.

    I spent 4 hours so far this week shoveling global warming (snow) off my cars, driveway, and sidewalk too.

    • Jason,

      Thanks a million for the great laugh.

      Steve

      • LOL. Thanks for the laugh Steve. Hardy har har. Oil is over flowing; you’ve got the best in the business from the Shell CEO to the Exxon CEO telling you low oil prices are going to persist for a long time because of overproduction…..you got Buffett telling you the best days are ahead…..and then there is Steve.

        You are too funny! Thanks for the triple laugh!!!!!!!!!!!!!!!!!!!!!!!!!

        How is silver been working out for you. ROFLMAO.

        Franky

        • QueenOfEurope | March 6, 2015 at 6:52 pm | Reply

          In other words, you believe Exxon CEO and Shell CEO because you think that they have your well being in their mind and interest???
          You cannot be so dumb…

          • That it is not because there are oversupply within 5 years that there will not be shortgage between 5 and 10 years from now.

        • That silver trade really working out for you now Steve! Great Call! ROFLMAO. And when production continues robust over the next decade or two, you will simply fall into the crevices like all the other pathetic doomsayers.

          Thanks for all the laughs you give me here.

          • Frank,

            Gold and Silver aren’t trades you silly man. Now, why don’t you be a sport and go invest in all those companies that ARE GOOD FOR THE WORLD and stop wasting your time on us lousy precious metal investors 🙂 .

            steve

          • Brian Scrocca | March 16, 2015 at 9:26 am |

            If you bought it $1-$4 yes it is working out fantastically. Sorry you bought in at $50.

      • You are a clown if you think oil is endless. Its people like you that gives Americans a b a d name. It’s attitudes like yours is why the rest of the world hates the US. Just because we as a country have lots of oil don’t mean it is never going to run out.

        • Lot’s of oil… yes, maybe, but it’s finite, and the extraction rate will not increase much, if any, in the future, especially not at these prices. The US fossil fuel boom of the last years was sponsored SOLEY by cheap credit – at current prices production is NOT sustainable. Many producers will be in a world of hurt before long. The increased inventories are due to the fact that all other fiat currencies have significantly devalued (against the $), so for them the oil is not as cheap as for the US. Furthermore, this has further hurt the global economy which has started/continued to be in a recession. In other words, it’s still peak sustainable cheap oil, and thus by extension peak oil, since the world economy cannot operate sustainable at 120$ or more per barrel.

    • It’s no longer called global warming; it’s now “climate change.”

      • Soon to be changed to Global Cooling. LOL

        • No LOL on global cooling from me. Read ‘Dark Winter’ by John Casey, and check the population forecasts for 2025 on Deagel.com.

      • No, you didn’t get the memo. Now it’s “global climate disruption”. Those Klingons and their disruptors.

      • Climate change, indeed… said with a straight face as if the earth’s climate is static and never changes. The fact is, the earth’s climate is dynamic and not static. It is ALWAYS changing to one degree or another… no pun intended. The chart that is sometimes seen that shows the correlation between the sun’s output and global temperatures shows a very close correlation, while the one of atmospheric CO2 content and global temperatures does not. Once one understands that it is the sun that really matters and not human beings, insofar as earth’s climate goes, it is easier to understand why Mars has warmed and cooled at the same times as the earth. Not many SUVs or power plants there. lol

        • I half agree with you. Although earth does go through a regular warming and cooling changes it’s human activity like the burning of fossil fuels that is accelerating these changes. We are introducing greenhouse gases into the atmosphere the same way volcanoes have always done so. Too much and eat the climate gets out of wack. Its not that farfetched to think that human activity can change eat the climate. Of we get a hold of our run away population problem than we have a chance of saving it. More people means more food which means more fossil fuel burning machines processing it. That burger you may buy at lunch may have a bigger impact on the earth than you think. Think about all the energy and fuel burning it takes to make that burger and the bun and everything else on it. It takes energy to produce ship and prepare it all.

      • While the east coast of the US has had a few cold winters with lots of snow and icy spells, this is still just “weather”. In middle Europe, for instance, the last three winters have all been very mild and not cold at all. People tend to forget that. Also, in most places the warmer than average summers usually more than compensate the cold winter weather on an annual basis. While it’s clear that climate has always changed throughout the history of the earth, the evidence seems to make a better case for a current global warming, than a global cooling. Again with the example of middle Europe, 95% of the glaciers are receding (and this trend is the same in most major mountain ranges and the Greenland ice shield), and over the past 30 years vegetation surveys proved that plant communities on average all elevated their ranges by ~10 yards per decade or so (can’r recall the exact number, but it’s in that range). How could this possibly be explained by cooling? The real question is what are the reasons. A rise in CO2 seems likely to play A PART in that trend, yet I’m by no means a fan of CO2 taxes ect. and alarmist politicians. The extraction costs of fossil fuels will take care of that. But I am a proponent of alternative, more sustainable energy, which I think is the only way out ultimately, even though these technologies are still expensive right now. E.g. I do like the potential of Thorium from what I have read so far. Wind, water, and solar alone will not be enough, and solar likely too expensice bcs of silver…

    • To all you morons,

      The fact that oil exploration has reduced to hydraulic fracturing these days means that the easily extractred oil is gone-hence PEAK OIL. It does not mean that oil is not available or even plentiful. It means that the easily extracted oil is depleted.

