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Silver Market

ronorono
in Other Investing
Howdy folks,

Silver continues to shine relative to all else, particularly gold. YTD, gold is up ~55% while silver is up ~74%. Geez, silver was up almost 5% Wednesday and another 6% today. Silver is crushing due to a lack of supply in the face of enormous demand for physical bullion. This is putting pressure on both the COMEX and particularly LME (London). You see there are two distinct markets in precious metals - paper and physical. Silver has been in severe backwardation for quite a while now with demand for physical bullion outstripping the paper trade. Historically, most paper contracts are simply rolled over when due, but now folks are actually demanding the real metal. 'How dare you! ' December is a delivery month and there is a severe shortage of actual silver bullion available to fulfill the contracts.

Some 70% of new silver comes as a byproduct of other mining such as lead, zinc and copper. This makes it very hard to scale up production in the short run. In addition, silver has enormous industrial demand - solar, EVs, circuitry, photography, medicine, reflective uses, etc. That puts a huge floor under the price.

https://silverinstitute.org/silver-in-industry/

On the demand side, you have the debasement trade and that's happening with the Central and Sovereign banks and folks that don't care for the smell of things.

Rather than default, I suspect both exchanges are going to be willing to pay most any price for bullion. This should manifest itself over the next few weeks. We'll see.

I'm just a old momentum investor who has been stacking silver for going on 70 years. This is my 3rd bull market and I'm right now I'm in a constant state of multiple orgasms. Hell, I can't even stand up in mixed company.

For paper metals, I trust Sprott and do NOT trust the basic bullion ETFs such as SLV. Nope, nope, nope. While physical possession is ideal, most of us augment that with paper bullion and miners.

Right now I'm riding SLVR, SGDJ, PSLV, CEF, SILJ. Note that most of these are miners. I particularly like the juniors and penny stocks. Nose bleed stuff for sure . . . but WTF we only live once.

and so it goes,

peace,

rono



Comments

  • yogibearbullyogibearbull
    edited November 28
    Gold:Silver ratio peaked at 105 in 04/2025 (gold was hot) and is now 76 (silver has been shining for months). Recent low for the ratio was 73 in 11/2024.

    Edit/Add: Gold:Silver chart (E.O.D.) https://schrts.co/pNJHhiAh
  • Old_JoeOld_Joe
    @rono- Thanks very much for that info- I was wondering what the heck was going on.
    OJ
  • MarkMark
    Sounds like it's time for me to dig out my pre-1965 dimes, quarters and half dollars.
  • hank
    edited November 28
    @rono - Twain had it right: ”All that glitters is not gold.”

    And I’m old enough to remember the Hunt brothers.
    :)
  • JD_co
    "Hell, I can't even stand up in mixed company."

    LOL!

    5%+ return per day is a substitute for little blue pills.
  • hank
    Don’t take away my little blue pills! BARF rising but can’t keep up with precious metals.
  • WABACWABAC
    Shoot off a flare when I should sell all the inherited odds and ends that we never use.

    It might be an apocryphal story that the Hunt Brothers attempted corner ended with an influx of silverware and tea and coffee settings..

    Has anyone tried to corner a market since them?
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