{"id":29695,"date":"2021-10-02T14:01:50","date_gmt":"2021-10-03T00:01:50","guid":{"rendered":"https:\/\/srsroccoreport.com\/public\/?p=29695"},"modified":"2021-10-03T07:31:55","modified_gmt":"2021-10-03T17:31:55","slug":"setting-the-stage-for-much-higher-silver-prices-the-energy-crunch-skyrocketing-silver-investment-demand","status":"publish","type":"post","link":"https:\/\/srsroccoreport.com\/public\/setting-the-stage-for-much-higher-silver-prices-the-energy-crunch-skyrocketing-silver-investment-demand\/","title":{"rendered":"SETTING THE STAGE FOR MUCH HIGHER SILVER PRICES: The Energy Crunch & Skyrocketing Silver Investment Demand"},"content":{"rendered":"

The world has no idea that the present ENERGY CRUNCH is setting the stage for much higher silver prices in the future.\u00a0 As world energy prices are surging in Europe and Asia, investors haven’t yet figured out this is terrible news for global equity and bond values.\u00a0 Thus, the $230 trillion worldwide stock and bond market is counting on business as usual to continue… forever.<\/p>\n

Unfortunately, the world has built up its economies now beyond what the energy industry can supply at a sustainable level.\u00a0 This is especially true for China which devours over 4 billion tons of coal every year, 8 times more than the United States in 2020<\/strong><\/span>.\u00a0 Even with record coal production 1H 2021, China has been shutting down industries to cope with coal shortages.<\/p>\n

COMING OUT SOON:<\/strong><\/span>\u00a0 Analysis on Fortuna Silver Mining Company not found anywhere else on the internet<\/strong>, including the Energy Dynamics for each country that Fortuna’s Silver and Gold Mines are operated in.\u00a0 It is important to understand each country’s energy dynamics and which are highly dependent on energy imports for the mining industry.<\/p>\n

For example, Fortuna Silver’s newly acquired Roxgold Yaramoko Gold Mine in Burkina Faso, Africa, gets its Electricity mostly from burning oil (diesel).\u00a0 With 84% of Burkina Faso’s Electricity generation coming from oil, 98% of that is imported.\u00a0 Mining Stock Investors should understand the energy dynamics for each country.<\/p>\n

This Fortuna Silver Mining Analysis will be for GOLD MEMBERS<\/strong><\/span><\/a>.<\/p>\n

\"\"<\/p>\n

But, this is only one dynamic.\u00a0 Because European Union believed in the GREEN ENERGY MYTH, it is now experiencing the HANGOVER as natural gas exports aren’t large enough to meet global demand.\u00a0 This is partially due to ramping up Wind & Solar Power that needs to be balanced by natural gas electricity generation when the wind stops blowing and the sun stops shining.\u00a0 Several European countries experienced significant declines in Green Energy generation this past year.\u00a0 We wish Europeans all the best this winter.<\/p>\n

In the past, wild price swings were typically experienced by third-world countries, such as Venezuela.\u00a0 However, when you see the Dutch Natural Gas TTF price resemble the Venezuelan Caracas Stock Exchange… you realize, something has seriously gone wrong.<\/strong><\/span><\/p>\n

\"\"<\/p>\n

The Dutch Natgas Price fell to a low of 3.00 Euros during the Pandemic Shutdowns, which allowed European natural gas stocks to rise to record levels.\u00a0 However, with a cold winter and lousy Green Energy Wind & Solar Power generations, Europe is panicking to get more natural gas to fill its low inventories before winter hits.<\/p>\n

WHY IS THIS IMPORTANT FOR SILVER??<\/strong><\/h3>\n

Currently, the market is valuing silver the same way as the European Market valued natural gas during May 2020 when the price fell to 3.00 Euros<\/strong><\/span>.\u00a0 The market TOOK FOR GRANTED natural gas supplies and is now in serious trouble as Natgas Futures arent Natural Gas Inventories.\u00a0 One is a financial instrument, and the other is REAL NATURAL GAS.<\/p>\n

This is precisely the same dynamic taking place in the Global Bond & Equity Markets.\u00a0 The world believes the value of stocks and bonds is worth nearly $230 trillion, and I can assure you… they aren’t.\u00a0 The market hasn’t figured it out yet.\u00a0 So, with World Silver Investment stocks being a fraction compared to Global Bond & Equity values, the market has taken Silver Investment FOR GRANTED<\/strong><\/span>… just like Europeans took natural gas for granted last year.\u00a0 How quickly things changed… eh?<\/p>\n

First, let’s look at my updated estimate of Total World Public Silver Investment Stocks as of September 2021.\u00a0 These represent the silver listed by the LBMA, COMEX, Shanghai Futures Exchange, Shanghai Gold Exchange (estimated), and Royal Canadian Mint (custodians for Sprott Silver ETFs).<\/p>\n

