Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
UK House Prices Momentum Tory Seats Forecast General Election 2019 - 8th Dec 19
Why Labour is Set to Lose Sheffield Seats at General Election 2019 - 8th Dec 19
Gold and Silver Opportunity Here Is As Good As It Gets - 8th Dec 19
High Yield Bond and Transports Signal Gold Buy Signal - 8th Dec 19
Gold & Silver Stocks Belie CoT Caution - 8th Dec 19
Will Labour Government Spending Bankrupt Britain? UK Debt and Deficits - 7th Dec 19
Lib Dem Fake Tory Election Leaflets - Sheffield Hallam General Election 2019 - 7th Dec 19
You Should Be Buying Gold Stocks Now - 6th Dec 19
The End of Apple Has Begun - 6th Dec 19
How Much Crude Oil Do You Unknowingly Eat? - 6th Dec 19
Labour vs Tory Manifesto Voter Bribes Impact on UK General Election Forecast - 6th Dec 19
Gold Price Forecast – Has the Recovery Finished? - 6th Dec 19
Precious Metals Ratio Charts - 6th Dec 19
Climate Emergency vs Labour Tree Felling Councils Reality - Sheffield General Election 2019 - 6th Dec 19
What Fake UK Unemployment Statistics Predict for General Election Result 2019 - 6th Dec 19
What UK CPI, RPI and REAL INFLATION Predict for General Election Result 2019 - 5th Dec 19
Supply Crunch Coming as Silver Miners Scale Back - 5th Dec 19
Gold Will Not Surpass Its 1980 Peak - 5th Dec 19
UK House Prices Most Accurate Predictor of UK General Elections - 2019 - 5th Dec 19
7 Year Cycles Can Be Powerful And Gold Just Started One - 5th Dec 19
Lib Dems Winning Election Leaflets War Against Labour - Sheffield Hallam 2019 - 5th Dec 19
Do you like to venture out? Test yourself and see what we propose for you - 5th Dec 19
Great Ways To Make Money Over Time - 5th Dec 19
Calculating Your Personal Cost If Stock, Bond and House Prices Return To Average - 4th Dec 19
Will Labour Government Plant More Tree's than Council's Like Sheffield Fell? - 4th Dec 19
What the UK Economy GDP Growth Rate Predicts for General Election 2019 - 4th Dec 19
Gold, Silver and Stock Market Big Picture: Seat Belts Tightened - 4th Dec 19
Online Presence: What You Need to Know About What Others Know About You - 4th Dec 19
New Company Tip: How To Turn Prospects into Customers with CRM Tech - 4th Dec 19
About To Relive The 2007 US Housing Market Real Estate Crash Again? - 3rd Dec 19
How Far Will Gold Reach Before the Upcoming Reversal? - 3rd Dec 19
Is The Current Stock Market Rally A True Valuation Rally or Euphoria? - 3rd Dec 19
Why Shale Oil Not Viable at $45WTI Anymore, OPEC Can Dictate Price Again - 3rd Dec 19
Lib Dem Election Dodgy Leaflets - Sheffield Hallam Battle General Election 2019 - 3rd Dec 19
Land Rover Discovery Sport Brake Pads Uneven Wear Dash Warning Message at 2mm Mark - 3rd Dec 19
The Rise and Evolution of Bitcoin - 3rd Dec 19
Virtual games and sport, which has one related to the other - 3rd Dec 19
The Narrative About Gold is Changing Again - 2nd Dec 19
Stock Market Liquidity & Volume Diminish – What Next? - 2nd Dec 19
A Complete Guide To Finding The Best CFD Broker - 2nd Dec 19
See You On The Dark Side Of The Moon - 2nd Dec 19
Will Lib Dems Win Sheffield Hallam From Labour? General Election 2019 - 2nd Dec 19
Stock Market Where Are We?  - 1st Dec 19
Will Labour's Insane Manifesto Spending Plans Bankrupt Britain? - 1st Dec 19
Labour vs Tory Manifesto Debt Fuelled Voter Bribes Impact on UK General Election - 30th Nov 19
Growing Inequality Unrest Threatens Mining Industry - 30th Nov 19
Conspiracy Theories Are Killing This Nation - 30th Nov 19
How to Clip a Budgies / Parakeets Wings, Cut / Trim Bird's Flight Feathers - 30th Nov 19
Hidden Failure of SIFI Banks - 29th Nov 19
Use the “Ferrari Pattern” to Predictably Make 431% with IPOs - 29th Nov 19
Tax-Loss Selling Drives Down Gold and Silver Junior Stock Prices - 29th Nov 19
We Are on the Brink of the Second Great Depression - 29th Nov 19
How to Spot REAL Amazon Black Friday Bargains and Avoid FAKE Sales - 29th Nov 19

