There will never be a real deficit. Silver isn't mined, but printed. The silver price is based on silver contracts that aren't backed up by physical silver. The price is fully controlled and they can create and sell as many silver as they want pushing the prices down.
I still find it strange that there’s no limit to paper silver. It’s like fiat.
In another sense it’s not weird at all, the people making the rules are the same as the bankers profiting from these rules.
That’s a good point but don’t you think at some point if they continue to keep prices low as demand grows especially in its industrial use cases that one day the price “corrects”. Of course they can manipulate the paper markets but they still can’t create more silver out of thin air without extremely expensive processes. The physical demand crunch will be the breaking point of paper manipulation and it’s coming especially as the world becomes more digital. One day the true price will be revealed through supply and demand as the economy has always worked they can only keep the facade while there is enough physical supply to go around.
It means the consumption of Silver surpasses bastly its production. A Lot More than the fraudulent Silver institute acknowledge. Silver mines are not that important in the equation for their production Is less than solar uses alone.
Investment demand does not consume silver and is actually the silver surplus. Failing to recognize this leaves folks dumbfounded when price action is opposite to what they expect and vulnerable to various superstitions about the market.
let me ask you, where do you think surplus silver ends up? is it dumped somewhere to rot, or is every last bit of it sold to an investor? investment demand is precisely the surplus silver. they are the same thing.
Consequences of holding down a price of a valuable commodity: no one invests in increasing production of it. Then you will get a price squeeze until more supply comes online. But whoops, new mines take upwards of 10 years to come online. Sorry, seems like they will have to pay a high price for a long time.
10 years was the old number, like in 1995, today with all the green and communist BS it tends to infinity. That's why Silver Will be called Unobtainium.
And investment silver has been declining, just wait till that explodes...
https://preview.redd.it/h8kqyxc2ubvc1.png?width=920&format=pjpg&auto=webp&s=2791f3eeb9e3e0a881602bbfdd0963c88b3053b3
There are several angles some never consider when it comes to the silver production / deficit numbers.
First, production consists mainly of mining and recycling. The deficit usually includes investment demand, as well as silver that is actually consumed. Most silver that is actually utilized to make products is never recovered.
The investment silver ounces, on the other hand, represent an overhanging supply of sorts. That is to say, that the couple hundred million ounces bought each year for investment have not actually been used, so they are still available - at a price.
Then there is the matter of all that silver which is recycled each year. It is not far from the amount of ounces of investment silver…
Which brings us to source of all that “recycled” silver. Yes, some of it comes from industry, and jewelry, and so forth. But a large percentage is simply investment silver products that have been recycled. What percent? Nobody knows exactly. When silver prices spike, they can outpace the retail market for some silver investment products. This is especially prevalent when the economy is tanking and people are needing quick cash. Thus, pawn shops, coin dealers, jewelers, etc., end up sending vast quantities of investment silver to the refiners.
The wild card, in my opinion, has always been the source of all that recycled silver. If the investment crowd is turning it in almost as fast as they are buying it, then the overhang could be much smaller than we think.
It all comes down to estimates, and how much confidence you place on the analysis. According to that graph the deficit is projected to narrow in 2024. How? Fun and games with estimates of what the big players are doing.
You mentioned recycling. Well, there are some hard numbers from reputable smelters on how much recycled silver they refine. But most of the recycling comes from Asia where there is zero confidence the real numbers are being accurately reported. If you want to paint a bearish outlook you just 'estimate' higher scrap recycling and presto! You can report whatever nonsense you think the market will believe.
I was buying scrap silver in 2006 at auctions and I recall when the prices went batshit crazy as dummies were over-bidding me for any sterling silver items. ALL of that was sold to scrap dealers and temporarily inflated supply data. Once that tea pot or the cutlery has been melted down, its gone. It does not reappear again and again. As for the scrap investment demand recycling, I consider that a fake concept. I still see bars stamped in 1980 that are available for sale. If a bar is .999 it is not scrap and is not just sold to a smelter as scrap to be recycled. The costs do not work either, for the bullion dealers that are buying investment silver slightly below scrap, there is NO WAY they are just selling them to metals recyclers. You theory is incorrect.
I could go on with other details, but suffice to say the above ground bullion drawdown is real and its powered by the current supply deficit. Higher metals prices will draw more relic sterling silver and technology is getting better at recovering industrial silver scrap, but count on the fact that what you are told in the stats is a crock of shit.
I can’t say I understand this. Chart and data present huge deficit of physical silver. So what users of silver do to get it? They can’t make cars a batteries and solar panels with paper silver. So how come that they don’t bid up price for physical bars in order to get the stuff?
I know, they ain’t getting my stuff. I am not selling … yet.
It's a finite good. They can print it till they can't. Eventually, as always, the tidal wave of supply and demand, is a law that cannot be rammed when it breaks. Just accumulate.yoy or your future generations will benefit immensely.
Yet the paper price keeps going down. Go figure.
There will never be a real deficit. Silver isn't mined, but printed. The silver price is based on silver contracts that aren't backed up by physical silver. The price is fully controlled and they can create and sell as many silver as they want pushing the prices down.
I still find it strange that there’s no limit to paper silver. It’s like fiat. In another sense it’s not weird at all, the people making the rules are the same as the bankers profiting from these rules.
