The physical silver bullion market is seeing a “perfect storm” brewing
according to an article replete with some recent videos about the silver
market by Rory Hall of the precious metals website, The Daily Coin.
From the Daily Coin:
Silver has been money longer than gold. Silver is called the “people’s
money”, while gold is called the “money of kings”.
In the U.S., silver was an integral part of our monetary system until 1964
when it was gradually removed from coins. This change has not slowed the depletion
of above ground silver stocks, nor has it changed the volume of silver being
used, on a global scale, for everything from computers, TV’s, cell phones,
bombs and solar panels to name but a few. Silver is vital manufacturing
material in today’s world and, as stated, is money.
This is to say nothing of the investment demand that has exploded over the
course of the past ten years. Investment demand for silver coins
and bars has never been higher. The U.S. Mint, Royal Canadian Mint and Perth
Mint all set new records for silver in 2015. All three of these mints are on
pace for another new record in 2016. Physical silver is in high demand for
every purpose in which it can be used.
Let’s review some of what we know to be absolute facts regarding physical
silver in 2015-2016 and beyond.
- China and India both have massive solar energy
programs for each country – which requires, literally, tons of silver
- China alone will produce over 100GW (gigawatts)
of solar power by 2020 (they are currently way ahead of this deadline
and may increase the amount of solar power they produce) – this will
power some 300 million homes (100 million U.S. equivalent)
- Morocco has plans to energize over 1 million households
with solar power by 2018
As noted in the following interviews with Jeff Brown, China Rising, China
has been importing raw silver dora bars as well as silver ore/concentrates.
This means China will take all the physical silver available in whatever form
is readily available. This is to say nothing of the fact that China mines
approximately 100 million ounces of silver annually on her own soil!! That is
massive demand for a single item.
Solar Energy Drives Silver Demand in China
Unlocking the Secrets to China’s Silver Demand
If we look at the mining industry, which is how silver comes to market, we
see an industry that has been abused, unloved and drained of capital inflows
for the past 3-5 years. Without mining companies digging silver out of the
ground silver will be completely depleted and we will only be left with above
ground inventory. This will never happen, but the mining industry is a
capital intensive industry and without new inflows of capital, either from
the sale of their product, at a profit, or investment capital, mines begin
struggling and, in a lot of cases, will slow down or shut down the operation
very quickly.
This has been the case over the past several years.
- China is buying, outright, or acquiring
controlling shares of mines around the world – primarily gold mines, but
probably silver mines as well
- First Majestic, a primary silver mining company
was recently contacted by a large technologies manufacturer to directly
purchase silver from the source
- U.S. Mint has, not only sold out 100% of their
stock on three different occasions in the last three years, but have
been rationing sales of American Silver Eagles since June 2015 with no
sign of change for the near future
- U.S. Mint has set new all time sales records of
American Silver Eagles for the past three straight and is on pace for
another all time sales record in 2016 (personally I believe the U.S.
Mint will manage their inventory and avoid a new record in 2016)
- Royal Canadian Mint has set new all time sales
records for Silver Maple Leafs for the past two consecutive years and is
currently on pace to three-peat
- Royal Canadian Mint (RCM), like the U.S. Mint
has struggled over the past two years to keep up with demand. RCM, like
the USMint sold out of product and had to shut down operations until
they could produce enough product to reopen.
- RCM was completely sold out of 10 oz. silver
bars between June 2015 and February 2016 due to a lack of product to
produce the bars!
- Perth Mint, in Australia, set a new all time
sales record in 2015 and is on pace to repeat in 2016
The interview below, with CEO, First Majestic, Keith Neumeyer was recorded
on April 24, 2016. Keith, while not naming the company, explains how his
silver mining company was contacted regarding a direct line of silver for one
of the large technology manufacturers.
Silver, More Rare Than the Market Understands
As you can see owning physical silver may be to your advantage. While the
most popular silver coins in the world are setting new sales records, entire
nations are implementing silver dependent energy sources (solar) and the
companies that can actually deliver the raw material are slowing or shutting
down; this makes for a perfect storm in the silver market.