Market Oracle FREE Newsletter

UK House prices predicting general election result

Silver Price Ignition or Money Reasserting: When Silver Investment Demand Merges with Industrial Demand

Commodities / Gold and Silver 2016 Jul 20, 2016 - 06:42 PM GMT

By: Dr_Jeff_Lewis

Commodities

A long time reader and forum member posted the following with a question regarding silver industrial demand:

“The question that begs an answer, is how will this ultimately effect the monetary value of Silver and does that foretell a change in investment strategies?” (Full comment below).  


Courtesy of GoldChartsRUS.com

In a market like silver, where price has not reflected true supply and demand for decades, an interesting syndrome evolves. 

It can be somewhat of a curse -- and a rational reaction when something seems too good to be true. 

We are constantly look over our shoulders for that final clever explanation we overlooked for why current prices may actually be a natural expression. 

This cord vibrates loudest surrounding discussion of industrial demand. Again, as our subscriber points out below, there will be at some point replacements for certain uses. 

But ultimately, many of the more 'price-inelastic' uses will remain for years to come. 

(Our silver battery expert pointed out the US military submersible programs are slated for silver zinc batteries for the next 60 years). 

Another problem with this curse - or the (natural) resistance for believing in something that seems too good to be true (in large part because we collectively believe the system that created the mismatch is eternal) - is that for silver, investment demand has been essentially stifled along side of price. 

When that side of the proverbial coin is expressed in just a small portion of it's potential... it's a game changer like nothing else. 

At that point silver's importance as a industrial commodity may pale in comparison with it's role as a wealth asset or simply money itself.

At that point, COMEX doesn’t matter, though it may ‘function’ as a propaganda tool

Obviously, many will simply assert that ‘they’ will not let that happen.

As if ‘they’ were unlimited in their power to suppress nature. 

That discussion is for another day. 

Full reader comment:

Thanks for the great 'uses' article, quite compelling in a few ways. 

Clearly the industrial demand for Silver is constantly growing, I would say primarily in Electronics, Solar PV and Anti-Microbial applications. While the white metal offers unique physical properties above and beyond other metals, it is also true that the scientific based innovating companies/academia circles are forever skeptical about the constantly changing price/oz reality of this precious metal. Scientists are forced to understand the formulas of finance and commerce, much to their disgust usually.

One of the most significant 'rules of thumb' in the creative laboratory environment (especially when sourcing raw material replacements for commerce) is to not waste time formulating with any material that is an unknown or a moving target in pricing/cost. 

However, matching or beating the desirable properties of Silver with something from the lab is a very daunting challenge. I believe Silver will be entrenched in technologies up until the point where the price skyrockets and begins to change the profitability picture in those technologies. 

Then, old projects will come off the shelf, new ones started and the game will be on......fortunately for us 'stackers' this process will take a decade or so to ultimately replace Silver in some key applications, if ever. 

So the question that begs an answer, is how will this ultimately effect the monetary value of Silver and does that foretell a change in investment strategies? 

For myself, my primary investment strategy in Silver is to protect my discretionary wealth (and to grow it) for the next 2-10 years, as I am convinced we are at the threshold of very meaningful upswings in value. 

And if all goes well, my children might reap the benefits long after I am gone. As my grandfather taught us tadpoles in my day, 'they don't put pockets in caskets ya know'. 

I will sleep well tonight, thank you!

1. To receive early notification for new articles, click here. 

2. Or to view all of our products and services, click here. 

3. Or...support the cause, and buy me a cold one! 

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com

    Copyright © 2015 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dr. Jeff Lewis Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules