The Bull Case for Silver
You probably noticed that #silver was up almost 7% today! To those who have closely follow this beautiful metal, it comes as no surprise. I think silver will run to $50/oz and beyond. Some think it could go to $100 or even $300 per ounce! Here is why. A loooong 🧵!
$SLV #gold #silverstacker #stacking #silverprice #silvercoin #preciousmetals $GLD #silversqueeze
@SilverInstitute @RafiFarber @jameshenryand @InvResDynamics @silverguru22 @peter_krauth @goldseek @Sorenthek @SilverViperCorp @FMSilverCorp
You probably noticed that #silver was up almost 7% today! To those who have closely follow this beautiful metal, it comes as no surprise. I think silver will run to $50/oz and beyond. Some think it could go to $100 or even $300 per ounce! Here is why. A loooong 🧵!
$SLV #gold #silverstacker #stacking #silverprice #silvercoin #preciousmetals $GLD #silversqueeze
@SilverInstitute @RafiFarber @jameshenryand @InvResDynamics @silverguru22 @peter_krauth @goldseek @Sorenthek @SilverViperCorp @FMSilverCorp
/2 - Silver is a Unique Element
#Silver is a metal with many amazing properties. It’s both the most reflective and conductive metal on earth! It’s also naturally anti-microbial, which is why the pioneers would drop a silver coin inside their water barrels to kill bacteria. With all these useful properties, it’s no wonder that silver is widely used in so many industries. I'll get to some of them in just a sec!
#Silver is a metal with many amazing properties. It’s both the most reflective and conductive metal on earth! It’s also naturally anti-microbial, which is why the pioneers would drop a silver coin inside their water barrels to kill bacteria. With all these useful properties, it’s no wonder that silver is widely used in so many industries. I'll get to some of them in just a sec!
/3 - Silver Demand > Supply
Used in many industries, demand for silver has outstripped supply. To add insult to injury, silver production has dropped in recent years because the price was so low. For three consecutive years now, there has been a world-wide silver deficit. For 2021, 2022 and 2023 the deficits (in millions of ounces) were 51.1, 263.5 and 184.3 respectively. A deficit of 215.3 million ounces is projected for 2024 – the second largest in more than 20 years! The following are just some of the many industries that use #silver ...
Used in many industries, demand for silver has outstripped supply. To add insult to injury, silver production has dropped in recent years because the price was so low. For three consecutive years now, there has been a world-wide silver deficit. For 2021, 2022 and 2023 the deficits (in millions of ounces) were 51.1, 263.5 and 184.3 respectively. A deficit of 215.3 million ounces is projected for 2024 – the second largest in more than 20 years! The following are just some of the many industries that use #silver ...
4/ Demand for Silver - Jewelry
Silver is extremely popular in jewelry, and a much less expensive but beautiful alternative to gold (fueling mid-priced jewelry demand with gold at all-time highs). Sterling silver is extremely popular for earrings, necklaces and bracelets because of its durability. Even though she has gold, my wife's favourite necklace is made of silver from Tiffany's :)
Silver is also trending in many countries. India loves silver! In Egypt, the tradition was to give gold to a new bride or new baby, but it has become too expensive, so many have now turned to silver. Imports of silver to Turkey have been off the charts!
Silver is extremely popular in jewelry, and a much less expensive but beautiful alternative to gold (fueling mid-priced jewelry demand with gold at all-time highs). Sterling silver is extremely popular for earrings, necklaces and bracelets because of its durability. Even though she has gold, my wife's favourite necklace is made of silver from Tiffany's :)
Silver is also trending in many countries. India loves silver! In Egypt, the tradition was to give gold to a new bride or new baby, but it has become too expensive, so many have now turned to silver. Imports of silver to Turkey have been off the charts!
5/ Demand for Silver - Electronics
As a phenomenal conductor of electricity, silver is found in almost all electronics – especially computers and cell phones. It’s found in membrane switches & contacts, circuit boards, and batteries (silver oxide batteries, known for their high energy density, and silver-zinc batteries for their high energy capacity and environmentally friendly nature). Silver is also used in the production of LED & OLED lights, TV screens, microwaves, and children’s toys.
As a phenomenal conductor of electricity, silver is found in almost all electronics – especially computers and cell phones. It’s found in membrane switches & contacts, circuit boards, and batteries (silver oxide batteries, known for their high energy density, and silver-zinc batteries for their high energy capacity and environmentally friendly nature). Silver is also used in the production of LED & OLED lights, TV screens, microwaves, and children’s toys.
