Today’s Chart of the Day examines global silver annual production, demand, and deficit since 1950.
How long can a massive supply deficit continue?
-
Chart courtesy Sharelynx.com
Chart of the Day: Silver Manipulation
Comments
Speak Your Mind
You must be logged in to post a comment.
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
I assume this is the most resent chart for these stats. My understanding is that as of 2012 is that there is still a deficit in mining production and that scrap “from somewhere” is making up the difference in the supply and demand. Clearly at some point in the near future that scrap supply must run out & dry up.
Production and demand have increased 200% in 60 years. The deficit has increased 400% . Silver prices have gone up between 1,500% and 3,000%, $1-2 an ounce to $31 in the same time period. That seems to iron out the supply demand issues, sort of. But in reality it doesn’t accomplish this. The 50 year price increase seem to account for inflation only, not supply deficiencies.
Who knows? But one thing that I’ve seen on chart is that the gap between these 3 lines are getting bigger. They are bigger than they were 50 years ago.
Remember, demand includes the ETF market, that never gets delivered.
Here’s something I’ve never heard addressed anywhere. We all know about the gold to sivler ratio and its odd behavior. Are there any stats regarding the platinum to silver ratio and is this ratio relevant? Both silver and platinum are precious metals with exceptionally valuable commercial applications that have no substitutes. Can someone weigh in on this?
I READ SOMEWHERE THAT PLATNIUM UNLIKE GOLD AND SILVER IS ONLY PHYSICALLY AVAILABLE IN SO VERY SMALL AMOUNTS THAT IT CAN NEVER BE AVAILABLE AS A CURRENCY.
Platinum was a currency in Russia for awhile, not sure when exactly, but they have a larger supply than most countries and it was never world wide usage – Like Gold and Silver
I have also read that Russia used it for awhile as currency but it is very rare and supply cannot be sustained. There is no where near a supply enough for money. Also if you have some cash you should consider buying some but I’m already all in and don’t feel like taking that chance. It took a lot of research to get me into ag and au and I’m spent. So I’m holding these cards and we’ll see where the chips fall.
My take: The graphs show that only at the 1980 peak there was virtually no deficit, meaning that all demand was physical (which includes taking ETF delivery), and only at that point was there real price discovery. Other than that the graphs say very little about price development. If (when) we go to such a situation again — a real physical market that is — the demand will have to fall rather dramatically. That means much higher prices, or a better way to put it: a much lower gold:silver ratio (or gasoline:silver ratio, or Jack Daniels:silver ratio for that matter
It’s interesting to compare the charts above with some ratio charts, such as these: http://www.gold-eagle.com/charts/gegsr.html
Best,
R3K
Are we absolutely sure no large (secundairy) silver mines in China or elsewhere are operating under the the radar here, and their productions dripping into the market in a way that makes it seem like reserves are being used up?
Silver is a nice metal to keep low-profile, especially if you have an operation producing it efficiently.
Not saying there is no deficit, just wondering how sure we are of these figures.
The Silver Institute (a bankster controlled entity) assumes that there are millions of tons of scrap silver available to be melted down and re-enter the market. The problem is that all of the religious silver icons will never be melted down and grandma’s tea service has been long gone to the refinery. I f you go around to at least 5 coin dealers/pawn shops in your area, you will discover that up to a few years ago, each owner would sell perhaps 100 lbs per month each of gold and silver to the nearest smelter/refinery. These days they are lucky to have 5 lbs total to sell. In additional, the Silver Institute claims that the silver you and I are hoarding is part of the silver supply when, in fact at current prices, the phrase “cold dead hands” comes to mind. I, or my grandchildren will sell at no price less than $1000/oz; there will be no mineable silver on the planet within 20 years. What do you think the price will be in year 10? year 15?
Since we live in a crazy world I have built myself a little spreadsheet on gold and silver pricing to keep me focused. We all want the silver to gold ratio to return to normal at some point in time. With all the articles of central banks and China buying gold like there is no tomorrow, gold production waning from lower quality ore and political unrest and the other 99.5% of potential investors to eventually get into the market there is going to be a substantial increase in prices of metals in what I think is the not to distant future. Considering the absolutely ridiculous amount of greenbacks in circulation (many, many trillions of $$ equal to distance between planets and stars) gold and silver will eventually become the worldwide reserve currency. So when Gold hits $32,124 and a ratio of 17 is achieved, 1 thin silver dime is going to be worth $137 with rounding. You may want to add a few dollars for one of those beautiful AU/BU dimes nicely wrapped.
That is certainly an incentive for me to sit on The Retirement Stack as long as possible. Let’s face it — the system is completely bonkers and the bullion banks are really broke already. Someone in whatever gov’t we end up with is going to have to wake up and realize their is a severe silver shortage and the gold and silver ratio will change dramatically in favor of silver when we start using real money again. Over the next few years there are fortunes to be made and safegaurded so I hope we hang in there and stack the phyzz in a nice and orderly fashion so you may keep an accurate account of your holdings. The term junk silver will take on a whole new meaning. Stick to your values and track the stack. Take care.
That’s the gospel I’m singing too. 30 years (at least) until my retirement, and it ain’t looking too good. It’s denominated in Euro’s and inflation correction occurs when there has been good profits from investments. Rarely happens. Dutch pension funds went deep into Facebook, to give you an idea.
I lost my christian gospel as a boy to broken promises and false hope, and this time hope I’ll never see reason to lose the PM gospel.