Silver Eagles / Silver Demand
Silver Eagles / Silver Demand by Rory for The Daily Coin
A quick review and overview of the Silver Report and a review of the American Silver Eagle market. It is not a pretty picture.
The overall supply of silver, according to the Silver Institute was down 3% year over year in 2018 vs 2017. There is a down trend in the supply of silver and in 2018 that trend is crystal clear. While in the video I am focused on the retail aspect of silver coins and bars the chart that is visible clearly shows a down trend for the past several years. It appears that in 2019 the overall supply of silver brought to market through mining and scrap will breach, to the downside, the 1 billion ounce mark. I feel confident this will happen, it is only a matter of how far below the mark it will fall.
Overall the supply side of silver seems to be tightening up and since God is not making as much as He once did, well, the problem is easily seen going forward. Fewer ounces coming out of the ground means fewer ounces in the market. This is further support for my ongoing thesis of much higher silver prices by 2022-2023. Once the current mine supply is dried up, and that is happening at a very rapid rate, we will be left with options for silver coming to market.
If AI, robotics and automation are going to dominate manufacturing and transportation in the next few years, that should mean a lot more silver going into manufacturing to build out the necessary machines to accomplish this goal. Where will the silver come from?
If we look at overall “fabrication” (manufacturer) using silver we see a massive decline in the use of silver over the past decade. This, in my opinion, is a direct reflection of the economy not performing as we are told. If you look at the chart presented in the video you will see a steady decline of about 75 million ounces per annum with the gigantic drop of just over 53 million ounces from 2011 to 2012. The steady decline will continue until our economy is reset and the massive debt burden is dealt with in a realistic manner. You can not have innovation, research and discovery when the entire world is saturated in debt. Silver is telling you this truth in the line labeled “Industrial Fabrication” – not going to happen.
I have a call scheduled with Louis Cammarosano, smaulgld, scheduled for Wednesday April 17 and don’t be surprised if we get into a lot of this at that time. We may not, but I can’t imagine something as juicy as this report not being discussed.