In less than one month, $1.5 Billion dollars (recall Sprott’s SEC filing) lost almost 30% of its acquiring power in regards to physical silver …
This blog site is not a financial investment advice blog and likewise does not claim any kind of proficiency in valuable metals other than just some fundamental common understanding. We do keep track of the precious metals markets for numerous reasons. For one thing, sharp advantage motion in these markets has traditionally been a signal that something abnormal is going on and that self-confidence in the present system may be fluctuating.
How wild have things gotten in the gold and silver markets lately? Less than a month ago, we posted a news note in this blog site short article about valuable metals financier Eric Sprott filing documents enabling his silver fund to buy up to $1.5 Billion in physical silver over the next couple of years. A number of news websites mentioned this news and pointed out that this would be 75 million ounces of silver if the purchases were finished (silver was about $20 an ounce at that time).
Many people do not think silver has peaked yet for several reasons. All over you look there are reports of tight silver supply and anyone desiring to purchase silver in large quantity must expect long wait times to get it. All this attention means millions of individuals all over the world who have paid no attention at all to valuable metals as any kind of investment are all of a sudden interested.
Silver in specific has lots more room to move greater portion wise since while gold is at an all time high, silver is still far away from its all time high near $50 per ounce. Demand for silver in a variety of “green energy” applications is anticipated to grow alongside its need as an investment hedge like gold.
With silver currently in tight supply, here is a bullet point list of some of the more future demand that we understand about now:
— Eric Sprott wishes to buy up to $1.5 Billion in physical silver (millions of ounces)
— the Kinesis monetary system is beginning to come online in Indonesia Users because system will be purchasing physical gold and silver (capacity to include some significant new demand)
— hedge funds, pension funds, etc. are beginning to dip into precious metals as a hedge, silver is a tiny fraction of the multi trillion dollar worldwide investment portfolio ( far less than 1%)
—” green energy” needs to have silver to function— photovoltaic panels, electric vehicles, batteries, and so on. Bank of America simply forecasted a possible future silver price of $50 or more if VP Biden is chosen President due to increased need for energy platforms that utilize silver
— silver has antimicrobial residential or commercial properties that have medical uses in a world just struck by a pandemic
— millennials that formerly were mainly focused on cryptocurrencies appear to be branching out in to precious metals, especially digitized token kinds backed by real metal
— as gold goes higher, silver looks more attractive as an alternative for the average individual who desires a financial investment hedge, but gold feels “too high”
I am not sure if Eric Sprott had all this in mind when he filed for permission for his fund to purchase $1.5 Billion in silver. It looks like if he does invest that much, he won’t be able to buy almost as much silver as individuals talked about the day the filing hit the news wires.
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