      EROI used to be 1 barrel of oil to extract 15 barrels. Today it is 1:3.

      THAT IS PEAK OIL.

      Back to sleep in your normalcy bias fairy tale of a world.

    • Brian Scrocca | March 16, 2015 at 9:31 am | Reply

      When you were 40 it was .40 cents. It’s not about how much oil is in the ground but what it cost to extract it. Wake up. Wiki the Alaskan pipeline. Pages of logistics. It’s costing billions to find it refine it and dangerous to ship it.

  3. This is a great article except for the Big Lie
    about “global oil production continues to fall”.
    we have another 100 years of known oil reserves,
    another 100 years of gas reserves, and 1,000
    year of coal reserves. we can make any liquid fuel
    out of coal with SASOL for $2 a gallon. the idea
    of an energy crisis is laughable.

    • Those numbers would hold if there were no growth. The compounding effect of even 2% YOY growth makes the 100 year number highly inflated.

      • lastmanstanding | March 7, 2015 at 7:59 am | Reply

        That is what people do not realize…there is NOT enough fossil fuel to continue growth that is TOTALLY dependent on fossil fuel.

        You can’t keep letting people who offer less than nothing to humanity and the earth use valuable earth resources. The US is abusing that more than anyone else on earth.

        Pay back for a minimum 200 million so-called US citizens is going to be a bitch…I don’t care how much money that you have when this happens…no one will escape the turmoil.

    • Great point. We have lots of options and time until a true energy crunch.

      Even more time if the abiotic theory of oil proves true.

      But getting back to the storyline here, it is true easily gotten reserves of silver are getting scarce.

      How many times recently do we hear of fields of placer gold being found?

      One thing, however, frustrates the peak [fill in the blank] folks: deposits are continually being found, which always pushes their doomsday date to the right.

      • lastmanstanding | March 7, 2015 at 8:11 am | Reply

        Will D…ask yourself: What does it take to get these deposits?

        It used to take 1 barrel of oil to get 100…now 1:10, 1:5… who knows for sure?

        In the old oil days, you drilled a hole and it came out of the ground…today, you have the most incredible tech imaginable and far less volume.

        Not to mention how most (supposed) revolutionary method needs bazillions of gallons of fresh water.

        • Indeed we would have thought technology would increase efficiency but it is the opposite which happened !

          Same thing with new methods to travel, transport and communicate : it has just increased the population concetration into polluted and costly cities.

          How stupid the humanity is…

          • lastmanstanding | March 8, 2015 at 7:05 pm |

            +1 brother…+1.

            ps…oh how us old farts got anything done or survived before all of this amazing tech came about.

            I really woke up in 2010 and have spent the last 5 years retracing back to simpler times and basic things. I recommend it to all as well.

          • Lasmanstanding,

            There are too much waste and longevity of consumers products is not wanted from the robber barons rise in the late 19th century in my opinion.
            It is the same thing with food : quality of food has decreased dramatically since WWII while food waste has rised in parallel : that’s just complete nonsense.
            The same thing can be said for living : in europe most of the inside europe (switzerland excluded as there is lots of mountains and a small country with lots of regular immigration, a little bit the same for netherlands or luxembourg) is now a desert : middle of France, western germany, non coastal Portugal and some part of the italy, even some very nice little cities on seaside are empty 9 months a year !
            Of course all the above is way too much simplified, but I guess there is still a general idea which makes sense in my opinion.

      • Will Divich,

        While you may believe we have LOTS OF OPTIONS, the reality is quite the opposite. I find it simply amazing that folks CAN & WILL BELIEVE that Silver reserves are getting scarce, but NOT OIL. I wonder if this is based on some sort of scientific-geological understanding, or because they WISH IT SO.

        Will, I appreciate new folks coming in here and taking the time to leave comments, but if you actually believe the comment you posted, you do not understand the real facts behind the matter. This is also true for Mr. Roger Mason.

        I will be writing an article on this very subject.

        steve

        • I have been reading articles about silver stocks being depleted for a couple of years. Article after article have stated that the price of sliver is lower that the cost it takes to mine it. So why is silver still widely available and the price continues to fall. If the cost of mining the silver is higher that the silver price at $16 oz., how were they able to mine it when the price of silver was $4 and $5 and oz. It makes no sense.

