While we have witnessed a surge of new silver investment demand over the past year, it’s nothing compared to the massive buying coming in the future. We know that there is something BIG happening in the silver market when the top silver analysts “conveniently” omit the massive global silver ETF demand in their surplus-deficit calculations.
I provided my analysis in response to the recent Kitco interview of Phillip Newman, managing director of Metals Focus, who provides the World Silver Survey for the Silver Institute. Mr. Newman claims there was a huge 80 million ounce silver surplus last year, the highest in over a decade. This confused many silver investors because they thought there had to be a shortage and deficit last year. Actually, I believe there was a MASSIVE SILVER DEFICIT in 2020, and provide this information for the Silver & Gold Members.
The main problem I have with the major silver analysts from CPM Group and Metals Focus is that they are not treating the record Global Silver ETF demand as REAL PHYSICAL DEMAND. This will come back and bite them hard when they try to explain real SILVER SHORTAGES in the future.
One of the claims these silver analysts make is that there is all this silver in the world. They say there are billions of ounces of silver out there just waiting to come into the market. Really? That could be true, but why would any silver investor sell their metal at $30-$40 or even $50 an ounce when the WORST is yet to come when the highly leveraged debt-based financial system collapses?? That’s the reason you buy and hold onto silver. Not to make a few bucks of fiat profits.
So, if we go along with the CPM Group and Metals Focus silver analysts and agree that there are 5 billion oz of Investment Silver in the world, at $100 an ounce, it would equal $500 billion. Now compare that to the $24,000 billion, or $24 trillion of NEW GLOBAL DEBT added just in 2020.
That’s correct; even at $100 an ounce, all the global silver investment in the world would equal a paltry 2% compared to the $24 trillion of new debt added to the Greatest Financial Ponzi Scheme in human history. It’s due to this very reason… why we invest in physical silver. This kind of debt-based monetary insanity can’t continue at this rate for much longer before the entire facade comes crashing down.
While Fed Powell and U.S. Treasury Secretary Yellen continue to put out the calm faces that EVERYTHING IS FINE, it reminds me of the same rhetoric put out by Fed Chair Bernanke about how “Healthy” the U.S. Housing Market was right before it began to collapse in 2008.
Lastly, when the next financial crisis hits, watch as exploding silver investment demand will make the WallStreetSilver Shortsqueeze seem quite insignificant.
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I love both silver and platinum, but I am not sure if i should overweigh platinum or not.
Platinum has upside potential, but it does not perform well compared to G & S in large equities markets corrections, crashes, or depressions. Platinum is not and never will be money like G & S are.
Silver may be volatile compared to gold, which may be a reason to watch the G/S ratio, but in terms of percentage increase, Ag will vastly outperform platinum.
If your plan is to sell or trade platinum in a few years, and hold silver or gold longer…that is what I would do.
Don’t look now, but……THERE IS NO SILVER.
There is some retail shortage; out of some things and higher premiums, but there is plenty of silver to buy. An example:
https://www.jmbullion.com/search/?q=#/?_=1&filter.instock.low=1&filter.instock.high=1&page=1&resultsPerPage=60&filter.metal_type=Silver&sort.price=asc
My hoard of silver groweth.
How many ounces haveth thou?
10? 20? 30? 40? 50? or more?
A friend of mine has 24 of 1000 oz silver bars.
Wow, they will be set for life.
I am glad that I stocked some silver coins at fair prices over the years as currently in the Netherlands it is outrageous as to what they are asking for an oz. of silver. Plus the added 21% VAT on bars makes only coins suitable.
Sovereign coins are more liquid that bars anyway; particularly bars over 10 ounces.
Rubenmeister,
If you purchased say a Silver Philharmonic in the Netherlands, what would be the total cost above the SPOT price including premium and VAT tax?
steve
Today with silver around $26.80 a Philharmonic is doing $33.20. Coins have the 21% Vat not over the total amount, but bars do. A 1kg bar is around $1155 with silver at $26.80
At this moment Steve, typical UK Philharmonic, no stock, price is £29.40 VAT £5.88 Total £35.28 Spot atm £18.73 $25.89. An in stock Britannia is £26.40/£5.28/£31.68 These are 10 off prices with free secure courier delivery Worth £10). Serious premiums.
https://www.bullionbypost.co.uk/silver-coins/
Britannia is best silver buy here as capital gains tax free as UK legal tender (£2).