6/ Demand for Silver - Medical Field
Due to its naturally anti-microbial properties, silver is a widely used metal in health care. It’s used for water purification, wound care (silver-nitrate is put on burn victims), medical tools, cardiac devices, bone prostheses, reconstructive orthopaedic surgery, catheters and surgical appliances. Silver is also used in dentistry, including for some fillings.
Due to its naturally anti-microbial properties, silver is a widely used metal in health care. It’s used for water purification, wound care (silver-nitrate is put on burn victims), medical tools, cardiac devices, bone prostheses, reconstructive orthopaedic surgery, catheters and surgical appliances. Silver is also used in dentistry, including for some fillings.
7/ Demand for Silver - Aerospace
Silver-coated bearings are able to withstand the stress of high temperatures and continuous operation in jet engines. When steel bearings are electroplated with silver, they become stronger than any other type of bearing, are extremely resistant to corrosion, and offer high-temperature lubricity. This is why silver is used for both commercial and military aircraft.
Silver-coated bearings are able to withstand the stress of high temperatures and continuous operation in jet engines. When steel bearings are electroplated with silver, they become stronger than any other type of bearing, are extremely resistant to corrosion, and offer high-temperature lubricity. This is why silver is used for both commercial and military aircraft.
8/ Demand for Silver - EV Batteries
Silver plays a role in the massive shift to EVs. Every new EV battery produced contains between 25-50 grams (approx. 1 – 1.5 ounces) of silver. In addition nearly every electrical connection in a modern car has silver-coated contacts.
Silver plays a role in the massive shift to EVs. Every new EV battery produced contains between 25-50 grams (approx. 1 – 1.5 ounces) of silver. In addition nearly every electrical connection in a modern car has silver-coated contacts.
9/ Demand for Silver - Solar Panels
Maybe the biggest industrial use for silver is in solar panels, which have been responsible for a significant portion of the growth in annual silver demand. What's more is that the newest solar panel technology requires substantially more silver than old technology, so even if demand for solar panels wanes, this will keep demand for silver high.
Silicon wafers on solar panels are covered with a paste made of silver powder, and when light hits the silicon, the silver carries the electricity to be used or stored in batteries.
Maybe the biggest industrial use for silver is in solar panels, which have been responsible for a significant portion of the growth in annual silver demand. What's more is that the newest solar panel technology requires substantially more silver than old technology, so even if demand for solar panels wanes, this will keep demand for silver high.
Silicon wafers on solar panels are covered with a paste made of silver powder, and when light hits the silicon, the silver carries the electricity to be used or stored in batteries.
10/ Demand for Silver - Photography
Silver is used to make film for classic photography, so obviously demand waned as digital photography has emerged. That said, silver-based film has become sort of a scarce commodity for a growing group of antique and contemporary photographers, and also those who love silver-based instant photographs (think Polaroid). Silver-based film is also used to film many major motions pictures because of its ability to capture detail and colour vibrancy.
Silver is used to make film for classic photography, so obviously demand waned as digital photography has emerged. That said, silver-based film has become sort of a scarce commodity for a growing group of antique and contemporary photographers, and also those who love silver-based instant photographs (think Polaroid). Silver-based film is also used to film many major motions pictures because of its ability to capture detail and colour vibrancy.
11/ Demand for Silver - Home Use
Besides in electronics, silver is found all over the home. Silver nanoparticles are found in laundry detergent, silver sulfadiazine cream is used to previous skin infections cause by second/third degree burns, silver ions are used in water purification systems (home or industrial), and of course many people have luxurious silverware. Other consumer products that contain silver are mirrors, TV screens, and the filters of air conditioning systems.
Besides in electronics, silver is found all over the home. Silver nanoparticles are found in laundry detergent, silver sulfadiazine cream is used to previous skin infections cause by second/third degree burns, silver ions are used in water purification systems (home or industrial), and of course many people have luxurious silverware. Other consumer products that contain silver are mirrors, TV screens, and the filters of air conditioning systems.