          • William,

            I agree that this situation is very confusing and most of us do not understand it but let me offer a possible explanation for the problems you note. Production cost for any item can be very time specific. Yes, silver was once mined and sold profitably for $1.29 per oz. This is why a US silver dollar contained about 0.77 oz. of pure silver. Silver does not sell for $1.29 an oz. today primarily for two reasons: 1) petroleum that powers the mining equipment is not $2 a barrel anymore, so fuel costs are higher and so is the cost of mining with diesel powered equipment. Miners no longer make $2 a day for their efforts and that adds to the production cost. Every aspect of mining and metals production today costs more than it once did and this shows up in the price of the product.

            During the early part of the Great Depression, say 1931 or so, the price of silver was about 34 cents an oz., probably due primarily to a collapse in demand and a then much larger above ground silver supply than we have today. In all such cases, the cost of production is at or lower than the market price. It has to be in a free market or the mining companies will burn through a lot of cash and go bankrupt.

            Unless… there is no “free market” and some sort of sweetheart under-the-table deal exists that we don’t know about where the banks, the Fed, and / or the US Gov are supporting the miners with kickbacks (perhaps called a depletion allowance to make this more palatable) as part of the metals price manipulation strategy to support the fiat debt paper Ponzi scheme that we have here in the US and in other Western countries as well.

            As to availability, as Steve shows in the chart, 71% of all silver is produced by base metals and gold miners who get silver as a by-product. Typically, anything that is produced as a by-product adds only incrementally to the cost of their primary product(s). With world silver production in the area of 750M oz. annually, this means that about 530M ozs. of silver can be produced as a by-product of other metals mining and that this would continue to be produced even if all of the primary silver mines were shuttered. If demand for silver is at or lower than this 530M ozs., then there will not be a retail shortage of silver and it can be found easily in most places.

            As others have noted, however, the shortages of silver and gold that one runs into are not at the retail level but at the big wholesale buyer level. If you want several ounces of gold, no problem. It is available. If you want several tons of gold, however, it will take time to source that amount. Eric Sprott discovered this when he wanted to buy 350M ozs. of silver for his new silver ETF. It took months to fill that order and virtually all of it was recent production and not from any great silver hoard that some think is out there. If it was out there, then filling this order would not have taken the time that it did.

            Truly, a tangled web has been woven in the PM markets and figuring out what is true is often a very difficult task.

    • Hey Roger Mason,

      I have a degree in Geology. Do you have any science background? If you believe what you typed you are delusional. What drugs are in your Kool-Aid? We were studying increasing average depths of oil finds & smaller average finds in the 1970’s. That is scientific fact. But you and your sources apparently wouldn’t know science if it sat next to you and introduced itself. The finding and recovery of oil is science and technology based, and the understanding of everything involved isn’t accessible to non- logical, non-scientific or technical mindsets apparently.

      Did technology [like satellite imagery] allow us to make big oil discoveries in the last 40 years? Of course. Please note many of the largest finds [actually profitable to recover] are inhospitable places like the North Sea, Alaska, Gulf of Mexico, inside the arctic circle, Siberia.

      Anyone is welcome to believe whatever they want to believe. That leads to rude awakenings in the future when one’s beliefs are in stark contrast with what turns out to be the truth.

      • @David… I agree completely. We are all entitled to our own opinions but not to our own facts. As Ayn Rand once said so eloquently, “We can ignore reality but we cannot ignore the consequences of ignoring reality”.

      • Petroleum as the major source of energy is over, just waiting the new complete breakthrough technology like cold fusion. Maybe it will happen by 2050 !

    • Please Roger, your argument overload is killing me. Stop it.

      • Up to now paper markets are still ruling, that’s it. You do not need any argument : whatever silver miners cash or all in costs : silver is falling and will probably to do so big time in the near future, it has no importance : if you are long silver, you are a loser.

        Sad but true…

        • I’m in generational wealth RD. I don’t care about the price in our current fake fiatskies environment. Silver is just one hard asset. Woollen blankets are another, and so are good handtools. You don’t understand that, when the door closes, you will be staring in the fire, together with millions of other people. The paper world is fading away.

  4. Peak oil? Please.

  5. Steve,

    Some silver analysts state that because of Silvers industrial, solar, all electrical switches, photography, and medical uses that very little of the resource remains or or can be salvaged over the last 100 years. Unlike gold, which is still mostly held since existence.

    The Point……SILVER is more valuable then Gold! We’ll see!

    Thanks for your Posts, I enjoy them.

    PS Colloidal Silver gets rid of mucus, A NATURAL Antibiotic.

