“Peak Silver” Is About to Rock Markets and Bring Huge Profits to Smart Buyers

“Peak Silver” Is About to Rock Markets and Bring Huge Profits to Smart Buyers by Wall Street Examiner

TDC Note – With the lack of capital inflows into the mining sector for the past decade it is not surprising to see a downturn in mining production – no capital no new mines – no new mines no new production. Very, very simple.

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It’s Economics 101. Price works to balance supply and demand. Limited supply causes higher prices; higher prices help curb demand.

Well, a potentially very profitable twist on that equation is playing out right now in the silver market. Mined silver supplies have been drying up over the past few years, while silver prices have climbed 20% in the same time frame.

But the exciting opportunity for investors is that precious metals, like silver, are among the only assets that can see higher demand when prices rise. It’s just not what normally happens in “regular” markets.

But, to be fair, silver (and gold) are anything but normal markets.

Silver supplies risk falling short of demand for some time to come. In mid-December 2017, I said silver would likely tack on steady double-digit gains before entering a “Tulip Mania”-style profit frenzy.

I think these charts confirm my suspicions. It’s likely we’re in the early innings of spiraling silver prices as more and more investors decide they simply can’t let this bull leave them behind…

Silver Production Won’t Ever Be as High Again

2015 may well have marked a long-term peak in global silver production. That’s when the world’s mines produced 893 million ounces.

The following year, 2016, saw the first drop in a decade, with output falling to 887 million ounces.

Silver

2017 was no better, with production falling another 30 million ounces, to just 857 million ounces.

Forecasts point to a very small increase of 867 million ounces in 2018, up only 1% over the 2017 haul.

But… there’s a very big “if” attached to that small increase.

You see, some of the market’s most significant silver producers face considerable obstacles all over the world.

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Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.