By SD Contributor AGXIIK:
The silver price is inelastic when it comes to the production of mission critical products ranging from war fighting materials that can use many ounces per unit to cell phones. The winds of war are blowing and China is stowing silver by the hundreds of M OZ. Whether the price is $30 and ounce or $150, the amount of silver will be an immaterial consideration to the overall purchase pricing. It might be a $5 in a phone to $150 of silver per solar panel. No one will care as millions of IPhudds and Phablets fly off the shelves. Panel prices range from $1,200 to $2,000. The silver component at $150 is bupkes. If a company or country like Japan or China needs solar power they will pay the price. Power trumps silver prices. Consumer demands trump silver prices. Absolute and vital products availability trumps silver prices.
It may come down to a situation where the low $30′s price of silver will be seen as the good old days. The entire world is waking up to the vital aspects of precious metals. When the average person become aware of these issues, the status of the US Mint shutdown will be headline news. 6 MOZ of ASE coins sold in 2 weeks is the bellwether of an impending crisis.
SDBullion’s new 2013 Silver Buffalo round is available now as low as .99 over spot!
A few months ago I did a little research on silver content of certain electronic items. Solar panels will use about 60 million ounces in 2013. About 20 grams of silver are used per panel. Smart phones require anything from less than a portion of a gram to 2-3 grams depending on the screen and size. TV and computers use as much as 5-10 grams. Hospitals are absorbing silver to tamp down the antibiotic resistant super bugs like MRSA. Use total there is unknown.
Silver price is inelastic when it comes to the production of mission critical products ranging from war fighting materials that can use many ounces per unit to cell phones. The winds of war are blowing and China is stowing silver by the hundreds of MOZ. Whether the price is $30 and ounce or $150, the amount of silver will be an immaterial consideration to the overall purchase pricing. It might be a $5 in a phone to $150 of silver per solar panel. No one will care as millions of IPhudds and Phablets fly off the shelves. Panel prices range from $1,200 to $2,000. $150 is bupkes. If a company or country like Japan or China needs solar power they will pay the price. Power trumps silver prices. Consumer demands trump silver prices. Absolute and vital products availability trumps silver prices.
Silver prices have gone from $8 to $30 in the last 5 years . Inflation’s been 10% in that time period. Lines form out the door for new products containing silver. Wait until those are lines are outside the LCS.
Power production is a life and death situation in Japan, now spending $100 billion of natural gas to replace power from their shut down nuclear plants. This one factor of trade deficits got Abe elected. He started the Yen devaluation process which is creating some real problems in China and the US as Japan struggles to shake off their debt, power and negative balance of trade problems. While these problems do not all reflect directly on silver supply and (lack of) availability, they are important aspects of silver shortages as entire economies revolved around precious metal availability, either as a cultural or industrial consideration. The lack of supply of silver could get really wicked in short order.
Like politics and banking, nothing happens by accident in the world of precious metals, particularly silver. It may not affect the average person’s life if they have to wait weeks for silver but waiting days for silver is going to become unacceptable to some.
This assumption might be a bit of a stretch but the recurring theme of precious metals keeps cropping up in so many discussions, even to Japan pension plans starting to buy gold and China forming silver trading platforms. Indian central bankers are freaking out over their balance of trade problems and devaluation of Indian currency due to the hundreds of tons of gold and thousands of tons of silver being purchased presently by Indian consumers and businesses.
It may come down to a situation where the low $30′s price will be seen as the good old days. The entire world is waking up to the vital aspects of precious metals. When the average person become aware of these issues, the status of the US Mint shutdown will be headline news. 6MOZ of ASE coins sold in 2 weeks is the bellwether of an impending crisis.
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Special this year. Selling off one half of my ASE’s! As you all now have confidence that Silver is going to $200 an ounce, I am offering an advance sale of $100.00 each….a 100% chance of doubling your money!!! Operators are sitting and standing by!!! Act now, avoid the rush!!!
You slick devil! Hell, I’ll sell you all you can handle at 75. each. By the way, are they REAL or COUNTERFEIT? Remember what I have been PREACHING on this site: Screw the premiums on AEs, buy ‘junk’ silver. When they start counterfeiting old worn out dimes, quarters, and halves, then you know its over!
BUY JUNK.
Ranger, ha ha ha. (sarc). Only someone that completely misunderstands how a market works would find that funny. There’s too much hope on this website. The silver price must be ready to take down the wild fantasy bullishshitness like that and the multitudes proclaiming “Silver to go to $500″
I will sell my stack of silver eagles for $15/oz as long as you never take delivery or ask to see them. Included is a handsome certificate commemorating your purchase suitable for framing.
LOL@UD!!!
Yep, and all those industries stated are controlling prices with Paper!
So when will silver hit $100 again? Next week or in 10 years?
Mr Boompl drink 1 bottle of hopium, run around the block 10 times and silver will AGAIN be $100 (you must mean per tonne?)
If you want to mindlessly follow other people’s opinions, why don’t you follow Obama? He’ll tell you so you will have no doubt and he’ll do it with charisma!
Or maybe when is it that, say, 100 pennies will revert back to their 1913 purchasing power? Gotta say, my money is on silver.
Weapons, Medicine, & Electronics:
Sorry AGXIIK but theirs a bigger demand for all of those put together. ME AND THE PUBLIC. LMAO Keep Stacking
Does anybody know how much silver drone electronics use?
Swapping silver for copper: http://www.renewableenergyworld.com/rea/news/article/2012/07/pv-technology-swapping-silver-for-copper
The pricing power/inelastic demand of silver in industrial processes can only be sustained if their are no cheaper substitutes. Silver used in solar panels missed their optimistic exponential forecasts, and in the fourth quarter silver use in solar panels fell while solar panel production increased. (Reuters had a piece on this).
Industrial demand for silver is unknowable — you have to know the technologies inside out, and future innovations which is impossible.
Money printing is driving up the price of everything, and it is perceptions about the future monetarization of silver that is the BIG driver of silver prices. Since silver was demonetized from the 1800s until 1964, and former monetary stockpiles have been constantly sold over this time period, which continues up to today (e.g. tableware being liquidated in 2011). See Savoie article The Silver “Stealers”.
Reliability of panels made with less or no silver is still an unknown so I wouldn’t jump on that bandwagon just yet.
Funny you should say that Charlie. The buying public is probably the largest consumer of silver now. The little guys are the bulk of that purchasing and the factor that can break us free from this low trading range. Keep stacking.
….and make SURE you are stacking 90% junk silver, not the COUNTERFEITING kind…and paying a PREMIUM for the honor, no less. Unbelievable!
there are counterfeit halves out there and I have heard quarters too.
Nice article, AG!
I did get a new investment info magazine stating that GRAPHENE can do some of the things well that
only SILVER could do in the past.
1. Good Conductor (better than Copper)
2. Good HEAT Conductor
3. Cheaper than metals for similar uses
4. Anti-Bacterial (like SILVER)
This info did not compare Graphene to SILVER in any way, but it did list these “facts” above.
Graphene is still not produced in large quantities, but Graphite (which is purified and assembled on an atomic scale)
is the ingredient in Graphene, and it is $1/POUND. Graphene may be quite costly at first, but probably cheaper than Silver. ?!?
Realist. I dn’t know how much silver a drone uses but maybe I should say
Don’t Drone me Bro, just leave your silver on the fly by
RGR I read about graphene and its qualities are really something. Great electrical conductor. Given enough time it’ll probably be like semiconductors. As more are produced the price will drop and the uses will go straight up. Silver is a scarce resource with many uses outside graphene but it would not surprise me that they are used side by side in some applications.