There is a major battle that will take place in the silver market, which will push the price to new all-time highs. This battle will be based on what I call a “Four-pronged Attack.” It’s not just physical silver bullion buyers that will win the battle, but also due to three other important components. These components include Silver ETF, Institutional, and Industrial demand.
In my newest public YouTube video titled, Major Battle In The Silver Market = Much Higher Prices, I provide many charts showing how the four different components of silver market demand will lead to much higher prices. While we are just in the first stage of this Battle, it will grow to a size that will PULL IN a massive amount of demand that will overwhelm the silver market. Thus, the Battle will be when MASSIVE DEMAND overwhelms the SUPPLY.
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Don’t look now…..but there is no SILVER.
I approve this comment.
I second that emotion.
Steve,
I have a new theory.
The true price of silver is what Tom’s company charges for American Silver Eagles.
That is, Spot + The premium (he charges) @ immediate delivery = the true silver price.
I was looking at his site the other day.
Sounds crazy, but with all things considered, I think it’s a good rule of thumb, if you know what I mean.
So, as of today, the true price of silver is right around $40 per oz.
I agree. The spot price can be thought of as the discount for the paper version.
I don’t recall where I saw it, but there was mention that someone had put together an online index to track the average asking price of silver coins from online dealers.
I agree more or less. There are other forms of physical, not only ASEs – maples, philharmonics and of course “junk silver”, a favorite of mine. How much does Tom Cloud charge for a an ounce “fine” of small, “historic” silver coins?
Andreas,
There is a reason I chose American Silver Eagles. They are the international standard. My theory doesn’t apply to any other form of physical silver.
Premiums are much less for Philharmonics, Britannias and Krugerrands. But there are waiting periods and the production of these coins is much less than American Eagles.
“That is, Spot + The premium (he charges) @ immediate delivery = the true silver price.”
Several dollars lower on sovereign coins other than ASE’s. That is also the real price of silver.
FYI there can be long waits on orders from Cloud. It is outside of his control. They do not stock inventory at his office. Order fulfillment comes from Texas. ASE orders often take longer to fulfill than other sovereign coins.
As he has said, when several times the average buying dollars tries to enter the market, fulfillment will be slow.
If silver spit price were 40 usd today, what would SIL be? It is 48 now. I assume that SIL would be 100.
Thanks, Steve, for your “four pronges” of the coming silver price attack, sort of overdue after your “Interview” with SBTV. Looking forward to your take on Basel III and of course to part 2 of the “LBA collapse”, happening today. LOL
Re: the video:
The reason silver was taken out of circulation is because the dollar was being/had been debased. The melt value of the coins was quickly (and permanently) surpassing their face value (i.e. $1.29/oz.).
All Metals Are Precious,
While the Dollar was being debased, the simple fact remained, the United States didn’t have enough silver to use in coins, even at a higher denomination as industrial demand was increasing exponentially. According to the 1965 Coinage Act:
To avoid the sort of chaos Johnson envisioned, government officials decided to replace the coins’ silver with copper and nickel. On July 23, 1965, Johnson signed the Coinage Act of 1965 and their plan became law.
In his remarks at the ceremonial signing of the Act, Johnson explained:
“The new dimes and the new quarters will contain no silver. They will be composites, with faces of the same alloy used in our 5-cent piece that is bonded to a core of pure copper. They will show a copper edge…
Now, all of you know these changes are necessary for a very simple reason—silver is a scarce material. Our uses of silver are growing as our population and our economy grows. The hard fact is that silver consumption is now more than double new silver production each year. So, in the face of this worldwide shortage of silver, and our rapidly growing need for coins, the only really prudent course was to reduce our dependence upon silver for making our coins.”
steve
Yes, that’s the official story, and its a good one! And what’s more, LBJ was the perfect man to tell it.
Yes. President Johnson was a man of great integrity.
Unobtainium,
We like the choice of screen name by the way. However, while it does seem convenient to blame the Dollar’s falling value for demonetizing silver, the fact remains, the world removed silver from currency because Industrial Demand became a GLOBAL MONSTER.
Think of silver this way. In the past, and in some places, presently, they cut down forests to be used as WOOD FUEL to expand civilizations. On one side of the augment, why cut down a large number of trees if they are an important part of the ecosystem, that if deforestation continues, leads to floods and droughts? Because HUMANS are basically STUPID when it comes to understanding their connection to the larger world. We tend to look at the world with HUMAN ONLY EYES.
On the other side of the argument, without cutting down MORE & MORE TREES… THERE IS NO ECONOMIC GROWTH… PERIOD.
So, if we wanted to drive our MIGHTY INDUSTRIAL MACHINE, we needed the silver. It really comes down to that. It has only been recently had more individuals been investing in silver. From 1965-2000, most of the time, the majority of demand was industrial, jewelry, photography, and silverware. Not much left after that. So, how would the Governments of the world issue SILVER COINS, if the SILVER MARKET is devouring most of the supply??
Thus, by past civilizations cutting down MORE & MORE TREES to drive economic growth and to continue feeding themselves, they DESTROYED their environments for several hundred years. This is the very same thing happening to silver. We are using SILVER AS SEED CORN to run our INDUSTRIES.
While we can blame Dollar debasement for demonetizing silver, I see it as the same reason the Ancient Romans debased their Silver Currency… PEAK SILVER. Also, the Ancient Romans didn’t have advanced technologies to use for silver, mostly coin. If they did, they would have also removed silver from currency to be used in industry.
steve
I know that this is a complex issue and there are a few ways to look at it. But, I think that’s the bottom line.
You see, it’s the same reason that gold, and ultimately copper, were taken out of circulation.
Was copper scarce in 1982? No, the dollar was being destroyed.
A word about premiums: over time premiums disappear.