China may turn out to be a major wildcard for the silver market and price in the future. There are two parts of the equation in regards to the Chinese silver market that are explained in my newest video update. Also, after the silver price shot up to $19.75 rather quickly, what’s next for the shiny metal?
Some analysts are suggesting that the silver price is overbought on a weekly basis and may experience a significant correction. While it is normal for an asset price to correct after a large run-up, the precious metals seem to be heading into NEW TERRITORY. Sure, the silver price could experience a correction after shooting up $5.50 over the past few months, but it could also remain overbought for an extended period, very similar to its price action in late 2010.
I explain these in my newest video update, The China Silver Wildcard & What’s Next For The Silver Price:
One of the important aspects discussed in the video is China’s heavy reliance on the Base Metal Mining Industry to supply the overwhelming majority of its silver needs. The chart below shows how Asia, mostly China, receives only 3% of its silver mine supply from primary silver production.
Why is the data in this chart relevant? Again, I explain it in the video with several more charts why China could be a Major Wildcard for the silver market and price moving forward.
Lastly, I would also appreciate my followers to consider supporting the SRSrocco Report either through PayPal or Patreon. I want to thank all those who already support the website and youtube channel. It takes a great deal of time to put together this information which I don’t believe you can find anywhere else on the internet.
If you are new to the SRSrocco Report, please consider subscribing to my: SRSrocco Report Youtube Channel.
HOW TO SUPPORT THE SRSROCCO REPORT SITE:
I would also like to thank those foundation supporters, who have chosen to become a member by making donations through PayPal to further the research and publishing work at the SRSrocco Report.
So please consider supporting my work on Patron by clicking the image below:
Or you can go to my new Membership page by clicking the image below:
Check back for new articles and updates at the SRSrocco Report. You can also follow us on Twitter, Facebook, and Youtube below:
The big banks should have their trading rights suspended for 9 years for spoofing the silver market for the last 9 years and only had to pay 47 million dollar fine s and 36 million dollar fine for b of america take away their trading rights
WHY FINE the bank ……………hang the banker!
Men steal and murder………not artificial beings.
Timely information Steve. I’m glad silver corrected and expect this correction to be short lived. The fact that silver has remained overbought, under certain conditions – possibly similar conditions, is vital at this point. I was looking for that. Thank you.
What does ‘overbought’ mean please?
“Overbought” is a chartist’s expression.
When the RSI (relative strength indicator usually found at the top of a chart), goes high indicating very strong buying action, the item is said to be overbought and caution is warranted. Hope that helps explain it.
The Attenuating World Silver Supply
(stats from 2007-2017 inclusive averaged)
World silver reserve 2007 @ 570,000 tons 2017 @ 530,000 tons
A reduction of 40,000 tons of reserves
World mine supply 264,000 tons + reserve reduction = 304,400 tons
The world reserve/production ratio has fallen from 27.4 to 21.2
The world’s silver supply is slowly being exhausted.
OutLookingIn,
The USGS has updated that figure to 560,000 metric tons of global silver reserves. However, the majority of silver reserves are tied to Base Metal Reserves of Copper, Lead and Zinc. So, I would imagine 60% +/- of those 560,000 in reserves, or 336,000 metric tons are estimated from Copper, Zinc and Lead reserves.
Unfortunately, the majority of those 560,000 metric tons of silver reserves will never be exploited. I would imagine maybe only 150,000-250,000 mt at most will ever be recovered.
steve
There´s a wildcard. Check this graph:
. From 2020 on, IMO rules apply enforcing the use of diesel instead of so called “bunker” (heating oil I guess) in ships. This can put an enormous amount of pressure on the diesel market. Miners, small to medium sized particularly, are going to take some heat for sure.
Take care, Steve.
The Gold/Silver Ratio is 1:82.68
At the present price of gold, if the ratio were to revert back to the modern mean of 60, that would put silver at $24 now. Or if gold price were $2,000 then the silver price would be over $30.
This past week, the frenzied buying of silver was led by buyers of physical metal, not leveraged paper futures market speculators. The shorts are now sweating blood!
10 years ago when gold hit 1900 silver went to 49. I guess you’ve lowered your expectations saying if gold went to 2000 silver would be at 30. Maybe we’ve just come to expect that the “powers that be” are getting better at manipulating over time.
Crayfish
Crayfish
“At the present price of gold”,
That is the key phrase in my post.The 2,000 at 30 comparison is a function of percentages, at the present price of gold staying inert. We all know the price of gold does not stand still, although the overt manipulation may make it seem so.
As gold goes? So does silver.
Manipulation? Of course there is!
This past Thursday September 05, seen contracts of paper gold futures (December contracts) sell orders of 3 million ounces of gold hit the Comex, with 1.6 million ounces (that’s 50 tons) of those contracts dumped within a 2 minute time frame onto the market. Who sells like that?
The December contract price was taken down by $46.10 ending the day at $1,530.00 gaining back $30.40 from the mornings price attack low.
The shorts are still fighting, pushing their attacks further ahead. Must be because of the pain they feeling at the present!
The historic gold/silver ratio has always been 16/1 (a pound to an ounce). This has been true for thousands of years before the manipulation of the monetary alchemist’s paper markets & the digital age. Silver is poised to explode in price like a levee breach of a mighty river reclaiming it’s stolen real-estate from damming.
I HAVE FOLLOWED GOLD & SILVER SINCE READING HOWARD RUFF THE RUFF TIMES BUT I CAN SAY THAT PEOPLE ARE STARTING TO LOOK AT GOLD AND SILVER AND SOME ARE BUYING.I FEEL THIS WILL SLOWLY MOVE FORWARD THEN REALLY TAKE OFF.THE WINDOW IS CLOSING TO BUY AT THIS LOW PRICE.WHEN THE MASSES START BUYING THERE WON’T BE ANY TO BUY AND IT WON’T TAKE MUCH BUYING TO FOR THIS TO HAPPEN.BUY STRAW HATS IN THE WINTER AND SELL THEM IN THE SUMMER.SAME GO’S FOR GOLD & SILVER.
Here is explained why gold does not “go off” and in particular mine stocks (in my opinion). Comment from : http://www.handelsblatt.com/finanzen/maerkte/…a4vJDS6zxKkMMM4N-ap3 Mr. Helmut Metz 09.09.2019, 10:38 am The “tricks” of the gold “enemies” (i.e. roughly generalizing the most important central banks) to depress the gold price measured in the world’s leading currency USD (measured in currencies of countries like Venezuela or Zimbabwe, on the other hand, it looks quite different 😉 ), have been particularly high in recent years: 1) Mario Draghi’s perfidious statement in 2013 that the Euro PIGS countries should sell part of their gold reserves: http://www.wiwo.de/finanzen/geldanlage/…tzten-stoss/8090572-4.html 2.… Read more »