All fingers pointing to SILVER reaching that 'milestone' ONE Billion ounce demand in 2018
Yet, we are expected to be in another defecit due to mines producing less. Report link below
Highlights:
- Silver demand from industrial applications (60% of demand), is expected to continue to grow this year.
- Jewelry demand is expected to continue its steady increase in 2018 (20% of demand)
- Coin demand in 2017 was minus 50% @ 73 million oz, but is expected to increase this year
- Silver exchange-traded-products (ETP) holdings achieved a record high at 670 Moz at the end of 2017
- India is gobbling up silver +50% in 17, ate up 183 million oz's. about the same demand expected this year
- Global mine supply fell 2% to 870 Moz in 2017
Commentary: Does anyone see the big picture - we are expected to use up over 1,000,000,000 oz's of silver this year, yet mines produced 870,000,000 oz's in 17
Key point taken from all this: Deficit
Read here:
https://www.silverinstitute.org/2018-silver-market-trends/
Sources:
The Silver Institute
Thomson Reuters
The price is artificially low. $16 - $17 is a very discounted price per oz. Who knows what it's actual value is, but we can get a hint from history:
So 15:1 silver/gold ratio, with gold @ $1340.90 (assuming that's an accurate value), silver should be valued 1340.90/15 = $89.40 today.
That means that silver is discounted about 81.4% from it's natural value. And it's in higher demand than gold. A high demand, heavily discounted commodity.
@ironshield
Great addition! thanks. The reason it may be manipulated so artificially low is because of the very reason it should go up in price - Massive demand. Think of all the companies that might go out of business if silver reached that price...
Yes, I would imagine a lot of industries that take silver prices for granted will hit some very hard times.
I wonder if the (artificially) low price has a lot to do with it's high demand. My guess is that if/when silver returns to it's actual value, the demand will decrease dramatically. But the SCARCITY remains from all these years of using this valuable metal as if it's value is under $20/oz. @ironshield
With silver integrated in almost everything in our life I don't expect the demand to decrease dramatically, rather for the cost of life to increase! * in my opnion*
I suppose that's more likely. It's difficult to wean off such a useful metal. @ironshield
The silver price will go up this year due to more than your 6 reasons. You forgot number 7 which is the second global economic crisis or the big reset of 2018.
Great job filling in that lucky number spot
I think it will go up. Just with all you have been posting about all the uses and everything that it is in. The world need silver to continue to grow. Great 6 reasons. Looking forward to silver shooting up
with global fiat out of control printing/generating -1/0's - there is only one way for this historical real money wonderful super element to go...
I wonder how long they can artificially manipulate the price to it's current lows. Given all the usage at a deficit that has been happening for several years now. Some ask why I am more into silver than gold, I like gold better but silver has more potential for gains in the future. I'm 30 years away from retirement, I have time to wait for the prices to see their fair value.
You are so correct! that silver is so massively manipulated because the demand is so high. I do forsee in our lifetimes for many 'real' things on this earth to reach their fair value price and many fake things will be proven fake!
One day these fundamentals will be too big to ignore and influence price.
true, there are a few of us that wake up every morning just to see if we have woken up
Curious if any of your research you found how much silver is currently being reclaimed from jewelry, coins, and electronics? Could this be temporarily filling part of the gap?
You are correct! Scrap silver metling does fill a gap - but a small one at the moment - watch if the price of silver doubles - it will be like 1980 all over again - front page adds with people wanting to buy your silver
hoping for a great year in silver and if not well HOLD'em
thanks for the post.
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