    • one tenth of an oz of silver has been an average days pay during the last 6,000 years of recorded history[,or you could go back 1,000 years to the beginning of fiat money in China if you wish..silver was $850 per ounce in 1377..THAT is as high as silver has ever been & right now is about the cheapest silver has ever been[an incredible reason to be buying as much as you can afford for all the reasons Steve covers,well being,insurance etc etc etc[well-being & peace of mind are of utmost importance in the times we re presently in & I’d rank it #1 reason to be stacking silver right now]
      ..I figue an average days pay today[a survivable average days pay anyway] to be around $250 per day give or take $100 either way..with that in mind, you are looking at $2500 per OZ. SILVER or thereabout..then.. if you figure that there IS indeed more gold above ground than silver,the price of silver should be..could be [fill in the blank] $5,000 anoz.? $10,000 an oz.? if we price gold & silver by the 9-1 gold to silver raatio how it comes out of the ground/is deposited in the earth’s crust,then figuring the $2500 per oz for silver ,you get $17,500 an oz gold..sounds about right..therefore,silver at $16 is practically giving it away ![along with George Strait’s king size bed he & his wife made so much love in”
      just give it away!]
      $16 an oz. IMHO makes silver NOT the investment of the year..no sir..& NOT the best investment of the decade either..silver at $16 is by far the best investment of yours & mine lifetimes..far & away! lifetime..period! silver at $16 an oz right now is perhaps the best & greatest deal /investment in the history of the mankind period..unless you bought Apple or Microsoft at $1 a share in the very beginning of its trading,but I’m a complete non-fan of fiat money..paper money does nothing for me except enables me to purchase more & more & more silver & gold..otherwise ? it makes for some butt bleeding awaful toilet paper,but will come in handy for starting fires soon,exactly as the German Deutsche Mark did during Germany’s super hyper inflation of the 1920’s, or Zimbabwe’s recent currency hyper-inflationary collapse,where it took 100 trillion dollars to purchase a coke..[& THAT price was a coke w/o any cocaine in it! ]…..
      suppose if silver gets expensive enough,& has enough[ & has enough purchasing power left,] or is re-valued high enough,they[mining Cos.] will begin to dig up landfills across America, to re-capture the minute amounts in electrical devices buried there,as then it would be worth the trouble,time,labor,& energy to do so,but..
      we shall see..actually though..
      those of us young enough,
      WILL see!

  6. In Chris Martenson’s 2008 “Crash Course” he was forecasting “peak silver” in 2015. He also suspects higher energy cost, combined with resource exhaustion, will increase the value of silver. Many people fail to understand Bingham Canyon Mine in Utah used to be a mountain. It is now a hole a couple miles across and three quarters of a mile deep, and is currently the largest copper extraction operation in the U.S. Copper ore extraction is only 0.2% or one pound of copper per 500 pounds of ore mined. This is a good example of how the cost of extraction can increase the cost of the finished product. Keep in mind that when it cost more to extract something out of the ground than it’s worth the first thing you see is a shutdown or slow down in extraction. This can produce a short term spike in price. Individuals who were buying and holding Silver Eagles in the nineties for $7 an ounce will have a tremendous windfall. Individuals buying physical silver now can insure some wealth preservation.
    I was told not to believe anything I wasn’t willing to research myself. The research that’s been available for years indicates exponential growth in consumption and depletion. Add inflation with regards to exponential growth of the money supply from U.S. national debt doubling in eight years ( national debt was $9 Trillion in 2007[$10 Trillion in 2009]) and you are going to see major rises in commodities continue this year.
    (Search “Albert Bartlett Arithmetic, Population and Energy”,,,”A Crude Awakening video”,,,”Chris Martenson’s Crash Course”,,,” The Long Emergency by Howard Kuntsler”,,,”Collapse video Michael Ruppert”.) And of course, this website has provided a wealth of insight for investment strategies that I have applied to my own portfolio. Thanks SRSrocco.

    • The only thing in short supply is U.S. dollars which is why the dollar is rising exponentially now. I know most of you will dismiss this even though the market is TELLING US THIS.

      The silver trade is just stupid. And if Ted Butler is right about JP Morgan buying physical silver, they are doing it to ensure they can suppress the price for many more decades.

      Count on it. SIlver will go NOWHERE fast for another couple decades. Silver has been one of the worst investments in the world for how long? Since 1980. Think about that. SInce 1980 silver is down 65%. There is no other investment asset class on the planet that has been worse.

      Silver is dead, It has died. Look at the price and how it trades. It has died.

      • Frank,

        “Silver will go NOWHERE fast for another couple of decades.”

        If this is the best you can do with the information about the soon peak of Global Oil Production, Massive Debt and a Quadrillion Dollars in Derivatives worldwide… you most certainly fail at using LOGIC and COMMON SENSE.

        LOL,

        steve

  7. Read the article again. He didn’t say peak oil but peak oil production. If the economy breaks less fuel will be consumed never to return to the same amount of production again.

    This is the way I read what is wrote.

