| To: Real Man who wrote (60388) | 9/11/2021 11:34:17 AM | | From: ggersh | | | | https://www.zerohedge.com/markets/physical-demand-will-completely-overwhelm-supply-and-how-silver-could-wind-over-270
Q: Hi Andy, thanks for joining me. Is a silver squeeze really even possible given the massive size of the silver market? In layman's terms, how could it happen?
A: More silver is being consumed than is being mined each year. Last year, approximately 850 million ounces were mined globally, with a demand of over one billion ounces. The industrial demand for silver is surging in an increasingly digital world, with new applications every day in green energy and battery powered vehicles.
At the same time annual global mine supply is declining and industrial demand is increasing, a global renaissance in monetary demand is upon us. This is happening while a handful of large Wall Street bullion banks have manipulated the price of monetary metals for decades, allowing some of the biggest money in the world to accumulate massive amounts of physical gold and silver at subsidized prices.
The physical demand filters down from the top. Over 300 million ounces of silver were removed from the Comex market in 2020 by some of the most sophisticated and well healed investors in the world. Settlements on the Comex are usually mostly in dollars. The Comex was not set up to be a source of physical delivery. This is no small development. In years past, this amount would represent roughly a decade’s worth of silver deliveries. In addition, Comex deliveries in 2021 are now on pace to better the 2020’s delivery numbers. When all of this is added to record global retail physical demand in coins and bars - physical demand at some point and probably sooner rather than later, will completely overwhelm supply.
In geological terms, silver is found in a form called epithermal, meaning it is found very near the surface. This means that most of the big deposits were found years ago, even before the advent of enhanced imagery. In fact, only 30% of global mine supply comes from primary silver miners, while 70% comes as a byproduct of mining other metals such as copper and zinc.
In summary, the demand for physical silver is greater than the supply - the amount being mined each year. And it’s expanding. At the same time, silver is in the cross hairs of a new class of “deep pocket” investors, from hedge funds to home offices. And the “retail” demand is on the rise as well. As an example, our business at Miles Franklin is up between 300% - 400% and it is 95% silver. This new, large demand is, in part, being funded by savvy investors taking profits on stocks and Bitcoin.
Most commodities have one primary source of demand, like copper – which is solely and industrial metal, and gold, which is mostly a monetary metal. Silver is in demand by both industry and investors. At some point they will be in competition with each other. That point is not far off. So yes, I think a squeeze is not only possible but actually highly probable. |
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| From: Wade | 9/13/2021 3:26:28 PM | | | | | | Okay... No miner stock picks?
My largest position is now KL which has very low PE that should catch up with AEM and NEM sooner or later. WPM and GDXJ are my second and third largest positions, respectively. But, WPM seems a little slow to react at here.
Own two junior producers: KRRGF and ANXGF.
I own a share shares of UROY for Uranium heat...
Good luck to all. |
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| From: bull_dozer | 9/13/2021 7:22:53 PM | | | | | | What to Expect From Gold and Silver Going Forward
While we believe a huge precious metals bull market lies in front of us, we must also be aware that challenges remain over the medium term. Since the beginning of 2021, the average gold stock is down about 10%; in comparison, the average energy stock is up over 60%. The question for precious metals investors is how long this period of price consolidation will last.
We believe the current consolidation period is not yet over. We have long argued the upcoming bull market will be driven by western investors, as it was back in the 1970s. In contrast, the bull market between 2000 and 2012 was driven by eastern buyers who believed gold was a cheap asset class that had to be accumulated and held.
Back in 2000, the US and Europe consumed approximately 700 tonnes of gold combined. By 2012, as the first leg of the gold bull market was ending, their consumption had fallen to 460 tonnes. Gold had gone from $250 per ounce to $1,900 per ounce while western consumption had fallen. In other words, there was no participation from western buyers even though gold prices advanced over seven-fold. Over the same period, India and China went from consuming 1,150 tonnes combined in 2000 to 2,400 tonnes by 2013. Clearly, the major source of buying during the last gold bull market came from the East with no net participation from the West.
blog.gorozen.com |
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| To: Pianoman1997 who wrote (60392) | 9/14/2021 10:13:54 AM | | From: Wade | | | | | It is very possible. However, Chinese gov. has been tightening the lending and money flow trying to control the leverage of the real estate and the bank reserves for a couple of years. It will be hurt but may not be like Lehman's domino collapse. We shall see. |
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| To: Wade who wrote (60390) | 9/14/2021 4:40:50 PM | | From: Rollocaster | | | | Hi Wade,
Thx for sharing.
Biggest position is TFPM... A solid new comer in the Streaming business.
On the bid for GOAU (interesting holdings), GBR.v (shorted GBRR.ca and rotating proceeds into GBR)
If markets tank.... will watch GOEX (intesting holdings), JNUG, MAG, HL
Watching PT and PLD... very carefully.... The car market makes me hesitate a little though
GTCH interesting story and even more interesting drill results .... Tier2 potential ?
Strategy?
Cash rich, profitable as is, growth story, take over candidate potential, strong near term catalyst, safest jurisdictions only, Precise technical analysis for entry/exist point, no chase, no FOMO, and pay attention to the tape, the Fed tape and the USD tape...
Thinking about my overall Market/Banking exit strategy..... could be sooner than later.... Dilemma.... rotate profits in hard cash physical assets vs going physical 100%... Jury still out on that one. Current political landscape pending various elections here and there could trigger an action sooner than later.
Praying there won't be any civil war or WWIII or 1929/1979/2008 redux ....
The Apocalyptic clock and Shit Show Survey aren't painting a rosie picture on ALL fronts ....
Beside that all is well in the Rotten kingdom of Norway !
Be safe, Best of luck too ! |
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| To: Rollocaster who wrote (60394) | 9/15/2021 2:58:26 PM | | From: Wade | | | | Hi Chu,
Thank you for sharing yours. Pt and Pd are caught at lower car production due to shortage of chips. We have never thought about that. I am out of all of Pt and Pd miners completely. Waiting for re-entry.
Glad to see good movement of KRRGF today. I think investors finally found out this junior producer has only PE of 5.4 and can grow fast. We shall see. |
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