One last thing. On January 28, 2016 the silver futures market and the
silver spot market (this is where the exchange rate (price) of silver is set)
experienced a “glitch”. The market shut down for approximately 15 minutes
while the “market makers” were attempting to sort out an anomaly that had
occurred. The “glitch” was an $0.80 difference in the future contract price
and the spot price of silver. This was a failure of epic portions by the
people controlling the silver market. Just a few weeks later, Deutsche Bank,
was found to have rigged both the silver and gold markets and within 24 hours
of this unprecedented decision there were two civil class-action lawsuits
brought against Deutsche Bank totaling over $1 billion.
Bill Murphy: All about the Physical Market
The bullion banking cabal is in trouble. The physical silver market is on
fire with demand. Physical silver supply is strained. The storm grows stronger
by the day.
Got silver coins and bars?
Read the article on the Daily Coin here
We recently re released our comprehensive silver interview with Jan
Skoyles in which we discuss many of the key fundamentals alluded to by Rory
Hall. Nothing has changed and arguably the fundamentals are even more bullish
today than they were then.
The Get Real Silver interview with the astute Jan Skoyles looks
at why silver is set to soar again and the vital importance of owning
physical silver coins (now VAT free in UK and EU) and silver bars. It can be
watched here:
GoldCore: Why Silver Bullion Is Set To Soar
Recent Market Updates
– Martin Wolf: There Will Be
Another “Huge” Financial Crisis
– Silver Price To Surge 800% on Global Industrial and Technological Demand
– BREXIT Gold Diversification As Vote Fuels Market Uncertainty
– Gold Forecasts Revised Higher – Citi Says “Buy the Dip”
– Gold Should Rise Above $1,900/oz -“Get In Now!”
– World’s Largest Asset Manager Suggests “Perfect Time” For Gold
– Gold As “Extremely Low-Risk Asset” – Rogoff Advises Creditor Nations
– Silver – “Best Precious Metals Trade”
Breaking News and Commentary
‘Brexit’ could see FTSE sink by over 10%: UBS analyst (CNBC)
UBS Wealth: Brexit could hammer pound to 1985 levels (FT)
Gold dips, on track for fifth straight weekly decline (Reuters)
Gold little changed after ECB; U.S. labour data in focus (Reuters)
Clinton says Donald Trump unfit to have finger on nuclear trigger (Telegraph)
Silver Is “Investment opportunity of a lifetime” – Butler (Silver Seek)
Silver Will Move The Most of All The Metals (Daily Coin)
Massive Movements of Gold and Silver Inside COMEX (Harvey Organ)
Why Technical Analysis Does Not Work for Gold and Silver (24h Gold)
Gold: Short Term Pain, Long Term Gain (Forbes)
Read More Here
Gold Prices (LBMA AM)
03 June: USD 1,211.00, EUR 1,086.63 and GBP 839.34 per ounce
02 June: USD 1,215.50, EUR 1,085.32 and GBP 842.10 per ounce
01 June: USD 1,216.25, EUR 1,090.00 and GBP 841.77 per ounce
31 May: USD 1,210.50, EUR 1,087.39 and GBP 829.07 per ounce
30 May: No Fix as Spring Holiday in UK
27 May: USD 1,221.25, EUR 1,092.16 and GBP 833.50 per ounce
Silver Prices (LBMA)
03 June: USD 16.10, EUR 14.45 and GBP 11.17 per ounce
02 June: USD 15.98, EUR 14.27 and GBP 11.07 per ounce
01 June: USD 15.95, EUR 14.30 and GBP 11.04 per ounce
31 May: USD 16.06, EUR 14.40 and GBP 10.99 per ounce
30 May: No Fix as Spring Holiday in UK
27 May: USD 16.30, EUR 14.58 and GBP 11.12 per ounce