  8. why get rid of mucous if you don’t need to have it in the first place? cut out dairy products and no mucous. .Dairy is not a natural food for humans ie humans are the only species that use the milk of another species
    Roger Mason ls right 99% of the time, like when he said that silver had bottomed at $32, $30, $26, $22, $20, $17 etc. He couldm’t pick his nose let alone the bottom in the silver price. But as he likes to say, ‘who cares what price you buy at when it goes to $100+ per ounce?” Well Roger you can actually buy twice as much at $20 an ounce as you can at $40. And when is that moonshot due? Must be any day now.

    • You would not be making the statement you did if you understood just how much paper silver is in the system that made the prices the way they are today. Hold on to that paper money you love so much, but keep it in $1 dollar bills for there will be more to burn to keep you warm when you most need it.
      Next Clueless person.

  9. I don’t know where you get the patience, Steve. Keep up the great work!

    • ryan,

      I am quite surprised at the high level of intelligence in people who believe in the ABIOTIC OIL THEORY or think we have 1,000 years of coal reserves and 100 years of oil. How can they be so smart in some areas, and down right ignorant in others??

      The reason why people regurgitate this sort of nonsense is due to the fact that they are SPECIALIZED in a field or few sectors and just repeat what they want to believe from some source that is not based on real data.

      I am simply amazed that Roger Mason believes the 1,000 year coal reserve notion.

      steve

      • Steve,

        It is a compliment to call abiotic oil a theory. More like an hypothesis, postulate, or unsupported supposition.

  10. Anybody thinking that we aren’t at an inflection point has ignored reality. It’s perfectly fine to ignore reality, but remember, Reality never sleeps.

    The mother nature of reality has been bent many times, but never broken.

    Maybe this time is different. LOL

  11. Steve,

    Sorry about the non-believer comments above. They know not what they do.

    I appreciate all your hard work to bring the truth to light.

    To the fools commenting above:

    Why did US production peak in 1971? 45 years ago? If there is so much oil, why can’t we produce as much as we did in 1971? Especially with all the flashy technology?

    Why can’t the Saudis surpass their peak of about 11 million b/day set thirty years ago?

    Why has production peaked in over 75% of oil producing nations?

    If there is SO much oil out there, why can’t these milestones be surpassed?

    If there is so much oil out there. why are we using up 40% of US corn production to produce ethanol?

    If there is so much coal out there, why did the THERMAL value of US coal production peak 16 years ago? Surely, if we had SO much coal, that wouldn’t be the case.

    It may be true that we are swimming in oil right now, but believe me, it’s just a temporary anomaly. The main reason is every oil producing country is drowning in debt. Their oil bonanza has led to population explosion and welfare explosion that must be financed with oil production. The wheels will come off eventually, though.

    What you have to understand is that it’s not just about how much oil is in the ground. It’s about the actual production process; one of the most complex aspects of finance.

    Do you really believe oil is infinite?

    • lastmanstanding | March 7, 2015 at 8:30 am | Reply

      Bam. Nice comment Rob.

      I have never understood the “turn food into fuel” thing…use fuel to grow/plant food, use fuel to harvest food, use fuel to turn food into fuel, use fuel (that used to be food) to transport fuel to a destination…to be used as fuel.

      Thank God I am confused…must be a “green” thing that I just don’t understand.

      I guess I’ll just continue to hand spade my garden and plant our food the old-fashioned way.

  12. Part II:

    The production of oil is one of the most complex processes in human activity. No matter what is happening in the marketplace, it requires a very complex choreography of science, industry and finance. It’s not as simple as plopping down 50 bucks on the table for a barrel of the black stuff.

    We are “eating the seed corn” at current prices. It will eventually catch up with us.

    • Rob states it well.

      Choosing to believe there is 100 years’ oils supply at current consumption rates, and that it is recoverable, is as good a fairy tale to believe in as any I suppose.

    • lastmanstanding | March 7, 2015 at 8:37 am | Reply

      Kudos again Rob…and then there is the Canadian wet dream of oil sands.

  13. ….I like silver simply because poor folks can access it too. We may never get another buying opportunity as we see happening right now. I say for those that are skeptical about silver, leave it alone. That way there will be more for those of us that aint.

  14. peak oil, peak prosperity blah blah blah.

    chris martensons new website rumored to be called peak stupidity.

    • Way to go Steve,

      Looks like govt trolls here in force. You must be hitting a sore point or even two!

      Peak oil and silver – how dare you!!

  15. I got into silver starting in 2002 when I read that low silver prices were due to the US gov’s stockpile which would soon be running out. Like clockwork, the stockpile was gone and silver started rising. So the question now is, WHERE’s ALL THE SILVER COMING FROM NOW? I keep reading that there are no huge stockpiles of silver anywhere..so WHERE’s THE SILVER COMING FROM? Until someone can answer this question, all other analysis is BS. As long as there is supply the price will stay low….end of story!

