While all the fundamentals are there and we see and know most of them AG is also the most pumped of all metals. Occasionally go on and read the comments especially on the big silver pumping channels...the expectations are ridiculous-1:1 gold, $1000usd,etc crazy shit from people tripping,desperation or unlimited imagination
small market,easy manipulation. Im ignorant and inexperienced only been doing this afew years now but have time to keep learning and stacking but AU has left me with lasting love...and decent growth, plus that golden glow! Beautiful,blinding
for the 1st few years i was hypnotized, still am but learning a lil restraint
I don't think it's that far fetched that silver could go through a period of extreme price rises and reach $1000 or 1:1 parody with Gold. IMO it's not likely to happen in the near future but we cannot ignore what silver is and the role it plays in our lives.
Some points to consider:
- The modern world has never seen a real physical shortage of Silver. The closest we've been was in the 1960's and the decision to remove silver from our coinage was simple, as silver was easily be substituted with copper, nickel and tin. The same cannot be said for Silver's use in industry.
- Because silver is so necessary (the second most useful commodity on the planet), it would require a total shift and evolution of the markets, along with innovation, investment and a complete restructuring of our manufacturing processes. We must ask ourselves what that would look like? The whole world would need to come to a halt if silver were to be abandoned. That would never happen. Innovation would be needed but such a transition would take time and would command a collective effort and incredible investment on a global scale to become a reality.
- Once a real physical shortage arises, the amount of companies that would be competing for silver would be endless. This would extend far beyond the consumer market and directly impact global and national infrastructure projects, communications and the military.
- What would happen when industry needs a metal for society to function and it's not available? Allocation to mints would be restricted, investment grade Bullion would become scarce; all while interest in the metal increases exponentially due to rapid price increases. Something would have to give and the easiest targets will be the first to go, which is the jewellery and Bullion markets. What do you think would happen to existing coins and bars during that period? The premiums would go through the roof and the relationship to spot price for Bullion would begin to dissolve via excessive premiums.
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There's so much to unpack when looking at the future of silver. I completely agree that Silver is pumped up by permabulls talking their game. They often hype the metal so hard and give the impression that silver will be worth $1000's in a matter of years. I don't subscribe to that BS but I certainly won't ignore the very unique predicament Silver's in, and the insane potential of any resource that's relied upon so heavily with rapidly dwindling reserves. The only thing that's prevented silver from reaching triple digits and beyond is the aboveground stockpiles and the intention to utilise them to keep Silver's price suppressed.
The question is (and always has been): how much is really left and how long can this continue. The recent developments over the past few years indicate we're nearing the end of cheap silver. We've witnessed a 40% increase in Silver's price from the February lows this year. Imagine what silver could do when there's a real physical shortage! $1000 silver or even 1:1 with gold is well within the realms of possibility once you factor everything in. It may not be industry spot price that gets us there but it very well could be premiums on investment grade Bullion.
