Commodity Trade Mantra

Posts Tagged ‘Silver Investment Demand’

The End To Manipulation Of Silver Prices Is Near

The rising attention of manipulation of silver prices by silver bullion banks is putting a stop to their behavior. Banks now fear being accused of market manipulation by regulators, which has resulted in banks being cautious of adding liquidity during the daily auction. The result is that the silver market is now unpredictable, and it’s finally free to discover its true value.

Silver Supply Deficit Rises on Stunning Decline in Production -The Impact on Prices

Writing on what is taking place as it pertains to world silver supply isn’t to forecast what the change will do to the price of silver in 2017, but rather how the declining trend will impact the silver price going forward. My focus is not to state that the silver price will be determined upon a single year’s worth of rising silver investment demand, rather to show that the world is waking up to the SILVER STORY.

The Calm In The Precious Metals Market Before The Silver Storm

The word out on the street, as it pertains the precious metals retail sales market, is that investors are no longer waiting on the price of silver to fall to start buying, rather they are now waiting to see what happens to the broader markets. Unfortunately, trying to time the market crash and purchase silver when the situation gets really ugly will likely not work out as many expect.

Do Current Silver Prices Offer a Better Investment Opportunity than Gold Now?

The upside potential for silver prices is undoubtedly greater than that for gold in the next few years. Here are some solid reasons why. And as an investor, or someone just seeking to preserve purchasing power, one doesn’t want to consider what is happening with silver prices right now, but one wants to consider where silver prices will be heading in the future.

Silver Market Set Up For Much Higher Price Move Than Gold

When the paper markets finally collapse, the silver market is set up for much higher price gains than gold. Why? Because the fundamentals show that precious metals investment demand has put a great deal more pressure on the silver supply than gold… and by a long shot. Here are the three crucial reasons why the silver price will outperform the gold price.

Massive Silver Shortages As Silver Investment Demand Surges

The U.S. and Canadian Silver Bar and Coin demand hit a record 133.1 Moz in 2015. That being said, they suffered a 85.5 Moz net physical silver investment deficit. Which means, these two countries had to import 85.5 Moz of silver just to supply Silver Bar and Coin demand. When institutions & hedge funds start to move into silver in a big way, there just won’t be enough silver to go around.

Sales Of Canadian Silver Maples Surge To Highest Record Ever

Last year, there was a huge spike in retail silver investment demand due to the supposed “Shemitah” or the collapse of the broader stock markets. Depite that, the Q1 2016 sales figures of the silver bullion coins were stunning to say the least. It is a big deal because Q1 2016 sales of Silver Maples topped the Q3 2015 record, without surging demand and product shortages.

Young Bull Run In Silver Prices Is Just The Tip Of The Iceberg

When silver awakens to a new bull market after a long bearish slumber, massive gains are usually unleashed. The tiny advance in silver prices (of over +20%: official new-bull-market metric) so far (faring better than gold) is just the tip of the iceberg. Speculators and investors alike are returning as awareness spreads of how radically undervalued silver is compared to prevailing gold prices.

Silver Investment Demand Will Totally Overwhelm The Market

I have said countless times in articles and interviews that silver investment demand will be the driving force for the silver price in the future, not industrial demand. According to the data by the folks at GFMS, total Silver Bar & Coin demand was a paltry 51.2 Moz in 2007. This surged after the U.S. Investment Banking & Housing Market collapse to 240 Moz in 2015.

Silver Imports From The U.S. Continue At Record Volumes

Physical silver investment demand cooled down in Oct & Nov. However, the U.S. imported 557 metric tons of silver in Dec compared to 418 mt in Nov. Now, if we look at the entire year, the U.S. imported nearly 1,000 mt more silver than it did in 2014. Why would silver imports surge in December, if physical investment and industrial demand was lower?

If You Are A Silver Investor, You Have To See These 3 Charts

Silver is down 71% from its peak of $49 in 2011. While many precious metal investors belly ache about the falling paper price of gold and silver, demand for the physical metals continues to rise…. especially silver. To get an idea of how much more physical silver investment is currently taking place, let’s look at the following charts.

Something Broke In The U.S. Silver Market

After looking over all the figures, it seems as if something broke in the U.S. Silver Market this year. By that, I mean the normal supply and demand forces no longer make sense. I believe this stemmed from the massive amount of physical silver investment demand beginning in June as financial and geopolitical events pushed the retail silver market into severe shortages.

Biggest Silver Supply Losers For 2015

As global financial and economic systems continue to disintegrate, this will put more stress on the silver market. Why? Because elevated physical silver investment demand will likely exceed available silver supply in the future. Even though physical silver investment demand has fallen off since the huge spike starting in June, market conditions have impacted supply in a negative way.

Record Eight-Year Silver Buying Intensity Continues

Investors continue on a record eight-year silver buying spree. This multi-year silver buying trend is unprecedented in history. Precious metal investors need to understand just how different this current trend of elevated physical silver demand is. Very few realize that during the rise in the price of silver during the 1970’s, investors were net sellers of silver.

Stunning Development In The U.S. Silver Market

While the current shortage in the retail silver market continues to stress investors as they have to wait 6 to 8 weeks for certain products, it seems to be carrying over into the 1,000 oz wholesale silver market. One of the leading indicators of the wholesale silver market is the COMEX Registered Silver Inventories.

The Coming Silver Shortage - Ted Butler

How much longer can the COMEX-orchestrated price, delay the physical silver shortage and crunch to come? I am confident that once a wholesale physical silver shortage kicks in, that shortage can’t be further contained by derivatives trading & most likely will have to burn itself out the old-fashioned way – by allowing the market to discover the true clearing price.

When The Global Silver Shortage Arrives… It Will Be Too Late

Investors need to realize the market has suffered several retail silver shortages since 2008. Understand that these were “Tremors” for the massive earthquake to come. Who wants to wait for an earthquake to get prepared?? These huge spikes in retail (and minor wholesale) demand are blinking red lights & sirens going off warning of the major global silver run in the future.

The Next Silver Bull May Have Already Started

Silver is down 7.1% this year. Will this weakness persist? If silver moves off its current level of $15 and into the $20 or $30 areas, silver investors could make large gains. We expect silver to hold on throughout 2015 and perhaps even increase faster than gold, if the whole precious metals sector turns positive this year.

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