    • lastmanstanding | March 7, 2015 at 8:51 am | Reply

      Timb…at these prices, who cares.

      I always tell people, “you either believe in real tangible valuable sustaining items from the earth, or you don’t…and you better have a back up plan or 2.”

      I think the word tangible is a real problem for most of them. Valuable means a credit card or cash.

      Sustaining means a trip to Mc D’s, DQ, etc…or someone who’s real savvy, the grocery store.

      I hope that you still have that 2002 Ag or that you moved it in the 40’s and bought something that is still, tangible, valuable or sustaining.

      Brother, it’s all BS.

    • Tony Nobaloney | March 7, 2015 at 9:49 am | Reply

      I don’t know where the silver is coming from but I suspect the price of silver is coming from the CRIMEX.

      How long can they keep the price where THEY want it?

    • Hi Timb,

      Interesting point this. Eric Sprott has been explaining how the fundamentals must cause silver price to rise and has been 100% wrong. To be fair he walks his talk and bought a multi-million dollar position at a top and had to unwind quickly, but the point is that he is supposed to be one of the specialists on precious metals and he got it wrong. Then to add insult to injury at the back end of last year his chief strategist, John Embury, said in two interviews I heard that he has no idea where the silver is coming from!

      To me that means that there is a deeply hidden supply somewhere that has been taken from the market over decades past just in case the Banksters need to continue the manipulation of ‘the people’s money’ in a situation such as we have now.

      With peak silver upon us the draw-down of physical metal from these stores, wherever they are, must accelerate and the true supply:demand situation of silver will follow. I hope it’s sooner rather than later but who knows? I’m keeping hold of my $8/oz silver anyway as it has already preserved a substantial part of my wealth.

      • I think there’s no need of hidden supply.
        Industrial demand has been quite flat in the last years, while mine production grew up from 613 moz in 2004 to 820 moz in 2013, enough to satisfy real silver investors, I believe.
        Besides, comex manipulators don’t need physical silver to play their games, so…
        Things are gonna change when production will stop to grow.
        With silver price so low, I don’t think that moment will be too far; miners can’t go on losing money for too many years.

  16. I don’t pretend to be a PHD in Geology (or anything else) however I do remember as a kid growing up in the ’70s, we were taught that the Oil in the ground would be all Gone (ie, used up) in 20 years (by the ~’90s) so we would have to find alternatives before then or else.

    Now, 40 years later the World is awash in the stuff! And in some places, are finding that it (oil) has somehow renewed itself. What’s that all mean…why were the Scientists and PHDs of the ’70s wrong?

    I don’t know, but I’m buying Puts on the Frackers and buying a new gas guzzling 4-barrel carburetor for one of my American hotrods this week….Oil will be Down for at least the next year.

    • jd,

      I don’t know where you heard that oil was going to be used by the 1990’s, but none of the serious geologists ever quoted that timeframe. M.K. Hubbert who did predict the peak of U.S. conventional oil on 1970, and it did. He went on to say World peak of conventional oil would take place at or about 2000. He got it wrong by 5 years, and he made the forecast in 1953.

      This sharp move up in U.S. shale oil production is unconventional and actually unaffordable for the market. However, the printing of $trillion of Dollars and the buying of U.S. Treasuries allowed Crap Shale Oil to be extracted.

      The World did peak in conventional oil production in 2005, and now we are just waiting for unconventional to peak. According to most estimates, it will occur 2015/2016.

      Global peak oil will be here sooner than later.

      steve

    • A year, huh? Wow, you really think long-term.

  17. Just listened to a handful of oil industry experts with years of experience in the field. Main jist of conversation was about oil really coming from mantle of earth, NOT from fossils. Spoke about many numbers of oil fields in Middle East, NA and other global locations that became nearly emptied, then years later filled up again. Their conclusion: Oil is a renewable resource, not a finite one.

    Check out abiotic oil and dig into the FACTS from outside sources beyond U.S. government & UN controlled experts and statistics. They have an agenda to hide the truth vs. those who are independent and free to share what they know. Good place to start would be independent stories out of Russia.

    • Brandt,

      I don’t know what oil experts you listened to, but I will tell you this, 99% of professional oil geologists & scientists have DEBUNKED the ABIOTIC THEORY. I am surprised people still believe in that nonsense.

      Furthermore, the falling EROI – Energy Returned On Invested proves that ABIOTIC OIL is invalid. If oil fields were really filling up to the amount we needed, then the EROI of U.S. Oil and Gas would have not fallen from 100/1 in the 1930’s to 5/1 in Shale Oil today.

      This is the problem with CONSPRIACIES not based on high quality data.

      steve

      • Again it is a huge compliment to call abiotic oil a theory.

