The Silver Market is just one step away from another MASSIVE BUYING WAVE and is just waiting for the next leg to drop in the global economy and financial system to do so. With silver investment demand to account for nearly 75% of the global mine supply this year, if we experience the same type of demand next year, we will enter a silver market like never before.
While that may sound like hype, the CLUES are all around. I check many of the large online dealers’ inventory, and many are sold out of the fractional silver rounds, or have a minimal inventory. The fractional silver round inventories are normally the first to sell out when there is a large buying wave.
I have mentioned several times; the Silver Market is one of the only sectors in the economy that sees INCREASED BUYING when the price goes LOW or HIGH. Normally, investors tend to sell when the price of a stock or asset is declining. Not the silver market. Due to the ongoing disintegration of the U.S. financial system and economy, precious metals investors realize THERE IS NO PAPER SOLUTION to what’s coming. Thus, LOW and HIGH silver prices motivate more buying.
I wrote about this in my article below:
For example, Silver Eagles sales continue to be very strong in November as another 750,000+ coins were sold in the last week. The total Silver Eagle sales so far in November are now 3,456,000 versus a total of 463,000 for the entire month last year.
Furthermore, the U.S. Mint sold another 25,000 oz of Gold Eagles over the past week to reach a total of 769,000 oz for the year, compared to 152,000 oz for full-year 2019.
Because the price of silver is approximately 75 times less than gold, investors can buy a great deal more silver bullion. Thus, when the next BUYING WAVE comes next year, it may be one for the RECORD BOOKS.
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Will silver investment demand far outstrip silver industrial demand within a year or two, Steve?
I understand that over time, less silver is being utilized in solar panels. Does it have a viable replacement assuming the demand goes into hyperdrive, as most believe it will?
Do you think the oil reserves of Venezuela and Ecuador will ever go into full production, despite being heavy grade and the declining global stocks of light tight and light sweet crude to thin them? Can they be thinned to medium grade by other methods?
One can only imagine the energy inputs to process a barrel of that grade
“Will silver investment demand far outstrip silver industrial demand within a year or two, Steve?”
I think it already has, for at least some reporting periods this year.
Considering the heights silver may reach ($600, more or less), little to no silver may be available for industrial uses. I’m discussing unprecedented hoarding
of a monetary metal with unquenchable demand and restricted supply.
We’re either there or near that takeoff moment. I just wanted Steve’s take.
Well…Steve’s take from above was:
“With silver investment demand to account for nearly 75% of the global mine supply this year…”
That leaves about 25% for industrial demand.
HOWEVER, “investment demand” does include the very large ETF demand component and those investors do not hold physical silver in their possession. Some of that physical silver supposedly “allocated” to back ETF purchases will reach industrial hands.
Well . . .an accelerated upward price move could or may change the supply and demand dynamics.
To be continued.
Don’t look now…..but here comes SILVER, again.
It is possible that prolonged mine re-closures in silver-producing countries could occur, should the second and third waves of the COVID-19 contagion hit hard. With disastrous results for silver mining output.
I’m not even counting the ever decreasing ore grades and the inevitable Energy Cliff.