The truth is sometimes those who preach the benefits of silver and gold repeat the same old same old. PMs (precious metals) do not have the exclusive on misinformation. Since the beginning of time hunters have exaggerated size of the beast or danger of the kill. Flash forward a few thousand years and the internet provides a breeding ground for the misinformed, this includes precious metal actuality. The challenge for you, the reader, is to sift through fact from fiction, bias from objective. This can be challenging for you and me.
TPS (The Prospector Site) attracts those new to PM in search of more information in hopes of making prudent monetary decisions in an age of economic uncertainty. But some readers are more advanced, PM speaking, and present challenging questions to say the least. One such challenge leads us to ask if too much physical silver exists.
Let me begin by saying Happy New Year to all and thanks for spending a few minutes in search of PM accuracy. I commend each of you for making such a wise decision to at least explore the relativity of silver and gold today. We often discuss how to buy, what to buy and how to safely store silver/gold so feel free to dive into TPS archives for more info or email me, DC Carlton, if you prefer.
The question is how can we accurately compare silver availability to demand? In other words, is physical silver demand greater than mining output or potential output? Plus, is mining output supplemented by an increasing supply of scrap silver, as well? More importantly, how will production and demand effect the value of your stack of silver bullion, rounds or bars?
All great questions, all worthy of an answer, too. Unfortunately, not one person walking God’s green earth knows the answers to the above questions since even those spending a lifetime researching such issues disagree. So, this leaves us with only one last option but fortunately it’s the best option. This is why we’ll do our best to answer the above questions by evaluating the facts.
Fact #1. Silver demand is very relative. Even so-called experts can only estimate future demand. These experts usually base such demand on trends more than anything else, and for one reason. You, my friend, are hard to figure out….monetarily speaking.
Demand is relative to so many things. I would have never believed America would re-elect a president (regardless political affiliation) who approved increasing the national deficit nearly as much in one term as all previous presidents…..impossible. This only proves how quickly opinions change once a society reaches a point of spending addiction.
Natural disaster experts will attest that folks under extreme adversity will eventually broaden opportunity in order to survive. Those with wealth will do exactly the same as they realize their vessel of wealth storage is at risk of sinking.
I still recall the meal in Beijing, China just a few short years ago listened to a couple of European land developers describe the mania of new construction along Spain’s coastline. Now, Spain suffers from catastrophic economic decline with millions taking to the streets.
It’s impossible to factor future demand as our world changes so quickly…..and awakens to the fact another option exists for wealth storage. The ability to trade currency for silver is a growing force more powerful than most imagine. So often we hear of overreaching government chipping away at civil liberties but few connect how a storage of PM wealth is the ultimate liberator.
The combination of sound money liberation and a second currency option fuels the demand side of silver as folks realize the US Dollar has reached retirement age. I only mention this because the USD has lost 95% of its value since the creation of our Federal Reserve Bank.
The world is on the verge of discovering the one currency not negatively affected by monetary debasement and fiscal irresponsibility.
Technology and silver you ask. Even those who support silver’s technological play underestimate silver’s true potential as our world connects via smart phones and tablets. This technology thirsts for silver even it’s only minuscule amounts at a time. TPS often mentions how silver and gold are off the radar but in today’s information age the power of silver and gold are soon uncontainable. The same devices made of silver also help spread the benefits of investing in physical silver.
Fact #2: Silver doesn’t care. Silver doesn’t care if it’s a great wealth equalizer for a central bank or a fellow living in Kansas City. Silver cares not who claws it from the ground or who buries it in their backyard. Silver is an emotionless opportunity of wealth preservation in an age of wealth destruction. Like our European developers, we like to assume silver will always be available but the facts say otherwise.
Latin America’s mining industry blazes in conflict. International mining corporations pour into Latin America but conflict arises when locals question fair wages and long-term environmental impact. It really comes down to greed as even the impoverished understand rising silver demand has the ability to pad empty pockets.
Raise your hand if you truly believe environmental issues will not grow more relevant worldwide. Clean air and water will prevail over mining compromise and this equals one simple outcome. It will grow harder, even in our technological age, to abstract hunks of silver from under the earth’s surface.
Last Words: Well, these are the facts folks. No matter how much silver rests below the ocean floor or planet’s surface it doesn’t change the impact of enormous demand. Silver is now under assault from technological components and from folks, like you, looking for sound money in an age of imaginary currency. My opinion (yes I saved it for last), it’s impossible to have too much silver when 100% of the world’s currency is intrinsically worth zero.
DC Carlton is the founder of The Prospector Site and author of Why Silver and Gold Will Go Higher. Feel free to register here for his free online newsletter that provides precious metal insight rarely mentioned from mainstream media sources