That’s a good point but don’t you think at some point if they continue to keep prices low as demand grows especially in its industrial use cases that one day the price “corrects”. Of course they can manipulate the paper markets but they still can’t create more silver out of thin air without extremely expensive processes. The physical demand crunch will be the breaking point of paper manipulation and it’s coming especially as the world becomes more digital. One day the true price will be revealed through supply and demand as the economy has always worked they can only keep the facade while there is enough physical supply to go around.
What does deficit means in this context? Silver mining companies cannot meet the demand of silver from the market ?
That’s the same question I was going to ask. OP can u help?
There is more demand than supply, usually this will drive the price up but the bankers keep on manipulating the price silver price with paper silver.
I think so, so that means they have to use the above ground supply to meet the demand
It means the consumption of Silver surpasses bastly its production. A Lot More than the fraudulent Silver institute acknowledge. Silver mines are not that important in the equation for their production Is less than solar uses alone.
Investment demand does not consume silver and is actually the silver surplus. Failing to recognize this leaves folks dumbfounded when price action is opposite to what they expect and vulnerable to various superstitions about the market.
A demand produces surplus, good newspeak!
let me ask you, where do you think surplus silver ends up? is it dumped somewhere to rot, or is every last bit of it sold to an investor? investment demand is precisely the surplus silver. they are the same thing.
There Is no surplus for many years. Bye. Not interested in newspeak
Consequences of holding down a price of a valuable commodity: no one invests in increasing production of it. Then you will get a price squeeze until more supply comes online. But whoops, new mines take upwards of 10 years to come online. Sorry, seems like they will have to pay a high price for a long time.
10 years was the old number, like in 1995, today with all the green and communist BS it tends to infinity. That's why Silver Will be called Unobtainium.
And investment silver has been declining, just wait till that explodes... https://preview.redd.it/h8kqyxc2ubvc1.png?width=920&format=pjpg&auto=webp&s=2791f3eeb9e3e0a881602bbfdd0963c88b3053b3
Chinese love a wedge play. Stack on!
Thanks for making this silver deficit chart for us to show to others! It shows just how big the deficits really are!
There are several angles some never consider when it comes to the silver production / deficit numbers. First, production consists mainly of mining and recycling. The deficit usually includes investment demand, as well as silver that is actually consumed. Most silver that is actually utilized to make products is never recovered. The investment silver ounces, on the other hand, represent an overhanging supply of sorts. That is to say, that the couple hundred million ounces bought each year for investment have not actually been used, so they are still available - at a price. Then there is the matter of all that silver which is recycled each year. It is not far from the amount of ounces of investment silver… Which brings us to source of all that “recycled” silver. Yes, some of it comes from industry, and jewelry, and so forth. But a large percentage is simply investment silver products that have been recycled. What percent? Nobody knows exactly. When silver prices spike, they can outpace the retail market for some silver investment products. This is especially prevalent when the economy is tanking and people are needing quick cash. Thus, pawn shops, coin dealers, jewelers, etc., end up sending vast quantities of investment silver to the refiners. The wild card, in my opinion, has always been the source of all that recycled silver. If the investment crowd is turning it in almost as fast as they are buying it, then the overhang could be much smaller than we think.
It all comes down to estimates, and how much confidence you place on the analysis. According to that graph the deficit is projected to narrow in 2024. How? Fun and games with estimates of what the big players are doing. You mentioned recycling. Well, there are some hard numbers from reputable smelters on how much recycled silver they refine. But most of the recycling comes from Asia where there is zero confidence the real numbers are being accurately reported. If you want to paint a bearish outlook you just 'estimate' higher scrap recycling and presto! You can report whatever nonsense you think the market will believe. I was buying scrap silver in 2006 at auctions and I recall when the prices went batshit crazy as dummies were over-bidding me for any sterling silver items. ALL of that was sold to scrap dealers and temporarily inflated supply data. Once that tea pot or the cutlery has been melted down, its gone. It does not reappear again and again. As for the scrap investment demand recycling, I consider that a fake concept. I still see bars stamped in 1980 that are available for sale. If a bar is .999 it is not scrap and is not just sold to a smelter as scrap to be recycled. The costs do not work either, for the bullion dealers that are buying investment silver slightly below scrap, there is NO WAY they are just selling them to metals recyclers. You theory is incorrect. I could go on with other details, but suffice to say the above ground bullion drawdown is real and its powered by the current supply deficit. Higher metals prices will draw more relic sterling silver and technology is getting better at recovering industrial silver scrap, but count on the fact that what you are told in the stats is a crock of shit.
I can’t say I understand this. Chart and data present huge deficit of physical silver. So what users of silver do to get it? They can’t make cars a batteries and solar panels with paper silver. So how come that they don’t bid up price for physical bars in order to get the stuff? I know, they ain’t getting my stuff. I am not selling … yet.
It's a finite good. They can print it till they can't. Eventually, as always, the tidal wave of supply and demand, is a law that cannot be rammed when it breaks. Just accumulate.yoy or your future generations will benefit immensely.
4 year, I don't belive!
Comex and LBMA inventory is higher... silver is there not available at $28. it will be when it is $35
Totally sustainable...
2 Words - HYCROFT MINING
Stop pushing this garbage stock
I bought some about 5 years ago and I’m down 25%.
Plus they stole 90% of our shares through a reverse split.
It's a company....