Silver price is up 7% over the last two days, running well ahead of gold's increase. What's going on?
Dang, I should start commissioning mine through you -- I get the exact opposite price action every time I'm thinking about selling.
I think that the silver spot price is basically just a reflection of the ETF tickers at this point. Short term price swings have nothing to do with actual silver changing hands, just means that a person or handful of people bought or sold a buttload of shares recently.
JM Bullion has articles out for the past 3 or 4 years about a silver shortage. It seems silver producers can’t meet the current demands for silver and shortages are coming to light. In 2022 a shortage of 194 million ounces was published. I don’t really follow the market as close as I should but I do buy when it drops and I just hold. I can’t make up last years deficit but as most of you are aware, I do have my private stockpile. The shortages this year are growing and demand can’t be met. Hang onto you hat as the ride may get wild. Only time will tell but then it’s to late to buy.
Maybe this is part of it. First a little background. Years ago I help stock of the Canadian gold company for several years and did very little for the holders, eventually they sold off the place to Fortuna Silver mines. I got busy with other things but kept the stock under the new name. Again not doing so well, but had some spare cash Monday, so I bought some more stock but then this headline came up https://www.marketbeat.com/stocks/NYSE/FSM/ and now I am moderately happy but it still has to go up to meet expectations. Jim
Another reason could be solar energy. In order to provide solar energy photo cells must be used to collect the suns rays. Silver is required in this process. Near me a unknown man or company has purchased over 100 acres. That’s 100 less acres to produce and grow food for humans and farm animals. It looks hideous and it’s growing in size but the move towards renewable energy is growing. It’s the same fir battery driven vehicles. Silver is required and demand is growing. Demand has been and currently is outpacing production and that makes the cost of the metal go up.
Probably attributable to the looming end of interest rate hikes. Lower rates mean a lower opportunity cost for holding a non-coupon bearing asset, such as silver.
You are more patient than I am Jim. Non-dividend paying stocks I might give a few years but then I might look to trim unless I think its a strategic play, (like the Molycorp fiasco I still lick wounds from). Give me a few percent dividend and I can sit on it for a long time. I have a few I have held onto for a surprisingly long time with no movement like JBSAY but I was collecting dividends.
My thoughts actually. In commodities you always have to remember its price is also strongly tied to the strength of your currency you are pricing it in. Its kind of the point, really, offering protection from your currency going to pot. Turkey's citizens are the second largest holders around the world of gold from what I heard. I bet they are happy they had it when their currency tanked.