        When I got my geology degree, in early classes we discussed the differences between belief, supposition, postulate, hypothesis, and theory.

        Abiotic oil doesn’t rate as a theory.

  18. Steve,

    I’m not familiar with Mr Hubbert but if he made somewhat accurate predictions in the ’50s he was probably just LUCKY, not having any accurate idea of the actual Demand or the developing Efficiencies in using energy over the next 60+ years.

    The price of Oil will remain depressed for some time which will actually benefit the PM Miners. Unfortunately, the over-leveraged Oil Frackers will get slaughtered over that time…to the delight of the Saudis, Russians and Persians.
    Y,
    Jd

    • Jd, You would be well advised to educate yourself about M. King Hubbert (geoscientist) and his generally accepted “Peak Theory” and bell shaped depletion curve, before you flippantly toss his predictions off as “just LUCKY”.

      Equally ludicrous is the belief in a thousand years of coal supply! Hubbert’s ‘peak theory’ is utilized here to show that coals energy output per mass, has dropped significantly since 2000. Simply put, all the “good” (clean burning) hard (anthracite) coal has been mined and used, while the softer “dirty” (polluting) coal is all that’s left to burn.

      As in, peak oil. All the easy found oil has been used, or is in the process of being used up, while the expensive hard to find and pump oil is all that’s left.

  19. actually you get $2500 silver, & $22,500 gold..at a 9-1 ratio of silver – gold in the earth’s crust..my bad calculation..must stop tying so fast..lots of typos/errors.. hope you can still read.-gary

  20. Larry Galearis | March 7, 2015 at 12:02 pm | Reply

    Steve,

    Yes, I agree with every word about silver.

    There also has been a swelling anti-climate change movement.
    Most of this is buried in ignorance and provincial outlooks and short memories: the snow is deep, the air is chill, and yes, we’ve had two years of extreme weather….But they are decidedly not saying this in Europe and especially the Ukraine. There they had two years of extremely mild winters that even saw Kiev go on a winter offensive….

    The other point is that the financial system is too precarious for any shocks – like curtailment in economic policies from the norm. If the Washington minions can go to war seven times and kill several million people ALL based on huge lies, dealing with an inconvenience like climate change is not at all difficult. IMHO this is what we have at hand.

    FWIW,
    Galearis

  21. Sorry, but it’s hard to take seriously any article full of grammatical errors. Maybe the substance of the story is excellent (I don’t know, I’m not an economist), but when the message is wrapped in high-school English mistakes, its credibility suffers. I could never forward this article to my friends and expect their serious consideration–something I have often done with posts on other websites about precious metals…

    • Professor,

      Thanks for your comment. I have stated several times that I butcher the English language. It’s always professional to have someone to edit the author’s work, but I can’t afford it. So, I gather I will continue to put out information that has grammatical errors and hope the important message gets across.

      steve

    • Professor,

      Shoot the messenger and ignore the message. Professor of what? Sophistry?

    • You are an a hole

    • You can read the report from the BLS, there are no grammatical errors inside but it is BS anyway. And take it for real because of correct grammar.

      By the way steve i ( and i think i can talk for a non native speakers here ) like the way you write because is good to understand und i don’t need to use the dictionary all the time.
      So i really enjoy this place here.

  22. When those billions in iou’s start to fade, it will partially go into pm’s, physical of course. But it will also cause immense preasure on the world’s just in time economy.

    http://www.feasta.org/wp-content/uploads/2012/06/Trade-Off1.pdf

    Or:
    http://ftalphaville.ft.com/files/2013/01/Perfect-Storm-LR.pdf

  23. Data can be altered intentionally or by mistake. Is there one person here who actually knows for themselves (factual without interpretation) what is really going on this planet? Is there such a person that exists? I know we all need something to believe in and stand for but maybe we should analyze our own beliefs systems first.

  24. This is a great website. Thanks Steve. My take is that when
    producers (debt recyclers) start to walk away from insolvent
    businesses then the cracks will appear. Here in OZ for instance
    the biggest silver supplier has something to do with the West OZ
    State Gov. It makes me laugh to think here in OZ we trade real
    goods and commodities for notional debt instruments, must have
    burned through 500 years worth of production supply. But seriously
    I’ve tried to get debt to equity ratios on primary industry, mining
    etc very hard to find online. Possibly a story on this Steve?
    Great site anyway…Red

  25. When ever any news come from any analust for buying gold silver or oil markets go down. these moder fukrs are paid for these rumers.

  26. Well said Steve. Too many trolls here though drunk on CNBC Kool-aid. As the well count drops, the trolls will sober up!

  27. I am retired and on Social Security. I have to walk everywhere I go because I cannot afford oil, silver or gold. I find that I like food better than any of these

    • Foe people who have one million dollar, not sure that jack daniels bottles hoarding in the best solution in a term time frame…

  28. I would like to say today after the constant beating in PM’s and the PM stocks that it is far from over. I have been investing for over 15 years and I can tell you…..usually if something is about to head higher you can feel amazing fire power under the said asset, just building and building and building before the big rise.

