Commodity Trade Mantra

Posts Tagged ‘Silver Investment’

Silver Investment has the Potential to Deliver Phenomenal Gains

We are constructive on gold next year but we see more potential upside for silver. While silver has benefited from gold’s unprecedented investor demand, silver’s fundamental supply-and-demand picture is what will drive the price higher next year. This sector has solid fundamentals whatever happens in America two weeks from now.

Global Gold and Silver Produced in 3 Years = Only the Interest on US Debt

The financial disaster taking place at the US costs one heck of a lot of gold and silver. In 2015, the US Federal Government paid $402 billion just to service the interest on its debt. The total value of global gold production in 2015 was $122 billion while that of silver was $14 billion. So the US could purchase 3 times the global gold and silver production in 2015, just by the interest on its debt.

Silver Bull Alive & Well Despite Recent Correction-Weakened Sentiment

Silver has spent most of the third quarter drifting sideways to lower. This has naturally weighed on sentiment, with investors & speculators alike growing more bearish during recent months. Yet silver remains way undervalued relative to its primary driver gold, so the young silver bull market is far from over. Silver’s upside from here is still massive as it mean reverts higher with gold.

Value Of Silver Will Surge Compared To Gold In The Future

Silver is certainly the more undervalued precious metal asset & will likely make one of the best investment strategies of a lifetime. While some readers may say that this is just more hype, the fundamentals provide us a pretty clear picture. That is, if we are able to understand the entire system and how things are likely to unfold. Here are some important factors to consider.

While the Spotlight was focused on Gold, Silver Quietly Outperformed

While investors have primarily focused on gold’s bull run, silver has quietly outperformed the yellow metal. Between Jan. 1 and July 11, the price of silver increased 44.7%, while the price of gold increased 27.7%. The sensitivity of industrial demand to economic factors can make silver more volatile than gold, but recent surge in silver appears to be primarily driven by investors seeking safe haven.

Record Low Silver Inventories may Spark Serious Fireworks in Silver Market

Having hit a new record of 44 owners per ounce – Registered Silver Inventories are at the lowest level in over a decade at 23.3 Moz. Silver Inventories fell as Indians & North Americans were buying record silver bullion. Now the Chinese are not only acquiring a lot of silver for industry, they are now buying silver for investment. We could soon see serious fireworks in the silver market.

Americans Now Lead The World In Physical Silver Investment

The U.S. experienced a huge increase in silver bar demand in 2015 due to the inclusion of “Private rounds and bars” now in the data. So, all private silver bar and rounds sold are lumped into the Silver Bar category. Even though India ranked first place when it comes to silver bar demand, if we include Official Coin sales, the U.S. is now the global leader of physical silver investment.

COMEX Registered Silver Inventories at Lowest in Over 15 Years

In just three days, the total Registered silver inventories at the COMEX fell from almost 30 Moz down to 23.1 Moz. Thus, COMEX Registered silver inventories are the lowest they have been in more than 15 years. What is interesting this time around is that the Registered silver inventories declined from a peak of 70 Moz in the beginning of 2015 to 23 Moz currently on very low silver prices.

Massive Debt Overhang & Energy Crisis Indicate Higher Gold and Silver Prices

The debt in the energy industry and the debt in the system is too high. It’s $6 of debt to get $1 of GDP. It’s a disaster. Now how long can this go on? It could probably go on a little bit longer, but the fundamentals will soon kick in & when those fundamentals kick in, by gosh, paper assets will simply evaporate. All this points to much higher gold and silver prices.

Silver Investment Surge Pushes North American Domestic Supply To Record Deficit

Total sales of Silver Maples & Silver Eagles of 81.3 Moz in 2015 is 33.7 Moz over domestic silver mine supply of 47.6 Moz from U.S. & Canada. This includes sales of Only the two Official Silver Coins. U.S. & Canada had to import 33.7 Moz to produce just these two. While they continue to import silver to meet current silver investment needs, it may not be true in future.

Silver Investment: Switching From A Commodity To High Quality Store Of Value

The collapse in U.S. oil production along with the disintegration in value of most paper assets will cause Silver Investment to be finally based on its high quality store of value properties, not its historic commodity based mechanism. It will no longer matter what the price of oil is. The value of silver will rise as investors move into it to escape the ongoing collapse in paper assets values.

The Coming Market Crash Will Wipe Out Global Silver Supply

The market doesn’t realize it yet, but the coming collapse of the global stock and bond markets will totally wipe out world silver supplies. Unfortunately, this will occur at the time when main stream investors finally understand the value of owning physical silver. The the market is starting to see a huge inflow of new and first-time gold and silver buyers

The Key Future Silver Price Factor: Investment Demand, Not Solar

There seems to be a great deal of hype put forth by the market that rising solar demand will be a key factor in determining the price of silver in the future. While silver consumption in the solar industry may increase going forward, the real cause for much higher silver prices will be investment demand. Why?

Silver Favored During A Financial Crisis - Not Gold

When the U.S. and world stood at the brink of a total economic and financial meltdown in 2008, investors overwhelming choose silver over gold. Which means, when the next much more dire financial crisis appears, physical silver demand will more than likely totally overrun supply.

Silver Buying Only Starting - Investment Demand Awakens

Silver is on the verge of a major breakout following this week’s sharp rally. Silver investment demand varies dramatically with the shifting whims of traders’ sentiment it. And since any market’s prices are effectively set by marginal new buying & selling, nothing is more important for silver prices than investment demand.

Six Questions and Perspectives on Silver

Is it possible that silver could return to its equilibrium price without a concurrent collapse in the world financial system or hyperinflation? Perhaps. But no one can say for sure. At some point silver will be valued like gold is now, out of reach for most of us – but always recognized for what it is and always had been.

Banking Cartels’ Real Enemy: Physical Silver Investment Demand

While gold is a main focus of the Central Bank market rigging apparatus, physical silver investment demand is their real enemy. The reason is simple. Central Banks have gold in their vaults to dump on the market (or to lease) to control the price, but they have very little if any silver for this purpose.

Silver Ready to Run

Silver looks to be on the verge of a major new up-leg, finally emerging from the past couple years’ ugly sentiment wasteland. And while investors’ ongoing silver stealth buying continues, it’s been modest. So there is vast room for capital inflows to accelerate dramatically as gold mean reverts higher.

The Inevitable Upcoming Silver Shortage

The combined demand from Indian silver imports, U.S. Silver Eagles and Royal Canadian Mint Silver Maple Leafs – i.e., the three largest sources of physical silver demand, aside from unreported Chinese imports – have increased by an astonishing 198%, tripling from 93 million ounces, 7 years ago, to an estimated 279 million ounces now.

Indian Silver Imports Setting Up For Another Big Record Year

With strong demand in Oct, India imported 5,535 mt of silver year to date, with two months remaining. If India imports a conservative 350 mt of silver for each of the remaining two months, that would be a little more than 6,200 mt. In 2013, India imported 5,819 mt of silver & US imported 5,080 mt; totaling 42% of global silver mine supply.

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