\"\"<\/p>\n

IMPORTANT NOTE:<\/strong><\/span>\u00a0 Total Sprott Silver Inventories for two silver ETFs equal 220 million oz, not 160.\u00a0 This will not change the overall values all that much, but I wanted to make that update.<\/p>\n

Secondly, with publically listed silver investment stocks at 2.1 billion oz, that represents $50 billion in value at $24.\u00a0 Furthermore, considering the total physical silver bar and coin demand since 2000 is an additional 3.1 billion oz worth approximately $80 billion.<\/p>\n

\"\"<\/p>\n

Of the 3.1 billion of total physical silver bar and coin demand from 2000 to mid-2021, Silver Eagles and Maples represented 818 million oz, or 26% of the total.\u00a0 However, we must remember, large institutions or high-net-worth individuals cannot access much of the 3.1 billion of privately held silver.<\/strong><\/span>\u00a0 While investors holding silver bars and coins can sell metal into the market, this is typically repurchased by retail investors.\u00a0 If financial institutions or high-net-worth individuals want to get exposure to silver, they will have to try to acquire the silver mainly held on Exchanges or ETFs.\u00a0 And, there are only 2.1 billion oz, or currently $50 billion worth of silver available.<\/p>\n

SILVER ETFs MAJOR FUTURE PRICE DRIVERS FOR THE SILVER PRICE<\/strong><\/h3>\n

Just like what we are witnessing in the Energy Spot Futures Markets, the same will happen with the silver market.\u00a0 I forecast that the future price surges in the silver market will occur first in the Futures and ETFs<\/strong><\/span>.\u00a0 Why?\u00a0 This is where the large financial institutions and high-net-worth individuals have the most availability.<\/p>\n

While the precious metals community continues to label most Silver ETFs as Fraudulent (except Sprott’s Silver ETFs), they fail to realize this is where most of the SILVER GUNPOWDER is stored.\u00a0 We don’t see European Energy Players going to retail stores to buy small 20 Gallon containers of Propane or Natural Gas… do we?<\/strong><\/span>\u00a0 That would be insane.\u00a0 The same will be true in the future for larger investors getting into the silver market.<\/p>\n

So, why do I forecast a huge increase in Silver Investment demand in the future?\u00a0 It comes down to the figures shown in the chart below.\u00a0 Currently, the world holds nearly $230 trillion in global bonds and stocks.\u00a0 Now compare that to the $130 billion (5.2 billion oz) of total estimated public and private above-ground investment stocks.<\/p>\n

\"\"<\/p>\n

But, as I stated, the market can really only access the $50 billion of silver held at the LBMA and futures exchanges.\u00a0 But, even if we consider all total above-ground silver investment stocks of 5.2 billion oz, valued at $130 billion, that is 0.05% of total global bonds and stocks.<\/strong><\/span><\/p>\n

We must remember, global stocks and bonds get their value from burning ENERGY.\u00a0 And, the world must burn even more energy to continue giving them value.\u00a0 With the world adding a staggering $17.5 trillion of new bonds just in 2020, to prop up the global economy from the pandemic shutdowns… Bonds are no longer high-quality stores of value or collateral.\u00a0 They are now PONZI FINANCE.<\/p>\n

When investors begin to realize Stocks & Bonds are not going to hold their value, especially as the world heads over the ENERGY CLIFF, investors will move into silver to protect wealth.\u00a0 Just $50 billion of the $230 trillion transitioned into silver would push the price up 2-3 times the current value.\u00a0 What happens when $100, $250, or $500 billion try to move into silver??<\/strong><\/span><\/p>\n

This is the same scenario not considered by the Europeans last year when the price of Natural gas reached a low of 3 Euros.\u00a0 However, with silver, it will be the realization that Silver STORES ENERGY VALUE, whereas, STOCKS & BONDS are ENERGY IOUs.<\/p>\n

And, who holds the most stocks and bonds in the world?\u00a0 Correct… Americans.\u00a0 According to the SIFMA 2021 Capital Markets Report, the U.S. market held 38% of global stocks and bond values.\u00a0 Thus, the United States is the largest Financial Bubble in world history.<\/p>\n

\"\"<\/p>\n

It’s for this very reason, investors should own precious metals to protect some of their wealth from the coming FINANCIAL STORM.\u00a0 Here at the SRSrocco Report, we provide details on the changing ENERGY DYNAMICS that drive the global economy.\u00a0 For those Free Members or new followers, you may want to consider becoming a SUBSCRIBER by checking out our MEMBERSHIP LEVELS.<\/strong><\/a><\/p>\n

\"\"<\/a><\/p>\n