BY SRSROCCO,
When the world starts to move into the precious metals to protect wealth, silver will be the better investment over gold. Why? I will explain in a minute. However, the question that I receive the most from my followers and subscribers is, “What percentage of precious metals holdings should be in gold and silver?” While I cannot provide financial advice, what I can say is this… due to the real SUPPLY & DEMAND forces in the future, silver’s value will outperform gold by a wide margin.
And, when we look at the supply and demand factor for silver, we must consider the largest component of the market, industrial demand. For decades, analysts have shunned silver because of the typical knee-jerk reply, “Silver is just an industrial metal.” Even many of the individuals who belong to the “Elite Gold Club” also scorn silver as they say, “It is not a monetary metal.” I won’t mention names, but the Elite Gold Club Aficionados couldn’t be more wrong.
Silver is just as good as gold because they both are STORES OF ENERGY EQUIVALENT VALUE. However, the energy equivalent value isn’t the only factor that determines the value of each. We also must include the “Available quantities of each metal.” For example, in ancient times, if the society had two times more silver than gold, the value of gold was set at twice that of silver. It didn’t matter if gold may have cost ten times more in energy cost (human & animal labor) to produce; the value was based upon the prevalent total supply of each in the market-society.
I believe we are going to experience the same GOLD-SILVER SUPPLY & DEMAND dynamics again in the future.
So, if the supply and demand dynamics play a role in determining the value of silver in the future, we must understand how much silver has been lost in the industrial sector. As I have stated several times in previous articles and videos, we can thank silver for its industrial demand component because a massive amount of supply is now lost forever. Some analysts suggest there is a great deal more silver in what they label as “Above-ground inventories” in the world but fail to mention that the majority of that amount is locked up in industrial components-equipment and landfills never to be recycled.
To provide an estimate of the lost silver supply from the industrial sector since 2000, I looked at the data from the Silver Institute’s World Silver Survey’s and the Metals Focus 2015 Silver Scrap Supply Report. This is just a basic estimate, which I will revise in more detail for SRSrocco Report Silver & Gold Members in an upcoming report.
However, since 2000, the Industrial and Photographic sectors of the silver market consumed 11.5 billion oz of silver. The estimated total recycled silver from the industrial and photographic sector was approximately 3.5 billion oz. In the last two decades, 8 billion oz of silver supply is likely lost forever.
Thus, 70% of total Industrial and Photography consumption over the past 20 years is no longer available to the market. I believe, gone forever… or let’s say, the overwhelming majority of that 8 billion is likely lost forever.
Now, if we add up the total silver demand from 2000 to 2020, it equals a bit more than 20 billion oz. So, with 8 billion oz of the 20 billion unavailable to the market, that equals 40% of the total market is now somewhere in SILVER HEAVEN. Compare that to only 7-8% of the gold supply lost in the industrial-technology sector over the past decade (2010-2020). I will also include my estimated lost gold supply in the upcoming report.
Silver investors should rejoice that the shiny metal has been shunned as just an industrial metal by analysts. These same analysts are clueless about the coming ENERGY CLIFF and its impact on the global economy. Because so much of the silver mine supply has been lost by industrial consumption, it will provide investors with a RARE OPPORTUNITY. And that opportunity is to invest in a metal that will outperform gold, regardless of what the Elite Gold Club Aficionados say otherwise.
Source: https://srsroccoreport.com
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God is crashing all of it! How about that for a new way of marketing?!