    The opposite is true with Gold and Silver. If you walk away from the doomsayer blogs like this one and look around what is ACTUALLY happening in the the United States you can see that the tide has truly turned. And that is why gold and silver will cotinue to decline, day after day after day while fools write about things like Peak Oil. Just like these same fools warned about in the 1930s, then again in the 1970s, again in the late 80s, and now we are running out of cheap oil again. All NOT TRUE and anyone thinking this way has been absolutley crushed by human ingenuity for decades.

    It is why guys like Ted Butler will be wrong for another couple decades. That old fool will die in his pathetic grave before he will ever be right. Meanwhile, humaniy will keep growing and investing and prospering in the decades ahead JUST like Buffett says WE WILL.

    Look at your stack of silver. And tell me, what energy is building behind it? I can tell you–it is not human energy nor the human spririt.

    You will lose most of your purchasing power in gold and silver over the years to come as the recent bubble contnues to correct on itself.

    • And you will continue your self-aggrandizing, highly opinionated rants, which will change no one’s mind, but I’m sure they are important for you to rationalize & justify the way you think and the decisions you have made.

      Leave others alone to make their own way in life; good luck to you in yours.

    • ” If you walk away from the doomsayer blogs like this one and look around….”

      Why don’t you walk away from blogs like this one; never read it or post again. Can you?

      • David,

        Couldn’t of said it better myself. And by the way, didn’t FRANK say he was going to invest in companies that were good for the world?? What is he still wasting his time here on us LOSER PRECIOUS METAL INVESTORS 🙂 ??

        steve

  29. Frank – I get it but I’m going to continue to bet on gold and silver over debt based fiat created by bankers from nothing. Best of luck to you. Re peak oil – does not mean that we cannot run out even if it is abiotic. It’s pretty clear that we are extracting at a higher rate than the earth is producing it. Ok, here’s something for all you geologists, scientists, and schoolboys to jump on : sorry in advance, but the idea that oil is produced from ‘fossils’, ie dead animals, is ridiculous. This idea, widely held and taught, is just like the idea that the earth is flat, or that bloodletting is a viable cure for disease. Sorta like gold and silver aren’t money but only have use in industry or as jewelry. Widely held and taught all right but dead wrong.

  30. While the east coast of the US has had a few cold winters with lots of snow and icy spells, this is still just “weather”. In middle Europe, for instance, the last three winters have all been very mild and not cold at all. People tend to forget that. Also, in most places the warmer than average summers usually more than compensate the cold winter weather on an annual basis. While it’s clear that climate has always changed throughout the history of the earth, the evidence seems to make a better case for a current global warming, than a global cooling. Again with the example of middle Europe, 95% of the glaciers are receding (and this trend is the same in most major mountain ranges and the Greenland ice shield), and over the past 30 years vegetation surveys proved that plant communities on average all elevated their ranges by ~10 yards per decade or so (can’r recall the exact number, but it’s in that range). How could this possibly be explained by cooling? The real question is what are the reasons. A rise in CO2 seems likely to play A PART in that trend, yet I’m by no means a fan of CO2 taxes ect. and alarmist politicians. The extraction costs of fossil fuels will take care of that. But I am a proponent of alternative, more sustainable energy, which I think is the only way out ultimately, even though these technologies are still expensive right now. E.g. I do like the potential of Thorium from what I have read so far. Wind, water, and solar alone will not be enough, and solar likely too expensice bcs of silver…

  31. The critical reason why silver will keep going down: because it was way overvalued and not the bubble continues to work off.

  32. Dave the Stacker | March 11, 2015 at 7:48 pm | Reply

    My God! Will all the tree huggers take a hike and leave those of us who believe silver is the new money. Just wait until a loaf of bread is $700,000 fiat dollars and good luck with that.

  33. tinfoilhat davy | March 15, 2015 at 6:05 am | Reply

    It has been a real challenge to read through all the comments before I put my 2 cents in! Thank you, Steve for an interesting article. I googled to here because I was curious about gold/silver production ratios. The ticker at the top seems to say about 1 to ten. I have held PMs in small quantitys for a long time. I’m more into base metals, I measure my copper pile in tons! I’m looking for advice- I’m cashing in an old 401k and looking to buy some more Ag. I really am drawn to the Canadian $5. Maple Leaf, primarily because of the new anti fraud features. Any thoughts? OBTW oil may have peaked but I think pump price is the lowest it has ever been in history, certainly in my near 50 years of driving. I remember filling my scooter for .19 a gallon, minimum wage was 1.40 at the time. And sorry, Professor if my grammar is off, I am a blue collar HS dropout.

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