12/ The Gold-Silver Ratio
The gold-silver ratio measures the relative value of an ounce of silver to an ounce of gold. In other words, how many ounces of silver it takes to buy a single ounce of gold. Back in the day, when money was backed by gold, the US gov't had the gold/silver ratio pegged at 15 to 1 (15 oz of silver to buy 1 oz of gold). Now the free market decides. The ratio currently sits at around 76 but was almost 90 just a few weeks ago! Silver price broke long term resistance to the upside and has been rising at a faster pace than gold, so the ratio has been drifting downward and has just broken through two long term levels of support. The ratio may not return to 15, but maybe we’ll see it drift down to 31, where it was in 2011. Typically when precious metals rally, silver performs better than gold (it’s more volatile). Gold has been rising for a while … now it's silver’s turn to catch up (and it is!)
The gold-silver ratio measures the relative value of an ounce of silver to an ounce of gold. In other words, how many ounces of silver it takes to buy a single ounce of gold. Back in the day, when money was backed by gold, the US gov't had the gold/silver ratio pegged at 15 to 1 (15 oz of silver to buy 1 oz of gold). Now the free market decides. The ratio currently sits at around 76 but was almost 90 just a few weeks ago! Silver price broke long term resistance to the upside and has been rising at a faster pace than gold, so the ratio has been drifting downward and has just broken through two long term levels of support. The ratio may not return to 15, but maybe we’ll see it drift down to 31, where it was in 2011. Typically when precious metals rally, silver performs better than gold (it’s more volatile). Gold has been rising for a while … now it's silver’s turn to catch up (and it is!)
/13 - A Hedge Against Instability in Fiat Currency
Historically, currencies were backed by physical silver and gold, but fiat money isn’t backed by anything tangible. It’s solely based on the creditworthiness of the issuing government. If governments continue to print incomprehensible amounts of money, many question the stability of fiat currency and look to silver and gold as hedges against the devaluation of the dollar and other currencies.
Historically, currencies were backed by physical silver and gold, but fiat money isn’t backed by anything tangible. It’s solely based on the creditworthiness of the issuing government. If governments continue to print incomprehensible amounts of money, many question the stability of fiat currency and look to silver and gold as hedges against the devaluation of the dollar and other currencies.
/14 - Silver is a Hard Asset
In a world where most of our wealth is digital – numbers on screens and monthly statements – silver is a hard asset. This means you can put in your pocket and take it with you in the event of an emergency or cyberattack. Someone can erase a digital asset, but not silver. Though these risks may seem unlikely, it’s still nice to have a portion of your wealth in precious metals as a hedge. Silver stacks can also be held as privately or confidentially as you like.
In a world where most of our wealth is digital – numbers on screens and monthly statements – silver is a hard asset. This means you can put in your pocket and take it with you in the event of an emergency or cyberattack. Someone can erase a digital asset, but not silver. Though these risks may seem unlikely, it’s still nice to have a portion of your wealth in precious metals as a hedge. Silver stacks can also be held as privately or confidentially as you like.
15/ - Tax Reform in U.S Benefiting Silver and Gold
45 states have dropped sales tax on buying gold & silver, and 13 states have scrapped state capital gains tax. There is growing momentum across America to recognize gold and silver as legal tender. This will make silver more attractive as an investment vehicle.
kitco.com/news/article/2…
45 states have dropped sales tax on buying gold & silver, and 13 states have scrapped state capital gains tax. There is growing momentum across America to recognize gold and silver as legal tender. This will make silver more attractive as an investment vehicle.
kitco.com/news/article/2…
16/ - Conclusion ... Silver Will Rally Further
For all these reasons (and more), silver is going parabolic! Shorts are feeling the pain of the #silversqueeze :) From here I think we'll see resistance at the $32 range until we break through to challenge 2011 highs at $50. It's a good time to be a #silver bull!
For all these reasons (and more), silver is going parabolic! Shorts are feeling the pain of the #silversqueeze :) From here I think we'll see resistance at the $32 range until we break through to challenge 2011 highs at $50. It's a good time to be a #silver bull!
17/ - I like Silver Bullion
You can trade silver ETFs, silver futures & CFD contracts, or even silver mining companies/producers. But I like to own #silver bullion. Since I mostly trade stocks, having physical silver is just super fun (it just "hits different", as my son would say!) Here are some pictures of my silver stack (maybe one day I'll post all my entire stack) ...
You can trade silver ETFs, silver futures & CFD contracts, or even silver mining companies/producers. But I like to own #silver bullion. Since I mostly trade stocks, having physical silver is just super fun (it just "hits different", as my son would say!) Here are some pictures of my silver stack (maybe one day I'll post all my entire stack) ...
https://x.com/cdnstocktrader/status/1788324814819565833
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